Monetisation Models for TV Apps


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Monetisation Models for TV Apps
* Two screen & one screen strategies
* The tablet as the bridging screen between the mobile & the TV
* Virtual gifts

Richard Kastelein
CEO, Agora Media Innovation

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Monetisation Models for TV Apps

  1. 1. Monetisation Models for TV Apps<br /><ul><li>Two screen & one screen strategies
  2. 2. The tablet as the bridging screen between the mobile & the TV
  3. 3. Virtual gifts</li></li></ul><li>Two screen & one screen strategies<br />Second Screen Triggers – audio syncing, preset, real-time between live or vod/catchup – INTONOW, PLAYTOTV<br />Pushing viewers to single screen apps for augmented brand experiences<br />Overlays on Single Screen or Landscape division<br />Check-ins – Not.<br />Facebook TV wins?<br />
  4. 4. The tablet as the bridging screen between the mobile & the TV <br />Viable mobile tv everywhere<br />Easy interaction with single screen connected TV apps. Reduce screen clutter.<br />Easy EPG – Easy recommendation engine integration with Facebook and Twitter. <br />Content marries with Tablet brilliantly –stream web content right to Big Screen TV using DNLA.<br />
  5. 5. Virtual gifts 2011 – The Hidden Jewel behind monetisation<br />$7,300,000,000: global revenue generated by the virtual goods industry in 2011. <br />$2,100,000,000: The projected size of the US virtual goods market in 2011.<br />80,000,000: the all-time high number of Farmville players on Facebook. <br />20 % of Electronic Art's overall revenue generated by digital sales in 2011<br />New world record for the single largest purchase in an online game $635,000 for a a virtual intergalactic resort on Planet Calypso.<br />
  6. 6. Virtual gifts <br />The seller, Mr. Jon 'Neverdie' Jacobs had already made over half a million dollars in online real estate.<br />The total number of items in IMVU's virtual goods catalog - 4,000,000 - and over 5,000 new items added every day, primarily created and uploaded by IMVU's own user community.<br />90,000,000: number of Pet Society virtual goods sold every single day. According to developer EA/Playfish, their most popular title has 20 million users, double that of World of Warcraft. It's no wonder that EA was willing to pay $400 million to acquire the hot social developers of it in 2009.<br />
  7. 7. Virtual gifts<br />US version of The X Factor is to allow voting by Facebook Credits<br />Tesco and Game began to sell £10 and £20 Facebook gift cards in its UK stores.<br />Zynga recently grossed $100 million in virtual currency in one month alone - giving Facebook $30 million who take 30%.<br />Facebook will eventually begin allowing third-party websites to offer a ‘Pay With Facebook’ option, and that may include everything from digital content to physical goods.<br />
  8. 8. Monetising Apps<br />Advertising? Will it work? For branding yes.<br />Pay-per-App (iPhone Model)– Freemium will work – Pay for More<br />tCommerce – Second Screen – for example...product placement to second screen wallet – view/buy later<br />tCommerce – Single screen, for example… Betfair, VOD subscription, Pay per view<br />Tokens – voting, buying, competing, Game Mechanics<br />Micropayments – Paypal, Telecoms?<br />Affiliation deals for merchandise, goods, service<br />
  9. 9. TWO SCREEN STRATEGIES - WHY?<br />Both Wired Magazine and MIT Technology Review Note Social TV as a Game Changer in 2011<br />David Rowan, the Editor of Wired magazine has named Social TV at number three of six in his peek into 2011 and what tech trends to expect to get traction. <br />Couple that with the MIT Technology Review tagging Social TV in the top 10 most important emerging technologies a few months ago and it seems we have both the tech press and academia in agreement. Social TV is a game changer - the intersection of TV and the Web will largely be driven by Social Media - it's natural. TV is inherently social - and Social Media is a conduit. Put them together in a workable, ergonomic way and the convergence will have impact.<br />
  10. 10. TWO SCREEN STRATEGIES - WHY?<br />Endemol CEO - "Social TV is Going to Be Huge”<br />Everyone says that social television will be big. I think it’s not going to be big — it’s going to be huge,” Ynon Kreiz, CEO of the Endemol group, the largest independent television production company in the world, told attendees at the Digital Life Design (DLD) conference this week.“We think that social media meets television is the next big thing,” he said. <br />“The ability to create content that will enable people to interface with each other, to connect, to recommend, to share and experience over television, is going to change the landscape of the industry. ”In fact, Kreiz encouraged people to “get up, leave this room” and run to their garages to get to work designing the future of social TV. “Whoever figures it out, will be the next Steve Jobs of this generation,” he said.<br /><br />
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  12. 12. Richard Kastelein CEO of Agora Innovation, London, UK - Founder of<br /><br />