Online Video Revenue Models

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Presentation from one of the founders of Juno Interactive on Online Video Revenue Models at the Australasian Media & Broadcast Summit in Sydney, Australia - July 2010.

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Online Video Revenue Models

  1. 1. ONLINE VIDEO REVENUE MODELS WHAT WORKS , WHAT DOESN'T AND WHY < presenter > Jimmy Storrier </ presenter > < role > Head of Customer Development </ role > < company > Juno Interactive </ company > < website > http://junointeractive.com.au </ website >
  2. 2. DID YOU KNOW?
  3. 3. Videos per Day: Annual Revenues: 2 BILLION $700 - $900 MILLION
  4. 4. Videos per Month: Annual Revenues: 1 BILLION $100 - $250 MILLION
  5. 5. Annual Revenues: Mins per Month: 660 MILLION >$2 BILLION
  6. 6. THIS ISN'T A TEA PARTY ANYMORE
  7. 7. WHAT IS VIDEO CONTENT WORTH ?
  8. 8. CONTENT = $0
  9. 9. USERS EXPECT CONTENT TO BE FREE
  10. 10. PEOPLE ARE SMART AT DETERMINING VALUE THEY DON'T KNOW IT, THEY JUST DO IT
  11. 13. “ YOU HAVE TO LIKEN P2P TO TAP WATER . It is always going to be there; it's free, and people are going to use it. ” – Wayne Rosso, President, Grokster
  12. 14. … BUT BOTTLED WATER MAKERS MAKE A LOT OF MONEY TOO
  13. 15. “ WE'LL ALL BE ROONED ” said Hanrahan “ BEFORE THE YEAR IS OUT”
  14. 17. “ The horse is here to stay, but the automobile is only a novelty, a fad.” “ I think there is a market for maybe five computers ” “ There is no reason anyone would want a computer in their home” “ While theoretically and technically television may be feasible, commercially and financially it is an impossibility” “ The telephone has too many shortcomings to be seriously considered as a means of communication” “ Who the hell wants to hear actors talk?”
  15. 18. It's not necessary to change . Survival is not mandatory. – W. Edwards Deming
  16. 19. OLD MODEL VS NEW MODEL
  17. 20. OWN THE DISTRIBUTION
  18. 21. OWN THE CONTENT
  19. 22. = GET REAL RICH
  20. 24. WHY PEOPLE USED TO PAY:
  21. 25. THE INTERNET YOU CAN'T OWN THIS
  22. 26. DISTRIBUTION EXCLUSIVITY: SO WHAT?
  23. 27. CONTENT EXCLUSIVITY: SO WHAT?
  24. 28. YOUR VALUE <> CONSUMER VALUE
  25. 29. THE CONSUMER IS KING
  26. 31. NOT IN THE CONTENT BUSINESS IN THE AUDIENCE BUSINESS
  27. 33. NO CHANGE IN BROADCAST RATINGS 45% INCREASE IN PIRACY LARGE DECREASES IN WEBSITE TRAFFIC
  28. 34. TRADING ANALOG(UE) DOLLARS FOR DIGITAL PENNIES
  29. 35. VALUE OF A PERSON NOT WATCHING = $0
  30. 36. WHAT CONTENT OWNERS HEAR: I'M A PIRATE ... ARRRR
  31. 37. PIRATES ARE NOT THE ENEMY
  32. 38. WHAT PEOPLE ARE ACTUALLY SAYING: “ GIVE ME WHAT I WANT, WHEN I WANT, WHERE I WANT”
  33. 39. VIDEO ADVERTISING
  34. 40. ONLINE VIDEO IS NOT TV 2.0
  35. 41. NOT ALL M'S ARE CREATED EQUAL
  36. 42. TELEVISION CP ONLINE VIDEO CP
  37. 44. CPM IS EVIL KILL CPM
  38. 45. “ LET'S DO SOMETHING DIFFERENT !”
  39. 47. MEDIA PLANNER / BUYER
  40. 51. MEDIA PLANNER / BUYER
  41. 55. DETERMINE WHAT ADVERTISERS WANT CHARGE THEM FOR THAT
  42. 56. 1) NOT A TEA PARTY 2) CONTENT IS WORTH NOTHING (ON ITS OWN) 3) VIDEO ADVERTISING IS BROKEN (BUT CAN BE FIXED)
  43. 57. QUESTIONS?
  44. 58. WHY RESEARCH ANALYSTS KEEP THEIR CV UP TO DATE:
  45. 59. “ The paid download market will continue to grow throughout 2007 - from $98m to $279m at the end of the year – but growth will slow significantly at that point” – Forrester, 2007
  46. 60. 115% 82% 46% Paid Downloads YoY Growth: MOVIE CONTENT

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