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How the F#@$ Do I Get Distribution
                   in the Family Entertainment Space!?
                          Byrne Reese, MamaBear Conference, 2012
Tuesday, April 17, 12
is in the

                        Family Mobile Entertainment
                                                  space.




                             Copyright 2012, Toy Talk Inc. Private and Confidential

Tuesday, April 17, 12
Our Canvases           (canvii?)

       Key Partners           Key Activities           Value Props.                   Customer Relationships   Customer Segments
                                                                                      App Store
                                                        Some super awesome            Get Satisfaction         Parents of 4-12
                                                        feature that will make kids   YouTube                  year olds.
                                                        love your product.            Facebook
                                                                                      Twitter                  (mothers esp.)
                                                                                      Email
                                                        Some amazingly compelling
                              Key Resources             capability that will make     Channels/Distribution    Children, ages
                                ng


                                                        parents want to pay you.      App Store                5-9.
                          eri



                                                                                      Web                      Children, ages
                         ine




                                                                                                               10-12.
                        Eng




       Cost Structure                                                                 Revenue Streams
                                                                                       App Store Sales - $0.99?
                                                                                       Subscriptions - $5/month?
                                                                                       Licensing - $100/seat?
                                                                                       Mixed/Split?

                                           Copyright 2012, Toy Talk Inc. Private and Confidential

Tuesday, April 17, 12
Our Canvases           (canvii?)

Key Partners           Key Activities           Value Props.                   Customer Relationships   Customer Segments
                                                                               App Store
                                                 Some super awesome            Get Satisfaction         Parents of 4-12
                                                 feature that will make kids   YouTube                  year olds.
                                                 love your product.            Facebook
                                                                               Twitter                  (mothers esp.)
                                                                               Email
                                                 Some amazingly compelling
                       Key Resources             capability that will make     Channels/Distribution    Children, ages
                         ng


                                                 parents want to pay you.      App Store                5-9.
                   eri



                                                                               Web                      Children, ages
                  ine




                                                                                                        10-12.
                 Eng




Cost Structure                                                                 Revenue Streams
                                                                                App Store Sales - $0.99?
                                                                                Subscriptions - $5/month?
                                                                                Licensing - $100/seat?
                                                                                Mixed/Split?

                                    Copyright 2012, Toy Talk Inc. Private and Confidential
The Problem
                        Discovery via the Web doesn’t happen.




                                Copyright 2012, Toy Talk Inc. Private and Confidential

Tuesday, April 17, 12
The Problem
                        Discovery via the Web doesn’t happen.
                        All B2C canvases for mobile apps are
                        thus dependent upon the App Store.



                                Copyright 2012, Toy Talk Inc. Private and Confidential

Tuesday, April 17, 12
The Problem
                        Discovery via the Web doesn’t happen.
                        All B2C canvases for mobile apps are
                        thus dependent upon the App Store.
                         Discovery in the App Store is hard.

                                Copyright 2012, Toy Talk Inc. Private and Confidential

Tuesday, April 17, 12
The Problem
                        Discovery via the Web doesn’t happen.
                                              S:
                                          E Smobile apps are
                                       N Lfor I N
                         All B2C canvases R E
                                    U
                                     YO   A
                                        Uupon the App Store.
                         thus dependent O P 2 5
                                      TH ET
                          Discovery in the App Store is hard.

                                Copyright 2012, Toy Talk Inc. Private and Confidential

Tuesday, April 17, 12
How to get into the Top 25...



Tuesday, April 17, 12
Conventional Wisdom...
                                         Downloads per day:

                                                         Free                              Paid

                        Top 50                         25,000                             2,500

                        Top 25                    50,000                                  5,000

                        Top 10                         80,000                             10,000


                                 Copyright 2012, Toy Talk Inc. Private and Confidential

Tuesday, April 17, 12
Get Lucky
                        Copyright 2012, Toy Talk Inc. Private and Confidential

Tuesday, April 17, 12
Cheat
                        Copyright 2012, Toy Talk Inc. Private and Confidential

Tuesday, April 17, 12
Cheat
                        Copyright 2012, Toy Talk Inc. Private and Confidential

Tuesday, April 17, 12
Buy Your Way In
                        Copyright 2012, Toy Talk Inc. Private and Confidential

Tuesday, April 17, 12
The Solutions

                        1. Get Lucky
                        2. Cheat
                        3. Buy Your Way In


                                Copyright 2012, Toy Talk Inc. Private and Confidential

Tuesday, April 17, 12
Doing the Math     (generously)




                        Copyright 2012, Toy Talk Inc. Private and Confidential

Tuesday, April 17, 12
Doing the Math     (generously)



                                     $0.20 CPC



               $0.20
               click


                        Copyright 2012, Toy Talk Inc. Private and Confidential

Tuesday, April 17, 12
Doing the Math     (generously)



                                 $0.20 CPC
                             10% conversion rate


               $0.20   100 clicks
                     x
               click 10 downloads


                            Copyright 2012, Toy Talk Inc. Private and Confidential

Tuesday, April 17, 12
Doing the Math     (generously)



                                  $0.20 CPC
                             10% conversion rate
                        only 25,000 downloads needed
               $0.20   100 clicks   25,000 downloads
                     x            x
               click 10 downloads          day


                            Copyright 2012, Toy Talk Inc. Private and Confidential

Tuesday, April 17, 12
Doing the Math     (generously)



                                  $0.20 CPC
                             10% conversion rate
                        only 25,000 downloads needed
               $0.20   100 clicks   25,000 downloads
                     x
               click 10 downloads
                                  x
                                           day
                                                     =                               $50,000
                                                                                       per day




                            Copyright 2012, Toy Talk Inc. Private and Confidential

Tuesday, April 17, 12
Ouch.


                        Copyright 2012, Toy Talk Inc. Private and Confidential

Tuesday, April 17, 12
Copyright 2012, Toy Talk Inc. Private and Confidential

Tuesday, April 17, 12
We are all stuck playing this
                               game. Why?




                              Copyright 2012, Toy Talk Inc. Private and Confidential

Tuesday, April 17, 12
We are all stuck playing this
                               game. Why?
                  rs
               ye e
              u r
             b e
       Th ae ll h
        a re



                              Copyright 2012, Toy Talk Inc. Private and Confidential

Tuesday, April 17, 12
Where else are the buyers?




                             Copyright 2012, Toy Talk Inc. Private and Confidential

Tuesday, April 17, 12
Where else are the buyers?




                             Copyright 2012, Toy Talk Inc. Private and Confidential

Tuesday, April 17, 12
We have researched two of the
                          largest places where parents
                                   congregate...

                            some of
                        Here’s^ what we found...


Tuesday, April 17, 12
Child Age Distribution
                                                                by gender
                                                         Male                   Female
                        60
                        45
          company A




                        30
                        15
                         0
                             <1   1   2   3    4     5      6     7         8     9      10   11   12   13   14   15+

                        60
                        45
          company B




                        30
                        15
                         0
                             <1   1   2   3    4     5      6     7         8     9      10   11   12   13   14   15+
                                                                      Age
                                          Copyright 2012, Toy Talk Inc. Private and Confidential

Tuesday, April 17, 12
Parents with at least one child
                        between the ages of 5 and 12
                            company A                                              company B




                                    33%                                                   32%

                          67%                                                 68%



                                                   Bingo          Nope.

                                 Copyright 2012, Toy Talk Inc. Private and Confidential

Tuesday, April 17, 12
What motivates parents to
                              purchase an app?
            100%

             80%
                                    68%
                          60%
             60%

             40%

             20%
                                                       4%                                4%     6%
                                                                     1%
               0%
                           Education          Play with Physical Toys                  See Kids LOL

                   21% of respondents said they                     23% of respondents said they
                   typically do not buy kids apps.                  typically do not buy kids apps.
                                    Copyright 2012, Toy Talk Inc. Private and Confidential

Tuesday, April 17, 12
Enough graphs.
                              Suffice it to say, we have a lot of them.




                        The point is...
                         Copyright 2012, Toy Talk Inc. Private and Confidential

Tuesday, April 17, 12
There are channels outside
                                the App Store with
                        millions of potential customers

                             that spend BILLIONS.


                               Copyright 2012, Toy Talk Inc. Private and Confidential

Tuesday, April 17, 12
And when we asked them,
                        “so how many digital products
                         have you helped promote?”




                              Copyright 2012, Toy Talk Inc. Private and Confidential

Tuesday, April 17, 12
And when we asked them,
                        “so how many digital products
                         have you helped promote?”

                                          They answered,
                         “I don’t know. Maybe two?”

                              Copyright 2012, Toy Talk Inc. Private and Confidential

Tuesday, April 17, 12
2?!
                        Copyright 2012, Toy Talk Inc. Private and Confidential

Tuesday, April 17, 12
Easier said than done

                        • Activating a channel takes time.
                        • Both sides need find the value in the relationship.




                                     Copyright 2012, Toy Talk Inc. Private and Confidential

Tuesday, April 17, 12
Don’t change the rules.




                        Copyright 2012, Toy Talk Inc. Private and Confidential

Tuesday, April 17, 12
Don’t change the rules.


                        Change the game.

                         Copyright 2012, Toy Talk Inc. Private and Confidential

Tuesday, April 17, 12
Thank you.


                        Copyright 2012, Toy Talk Inc. Private and Confidential

Tuesday, April 17, 12

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Byrne Reese w/ Toy Talk @ MamaBear Conference, Mt. View 4/20

  • 1. How the F#@$ Do I Get Distribution in the Family Entertainment Space!? Byrne Reese, MamaBear Conference, 2012 Tuesday, April 17, 12
  • 2. is in the Family Mobile Entertainment space. Copyright 2012, Toy Talk Inc. Private and Confidential Tuesday, April 17, 12
  • 3. Our Canvases (canvii?) Key Partners Key Activities Value Props. Customer Relationships Customer Segments App Store Some super awesome Get Satisfaction Parents of 4-12 feature that will make kids YouTube year olds. love your product. Facebook Twitter (mothers esp.) Email Some amazingly compelling Key Resources capability that will make Channels/Distribution Children, ages ng parents want to pay you. App Store 5-9. eri Web Children, ages ine 10-12. Eng Cost Structure Revenue Streams App Store Sales - $0.99? Subscriptions - $5/month? Licensing - $100/seat? Mixed/Split? Copyright 2012, Toy Talk Inc. Private and Confidential Tuesday, April 17, 12
  • 4. Our Canvases (canvii?) Key Partners Key Activities Value Props. Customer Relationships Customer Segments App Store Some super awesome Get Satisfaction Parents of 4-12 feature that will make kids YouTube year olds. love your product. Facebook Twitter (mothers esp.) Email Some amazingly compelling Key Resources capability that will make Channels/Distribution Children, ages ng parents want to pay you. App Store 5-9. eri Web Children, ages ine 10-12. Eng Cost Structure Revenue Streams App Store Sales - $0.99? Subscriptions - $5/month? Licensing - $100/seat? Mixed/Split? Copyright 2012, Toy Talk Inc. Private and Confidential
  • 5. The Problem Discovery via the Web doesn’t happen. Copyright 2012, Toy Talk Inc. Private and Confidential Tuesday, April 17, 12
  • 6. The Problem Discovery via the Web doesn’t happen. All B2C canvases for mobile apps are thus dependent upon the App Store. Copyright 2012, Toy Talk Inc. Private and Confidential Tuesday, April 17, 12
  • 7. The Problem Discovery via the Web doesn’t happen. All B2C canvases for mobile apps are thus dependent upon the App Store. Discovery in the App Store is hard. Copyright 2012, Toy Talk Inc. Private and Confidential Tuesday, April 17, 12
  • 8. The Problem Discovery via the Web doesn’t happen. S: E Smobile apps are N Lfor I N All B2C canvases R E U YO A Uupon the App Store. thus dependent O P 2 5 TH ET Discovery in the App Store is hard. Copyright 2012, Toy Talk Inc. Private and Confidential Tuesday, April 17, 12
  • 9. How to get into the Top 25... Tuesday, April 17, 12
  • 10. Conventional Wisdom... Downloads per day: Free Paid Top 50 25,000 2,500 Top 25 50,000 5,000 Top 10 80,000 10,000 Copyright 2012, Toy Talk Inc. Private and Confidential Tuesday, April 17, 12
  • 11. Get Lucky Copyright 2012, Toy Talk Inc. Private and Confidential Tuesday, April 17, 12
  • 12. Cheat Copyright 2012, Toy Talk Inc. Private and Confidential Tuesday, April 17, 12
  • 13. Cheat Copyright 2012, Toy Talk Inc. Private and Confidential Tuesday, April 17, 12
  • 14. Buy Your Way In Copyright 2012, Toy Talk Inc. Private and Confidential Tuesday, April 17, 12
  • 15. The Solutions 1. Get Lucky 2. Cheat 3. Buy Your Way In Copyright 2012, Toy Talk Inc. Private and Confidential Tuesday, April 17, 12
  • 16. Doing the Math (generously) Copyright 2012, Toy Talk Inc. Private and Confidential Tuesday, April 17, 12
  • 17. Doing the Math (generously) $0.20 CPC $0.20 click Copyright 2012, Toy Talk Inc. Private and Confidential Tuesday, April 17, 12
  • 18. Doing the Math (generously) $0.20 CPC 10% conversion rate $0.20 100 clicks x click 10 downloads Copyright 2012, Toy Talk Inc. Private and Confidential Tuesday, April 17, 12
  • 19. Doing the Math (generously) $0.20 CPC 10% conversion rate only 25,000 downloads needed $0.20 100 clicks 25,000 downloads x x click 10 downloads day Copyright 2012, Toy Talk Inc. Private and Confidential Tuesday, April 17, 12
  • 20. Doing the Math (generously) $0.20 CPC 10% conversion rate only 25,000 downloads needed $0.20 100 clicks 25,000 downloads x click 10 downloads x day = $50,000 per day Copyright 2012, Toy Talk Inc. Private and Confidential Tuesday, April 17, 12
  • 21. Ouch. Copyright 2012, Toy Talk Inc. Private and Confidential Tuesday, April 17, 12
  • 22. Copyright 2012, Toy Talk Inc. Private and Confidential Tuesday, April 17, 12
  • 23. We are all stuck playing this game. Why? Copyright 2012, Toy Talk Inc. Private and Confidential Tuesday, April 17, 12
  • 24. We are all stuck playing this game. Why? rs ye e u r b e Th ae ll h a re Copyright 2012, Toy Talk Inc. Private and Confidential Tuesday, April 17, 12
  • 25. Where else are the buyers? Copyright 2012, Toy Talk Inc. Private and Confidential Tuesday, April 17, 12
  • 26. Where else are the buyers? Copyright 2012, Toy Talk Inc. Private and Confidential Tuesday, April 17, 12
  • 27. We have researched two of the largest places where parents congregate... some of Here’s^ what we found... Tuesday, April 17, 12
  • 28. Child Age Distribution by gender Male Female 60 45 company A 30 15 0 <1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15+ 60 45 company B 30 15 0 <1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15+ Age Copyright 2012, Toy Talk Inc. Private and Confidential Tuesday, April 17, 12
  • 29. Parents with at least one child between the ages of 5 and 12 company A company B 33% 32% 67% 68% Bingo Nope. Copyright 2012, Toy Talk Inc. Private and Confidential Tuesday, April 17, 12
  • 30. What motivates parents to purchase an app? 100% 80% 68% 60% 60% 40% 20% 4% 4% 6% 1% 0% Education Play with Physical Toys See Kids LOL 21% of respondents said they 23% of respondents said they typically do not buy kids apps. typically do not buy kids apps. Copyright 2012, Toy Talk Inc. Private and Confidential Tuesday, April 17, 12
  • 31. Enough graphs. Suffice it to say, we have a lot of them. The point is... Copyright 2012, Toy Talk Inc. Private and Confidential Tuesday, April 17, 12
  • 32. There are channels outside the App Store with millions of potential customers that spend BILLIONS. Copyright 2012, Toy Talk Inc. Private and Confidential Tuesday, April 17, 12
  • 33. And when we asked them, “so how many digital products have you helped promote?” Copyright 2012, Toy Talk Inc. Private and Confidential Tuesday, April 17, 12
  • 34. And when we asked them, “so how many digital products have you helped promote?” They answered, “I don’t know. Maybe two?” Copyright 2012, Toy Talk Inc. Private and Confidential Tuesday, April 17, 12
  • 35. 2?! Copyright 2012, Toy Talk Inc. Private and Confidential Tuesday, April 17, 12
  • 36. Easier said than done • Activating a channel takes time. • Both sides need find the value in the relationship. Copyright 2012, Toy Talk Inc. Private and Confidential Tuesday, April 17, 12
  • 37. Don’t change the rules. Copyright 2012, Toy Talk Inc. Private and Confidential Tuesday, April 17, 12
  • 38. Don’t change the rules. Change the game. Copyright 2012, Toy Talk Inc. Private and Confidential Tuesday, April 17, 12
  • 39. Thank you. Copyright 2012, Toy Talk Inc. Private and Confidential Tuesday, April 17, 12