The document discusses different online video revenue models and challenges facing the video content industry. It notes that people now watch billions of videos online every day and month, but generating significant revenue from online video has been difficult. Traditional models of owning distribution and content are no longer effective in the online world where consumers expect content to be free and accessible how and where they want. New models need to focus on delivering the audience to advertisers rather than focusing only on content ownership.

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. DID YOU KNOW?

3. Videos per Day: Annual Revenues: 2 BILLION $700 - $900 MILLION

4. Videos per Month: Annual Revenues: 1 BILLION $100 - $250 MILLION

5. Annual Revenues: Mins per Month: 660 MILLION >$2 BILLION

6. THIS ISN'T A TEA PARTY ANYMORE

7. WHAT IS VIDEO CONTENT WORTH ?

8. CONTENT = $0

9. USERS EXPECT CONTENT TO BE FREE

10. PEOPLE ARE SMART AT DETERMINING VALUE THEY DON'T KNOW IT, THEY JUST DO IT

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

14. … BUT BOTTLED WATER MAKERS MAKE A LOT OF MONEY TOO

15. “ WE'LL ALL BE ROONED ” said Hanrahan “ BEFORE THE YEAR IS OUT”

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?”

18. It's not necessary to change . Survival is not mandatory. – W. Edwards Deming

19. OLD MODEL VS NEW MODEL

20. OWN THE DISTRIBUTION

21. OWN THE CONTENT

22. = GET REAL RICH

24. WHY PEOPLE USED TO PAY:

25. THE INTERNET YOU CAN'T OWN THIS

26. DISTRIBUTION EXCLUSIVITY: SO WHAT?

27. CONTENT EXCLUSIVITY: SO WHAT?

28. YOUR VALUE <> CONSUMER VALUE

29. THE CONSUMER IS KING

31. NOT IN THE CONTENT BUSINESS IN THE AUDIENCE BUSINESS

33. NO CHANGE IN BROADCAST RATINGS 45% INCREASE IN PIRACY LARGE DECREASES IN WEBSITE TRAFFIC

34. TRADING ANALOG(UE) DOLLARS FOR DIGITAL PENNIES

35. VALUE OF A PERSON NOT WATCHING = $0

36. WHAT CONTENT OWNERS HEAR: I'M A PIRATE ... ARRRR

37. PIRATES ARE NOT THE ENEMY

38. WHAT PEOPLE ARE ACTUALLY SAYING: “ GIVE ME WHAT I WANT, WHEN I WANT, WHERE I WANT”

39. VIDEO ADVERTISING

40. ONLINE VIDEO IS NOT TV 2.0

41. NOT ALL M'S ARE CREATED EQUAL

42. TELEVISION CP ONLINE VIDEO CP

44. CPM IS EVIL KILL CPM

45. “ LET'S DO SOMETHING DIFFERENT !”

47. MEDIA PLANNER / BUYER

51. MEDIA PLANNER / BUYER

55. DETERMINE WHAT ADVERTISERS WANT CHARGE THEM FOR THAT

56. 1) NOT A TEA PARTY 2) CONTENT IS WORTH NOTHING (ON ITS OWN) 3) VIDEO ADVERTISING IS BROKEN (BUT CAN BE FIXED)

57. QUESTIONS?

58. WHY RESEARCH ANALYSTS KEEP THEIR CV UP TO DATE:

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

60. 115% 82% 46% Paid Downloads YoY Growth: MOVIE CONTENT