1. New Media Value Chain
Utrecht, September 25th, 2008
Netherlands Film Festival

2. mediapeers in brief
Founded April 2007
Headquarters Berlin (Germany)
Staff 21
Sales reps Madrid (Spain), Moscow (Russia), Paris (France)
Activity mediapeers runs an international B2B marketplace for audiovisual content.
Process support ranges from Marketing, Sales, Distribution to Billing. It
provides content owners with a simple and efficient way to distribute their
content worldwide to channels, cablecos/MSOs, telcos/ISPs, mobile
operators, publishers, agencies etc.
Value proposition Buyer: One-stop-shop solution to reduce lead times & transaction cost
Seller: Low cost channel to debottleneck license distribution
Business model 15% commission on license fees
Awards – Red Herring Top 100 Tech companies Europe 2008
– Top 25 Web companies in Germany – Wirtschaftswoche
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3. What happen thus far?
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4. three waves of video services (r)evolution
Trend Digitalization of Video goes Video goes mobile
homes broadband
Key impact  Multi-channel  UGC  New usage occasion
 Ad skipping (PVR)  Bridging devices  New formats
 On demand  (S)VoD for the mass  Personalization
Video type Mostly linear channel IPTV Mix
Video device TV PC Mobile phone
Business CPM, subscription CPM, CPC, subscrip- Subscription, tariff
model tion & PPV
“1st screen” “2nd screen” “3rd screen”
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5. audiovisual content market with increasing complexity
Content supplier Usage rights Content buyer
Tradi-  Film studios  Theatrical  Theatrical distributors
tional  Independent producer  DVD  DVD distributors
(<2005)
 TV broadcaster  Pay-TV  Pay-TV platforms
 Free TV  TV Broadcasters
Emerging  Film studios  Theatrical  Theatrical distributors
(≥2005)  Independent producer  DVD/Blu-ray/HD-DVD  DVD distributors
 TV broadcaster  D2O/EST  Pay-TV platforms
 TV production houses  VoD/PPU  TV Broadcasters
 Content aggregators  SVoD  Fixnet Ops
 Archives  Pay-TV  ISPs
 OEMs  Mobile/Podcast  Web/Mobile Portals
 …  Free TV  MNOs/MVNOs
 IPTV/WebTV  Publishers
 …  …
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6. Exploding number of professional buyers of audiovisual
content
ISP/Telco
Multisystem
Operator/Cable
Mobile Network
Operator
Device-based
Services
Video on
Demand (OTT)
IPTV
Publishing
Houses
Special Interests
Services
TV Channels
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7. let's look at a big guy – what Warner Brothers is up to …
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8. look whom they partnering with in the US …
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9. … all the good old cable guys, including Comcast
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10. … online retailers like amazon
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11. … the cool device people from Cupertino – apple of course
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12. … also the not so cool console guys from Microsoft
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13. … the self declared "novelle cinéma" like cinema now
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14. … the web 2.0 folks like vudu
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15. … and even the (formerly) pirates darling BitTorrent
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16. Why should I care?
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17. well, it ain't in the numbers yet – even in the US
Percent of spend on movies and video of US consumers (13+)
Internet
1%
Cinema
18%
DVD rental DVD sales
29% 52%
Source: NPD Group, September 16, 2008
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18. or may be payment at the cashier was just forgotten?
Comparison of legal versus illegal downloads in the US, estimates for 2007
Movie Music
Source: MPAA, IFPI
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19. despite lots of hopeful cashiers (VoD platforms)
YE 2007
Source: NPA, February 19, 2008
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20. changes in industry structure become evident
Traditional Emerging
Audience
Adver-
tising
Content Audience
Content
Advertising
AV industry  Branded content
 User generated content
 Targeted advertising
 …
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21. Does it matter to me?
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22. low overall market transparency
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23. unclear attractiveness of distribution partners
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24. need to manage high complexity
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25. revenue / transaction cost imbalance
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26. What does change?
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27. new players along
the value chain
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28. metamorphosis of the value chain Traditional Player
New Player
Audience
Traditional
Access/
Production Packaging Ad inventory Distribution Consumption
Device
Emerging
Access/
Production Repurposing Aggregation Distribution Ad Inventory Consumption
Device
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29. new competitive dynamic
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30. three industries competing for share of wallet,
leisure time and ad spend
TV/Film Games
Access
Music
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31. converging or cooperating industries?
Integrate production?
Tomb
Raider
LOTR
TV/Film Games
South
Park
Maya
Matrix/8110 The Sims
Sky Mobile Need for Speed
Interact with Access MMORPG’s
the hero? as an MVNO?
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32. new entertainment products
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33. what can each industry bring to the party?
Assets Animation
 Brands  Sticky
 Stories  Engaging
Action
 Pay
 Interact
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34. kids entertainment from telco with movies and games
Kid Studio by Orange
 Videos
 Games
 Limited offer for free
 Premium offer for
monthly subscription fee
of 5€ or 7€
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35. new distribution paradigm
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36. from a few exclusive distribution channels to ubiquity
Prada Coke
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37. more non-distribution
revenues
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38. from brand positioning to merchandizing
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39. What can you do?
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40. simplified business system toolbox for digital media
Paid content Advertising
Revenue sources Transaction Traffic
One
Sub. PPU CPM CPC CPO
time
Music Video Games Search
Content/services
Hit Cat. Indi Lin. VoD UGC CG SP MMP Horiz. Vertical
Other mobile
Devices PC TV/ Console Mobile phone
devices
Fixed broadband Wireless broadband Cellular Broadcasting
Distribution
802. 802.
DSL CAT FTTx WiB 2.5G 3G IP CAT SAT DTT
11 16
40

41. apple: from humble iPod beginnings …
Paid content Advertising
Revenue sources Transaction Traffic
One
Sub. PPU CPM CPC CPO
time
Music Video Games Search
Content/services
Hit Cat. Indi Lin. VoD UGC CG SP MMP Horiz. Vertical
Other mobile
Devices PC TV/ Console Mobile phone
devices
Fixed broadband Wireless broadband Cellular Broadcasting
Distribution
802. 802.
DSL CAT FTTx WiB 2.5G 3G IP CAT SAT DTT
11 16
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42. … to media powerhouse?
Paid content Advertising
Revenue sources Transaction Traffic
One
Sub. PPU CPM CPC CPO
time
Music Video Games Search
Content/services
Hit Cat. Indi Lin. VoD UGC CG SP MMP Horiz. Vertical
Other mobile
Devices PC TV/ Console Mobile phone
devices
Fixed broadband Wireless broadband Cellular Broadcasting
Distribution
802. 802.
DSL CAT FTTx WiB 2.5G 3G IP CAT SAT DTT
11 16
42

43. let's look at a few examples
Paid content Advertising
Revenue sources Transaction Traffic
One
Sub. PPU CPM CPC CPO
time
Music Video Games Search
Content/services
Hit Cat. Indi Lin. VoD UGC CG SP MMP Horiz. Vertical
Other mobile
Devices PC TV/ Console Mobile phone
devices
Fixed broadband Wireless broadband Cellular Broadcasting
Distribution
802. 802.
DSL CAT FTTx WiB 2.5G 3G IP CAT SAT DTT
11 16
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44. (S)VoD
Paid content Advertising
Revenue sources Transaction Traffic
One
Sub. PPU CPM CPC CPO
time
Music Video Games Search
Content/services
Hit
Typical two way deal
Cat. Indi Lin. VoD UGC CG SP MMP Horiz. Vertical
Effective net revenue share:
Other mobile
Devices
30% – 50% (90%)
PC TV/ Console Mobile phone
devices
Fixed broadband Wireless broadband Cellular Broadcasting
Distribution
802. 802.
DSL CAT FTTx WiB 2.5G 3G IP CAT SAT DTT
11 16
44

45. advertizing
Paid content Advertising
Revenue sources Transaction Traffic
One
Sub. PPU CPM CPC CPO
time
Music Video Games Search
Content/services
Hit
Some three way deals
Cat. Indi Lin. VoD UGC CG SP MMP Horiz. Vertical
Effective net revenue share:
Other mobile
Devices
25.5% – 45%
PC TV/ Console Mobile phone
devices
Fixed broadband Wireless broadband Cellular Broadcasting
Distribution
802. 802.
DSL CAT FTTx WiB 2.5G 3G IP CAT SAT DTT
11 16
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46. Thank you
for your attention!
mediapeers GmbH
Am Festungsgraben 1
D-10117 Berlin
url www.mediapeers.com
email info@mediapeers.com
phone +49-30-814560-70
fax +49-30-814560-99
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