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Media Strategy
    Building Businesses for 2012 and Beyond







                  Seth Shapiro
            Los Angeles  New York    Amsterdam
Media Strategy
     Building Businesses for 2012 and Beyond


                                     Case Studies
                                and Future Possibilities




2
 010 New Amsterdam Media LLC
Clients and Partners
Life of startups: "We have a great idea !!"




        ... now how do we make a living??
Business Models


... a business model is the method of doing business by which a company can sustain itself
-- that is, generate revenue. The business model spells-out how a company makes money by
specifying where it is positioned in the value chain.
... Broadcasting is a good example... The broadcaster is part of a complex network of distributors,
content creators, advertisers... and listeners or viewers. Who makes money and how much is not
always clear at the outset.
                            – Michael Rappa, http://digitalenterprise.org
Business Models


... a business model is the method of doing business by which a company can sustain itself
-- that is, generate revenue. The business model spells-out how a company makes money by
specifying where it is positioned in the value chain.
... Broadcasting is a good example... The broadcaster is part of a complex network of distributors,
content creators, advertisers... and listeners or viewers. Who makes money and how much is not
always clear at the outset.
                            – Michael Rappa, http://digitalenterprise.org




    Business Model = "We pay the bills by..."
Will Broadband Kill Old Media?



No: will change or die... Telegraaf owns Hyves, Comcast is #1
US cable co and #1 broadband provider

People get fired. Divisions die – smart teams adapt

Huge advantage studying new and old games
The Walt Disney Company
•   World's #1media company by revenue
•   Member US Dow 30
•   80% ownership of world's most lucrative sports entity: ESPN
•   Ownership of world's valuable cable franchises: ESPN
•   Ownership of Big 4 US network: ABC (via Cap Cities acquisition)
•   Other TV networks including Disney Channel, ABC Familiy,
•   Motion picture holdings including Walt Disney Pictures, Touchstone, Buena Vista,
    Miramax
•   11 Disney Theme Parks around the world
•   Ownership of major IP brand Marvel Entertainment
•   Major products brand and retailer via Disney Consumer Products
•   Walt Disney Internet Group
•   Disney Music Group
•   Radio Disney
•   Disney Interactive Media Group
News Corporation
• World's # 3 media company by revenue
• Ownership of Big 4 US network: FOX
• TV networks including FX Networks, FOX News, FOX Sports, Big Ten Network,
    FOX Business, FOX College Sports, FUEL TV, Speed Channel, FOX Movie
    Channel
•   TV production, distribution and holdings including 20 Century Fox Television, Fox
    Broadcasting Company, FOX Studios, FOX International Channels, BSkyB,
    STAR TV, TV5 Riga, Foxtel, bTV, SKY Italia, Tata SKY, SKY Deutschland
•   Motion picture holdings including Twentieth Century FOX, FOX Searchlight,
•    Internet holdings including MySpace, AmericanIdol.com, IGN, GameSpy,
    FOX.com, AskMen.com
•   Newspapers: Wall Street Journal, New York Post, Barron's, News of the World.
    The Sun, The Times (UK)
•   Books: HarperCollins




                                            9
Comcast/NBCUniversal
•   World's largest television distributor
•   Largest Broadband distributor in the US
•   #3 US home telephone provider
•   Ownership of Big 4 US network: NBC (via 2011 acquisition)
•   Cable networks including CNBC, MSNBC, SyFy, Bravo, USA Network, E!
    Entertainment, Versus, G4, The Golf Channel
•   Part interest innetworks including A&E, the History Channel, Lifetime, Oxygen,
    Hallmark
•   Major provider of online video services including XFinity
•   Owns Spanish language broadcast Telemundo
•   5 Universal Theme Parks
•   Universal Pictures, Imagine Entertainment, Amblin, Spyglass, Relativity,
    Mandalay, Morgan Creek
•   Universal Media Studios
•   NBC Universal Television Distribution




Confidential – do not distribute               10
Digital Business 2012

                               Brief History: how did media become a business?

                               Subscription: recurring payments

                               Advertising: subsidized payments

                               New Services: what we consume

                               Analytics: data aggregation, analysis, action

                               New Platforms: how we consume

                               Conclusion
2010 New Amsterdam Media LLC
Digital Business 2012

                               Brief History of 20th century media

                               Subscription

                               Advertising

                               New Services

                               Analytics

                               New Platforms

                               Conclusion
2010 New Amsterdam Media LLC
Traditional Media Business models




2010 New Amsterdam Media LLC
Traditional Media Business models

                               Print




2010 New Amsterdam Media LLC
Traditional Media Business models

                               Print
                               Content: News, magazines, books, trade pub




2010 New Amsterdam Media LLC
Traditional Media Business models

                               Print
                               Content: News, magazines, books, trade pub
                               Distribution: Presses, delivery




2010 New Amsterdam Media LLC
Traditional Media Business models

                               Print
                               Content: News, magazines, books, trade pub
                               Distribution: Presses, delivery

                               Film




2010 New Amsterdam Media LLC
Traditional Media Business models

                               Print
                               Content: News, magazines, books, trade pub
                               Distribution: Presses, delivery

                               Film
                               Content: Motion Picture Production




2010 New Amsterdam Media LLC
Traditional Media Business models

                               Print
                               Content: News, magazines, books, trade pub
                               Distribution: Presses, delivery

                               Film
                               Content: Motion Picture Production
                               Distribution: Exhibition, regional/platform windows




2010 New Amsterdam Media LLC
Traditional Media Business models

                               Print
                               Content: News, magazines, books, trade pub
                               Distribution: Presses, delivery

                               Film
                               Content: Motion Picture Production
                               Distribution: Exhibition, regional/platform windows

                               Television




2010 New Amsterdam Media LLC
Traditional Media Business models

                               Print
                               Content: News, magazines, books, trade pub
                               Distribution: Presses, delivery

                               Film
                               Content: Motion Picture Production
                               Distribution: Exhibition, regional/platform windows

                               Television
                               Content: Programming




2010 New Amsterdam Media LLC
Traditional Media Business models

                               Print
                               Content: News, magazines, books, trade pub
                               Distribution: Presses, delivery

                               Film
                               Content: Motion Picture Production
                               Distribution: Exhibition, regional/platform windows

                               Television
                               Content: Programming
                               Distribution: Broadcast, cable, satellite




2010 New Amsterdam Media LLC
Traditional Media Business models

                               Print
                               Content: News, magazines, books, trade pub
                               Distribution: Presses, delivery

                               Film
                               Content: Motion Picture Production
                               Distribution: Exhibition, regional/platform windows

                               Television
                               Content: Programming
                               Distribution: Broadcast, cable, satellite

                               Music




2010 New Amsterdam Media LLC
Traditional Media Business models

                               Print
                               Content: News, magazines, books, trade pub
                               Distribution: Presses, delivery

                               Film
                               Content: Motion Picture Production
                               Distribution: Exhibition, regional/platform windows

                               Television
                               Content: Programming
                               Distribution: Broadcast, cable, satellite

                               Music
                               Content: Recordings and performances




2010 New Amsterdam Media LLC
Traditional Media Business models

                               Print
                               Content: News, magazines, books, trade pub
                               Distribution: Presses, delivery

                               Film
                               Content: Motion Picture Production
                               Distribution: Exhibition, regional/platform windows

                               Television
                               Content: Programming
                               Distribution: Broadcast, cable, satellite

                               Music
                               Content: Recordings and performances
                               Distribution: Replication, delivery




2010 New Amsterdam Media LLC
The Big Six
The Big Six
Walt Disney Company        Disney Pictures Buena Vista Pictures Touchstone ESPN ABC WDIG (Internet
     Group) Disneyland Parks

Time Warner       HBO Warner Bros Turner Networks Warner Music New Line (formerly) AOL

Viacom    CBS Paramount MTV Networks Showtime NIckelodeon BET CMT Comedy Central


News Corporation      FOX Companies FX Networks FOX News Foxtel Wall Street Journal NY Post
     London Times (formerly) DIRECTV

Comcast/NBC Universal Comcast Cable, NBC, MSNBC, CNBC, Universal Parks Telemundo, USA
     Networks, Bravo

Sony   Columbia Tri Star Sony Pictures Sony Music Sony Computer Sony Electronics


[various assets in MP production, MP distribution, TV production, TV distribution, theme parks, consumer
     electronics, games, music labels etc.]
Digital Business 2012

                               Broadcast

                               Subscription

                               Advertising

                               New Services

                               Analytics

                               New Platforms

                               Conclusion
2010 New Amsterdam Media LLC
Model 1: Broadcast

• The birth of radio/TV
• 20 Century Model
• Low Supply/High Demand
• Free to User
• Mass audience
• Subsidized by Platform (RCA) and Brands (GE)
Model 1: Broadcast

• The birth of radio/TV
• 20 Century Model
• Low Supply/High Demand
• Free to User
• Mass audience
• Subsidized by Platform (RCA) and Brands (GE)
Model 1: Broadcast

• The birth of radio/TV
• 20 Century Model
• Low Supply/High Demand
• Free to User
• Mass audience
• Subsidized by Platform (CE) and Brands (Adv)
Model 1: Broadcast TV
Broadcast Business Model
              How is success measured?

• Volume
• Ratings driven
• Advertisers pay per spot
• Mass ad market generally based on CPM model
• Arguably peaks in US w 1983 M*A*S*H Finale (60r/77s)
And then...
And then...
Digital Business 2012

                               Broadcast

                               Subscription

                               Advertising

                               New Services

                               Analytics

                               New Platforms

                               Conclusion
2010 New Amsterdam Media LLC
Subscription 2.0
Model 2: Cable Subscription


• Cable customers pay monthly fee
• Monthly fees allow cable to fund programming
• Monthly fees = consistent cash to producers
• Allows for mass and niche audiences
Model 2: Cable Subscription


    • Cable customers pay monthly fee
    • Monthly fees allow cable to fund programming
    • Monthly fees = consistent cash to producers
    • Allows for mass and niche audiences


Cable = + : Expanded choice
        - : High price, mediocre experience
Cable = + : Expanded choice
        - : High price, mediocre experience
Case Study:
     Dealing with broadcast vs. cable


Cable = + : Expanded choice
        - : High price, mediocre experience
Cable model vs. niche content
Cable model vis. Producers
                       >100 million subs
                             x $100 p/m
                              $10 billion
                         in sub fees p/m

                            Assume 50%
                                cable rev
                    goes to programming

                            Approximate
                    $5 billion per month
               to networks from MVPDs
23 million subs
                            "SO WHAT?
             x $100 p/m     Who cares...
             $2.3 billion
         in sub fees p/m
                            It's old business."

           Assume 50%
               cable rev
   goes to programming

           Approximate
   $1 billion per month
to networks from cable
23 million subs
                               "SO WHAT?
             x $100 p/m        Who cares...
             $2.3 billion
         in sub fees p/m
                               It's old business."

           Assume 50%
               cable rev    WRONG
   goes to programming

           Approximate
                            HUGE OPPORTUNITY
   $1 billion per month     FOR CREATIVES AND
to networks from cable      ENTREPRENEURS
American Movie Classics
AMC is a cable television channel that primarily airs movies, along with a limited amount of original programming. The letters originally
stood for American Movie Classics; however since 2002, the full name has been deemphasized as a result of a major shift in
programming.[1][2] AMC is owned by Rainbow Media Holdings, LLC,[3] a subsidiary of Cablevision Systems Corporation, and signed on
October 1, 1984.

AMC was originally a premium cable channel that aired classic movies during the afternoons and early evenings, largely pre-1950s, in a
commercial-free, generally unedited, uncut, and uncolorized format;[4] the channel was originally a joint venture between Rainbow Media
and Tele-Communications, Inc. It
                     was not uncommon for the channel to host a Marx Brothers
marathon, or show such classics such as the original Phantom of the Opera. In 1987, the channel
first became available on basic cable television systems.[4][5] By 1989, the channel had 39 million subscribers in the United States.[5]


 --- From Wikipedia, the free encyclopedia
>100,000,000 US Pay TV Households
... and roughly 88 million get AMC
AMC is in app 88 million US households




          $.23 sub/m
          x 12
          x 88,000,000 HH

          app. $155 million
Goes to HBO, Showtime, NBC, CBS...
  US $2.3 million
  x 13 episodes
  US$30,000,000 (est.)


                         "Period Drama"




                          1.9 rating = No Way
Hmm... AMC is in 88
million homes..
" I need $30M"
                                    Then, goes to AMC:
"You get .23 cents a house..."        US $2.3 million
 "... what if I can double that?"     x 13 episodes
                                      US$30,000,000 (est.)


                                      $.23 sub/m
                                      x 12
                                      x 88,000,000 HH
                                      $155,532,000

                                     "Small rating.... but I
                                     will build you an
                                     audience!"
Broadcast model vs. niche content
US $2.3 million
x 13 episodes
US$30,000,000 (est.)



              "period drama"




                       1.9 rating = No Way
Cable model vs. niche content
US $2.3 million
x 13 episodes
US$30,000,000 (est.)



              "period drama"




                       Brand Building = "OK!"
Cable model vs. niche content
US $2.3 million
x 13 episodes
US$30,000,000 (est.)




                       Brand Building = "OK!"
Matthew Weiner (born 29 June 1965) is an American writer, director and producer of television drama. He is the creator, executive
producer, head writer, and show runner of the AMC television series Mad Men. He is also noted for his work on the HBO series The
Sopranos, on which he served as a writer and producer during the show's fifth and sixth seasons. Weiner has received eight Emmy
Awards for his work on Mad Men and The Sopranos as well as three Golden Globe Awards for Mad Men. Mad Men has won the Emmy
Award for Outstanding Drama Series three consecutive years (2008, 2009, 2010); the Sopranos (with Weiner as executive producer) won
the same award twice (2004, 2007). Weiner was named one of the 2011 Time 100 Most Influential People In The World.
And then...
Subscription 3.0
Cable stocks were rocked this past week in the wake of industry leader Comcast’s third-
quarter earnings report as jittery investors fretted over subscriber losses.

                        By Jon Hemingway -- Broadcasting & Cable, 10/27/2007
Comcast Nears 'TV Everywhere' Launch
Comcast plans to launch its TV Everywhere nationally in the next 30 -60 days. So says COO
Steve Burke, who spoke earlier today at the Bank of America/Merrill Lynch confab.
He also reiterated that TV Everywhere aims to help MSOs and programmers preserve their
respective business models, which rely on a combination of subscriptions and advertising
dollars.
"We have the exact same interests that the content providers have in making sure that we get
ahead of the steamroller that is the Internet," Burke said. "So many other businesses
in the media space didn't get ahead of it."
Cable Show Los Angeles, May 2010




         Brian Roberts, CEO, Comcast
Cable Show Los Angeles, May 2010




         Brian Roberts, CEO, Comcast
Cable Show Los Angeles, May 2010
Cable Show Los Angeles, May 2010
COMCAST


• Largest US TV distributor (app. 24,000,000 HH)
• US FCC approves acquisition of NBC/Universal in early 2011
• Major initiatives in digital,VOD, content, re-engineering of broadcast
COMCAST


• Largest US TV distributor (app. 24,000,000 HH)
• US FCC approves acquisition of NBC/Universal in early 2011
• Major initiatives in digital,VOD, content, re-engineering of broadcast
Comcast/NBCUniversal
•   World's largest television distributor
•   Largest Broadband distributor in the US
•   #3 US home telephone provider
•   Ownership of Big 4 US network: NBC (via 2011 acquisition)
•   Cable networks including CNBC, MSNBC, SyFy, Bravo, USA Network, E!
    Entertainment, Versus, G4, The Golf Channel
•   Part interest innetworks including A&E, the History Channel, Lifetime, Oxygen,
    Hallmark
•   Major provider of online video services including XFinity
•   Owns Spanish language broadcast Telemundo
•   5 Universal Theme Parks
•   Universal Pictures, Imagine Entertainment, Amblin, Spyglass, Relativity,
    Mandalay, Morgan Creek
•   Universal Media Studios
•   NBC Universal Television Distribution




Confidential – do not distribute               49
DIRECTV

 • Largest US satellite distributor, #2 all in
 • 19,000,00 US HH
 • DTV announces 3 3D channels partnered with Panasonic




2010 New Amsterdam Media LLC
DIRECTV

 • Largest US satellite distributor, #2 all in
 • 19,000,00 US HH
 • DTV announces 3 3D channels partnered with Panasonic




2010 New Amsterdam Media LLC
DIRECTV

 n3D™ powered by Panasonic, is now available at no additional cost to millions of DIRECTV HD
 customers on channel 103... n3D customers will have access to exclusive, original 3D
 programming such as Guitar Center Sessions with Peter Gabriel and Jane’s Addiction, as well
 as additional titles such as,Dinosaurs: Giants of Patagonia, Wild Safari: A South African
 Adventure and N Wave Picture’s S.O.S Planet, African Adventure: Safari in the Okavango and
 Encounter in the Third Dimension.

 n3D will also offer special events such as this weekend’s running of the NASCAR Coke Zero
 400, the local broadcast of the Yankees-Mariners series on July 10-11 and DIRECTV’s
 exclusive, national broadcast of FOX Sports 2010 MLB All-Star Game in 3D on July 13.

 In addition to n3D, DIRECTV is also launching DIRECTV Cinema™in 3D on channel 104,
 which is currently offering IMAX titles Deep Sea 3D and Under the Sea 3D and n3D On
 Demand on channel 105, which is currently delivering replays of ESPN’s 3D coverage of the
 2010 FIFA World Cup matches. DIRECTV also launched ESPN 3D on channel 106 on June 11.




2010 New Amsterdam Media LLC
DIRECTV

 n3D™ powered by Panasonic, is now available at no additional cost to millions of DIRECTV HD
 customers on channel 103... n3D customers will have access to exclusive, original 3D
 programming such as Guitar Center Sessions with Peter Gabriel and Jane’s Addiction, as well
 as additional titles such as,Dinosaurs: Giants of Patagonia, Wild Safari: A South African
 Adventure and N Wave Picture’s S.O.S Planet, African Adventure: Safari in the Okavango and
 Encounter in the Third Dimension.

 n3D will also offer special events such as this weekend’s running of the NASCAR Coke Zero
 400, the local broadcast of the Yankees-Mariners series on July 10-11 and DIRECTV’s
 exclusive, national broadcast of FOX Sports 2010 MLB All-Star Game in 3D on July 13.

 In addition to n3D, DIRECTV is also launching DIRECTV Cinema™in 3D on channel 104,
 which is currently offering IMAX titles Deep Sea 3D and Under the Sea 3D and n3D On
 Demand on channel 105, which is currently delivering replays of ESPN’s 3D coverage of the
 2010 FIFA World Cup matches. DIRECTV also launched ESPN 3D on channel 106 on June 11.




2010 New Amsterdam Media LLC
European MSOs
U.K. BSkyB: various live sports, music and cultural events; in April launched a 3D channel to over 1,000 pubs and clubs with
least one live sporting events per week. Sky 3D channel available to Sky customers with HD box and 3D set in the U.K. and
Ireland. BBC hopes to air parts of the 2012 London Summer Olympics in 3D. Discovery Europe has received a license for a
3D channel.
France France Télévisions: French Open 3D in May. TF1 offered 3D coverage of several FIFA World Cup matches that were
carried on IPTV and satellite providers Orange: some 3D tennis matches in 2008 and 2009, launched a 3D service in May
with French Open coverage. Canal+ broadcast 12 World Cup Games in 3D this summer, has announced plans to launch a
3D service before Christmas. Numéricable launched demo channel in Sept with a VOD 3D service planned by end of year
Germany Sky Deutschland to launch 3D channel in Germany and Austria; will also be carried by Kabel BW. Deutsche
Telecom's IPTV service aired 3D hockey game in April; recently began 3D movies/docs on VOD
Netherlands UPC: U.S. Masters golf coverage in 3D in April. Ziggo: aired 3D political debate in 3D in June. Recently
announced plans to carry SBS' 3D channel Net 5
Italy RAI: providing 3D programming for SES Astra pan-European 3D channel
Portugal ZON aired two warm-up soccer matches before the World Cup . RTP offered 3D coverage of some FIFA World Cup
matches that was carried on MEO, which has also aired some 3D tennis in 3D.
Spain In March, satellite service Hispasat transmitted the country's first soccer match in 3D to a cinema and in April Canal + Spain
offered a 3D concert to subscribers.
Switzerland UPC Cablecom aired the U.S. Masters in 3D in April
Czech Republic In June, UPC's Czech system launched HD+, 3D channel created by SAT Plus
Estonia In May cable operator STV launched a 3D channel STV HD1, featuring sports and other programming
Poland UPC : 3D demo on June 1; multichannel provider "n" has launched nSports 3D
Russia NTV-Plus broadcast World Cup games in 3D this summer; partnership with Panasonic to launch 3D channel
Pan European Luxembourg-based SES Astra has launched 3D demo channel and Eurosport has offered 3D coverage of some special
events, including the French Open in May, which was transmitted to over 3,000 retail stores throughout Europe.
European MSOs
U.K. BSkyB: various live sports, music and cultural events; in April launched a 3D channel to over 1,000 pubs and clubs with
least one live sporting events per week. Sky 3D channel available to Sky customers with HD box and 3D set in the U.K. and
Ireland. BBC hopes to air parts of the 2012 London Summer Olympics in 3D. Discovery Europe has received a license for a
3D channel.
France France Télévisions: French Open 3D in May. TF1 offered 3D coverage of several FIFA World Cup matches that were
carried on IPTV and satellite providers Orange: some 3D tennis matches in 2008 and 2009, launched a 3D service in May
with French Open coverage. Canal+ broadcast 12 World Cup Games in 3D this summer, has announced plans to launch a
3D service before Christmas. Numéricable launched demo channel in Sept with a VOD 3D service planned by end of year
Germany Sky Deutschland to launch 3D channel in Germany and Austria; will also be carried by Kabel BW. Deutsche
Telecom's IPTV service aired 3D hockey game in April; recently began 3D movies/docs on VOD
Netherlands UPC: U.S. Masters golf coverage in 3D in April. Ziggo: aired 3D political debate in 3D in June. Recently
announced plans to carry SBS' 3D channel Net 5
Italy RAI: providing 3D programming for SES Astra pan-European 3D channel
Portugal ZON aired two warm-up soccer matches before the World Cup . RTP offered 3D coverage of some FIFA World Cup
matches that was carried on MEO, which has also aired some 3D tennis in 3D.
Spain In March, satellite service Hispasat transmitted the country's first soccer match in 3D to a cinema and in April Canal + Spain
offered a 3D concert to subscribers.
Switzerland UPC Cablecom aired the U.S. Masters in 3D in April
Czech Republic In June, UPC's Czech system launched HD+, 3D channel created by SAT Plus
Estonia In May cable operator STV launched a 3D channel STV HD1, featuring sports and other programming
Poland UPC : 3D demo on June 1; multichannel provider "n" has launched nSports 3D
Russia NTV-Plus broadcast World Cup games in 3D this summer; partnership with Panasonic to launch 3D channel
Pan European Luxembourg-based SES Astra has launched 3D demo channel and Eurosport has offered 3D coverage of some special
events, including the French Open in May, which was transmitted to over 3,000 retail stores throughout Europe.
Subscription 3.0




Extremely vulnerable to churn...
 especially in the Torrent era.
Subscription 3.0
Subscription 3.0


•	

 #2	
  market	
  cap	
  company	
  in	
  the	
  US
•	

 Apple	
  is	
  the	
  world’s	
  #1	
  brand
•	

 Reinvented	
  the	
  music	
  business
•	
  Pioneered	
  the	
  legal	
  video	
  download	
  market
•	
  Steve	
  Jobs	
  is	
  largest	
  shareholder	
  of	
  the	
  Walt	
  Disney	
  Company
•
Subscription 3.0


           Possible Apple TV subscription service faces uphill battle

Two	
  major	
  TV	
  networks	
  are	
  considering	
  joining	
  Apple's	
  plan	
  to	
  offer	
  TV	
  subscriptions	
  
over	
  the	
  Internet	
  in	
  a	
  venture	
  that	
  could	
  put	
  Apple	
  in	
  direct	
  competition	
  with	
  cable	
  
and	
  satellite	
  providers.	
  Disney	
  and	
  CBS	
  are	
  both	
  taking	
  a	
  liking	
  to	
  the	
  deal,	
  according	
  
to	
  sources	
  speaking	
  to	
  the	
  Wall	
  Street	
  Journal.	
  

However,	
  the	
  rumored	
  details	
  of	
  the	
  service	
  may	
  keep	
  other	
  networks	
  away,	
  and	
  with	
  
cable	
  providers	
  looking	
  at	
  a	
  potential	
  hit	
  in	
  the	
  wallet	
  from	
  the	
  service	
  (and	
  even	
  
buying	
  broadcast	
  networks),	
  it	
  faces	
  an	
  uphill	
  battle	
  before	
  seeing	
  the	
  light	
  of	
  day.

News	
  about	
  Apple's	
  plans	
  leaked	
  in	
  November,	
  with	
  multiple	
  industry	
  insiders	
  saying	
  
that	
  Apple	
  may	
  eventually	
  launch	
  the	
  subscription	
  service	
  for	
  a	
  $30	
  monthly	
  fee	
  which	
  
would	
  allow	
  subscribers	
  to	
  watch	
  whatever	
  TV	
  they	
  like.	
  
Subscription 3.0


•	

 Founded	
  in	
  1997	
  as	
  subscription	
  DVD	
  delivery	
  service	
  (3	
  at	
  a	
  time)
•	

 Monthly	
  fee:	
  unlimited	
  rentals.	
  no	
  due	
  dates,	
  late	
  fees,	
  shipping	
  fees
•	

 Propped	
  up	
  Ylagging	
  DVD	
  sales	
  for	
  studios
•	

 Provides	
  non-­‐premiere	
  movies	
  and	
  some	
  TV	
  shows
•	

 Focus	
  on	
  recommendation	
  engine	
  and	
  “likes”
•	

 App.	
  10%	
  of	
  the	
  company’	
  titles	
  are	
  available	
  via	
  streaming
•	

 No	
  immediate	
  window	
  releases
•	

 Expensive	
  deals	
  with	
  Miramax	
  and	
  other	
  studios
•	

 No	
  HBO,	
  recent	
  Showtime	
  withdrawal
Analysis




•	

 First	
  to	
  exploit	
  preference	
  analytics
•	

 Unlocked	
  massive	
  value	
  in	
  catalog	
  titles
•	

 Largely	
  a	
  partner	
  for	
  studios
•	

 Largely	
  a	
  competitor	
  for	
  distributors
•	

 Focus	
  on	
  recommendation	
  engine	
  and	
  “likes”
•	

 Recently	
  became	
  largest	
  subscription	
  service	
  in	
  the	
  US,	
  with	
  
     approximately	
  20,000,000	
  subscribing	
  households
Digital Business 2012

                               Broadcast

                               Subscription

                               Advertising

                               New Services

                               Analytics

                               New Platforms

                               Conclusion
2010 New Amsterdam Media LLC
•	

 Most	
  popular	
  destination	
  for	
  television	
  content	
  online	
  in	
  US
•	

 Originally	
  launched	
  as	
  advertising-­‐driven	
  site:	
  has	
  migrated	
  to	
  
     subscription
•	

 Joint	
  venture	
  of	
  NBC,	
  FOX	
  and	
  later	
  ABC
•	

 Clean	
  user	
  interface;	
  great	
  user	
  experience
•	

 Initially	
  viewed	
  as	
  a	
  great	
  victory	
  over	
  pirate	
  TV	
  sites.	
  	
  
Analysis


•	

 Great	
  friction	
  with	
  the	
  ad	
  sales	
  divisions	
  of	
  its	
  parent	
  networks
•	

 Ad	
  load/rev	
  imbalance;	
  Hulu	
  ad	
  model	
  much	
  less	
  proYitable	
  than	
  TV
•	

 Complaints	
  from	
  leading	
  show	
  producers	
  re	
  syndication
•	

 $2	
  billion	
  IPO	
  canceled
•	

 Limited	
  international	
  rights
Viacom and Hulu Part Ways
By BRIAN STELTER

March 2, 2010
In the first major fracture between television show owners and the wildly popular
Hulu.com, Viacom will remove “The Daily Show With Jon Stewart,” “The Colbert
Report” and other Comedy Central programs from the video site next week.

...Viacom’s decision is a serious loss for Hulu. This week “The Daily Show” is listed as the third-most-
watched show on the site.

The three-year-old Hulu dominates the mushrooming market for online full-episode TV viewing, with
more than 44 million monthly visitors... monthly video view totals have surged from 580 million last
September to 1.01 billion last December.

But Hulu is unprofitable, according to analysts.
Economics of Television

2002                                         2009




                                 Source: Kagan
TV Economics


$500,000 (per episode)        Show Costs
x 22 (episodes per order)
$11,000,000

$.13 sub/m                   Network Revenue
x 12
x 99,700,000 HH
$ 155,532,000

(Price erosion analysis)      Potential Loss
$.01 sub/m
x 12
x 99,700,000 HH
$ 11,964,000 (delta)
Analysis:
Advertising Model DOs and DON'Ts
DO NOT:


             Who are
          these people??
DO:
Ad Model: The Future


• Advertising is in transition: moving from CPM to Niche
• Are you buying diapers in the morning, or your third BMW?
• One high value customer is better than 100 low value customers
• Advertiser value must change from a proxy for audience size
to a measure of customer value
Digital Business 2012

                               Broadcast

                               Subscription

                               Advertising

                               New Services

                               Analytics

                               New Platforms

                               Conclusion
2010 New Amsterdam Media LLC
Analytics
Analytics
Analytics


"If you're not paying, you are the product being sold"
Analytics

                          TiVo’s still watching you, but by region now
It’s	
  no	
  secret	
  TiVo	
  has	
  been	
  watching	
  its	
  subscribers.	
  But	
  now	
  the	
  DVR	
  company	
  has	
  
announced	
  it’s	
  giving	
  advertisers	
  up-­‐to-­‐the-­‐minute	
  info	
  on	
  what	
  users	
  are	
  watching	
  (and	
  
fast-­‐forwarding	
  through)	
  based	
  on	
  speciYic	
  geographic	
  regions.

As	
  a	
  web-­‐enabled	
  DVR/TV	
  guide	
  service,	
  TiVo	
  already	
  collects	
  a	
  wealth	
  of	
  data	
  on	
  its	
  users’	
  
viewing	
  habits	
  on	
  a	
  national	
  level.	
  Today’s	
  announcement	
  is	
  an	
  expansion	
  of	
  those	
  efforts	
  by	
  
repackaging	
  this	
  data	
  for	
  advertisers	
  and	
  content	
  providers	
  on	
  a	
  local	
  level.

It	
  works	
  by	
  logging	
  the	
  second-­‐by-­‐second	
  activities	
  of	
  TiVo	
  subscribers...	
  	
  this	
  info	
  could	
  give	
  
advertisers	
  and	
  broadcasters	
  an	
  idea	
  of	
  what	
  kind	
  of	
  programming	
  (or	
  commercials)	
  are	
  making	
  
an	
  impression	
  in	
  a	
  given	
  region.	
  

TiVo	
  also	
  says	
  the	
  information	
  gleaned	
  could	
  help	
  local	
  broadcasters	
  pinpoint	
  when	
  viewers	
  
lose	
  interest	
  in	
  a	
  given	
  program.
The MTV VMA Twitter Tracker Shows 1.5 Million Tweets
And Counting
Sep 12, 2010
If	
  you	
  are	
  watching	
  the	
  MTV	
  Video	
  Music	
  Awards	
  right	
  now,	
  chances	
  are	
  that	
  either	
  you	
  or	
  
someone	
  you	
  know	
  is	
  also	
  Tweeting	
  about	
  it.	
  Some	
  trending	
  topics	
  on	
  Twitter	
  right	
  now	
  are	
  “lip	
  
synching”	
  (Oh,	
  Bieber)	
  and	
  “Drake	
  better	
  win”...	
  	
  	
  As	
  of	
  this	
  writing,	
  there	
  are	
  1.3	
  million	
  Tweets	
  
about	
  the	
  MTV	
  VMAs	
  in	
  the	
  past	
  three	
  hours	
  since	
  it	
  started.	
  The	
  Twitter	
  tracker	
  ranks	
  artists	
  by	
  
number	
  of	
  Tweets	
  per	
  minute.	
  At	
  one	
  point,	
  Taylor	
  Swift	
  was	
  dominating	
  with	
  3,517	
  Tweets	
  per	
  
minute,	
  followed	
  by	
  Kanye	
  West	
  (3,009)	
  and	
  Lady	
  Gaga	
  (857).	
  It	
  changes	
  all	
  the	
  time,	
  obviously,	
  
depending	
  on	
  who	
  is	
  on	
  stage.

...	
  All	
  in	
  all,	
  it	
  is	
  very	
  entertaining,	
  almost	
  more	
  so	
  than	
  the	
  VMAs	
  themselves.
Analytics

• Brand value is huge asset
• Communication is essential
• Always aim to add value
• "Being the product being sold" does not build loyalty
• In this regard Content (brand) is still King
Digital Business 2012

                               Broadcast

                               Subscription

                               Advertising

                               New Services

                               Analytics

                               New Platforms

                               Conclusion
2010 New Amsterdam Media LLC
New Platforms

• Location Based Services
• Social TV
• Demographic Niche (3D TV)
Look for Growth: Location Based Services




    ...How do you monetize a check in?
Look for Growth: Location Based Services

       New	
  York	
  aims	
  to	
  be	
  the	
  Next	
  Top	
  Digital	
  City	
  in	
  
                                     America
May	
  16,	
  2011	
  6:53	
  PM	
  EDT
At	
  City	
  Hall,	
  May	
  16,	
  New	
  York	
  City	
  Mayor	
  Michael	
  Bloomberg	
  released	
  a	
  
report	
  that	
  outlines	
  the	
  plans	
  for	
  the	
  city	
  to	
  form	
  partnerships	
  with	
  social	
  
media	
  companies.	
  	
  

Through	
  ofYicial	
  partnerships	
  with	
  Twitter,	
  Facebook,	
  and	
  NY-­‐based	
  
startups	
  Foursquare	
  and	
  Tumblr,	
  New	
  York	
  City	
  aims	
  to	
  be	
  the	
  top	
  digital	
  
city	
  in	
  America.	
  The	
  city's	
  Yirst	
  chief	
  digital	
  ofYicer,	
  Rachel	
  Sterne,	
  joined	
  
Mr.	
  Bloomberg	
  in	
  presenting	
  the	
  Road	
  Map	
  for	
  the	
  Digital	
  City,	
  and	
  how	
  to	
  
expand	
  its	
  online	
  presence.
A	
  comprehensive	
  90-­‐day	
  review	
  on	
  the	
  usage	
  of	
  web,	
  social	
  media	
  and	
  
mobile	
  tech	
  in	
  New	
  York	
  City	
  and	
  surveys	
  on	
  public	
  and	
  private	
  sector	
  
organizations	
  as	
  well	
  as	
  individual	
  users	
  were	
  conducted.
Look for Growth: Location Based Services
Look for Growth: Content via Community

Facebook Check-In Service Rewards Users With Music Downloads
Mobile check-in services are hot right now, and technology firm Neurotic Media is hoping to capitalize on that
with a new service that lets users get free access to digital music when checking into various locations via
Facebook.

The service is called Music Check-In Incentives... It's a "white-label" service aimed at companies that want to
offer visitors downloadable music when they check into certain venues using Facebook's Check In feature.

... a user checks into a location using Facebook on their mobile phone; the owner of that establishment using
Neurotic Media's service can then immediately reward that check in with a free music download, or a playlist,
or credits that users can apply to any song they wish on iTunes or other digital retailers.

The participating company then gets to post a message on the user's Facebook Wall, notifying them of the
check in and the reward provided... will soon apply to other social networks with their own geo-location
systems (think Foursquare).

The music industry is still searching for a way to merge location-based mobile technology with music
promotion. This is an easy solution for that. Record stores can give away free tracks to anyone checking in at
their location in hopes of driving subsequent sales of the corresponding album. Concert venues can reward
check ins with a free sample of a song from an upcoming act. Bands can offer a scavenger hunt-like
experience, rewarding fans who check into secret locations with new or unreleased tracks as a way to hype an
upcoming album or tour.
Look for Partnerships: Social TV
Look for Partnerships: Social TV
TV brands and manufacturers are also working aggressively to create partnerships with the
content providers in order to keep consumers interested and happy with continually updated
material, Patel added. “The arrival of Internet-enabled TV models is part of the ongoing evolution
and enhancement of TV sets,” he said. “Because innovation is a must in order to drive consumer
adoption and replacement, the TV industry has embarked on a path of enhancing the consumer
experience through interaction with their TV sets.”

North America and Western Europe will make up the largest consumption market for IETVs from
2010 to 2014. Japan will be the third largest market only until 2012, after which it will drop to fifth
place.
Look for Partnerships: Social TV
      Motorola Study Finds Consumers Would Pay for Social Media
                            Features on TV
Surveyed video-consumption habits among 7,500 consumers in 13 countries: the U.S., Australia, China, France,
Germany, Japan, Nordics, Russia, Singapore, South Korea, Turkey, United Arab Emirates and the U.K. /

About a quarter of TV viewers surveyed expect to upgrade to 3DTVs in the next 18 months, while 75% either currently own an
HD set or plan to buy one in the same time frame, according to research from Motorola Mobility.

Motorola Mobility’s Global 2010 Media Engagement Barometer also found that consumers around the world are very
interested in using social-media features on their TVs — with 58% of people who have used social media during a TV
program saying they would change their service provider if it were offered as an integrated service.

The study found 42% of viewers globally have had an e-mail conversation, engaged in an instant message chat or
used a social network to discuss a program or video while they were watching it. Of this group, 22% said that social-
media multitasking is a regular part of their viewing experience and 61% would be prepared to pay more for a service
that offered these capabilities.

The Media Engagement Barometer study, conducted by research agency Vanson Bourne, surveyed video-consumption habits
among 7,500 consumers in 13 countries: the U.S., Australia, China, France, Germany, Japan, Nordics, Russia, Singapore,
South Korea, Turkey, United Arab Emirates and the U.K.
Look for Partnerships: Smart TV


                                      Ensequence Hits Yahoo Connected TVs
                                Interactive TV Firm Targets Over-the-Top Video Platforms
By Todd Spangler -- Multichannel News, 5/16/2011 12:01:00 AM

Ensequence is taking its interactive TV expertise beyond cable and satellite.
The New York-based company has historically specialized in developing interactive applications for pay-TV providers and
programmers. Now it is extending its focus to deliver ITV apps to connected-TV devices, as well.
"We're going to be wherever our programmer customers want us to be," Ensequence vice president of marketing and product
management Kevin Hurst said. "What we're hearing is, programmers want to take the interactivity they have on cable and take it
everywhere."


Ensequence targeted the Yahoo platform because it's currently the most widely deployed, Hurst said. According to Yahoo,
nearly 10 million TV sets from Samsung, LG, Vizio, Sony and Toshiba have shipped with the widget software. He added,
however, that Yahoo doesn't track exactly how many are connected to the Internet.
Ensequence's customers include NBC Universal, MTV Networks, ESPN, Showtime Networks, The Walt Disney Co., Turner
Broadcasting System, HBO, Comcast, Time Warner Cable, Canoe Ventures, Dish Network, DirecTV and Verizon.
guest to the season four prem
                                                                                           rated show
               Look for Partnerships: Smart TV
                                                              PALO ALTO, Calif. – February 1
 IntoNow and MTV to Deliver New Ways for Fans to Discover and Interact With MTV
                                Shows Jersey Shore and My Life as Liz                       technolog
First-of-its-kind Jersey Shore exclusive live tagging contest will send a lucky fan and a
                                                              focused on enhancing the way
guest to the season four premiere and party for MTV’s highest rated show of all time.

Beginning on February 17, 2011, IntoNow users who tag six premiere airings this
                                                                                                conten
                                                                  announced a partnership wit
season of Jersey Shore will be entered for a chance to win a trip for two to the season
four premiere which includes travel, hotel accommodations and admission to the season
four premiere party.                                                                       Networks
“We’re really excited by all the enthusiasm we’ve receivedVIA.B), that will provide new w
                                                              around IntoNow and are
thrilled to be working with MTV to offer our users and fans something unique,” said
Adam Cahan, founder and CEO of IntoNow. “This is just the beginning of what we want        favorite sh
to be able to offer our users at IntoNow. MTV came up with a great idea, and we’re really
into being able to offer viewers new ways to interact with their favoriteShore will have the cha
                                                               Jersey shows.”
                                                                                           premiere a
                                                              season four of Jersey Shore. An
                                                                                          get an insid
                                                                               favorite television sho
                                                                 Beginning on February 17, 20
                                                                                            premiere
Look for Partnerships: Social TV

"People no longer wait for their show. Their shows wait for them. We see new digital devices as
new ways to connect consumers with their content. Consumers are turning to these devices to
make their lives more functional. Our challenge is to use these devices to stay relevant to
consumers...

It’s not just about great content, it also requires a great user interface – example, Apple’s iTunes.
We have to create simple ways to find the content and lower the barriers to their use. This requires
a new kind of convergence, one with content providers, consumer electronics companies,
distributors and advertisers.                 Text
This is not eroding our audience. These new platforms drive consumers back to the programs.
People are watching even more TV. The more ways that are available, the more their appetite
grows. This is just the beginning.

-- Anne Sweeney, Co-chair, Disney Media Networks
Look for Demographic Trends: 3DTV
Nov. 9, 2010
Nov. 9, 2010
Index Strength in ME, BRIC, SA
Under Index: Aust/NZ, Japan,
               Scandanavia

Just two per cent of UK consumers are planning on purchasing
a 3D television over the next 12 months, according to new
research by Deloitte.
Something New: Social Benefit Platform
conspiracyforgood.com
Digital Business 2012

                               Broadcast

                               Subscription

                               Advertising

                               New Services

                               Analytics

                               New Platforms

                               Conclusion
2010 New Amsterdam Media LLC
Conclusions

• Go where your audience lives
• Fight for scale
• Fight for authenticity
• Skate where the puck is going
• Know who you are
“Nobody knows anything.”

                                    - William Goldman




2010 New Amsterdam Media LLC
"Anything new, anything worth doing, can't be recognized."

                                                        - Picasso




2010 New Amsterdam Media LLC
seth@newAMSmedia.com







             DANK U WEL!

      Los Angeles  New York  Amsterdam

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Seth Shapiro @ Media Future Media

  • 1. Media Strategy Building Businesses for 2012 and Beyond Seth Shapiro Los Angeles  New York  Amsterdam
  • 2. Media Strategy Building Businesses for 2012 and Beyond Case Studies and Future Possibilities 2 010 New Amsterdam Media LLC
  • 4. Life of startups: "We have a great idea !!" ... now how do we make a living??
  • 5.
  • 6. Business Models ... a business model is the method of doing business by which a company can sustain itself -- that is, generate revenue. The business model spells-out how a company makes money by specifying where it is positioned in the value chain. ... Broadcasting is a good example... The broadcaster is part of a complex network of distributors, content creators, advertisers... and listeners or viewers. Who makes money and how much is not always clear at the outset. – Michael Rappa, http://digitalenterprise.org
  • 7. Business Models ... a business model is the method of doing business by which a company can sustain itself -- that is, generate revenue. The business model spells-out how a company makes money by specifying where it is positioned in the value chain. ... Broadcasting is a good example... The broadcaster is part of a complex network of distributors, content creators, advertisers... and listeners or viewers. Who makes money and how much is not always clear at the outset. – Michael Rappa, http://digitalenterprise.org Business Model = "We pay the bills by..."
  • 8. Will Broadband Kill Old Media? No: will change or die... Telegraaf owns Hyves, Comcast is #1 US cable co and #1 broadband provider People get fired. Divisions die – smart teams adapt Huge advantage studying new and old games
  • 9. The Walt Disney Company • World's #1media company by revenue • Member US Dow 30 • 80% ownership of world's most lucrative sports entity: ESPN • Ownership of world's valuable cable franchises: ESPN • Ownership of Big 4 US network: ABC (via Cap Cities acquisition) • Other TV networks including Disney Channel, ABC Familiy, • Motion picture holdings including Walt Disney Pictures, Touchstone, Buena Vista, Miramax • 11 Disney Theme Parks around the world • Ownership of major IP brand Marvel Entertainment • Major products brand and retailer via Disney Consumer Products • Walt Disney Internet Group • Disney Music Group • Radio Disney • Disney Interactive Media Group
  • 10. News Corporation • World's # 3 media company by revenue • Ownership of Big 4 US network: FOX • TV networks including FX Networks, FOX News, FOX Sports, Big Ten Network, FOX Business, FOX College Sports, FUEL TV, Speed Channel, FOX Movie Channel • TV production, distribution and holdings including 20 Century Fox Television, Fox Broadcasting Company, FOX Studios, FOX International Channels, BSkyB, STAR TV, TV5 Riga, Foxtel, bTV, SKY Italia, Tata SKY, SKY Deutschland • Motion picture holdings including Twentieth Century FOX, FOX Searchlight, • Internet holdings including MySpace, AmericanIdol.com, IGN, GameSpy, FOX.com, AskMen.com • Newspapers: Wall Street Journal, New York Post, Barron's, News of the World. The Sun, The Times (UK) • Books: HarperCollins 9
  • 11. Comcast/NBCUniversal • World's largest television distributor • Largest Broadband distributor in the US • #3 US home telephone provider • Ownership of Big 4 US network: NBC (via 2011 acquisition) • Cable networks including CNBC, MSNBC, SyFy, Bravo, USA Network, E! Entertainment, Versus, G4, The Golf Channel • Part interest innetworks including A&E, the History Channel, Lifetime, Oxygen, Hallmark • Major provider of online video services including XFinity • Owns Spanish language broadcast Telemundo • 5 Universal Theme Parks • Universal Pictures, Imagine Entertainment, Amblin, Spyglass, Relativity, Mandalay, Morgan Creek • Universal Media Studios • NBC Universal Television Distribution Confidential – do not distribute 10
  • 12. Digital Business 2012 Brief History: how did media become a business? Subscription: recurring payments Advertising: subsidized payments New Services: what we consume Analytics: data aggregation, analysis, action New Platforms: how we consume Conclusion 2010 New Amsterdam Media LLC
  • 13. Digital Business 2012 Brief History of 20th century media Subscription Advertising New Services Analytics New Platforms Conclusion 2010 New Amsterdam Media LLC
  • 14. Traditional Media Business models 2010 New Amsterdam Media LLC
  • 15. Traditional Media Business models Print 2010 New Amsterdam Media LLC
  • 16. Traditional Media Business models Print Content: News, magazines, books, trade pub 2010 New Amsterdam Media LLC
  • 17. Traditional Media Business models Print Content: News, magazines, books, trade pub Distribution: Presses, delivery 2010 New Amsterdam Media LLC
  • 18. Traditional Media Business models Print Content: News, magazines, books, trade pub Distribution: Presses, delivery Film 2010 New Amsterdam Media LLC
  • 19. Traditional Media Business models Print Content: News, magazines, books, trade pub Distribution: Presses, delivery Film Content: Motion Picture Production 2010 New Amsterdam Media LLC
  • 20. Traditional Media Business models Print Content: News, magazines, books, trade pub Distribution: Presses, delivery Film Content: Motion Picture Production Distribution: Exhibition, regional/platform windows 2010 New Amsterdam Media LLC
  • 21. Traditional Media Business models Print Content: News, magazines, books, trade pub Distribution: Presses, delivery Film Content: Motion Picture Production Distribution: Exhibition, regional/platform windows Television 2010 New Amsterdam Media LLC
  • 22. Traditional Media Business models Print Content: News, magazines, books, trade pub Distribution: Presses, delivery Film Content: Motion Picture Production Distribution: Exhibition, regional/platform windows Television Content: Programming 2010 New Amsterdam Media LLC
  • 23. Traditional Media Business models Print Content: News, magazines, books, trade pub Distribution: Presses, delivery Film Content: Motion Picture Production Distribution: Exhibition, regional/platform windows Television Content: Programming Distribution: Broadcast, cable, satellite 2010 New Amsterdam Media LLC
  • 24. Traditional Media Business models Print Content: News, magazines, books, trade pub Distribution: Presses, delivery Film Content: Motion Picture Production Distribution: Exhibition, regional/platform windows Television Content: Programming Distribution: Broadcast, cable, satellite Music 2010 New Amsterdam Media LLC
  • 25. Traditional Media Business models Print Content: News, magazines, books, trade pub Distribution: Presses, delivery Film Content: Motion Picture Production Distribution: Exhibition, regional/platform windows Television Content: Programming Distribution: Broadcast, cable, satellite Music Content: Recordings and performances 2010 New Amsterdam Media LLC
  • 26. Traditional Media Business models Print Content: News, magazines, books, trade pub Distribution: Presses, delivery Film Content: Motion Picture Production Distribution: Exhibition, regional/platform windows Television Content: Programming Distribution: Broadcast, cable, satellite Music Content: Recordings and performances Distribution: Replication, delivery 2010 New Amsterdam Media LLC
  • 28. The Big Six Walt Disney Company Disney Pictures Buena Vista Pictures Touchstone ESPN ABC WDIG (Internet Group) Disneyland Parks Time Warner HBO Warner Bros Turner Networks Warner Music New Line (formerly) AOL Viacom CBS Paramount MTV Networks Showtime NIckelodeon BET CMT Comedy Central News Corporation FOX Companies FX Networks FOX News Foxtel Wall Street Journal NY Post London Times (formerly) DIRECTV Comcast/NBC Universal Comcast Cable, NBC, MSNBC, CNBC, Universal Parks Telemundo, USA Networks, Bravo Sony Columbia Tri Star Sony Pictures Sony Music Sony Computer Sony Electronics [various assets in MP production, MP distribution, TV production, TV distribution, theme parks, consumer electronics, games, music labels etc.]
  • 29. Digital Business 2012 Broadcast Subscription Advertising New Services Analytics New Platforms Conclusion 2010 New Amsterdam Media LLC
  • 30. Model 1: Broadcast • The birth of radio/TV • 20 Century Model • Low Supply/High Demand • Free to User • Mass audience • Subsidized by Platform (RCA) and Brands (GE)
  • 31. Model 1: Broadcast • The birth of radio/TV • 20 Century Model • Low Supply/High Demand • Free to User • Mass audience • Subsidized by Platform (RCA) and Brands (GE)
  • 32. Model 1: Broadcast • The birth of radio/TV • 20 Century Model • Low Supply/High Demand • Free to User • Mass audience • Subsidized by Platform (CE) and Brands (Adv)
  • 34. Broadcast Business Model How is success measured? • Volume • Ratings driven • Advertisers pay per spot • Mass ad market generally based on CPM model • Arguably peaks in US w 1983 M*A*S*H Finale (60r/77s)
  • 37. Digital Business 2012 Broadcast Subscription Advertising New Services Analytics New Platforms Conclusion 2010 New Amsterdam Media LLC
  • 39. Model 2: Cable Subscription • Cable customers pay monthly fee • Monthly fees allow cable to fund programming • Monthly fees = consistent cash to producers • Allows for mass and niche audiences
  • 40. Model 2: Cable Subscription • Cable customers pay monthly fee • Monthly fees allow cable to fund programming • Monthly fees = consistent cash to producers • Allows for mass and niche audiences Cable = + : Expanded choice - : High price, mediocre experience
  • 41. Cable = + : Expanded choice - : High price, mediocre experience
  • 42. Case Study: Dealing with broadcast vs. cable Cable = + : Expanded choice - : High price, mediocre experience
  • 43. Cable model vs. niche content
  • 44. Cable model vis. Producers >100 million subs x $100 p/m $10 billion in sub fees p/m Assume 50% cable rev goes to programming Approximate $5 billion per month to networks from MVPDs
  • 45. 23 million subs "SO WHAT? x $100 p/m Who cares... $2.3 billion in sub fees p/m It's old business." Assume 50% cable rev goes to programming Approximate $1 billion per month to networks from cable
  • 46. 23 million subs "SO WHAT? x $100 p/m Who cares... $2.3 billion in sub fees p/m It's old business." Assume 50% cable rev WRONG goes to programming Approximate HUGE OPPORTUNITY $1 billion per month FOR CREATIVES AND to networks from cable ENTREPRENEURS
  • 47. American Movie Classics AMC is a cable television channel that primarily airs movies, along with a limited amount of original programming. The letters originally stood for American Movie Classics; however since 2002, the full name has been deemphasized as a result of a major shift in programming.[1][2] AMC is owned by Rainbow Media Holdings, LLC,[3] a subsidiary of Cablevision Systems Corporation, and signed on October 1, 1984. AMC was originally a premium cable channel that aired classic movies during the afternoons and early evenings, largely pre-1950s, in a commercial-free, generally unedited, uncut, and uncolorized format;[4] the channel was originally a joint venture between Rainbow Media and Tele-Communications, Inc. It was not uncommon for the channel to host a Marx Brothers marathon, or show such classics such as the original Phantom of the Opera. In 1987, the channel first became available on basic cable television systems.[4][5] By 1989, the channel had 39 million subscribers in the United States.[5] --- From Wikipedia, the free encyclopedia
  • 48.
  • 49. >100,000,000 US Pay TV Households ... and roughly 88 million get AMC
  • 50. AMC is in app 88 million US households $.23 sub/m x 12 x 88,000,000 HH app. $155 million
  • 51.
  • 52. Goes to HBO, Showtime, NBC, CBS... US $2.3 million x 13 episodes US$30,000,000 (est.) "Period Drama" 1.9 rating = No Way
  • 53. Hmm... AMC is in 88 million homes..
  • 54. " I need $30M" Then, goes to AMC: "You get .23 cents a house..." US $2.3 million "... what if I can double that?" x 13 episodes US$30,000,000 (est.) $.23 sub/m x 12 x 88,000,000 HH $155,532,000 "Small rating.... but I will build you an audience!"
  • 55. Broadcast model vs. niche content US $2.3 million x 13 episodes US$30,000,000 (est.) "period drama" 1.9 rating = No Way
  • 56. Cable model vs. niche content US $2.3 million x 13 episodes US$30,000,000 (est.) "period drama" Brand Building = "OK!"
  • 57. Cable model vs. niche content US $2.3 million x 13 episodes US$30,000,000 (est.) Brand Building = "OK!"
  • 58. Matthew Weiner (born 29 June 1965) is an American writer, director and producer of television drama. He is the creator, executive producer, head writer, and show runner of the AMC television series Mad Men. He is also noted for his work on the HBO series The Sopranos, on which he served as a writer and producer during the show's fifth and sixth seasons. Weiner has received eight Emmy Awards for his work on Mad Men and The Sopranos as well as three Golden Globe Awards for Mad Men. Mad Men has won the Emmy Award for Outstanding Drama Series three consecutive years (2008, 2009, 2010); the Sopranos (with Weiner as executive producer) won the same award twice (2004, 2007). Weiner was named one of the 2011 Time 100 Most Influential People In The World.
  • 61. Cable stocks were rocked this past week in the wake of industry leader Comcast’s third- quarter earnings report as jittery investors fretted over subscriber losses. By Jon Hemingway -- Broadcasting & Cable, 10/27/2007
  • 62. Comcast Nears 'TV Everywhere' Launch Comcast plans to launch its TV Everywhere nationally in the next 30 -60 days. So says COO Steve Burke, who spoke earlier today at the Bank of America/Merrill Lynch confab. He also reiterated that TV Everywhere aims to help MSOs and programmers preserve their respective business models, which rely on a combination of subscriptions and advertising dollars. "We have the exact same interests that the content providers have in making sure that we get ahead of the steamroller that is the Internet," Burke said. "So many other businesses in the media space didn't get ahead of it."
  • 63. Cable Show Los Angeles, May 2010 Brian Roberts, CEO, Comcast
  • 64. Cable Show Los Angeles, May 2010 Brian Roberts, CEO, Comcast
  • 65. Cable Show Los Angeles, May 2010
  • 66. Cable Show Los Angeles, May 2010
  • 67.
  • 68. COMCAST • Largest US TV distributor (app. 24,000,000 HH) • US FCC approves acquisition of NBC/Universal in early 2011 • Major initiatives in digital,VOD, content, re-engineering of broadcast
  • 69. COMCAST • Largest US TV distributor (app. 24,000,000 HH) • US FCC approves acquisition of NBC/Universal in early 2011 • Major initiatives in digital,VOD, content, re-engineering of broadcast
  • 70. Comcast/NBCUniversal • World's largest television distributor • Largest Broadband distributor in the US • #3 US home telephone provider • Ownership of Big 4 US network: NBC (via 2011 acquisition) • Cable networks including CNBC, MSNBC, SyFy, Bravo, USA Network, E! Entertainment, Versus, G4, The Golf Channel • Part interest innetworks including A&E, the History Channel, Lifetime, Oxygen, Hallmark • Major provider of online video services including XFinity • Owns Spanish language broadcast Telemundo • 5 Universal Theme Parks • Universal Pictures, Imagine Entertainment, Amblin, Spyglass, Relativity, Mandalay, Morgan Creek • Universal Media Studios • NBC Universal Television Distribution Confidential – do not distribute 49
  • 71. DIRECTV • Largest US satellite distributor, #2 all in • 19,000,00 US HH • DTV announces 3 3D channels partnered with Panasonic 2010 New Amsterdam Media LLC
  • 72. DIRECTV • Largest US satellite distributor, #2 all in • 19,000,00 US HH • DTV announces 3 3D channels partnered with Panasonic 2010 New Amsterdam Media LLC
  • 73. DIRECTV n3D™ powered by Panasonic, is now available at no additional cost to millions of DIRECTV HD customers on channel 103... n3D customers will have access to exclusive, original 3D programming such as Guitar Center Sessions with Peter Gabriel and Jane’s Addiction, as well as additional titles such as,Dinosaurs: Giants of Patagonia, Wild Safari: A South African Adventure and N Wave Picture’s S.O.S Planet, African Adventure: Safari in the Okavango and Encounter in the Third Dimension. n3D will also offer special events such as this weekend’s running of the NASCAR Coke Zero 400, the local broadcast of the Yankees-Mariners series on July 10-11 and DIRECTV’s exclusive, national broadcast of FOX Sports 2010 MLB All-Star Game in 3D on July 13. In addition to n3D, DIRECTV is also launching DIRECTV Cinema™in 3D on channel 104, which is currently offering IMAX titles Deep Sea 3D and Under the Sea 3D and n3D On Demand on channel 105, which is currently delivering replays of ESPN’s 3D coverage of the 2010 FIFA World Cup matches. DIRECTV also launched ESPN 3D on channel 106 on June 11. 2010 New Amsterdam Media LLC
  • 74. DIRECTV n3D™ powered by Panasonic, is now available at no additional cost to millions of DIRECTV HD customers on channel 103... n3D customers will have access to exclusive, original 3D programming such as Guitar Center Sessions with Peter Gabriel and Jane’s Addiction, as well as additional titles such as,Dinosaurs: Giants of Patagonia, Wild Safari: A South African Adventure and N Wave Picture’s S.O.S Planet, African Adventure: Safari in the Okavango and Encounter in the Third Dimension. n3D will also offer special events such as this weekend’s running of the NASCAR Coke Zero 400, the local broadcast of the Yankees-Mariners series on July 10-11 and DIRECTV’s exclusive, national broadcast of FOX Sports 2010 MLB All-Star Game in 3D on July 13. In addition to n3D, DIRECTV is also launching DIRECTV Cinema™in 3D on channel 104, which is currently offering IMAX titles Deep Sea 3D and Under the Sea 3D and n3D On Demand on channel 105, which is currently delivering replays of ESPN’s 3D coverage of the 2010 FIFA World Cup matches. DIRECTV also launched ESPN 3D on channel 106 on June 11. 2010 New Amsterdam Media LLC
  • 75. European MSOs U.K. BSkyB: various live sports, music and cultural events; in April launched a 3D channel to over 1,000 pubs and clubs with least one live sporting events per week. Sky 3D channel available to Sky customers with HD box and 3D set in the U.K. and Ireland. BBC hopes to air parts of the 2012 London Summer Olympics in 3D. Discovery Europe has received a license for a 3D channel. France France Télévisions: French Open 3D in May. TF1 offered 3D coverage of several FIFA World Cup matches that were carried on IPTV and satellite providers Orange: some 3D tennis matches in 2008 and 2009, launched a 3D service in May with French Open coverage. Canal+ broadcast 12 World Cup Games in 3D this summer, has announced plans to launch a 3D service before Christmas. Numéricable launched demo channel in Sept with a VOD 3D service planned by end of year Germany Sky Deutschland to launch 3D channel in Germany and Austria; will also be carried by Kabel BW. Deutsche Telecom's IPTV service aired 3D hockey game in April; recently began 3D movies/docs on VOD Netherlands UPC: U.S. Masters golf coverage in 3D in April. Ziggo: aired 3D political debate in 3D in June. Recently announced plans to carry SBS' 3D channel Net 5 Italy RAI: providing 3D programming for SES Astra pan-European 3D channel Portugal ZON aired two warm-up soccer matches before the World Cup . RTP offered 3D coverage of some FIFA World Cup matches that was carried on MEO, which has also aired some 3D tennis in 3D. Spain In March, satellite service Hispasat transmitted the country's first soccer match in 3D to a cinema and in April Canal + Spain offered a 3D concert to subscribers. Switzerland UPC Cablecom aired the U.S. Masters in 3D in April Czech Republic In June, UPC's Czech system launched HD+, 3D channel created by SAT Plus Estonia In May cable operator STV launched a 3D channel STV HD1, featuring sports and other programming Poland UPC : 3D demo on June 1; multichannel provider "n" has launched nSports 3D Russia NTV-Plus broadcast World Cup games in 3D this summer; partnership with Panasonic to launch 3D channel Pan European Luxembourg-based SES Astra has launched 3D demo channel and Eurosport has offered 3D coverage of some special events, including the French Open in May, which was transmitted to over 3,000 retail stores throughout Europe.
  • 76. European MSOs U.K. BSkyB: various live sports, music and cultural events; in April launched a 3D channel to over 1,000 pubs and clubs with least one live sporting events per week. Sky 3D channel available to Sky customers with HD box and 3D set in the U.K. and Ireland. BBC hopes to air parts of the 2012 London Summer Olympics in 3D. Discovery Europe has received a license for a 3D channel. France France Télévisions: French Open 3D in May. TF1 offered 3D coverage of several FIFA World Cup matches that were carried on IPTV and satellite providers Orange: some 3D tennis matches in 2008 and 2009, launched a 3D service in May with French Open coverage. Canal+ broadcast 12 World Cup Games in 3D this summer, has announced plans to launch a 3D service before Christmas. Numéricable launched demo channel in Sept with a VOD 3D service planned by end of year Germany Sky Deutschland to launch 3D channel in Germany and Austria; will also be carried by Kabel BW. Deutsche Telecom's IPTV service aired 3D hockey game in April; recently began 3D movies/docs on VOD Netherlands UPC: U.S. Masters golf coverage in 3D in April. Ziggo: aired 3D political debate in 3D in June. Recently announced plans to carry SBS' 3D channel Net 5 Italy RAI: providing 3D programming for SES Astra pan-European 3D channel Portugal ZON aired two warm-up soccer matches before the World Cup . RTP offered 3D coverage of some FIFA World Cup matches that was carried on MEO, which has also aired some 3D tennis in 3D. Spain In March, satellite service Hispasat transmitted the country's first soccer match in 3D to a cinema and in April Canal + Spain offered a 3D concert to subscribers. Switzerland UPC Cablecom aired the U.S. Masters in 3D in April Czech Republic In June, UPC's Czech system launched HD+, 3D channel created by SAT Plus Estonia In May cable operator STV launched a 3D channel STV HD1, featuring sports and other programming Poland UPC : 3D demo on June 1; multichannel provider "n" has launched nSports 3D Russia NTV-Plus broadcast World Cup games in 3D this summer; partnership with Panasonic to launch 3D channel Pan European Luxembourg-based SES Astra has launched 3D demo channel and Eurosport has offered 3D coverage of some special events, including the French Open in May, which was transmitted to over 3,000 retail stores throughout Europe.
  • 77. Subscription 3.0 Extremely vulnerable to churn... especially in the Torrent era.
  • 78.
  • 79.
  • 80.
  • 82. Subscription 3.0 • #2  market  cap  company  in  the  US • Apple  is  the  world’s  #1  brand • Reinvented  the  music  business •  Pioneered  the  legal  video  download  market •  Steve  Jobs  is  largest  shareholder  of  the  Walt  Disney  Company •
  • 83. Subscription 3.0 Possible Apple TV subscription service faces uphill battle Two  major  TV  networks  are  considering  joining  Apple's  plan  to  offer  TV  subscriptions   over  the  Internet  in  a  venture  that  could  put  Apple  in  direct  competition  with  cable   and  satellite  providers.  Disney  and  CBS  are  both  taking  a  liking  to  the  deal,  according   to  sources  speaking  to  the  Wall  Street  Journal.   However,  the  rumored  details  of  the  service  may  keep  other  networks  away,  and  with   cable  providers  looking  at  a  potential  hit  in  the  wallet  from  the  service  (and  even   buying  broadcast  networks),  it  faces  an  uphill  battle  before  seeing  the  light  of  day. News  about  Apple's  plans  leaked  in  November,  with  multiple  industry  insiders  saying   that  Apple  may  eventually  launch  the  subscription  service  for  a  $30  monthly  fee  which   would  allow  subscribers  to  watch  whatever  TV  they  like.  
  • 84. Subscription 3.0 • Founded  in  1997  as  subscription  DVD  delivery  service  (3  at  a  time) • Monthly  fee:  unlimited  rentals.  no  due  dates,  late  fees,  shipping  fees • Propped  up  Ylagging  DVD  sales  for  studios • Provides  non-­‐premiere  movies  and  some  TV  shows • Focus  on  recommendation  engine  and  “likes” • App.  10%  of  the  company’  titles  are  available  via  streaming • No  immediate  window  releases • Expensive  deals  with  Miramax  and  other  studios • No  HBO,  recent  Showtime  withdrawal
  • 85. Analysis • First  to  exploit  preference  analytics • Unlocked  massive  value  in  catalog  titles • Largely  a  partner  for  studios • Largely  a  competitor  for  distributors • Focus  on  recommendation  engine  and  “likes” • Recently  became  largest  subscription  service  in  the  US,  with   approximately  20,000,000  subscribing  households
  • 86. Digital Business 2012 Broadcast Subscription Advertising New Services Analytics New Platforms Conclusion 2010 New Amsterdam Media LLC
  • 87. • Most  popular  destination  for  television  content  online  in  US • Originally  launched  as  advertising-­‐driven  site:  has  migrated  to   subscription • Joint  venture  of  NBC,  FOX  and  later  ABC • Clean  user  interface;  great  user  experience • Initially  viewed  as  a  great  victory  over  pirate  TV  sites.    
  • 88.
  • 89. Analysis • Great  friction  with  the  ad  sales  divisions  of  its  parent  networks • Ad  load/rev  imbalance;  Hulu  ad  model  much  less  proYitable  than  TV • Complaints  from  leading  show  producers  re  syndication • $2  billion  IPO  canceled • Limited  international  rights
  • 90. Viacom and Hulu Part Ways By BRIAN STELTER March 2, 2010 In the first major fracture between television show owners and the wildly popular Hulu.com, Viacom will remove “The Daily Show With Jon Stewart,” “The Colbert Report” and other Comedy Central programs from the video site next week. ...Viacom’s decision is a serious loss for Hulu. This week “The Daily Show” is listed as the third-most- watched show on the site. The three-year-old Hulu dominates the mushrooming market for online full-episode TV viewing, with more than 44 million monthly visitors... monthly video view totals have surged from 580 million last September to 1.01 billion last December. But Hulu is unprofitable, according to analysts.
  • 91. Economics of Television 2002 2009 Source: Kagan
  • 92.
  • 93. TV Economics $500,000 (per episode) Show Costs x 22 (episodes per order) $11,000,000 $.13 sub/m Network Revenue x 12 x 99,700,000 HH $ 155,532,000 (Price erosion analysis) Potential Loss $.01 sub/m x 12 x 99,700,000 HH $ 11,964,000 (delta)
  • 95. DO NOT: Who are these people??
  • 96. DO:
  • 97. Ad Model: The Future • Advertising is in transition: moving from CPM to Niche • Are you buying diapers in the morning, or your third BMW? • One high value customer is better than 100 low value customers • Advertiser value must change from a proxy for audience size to a measure of customer value
  • 98. Digital Business 2012 Broadcast Subscription Advertising New Services Analytics New Platforms Conclusion 2010 New Amsterdam Media LLC
  • 101. Analytics "If you're not paying, you are the product being sold"
  • 102.
  • 103.
  • 104.
  • 105. Analytics TiVo’s still watching you, but by region now It’s  no  secret  TiVo  has  been  watching  its  subscribers.  But  now  the  DVR  company  has   announced  it’s  giving  advertisers  up-­‐to-­‐the-­‐minute  info  on  what  users  are  watching  (and   fast-­‐forwarding  through)  based  on  speciYic  geographic  regions. As  a  web-­‐enabled  DVR/TV  guide  service,  TiVo  already  collects  a  wealth  of  data  on  its  users’   viewing  habits  on  a  national  level.  Today’s  announcement  is  an  expansion  of  those  efforts  by   repackaging  this  data  for  advertisers  and  content  providers  on  a  local  level. It  works  by  logging  the  second-­‐by-­‐second  activities  of  TiVo  subscribers...    this  info  could  give   advertisers  and  broadcasters  an  idea  of  what  kind  of  programming  (or  commercials)  are  making   an  impression  in  a  given  region.   TiVo  also  says  the  information  gleaned  could  help  local  broadcasters  pinpoint  when  viewers   lose  interest  in  a  given  program.
  • 106. The MTV VMA Twitter Tracker Shows 1.5 Million Tweets And Counting Sep 12, 2010 If  you  are  watching  the  MTV  Video  Music  Awards  right  now,  chances  are  that  either  you  or   someone  you  know  is  also  Tweeting  about  it.  Some  trending  topics  on  Twitter  right  now  are  “lip   synching”  (Oh,  Bieber)  and  “Drake  better  win”...      As  of  this  writing,  there  are  1.3  million  Tweets   about  the  MTV  VMAs  in  the  past  three  hours  since  it  started.  The  Twitter  tracker  ranks  artists  by   number  of  Tweets  per  minute.  At  one  point,  Taylor  Swift  was  dominating  with  3,517  Tweets  per   minute,  followed  by  Kanye  West  (3,009)  and  Lady  Gaga  (857).  It  changes  all  the  time,  obviously,   depending  on  who  is  on  stage. ...  All  in  all,  it  is  very  entertaining,  almost  more  so  than  the  VMAs  themselves.
  • 107.
  • 108. Analytics • Brand value is huge asset • Communication is essential • Always aim to add value • "Being the product being sold" does not build loyalty • In this regard Content (brand) is still King
  • 109. Digital Business 2012 Broadcast Subscription Advertising New Services Analytics New Platforms Conclusion 2010 New Amsterdam Media LLC
  • 110. New Platforms • Location Based Services • Social TV • Demographic Niche (3D TV)
  • 111. Look for Growth: Location Based Services ...How do you monetize a check in?
  • 112.
  • 113. Look for Growth: Location Based Services New  York  aims  to  be  the  Next  Top  Digital  City  in   America May  16,  2011  6:53  PM  EDT At  City  Hall,  May  16,  New  York  City  Mayor  Michael  Bloomberg  released  a   report  that  outlines  the  plans  for  the  city  to  form  partnerships  with  social   media  companies.     Through  ofYicial  partnerships  with  Twitter,  Facebook,  and  NY-­‐based   startups  Foursquare  and  Tumblr,  New  York  City  aims  to  be  the  top  digital   city  in  America.  The  city's  Yirst  chief  digital  ofYicer,  Rachel  Sterne,  joined   Mr.  Bloomberg  in  presenting  the  Road  Map  for  the  Digital  City,  and  how  to   expand  its  online  presence. A  comprehensive  90-­‐day  review  on  the  usage  of  web,  social  media  and   mobile  tech  in  New  York  City  and  surveys  on  public  and  private  sector   organizations  as  well  as  individual  users  were  conducted.
  • 114. Look for Growth: Location Based Services
  • 115. Look for Growth: Content via Community Facebook Check-In Service Rewards Users With Music Downloads Mobile check-in services are hot right now, and technology firm Neurotic Media is hoping to capitalize on that with a new service that lets users get free access to digital music when checking into various locations via Facebook. The service is called Music Check-In Incentives... It's a "white-label" service aimed at companies that want to offer visitors downloadable music when they check into certain venues using Facebook's Check In feature. ... a user checks into a location using Facebook on their mobile phone; the owner of that establishment using Neurotic Media's service can then immediately reward that check in with a free music download, or a playlist, or credits that users can apply to any song they wish on iTunes or other digital retailers. The participating company then gets to post a message on the user's Facebook Wall, notifying them of the check in and the reward provided... will soon apply to other social networks with their own geo-location systems (think Foursquare). The music industry is still searching for a way to merge location-based mobile technology with music promotion. This is an easy solution for that. Record stores can give away free tracks to anyone checking in at their location in hopes of driving subsequent sales of the corresponding album. Concert venues can reward check ins with a free sample of a song from an upcoming act. Bands can offer a scavenger hunt-like experience, rewarding fans who check into secret locations with new or unreleased tracks as a way to hype an upcoming album or tour.
  • 117. Look for Partnerships: Social TV TV brands and manufacturers are also working aggressively to create partnerships with the content providers in order to keep consumers interested and happy with continually updated material, Patel added. “The arrival of Internet-enabled TV models is part of the ongoing evolution and enhancement of TV sets,” he said. “Because innovation is a must in order to drive consumer adoption and replacement, the TV industry has embarked on a path of enhancing the consumer experience through interaction with their TV sets.” North America and Western Europe will make up the largest consumption market for IETVs from 2010 to 2014. Japan will be the third largest market only until 2012, after which it will drop to fifth place.
  • 118. Look for Partnerships: Social TV Motorola Study Finds Consumers Would Pay for Social Media Features on TV Surveyed video-consumption habits among 7,500 consumers in 13 countries: the U.S., Australia, China, France, Germany, Japan, Nordics, Russia, Singapore, South Korea, Turkey, United Arab Emirates and the U.K. / About a quarter of TV viewers surveyed expect to upgrade to 3DTVs in the next 18 months, while 75% either currently own an HD set or plan to buy one in the same time frame, according to research from Motorola Mobility. Motorola Mobility’s Global 2010 Media Engagement Barometer also found that consumers around the world are very interested in using social-media features on their TVs — with 58% of people who have used social media during a TV program saying they would change their service provider if it were offered as an integrated service. The study found 42% of viewers globally have had an e-mail conversation, engaged in an instant message chat or used a social network to discuss a program or video while they were watching it. Of this group, 22% said that social- media multitasking is a regular part of their viewing experience and 61% would be prepared to pay more for a service that offered these capabilities. The Media Engagement Barometer study, conducted by research agency Vanson Bourne, surveyed video-consumption habits among 7,500 consumers in 13 countries: the U.S., Australia, China, France, Germany, Japan, Nordics, Russia, Singapore, South Korea, Turkey, United Arab Emirates and the U.K.
  • 119. Look for Partnerships: Smart TV Ensequence Hits Yahoo Connected TVs Interactive TV Firm Targets Over-the-Top Video Platforms By Todd Spangler -- Multichannel News, 5/16/2011 12:01:00 AM Ensequence is taking its interactive TV expertise beyond cable and satellite. The New York-based company has historically specialized in developing interactive applications for pay-TV providers and programmers. Now it is extending its focus to deliver ITV apps to connected-TV devices, as well. "We're going to be wherever our programmer customers want us to be," Ensequence vice president of marketing and product management Kevin Hurst said. "What we're hearing is, programmers want to take the interactivity they have on cable and take it everywhere." Ensequence targeted the Yahoo platform because it's currently the most widely deployed, Hurst said. According to Yahoo, nearly 10 million TV sets from Samsung, LG, Vizio, Sony and Toshiba have shipped with the widget software. He added, however, that Yahoo doesn't track exactly how many are connected to the Internet. Ensequence's customers include NBC Universal, MTV Networks, ESPN, Showtime Networks, The Walt Disney Co., Turner Broadcasting System, HBO, Comcast, Time Warner Cable, Canoe Ventures, Dish Network, DirecTV and Verizon.
  • 120. guest to the season four prem rated show Look for Partnerships: Smart TV PALO ALTO, Calif. – February 1 IntoNow and MTV to Deliver New Ways for Fans to Discover and Interact With MTV Shows Jersey Shore and My Life as Liz technolog First-of-its-kind Jersey Shore exclusive live tagging contest will send a lucky fan and a focused on enhancing the way guest to the season four premiere and party for MTV’s highest rated show of all time. Beginning on February 17, 2011, IntoNow users who tag six premiere airings this conten announced a partnership wit season of Jersey Shore will be entered for a chance to win a trip for two to the season four premiere which includes travel, hotel accommodations and admission to the season four premiere party. Networks “We’re really excited by all the enthusiasm we’ve receivedVIA.B), that will provide new w around IntoNow and are thrilled to be working with MTV to offer our users and fans something unique,” said Adam Cahan, founder and CEO of IntoNow. “This is just the beginning of what we want favorite sh to be able to offer our users at IntoNow. MTV came up with a great idea, and we’re really into being able to offer viewers new ways to interact with their favoriteShore will have the cha Jersey shows.” premiere a season four of Jersey Shore. An get an insid favorite television sho Beginning on February 17, 20 premiere
  • 121. Look for Partnerships: Social TV "People no longer wait for their show. Their shows wait for them. We see new digital devices as new ways to connect consumers with their content. Consumers are turning to these devices to make their lives more functional. Our challenge is to use these devices to stay relevant to consumers... It’s not just about great content, it also requires a great user interface – example, Apple’s iTunes. We have to create simple ways to find the content and lower the barriers to their use. This requires a new kind of convergence, one with content providers, consumer electronics companies, distributors and advertisers. Text This is not eroding our audience. These new platforms drive consumers back to the programs. People are watching even more TV. The more ways that are available, the more their appetite grows. This is just the beginning. -- Anne Sweeney, Co-chair, Disney Media Networks
  • 122.
  • 123. Look for Demographic Trends: 3DTV
  • 126. Index Strength in ME, BRIC, SA
  • 127. Under Index: Aust/NZ, Japan, Scandanavia Just two per cent of UK consumers are planning on purchasing a 3D television over the next 12 months, according to new research by Deloitte.
  • 128. Something New: Social Benefit Platform
  • 130. Digital Business 2012 Broadcast Subscription Advertising New Services Analytics New Platforms Conclusion 2010 New Amsterdam Media LLC
  • 131.
  • 132. Conclusions • Go where your audience lives • Fight for scale • Fight for authenticity • Skate where the puck is going • Know who you are
  • 133. “Nobody knows anything.” - William Goldman 2010 New Amsterdam Media LLC
  • 134. "Anything new, anything worth doing, can't be recognized." - Picasso 2010 New Amsterdam Media LLC
  • 135. seth@newAMSmedia.com DANK U WEL! Los Angeles  New York  Amsterdam