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
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)
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
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
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
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.
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.
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)
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
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
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.
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
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.