1. Making Money from
Digital Platforms & Rights
Monetising Digital Platforms & Rights
14th September 2011
Cut Down Version for Public Distribution
Monetising Digital Platforms & Rights!
2. Monetising Digital Platforms & Rights
What The Blurb Said:
• Current examples; what’s working & what’s making money
• What rights do you own and what can you exploit?
• What sells on new platforms?
• Opportunities in:
• social media
• broadband
• Video on Demand
• IPTV, mobile
• non-broadcast corporate
• ad-funded and branded content
• Collaborative teamwork of TV and interactive production
• International opportunities
• Future trends in the market
Monetising Digital Platforms & Rights!
3. Who We Are
Peter Cowley
• Founder & CEO, Spirit digital media
• peter@spiritdigitalmedia.com
• Twitter: @petercowley
Justin Judd
• MD, i-Rights
• Justin.judd@i-rights.co.uk
Monetising Digital Platforms & Rights!
4. Trends & Insights
1. Understand Digital!
2. Know Your Rights
3. Understand Key Trends
4. Understand who has made money in digital content?
5. Understand the revenue streams: A, B, C, D
6. The Digital Wheel of Value
7. Build a customer/fan base
8. Analyse & Iterate
9. Build Partnerships
10. Futurology
Monetising Digital Platforms & Rights!
5. Understanding Digital – dynamics of digital
You don’t need to be a digital ‘native’ to understand digital,
but……..digital is:
1. Economically ‘Efficient’
- easily replicable, easily distributed
2. Massively expands choice (and reduces scarcity)
- content becomes commodified
3. Deflationary
- analogue dollars vs. digital pennies
4. Decentralises control
- highly fragmented
Monetising Digital Platforms & Rights!
6. Web 2.0 - tail
• The web can give
obscure titles a new
lease of life
• But it tends to
enhance the global
market for top
performing titles
• It tend to punish
mediocrity
• This risks content
investment
• The risk profile of TV,
audio and games
content may become
more like that of
feature films
Monetising Digital Platforms & Rights!
7. Digital Overview – 3 ways to make money
1. I pay
2. You Pay
3. Someone Else Pays
Reference: A, B, C, D of revenue streams
Monetising Digital Platforms & Rights!
8. Digital Trends – affecting TV now
Technological Change Business Model Changes
1. Video On Demand 7. Video advertising
2. Connected TV 8. Virtual Goods
3. Portable Devices & App Stores 9. The Return of Pay /
Subscription
Audience Behaviour 10. Experience Economy
4. Multi-Tasking
5. The Water-Cooler is On-Line Services, not Products
6. Social Activities: chatter, 11. Data
recommendations etc.
Democratisation of Production &
Distribution
12. Digital Distribution/Syndication
13. Original Digital Content
Monetising Digital Platforms & Rights!
9. Monetising Digital - A, B, C, D of revenues
Advertising Revenues: Consumer Revenues:
- Banners - Participation
- Pre/mid/end rolls on video - Virtual goods
- Sponsorship - Mobile apps
- Product Placement - Social games & gaming
- Search • Subscriptions, PPV
Broadcaster Revenues Distribution & Data Revenues
• Commissions • Secondary VOD, DTO
• VOD catch up • International VOD, DTO
• Other ancillary revenues • Data collection & sales
Monetising Digital Platforms & Rights!
10. Analyse & Iterate
Learn from your
customers!
idea
66%+ of social
game
development
comes after a
game launches on
Facebook build
iterate
analyse
Monetising Digital Platforms & Rights!
11. Collaborative Team Working
Need to combine the expertise of the worlds of TV & Digital……and
not to keep them separate, otherwise we will never keep up with the
consumer
Major problems occur from:
• Lack of understanding of each other
• Lack of respect for each other’s skills
• TV is still so big in comparison to digital
To succeed production companies need to:
• Audience insight
• Adapt their culture
• Invest in the right skills
Monetising Digital Platforms & Rights!
12. Part Two
Digital Success
Monetising Digital Platforms & Rights!
13. Digital Hits – the rise of the branded app
James Oliver app
• created a land grab for Food on
the mobile: Nigella, Gordon etc.
Monetising Digital Platforms & Rights!
14. Digital Hits – co-viewing, Million Pound Drop
Play along web app
• Up to 8% conversion rate from
TV/Web (versus 1% for Come
Dine With Me)
• No monetisation, but adds to TV
show engagement etc. grows
base of Facebook users etc.
• Brand exploitation via other
games…..Bet365 and others
Money Drop
On Bet365
Monetising Digital Platforms & Rights!
15. Digital Hits - video
YouTube Hits: Fred
536m views w/wide 900k views in last week
Fred: The Movie, premiered on Nickelodeon
Sep 18 2010 and drew an audience of 7.6m,
1.8m subscribers making it the number 1 children’s cable tv
Monetising Digital Platforms & Rights! movie of 2010
16. Digital Hits – eBooks
John Locke Story:
• First author to sell more than a
million electronic books on the
American Kindle platform without
a publishing deal
• Now signed a physical book deal
with Simon & Schuster
Monetising Digital Platforms & Rights!
17. Digital Hits – virtual world
Moshi Monsters Story:
• Mind Candy developed Perplex
City, an ARG
• Tried to launch kids cuddly toys in
shops linked to virtual world
• Virtual world stalled until it
became social and marketed via
TV
• Now global hit: 50m users
• Just about to release single on
iTunes: ‘Monshi Dance’
Radio interview
Monetising Digital Platforms & Rights!
18. Summary
• Making money from digital platforms & rights is an immature
business…..but the dynamics need to be understood
• Terms of Trade gives the TV market some structure and producers
some rights!
• Audiences are heavily fragmented, but can be now be reached via
social media and hyper-syndication
• Lots of change, but how so we make money from content
production?
• Economic climate makes it particularly hard at the moment
• There are some great success stories, but having a ‘hit’ show makes
making money easier to achieve
• Partner with experts: distribution, advertising sales, technical…
Monetising Digital Platforms & Rights!
19. Making Money from
Digital Platforms & Rights
Monetising Digital Platforms & Rights
14th September 2011
Monetising Digital Platforms & Rights!