2. Table of contents
Concept Subscription
Mission Statement How The Site Works
Brand Programming & Distribution
Target Market Interactivity
Demographics Legal Implications
Area For Growth Distribution/Revenue
Marketing Basic Business Model
Advertising Strategic Partnerships
2
3. Concept
Definitions
• Definitions
– L337 or LEE7 refers in the computer gaming world to
the higher echelons of nerd hierarchy.
– Machinima: A type of CGI filming style in which a movie or
animated short is filmed using 3D models from video
games.
Idea
• This network will serve as an online interactive entertainment
network for those who appreciate the technique of using
video games for their art
http://www.urbandictionary.com/define.php?term=L337 3
www.machinima.org/machinima-faq.html
5. Mission Statement
L337 is the network for and about the video game
enthusiast. In addition to network produced content, this
interactive network allows the user to step beyond the
role spectator to participate, showcase and share
original gaming centric content. Users will be able to
reach our network via Internet, mobile and video game
consoles. Content will include trailers, gameplay,
montages, music videos and original machinima series
and movies created in World of Warcraft, Halo, Sims 2,
GTA, Battlefield, Counterstrike and many more games.
5
6. Target Market
Primary Market
• Gaming and Machinima Enthusiasts
– Men
– Age:16-34
– Technology Savvys
6
“Online Video Content-Who’s Watching,” GMI MINTEL February 2009
7. Demographics
Online Video
• Online Video:
• Two thirds of internet users watch online video.
• 90% of 16-19-year-olds watch internet video.
• The most enthusiastic viewers are male.
Video Game
• Video Games
• Men age 14-24 spend roughly 12 hours a week gaming
• The amount of male gaming activity remains high until 35
• Two thirds of teen boys said that they “always” tell their friends about
games that they like
• Teen boys actively seek out information about video games. They watch
ads or videos on the Internet about new video games.
“Online Video Content-Who’s Watching,” GMI MINTEL February 2009 7
“Video Games-Race and Ethnicity,” GMI MINTEL July 2008
8. Areas for Growth-Secondary
Market
• Hispanic
Hispanics
– Spanish Language Speaking
– Hispanics buy substantially
more games on a per capita
basis than any other racial
or ethnic group.
– Hispanics are more likely
than any other race to be
enthusiastic about a game if
they can use it to socialize or
learn something
8
“Video Games-Race and Ethnicity,” GMI MINTEL July 2008
9. How The Site Works
• Entertainment
Entertainment • Interactivity
Interactivity
– Original & Acquired Content – Video Contests
– User Generated Video – Continue A Story
– Content divided by Genre – Ability to Rate Videos + Write
– Spanish Language Video Reviews
– Message and Discussion Boards
– Ability to Personalize Homepage
• Skin
• Recommended Videos
Education
• Education
Social
• Social
– Online Articles
– Blog – Send SMS to Join in Discussion Via
Cell
– “How To” Videos – Online Chat
– Calendar of Events – Profile Links to personal
facebook, twitter, linkedin
accounts+ blogs
9
10. Programming
L337 will feature, original, syndicated, user generated and interactive content.
The goal is to entertain, educate and provide a community for the talents and
ideas of our viewers
• Original Programming • Recommended section
* Channels based off of genre - staff picks
- sports - L33B picks
- action/adventure • L33B of the week
- classics • Most popular (most visited)
- music video • Section for series
- comedy • Section for shorts
- fantasy • - Subsections : professionally
- family-friendly produced versions sponsored by
- romance the company, user generated
- independent channel content, etc
- mystery • Spanish Language Section
• Syndicated Comics • Online tutorials
10
11. Original Programming
• Game Sponsored Content
Game Sponsored Content
• Professionally Produced
• Promotes and Creates
Buzz
• Develops Game
Characters and Legends
User Generated Content
• User Generated Videos
• Content Contributed by
Users
• Can Be Either Short
Films or Web Series
11
12. Original Programming
• Education
Educational Content
– Original Videos offering tutorials, tips and
suggestions to people wanting to create their
own machinima style videos
– V-logs about machinima news and events of
interest
12
13. Acquired Programming
• L33T will be treating it’s subscribers to old, video-game based cartoons for the viewer’s
own nostalgic, viewing pleasure.
• The cartoons will be shortened in length, keeping only the important parts of the episode so
the story still makes sense.
• Links to purchase DVDs of these shows will be provided
• Some cartoons that will be used:
• Double Dragon
• Earthworm Jim
• The Legend of Zelda
• Mega Man
• Mortal Kombat: Defenders of The Realm
• Sonic The Hedgehog
• Street Fighter
13
14. Interactivity
• Modesof Contact
Modes of Contact
- When subscribing to L33t, users will be given the opportunity to include modes of contact (AIM,
Yahoo! Account, Twitter, MySpace name, Facebook, E-mail address, etc.) so other users can
easily connect with them.
• ContinueA Story
Continue A Story
- For certain series, L33t subscribers will be given the opportunity to create the next episode.
They will submit their content and L33t employees will decide which video will get posted as the
next part of the story.
• SubmitYour Own Video
Submit Your Own
- Subscribers will have the opportunity to create their own content and upload it to the L33t
website for other subscribers to be able to view.
BAWLS Presents
• BAWLS Presents:
“Kick Ass Clip Of The Week”
- Subscribers will be able to vote on scenes from different series to decide which clips will make it
14
into the BAWLS - sponsored video.
15. Distribution
• L337 Website
• YouTube
• Facebook
• iTunes
• Game Consoles
• Mobile Application
15
16. Subscription
• Hierarchy within social communities encourages heighted and engaged
consumption
• Subscription on the website will be done in tiers, allowing more access and
abilities depending on which tier is subscribed to.
• N00b - the basic subscription level, free for anyone. N00b’s are allowed to watch
videos, limited space for original uploads and get some sneak peaks for
anticipated video games.
• L33t - the lower of the paid subscriptions. L33t users are allowed access to
archived videos that are no longer available and a larger designated amount of
storage for original videos they want to upload.
• L33b - the highest level. The most expensive, users have access to unlimited
content storage and discounted ticket advantages to conventions.
Other perks:
• Subscribers can submit original content
into contests
16
Schaue, HopeJensen et al., “How Brand Community Practices Create Value” Journal of Marketing, American Marketing Association, September 2009.
17. Marketing-Strategic
Partnerships
• Only titles from the largest companies have the budget for television
advertising and, in particular, national advertising. In addition, the
primary target market for many video games—young males—are
harder to reach on television as they have shifted much of their time
to the Internet and gaming.
• The game is the brand: The title of the game is featured much more
prominently than the name of the developer or publisher.
• The content is the draw
• At least one of the four games more than quadrupled sales following
the clip's appearance in machinima style videos.
• Boys like humor: In addition to clips, many ads utilize humor and
dramatizations to promote the game.
“Video Games-Advertising,” GMI MINTEL July 2008 17
http://magellansproductions.blogspot.com/2007/10/frank-discussion-of-machinima.html
18. Strategic Partnerships
G4TV
• G4TV
- The gamer-centric cable channel will show clips from L337
series on one of their programs, while G4 will have
advertisements on the L337 website.
BAWLS
• BAWLS
- The energy drink will sponsor “Kick Ass Clips Of The Week”
New Game Releases
• New Game Releases
- Various game companies, such as Electronic Arts, will have the
ability to promote their new game releases, while L337 will have
trailers for their popular series at the beginning of these games.
Apple
• Apple
- L337 will allow for 5 free episode downloads with the purchase of an
iPhone, iPod Touch, iPod Classic, or the iPad.
18
19. Marketing
Digital
• Target Demographic is Very “Internet Friendly”.
• L337 Will Have Accounts and Advertisements in:
Analog
• Promotions at Live Events
• Advertising in Comics, Graphics, Novels
• Trailers before Video Games
19
20. Facebook
• Place for L337 subscribers to not only get
the latest updates, but converse with one
another as well.
• Facebook is a popular site for the gamer-type.
• Similar Networks have 20,000 fans on their
Facebook fan page.
21. YouTube
• L337’s Youtube Channel would have a specific
number of episodes from different series
• Great exposure - YouTube users can easily
stumble across our videos without searching for
them - can become fans after this.
• There will be a link back to the L337 page on the
channel.
• Similar Networks have 978,277 fans on their
YouTube Channel.
22. Twitter
• A spot for L337 subscribers to get all the latest
news about new and upcoming releases.
• Twitter is a great “one-stop shop” for quick
news.
• Exposure - fans can re-tweet so whoever is
following them will also get the news.
• There will be a link back to the L337 page on the
Twitter profile.
• Similar Networks have over 1M subscribers on
their Twitter page.
23. Advertising as a Revenue Source
• Advertisements for consoles on the website
• Advertisements for conventions
• Mini webisode series for video games to promote new releases
• Banner ads
• Sponsor ads
• Videos made by energy drinks and junk foods where the characters
speak about the specific product
• Sponsored content
23
24. L337 Store
• Available In Store
Available in Store
• Clothing +
Paraphernalia
• Mobile
Application
• Video
Downloads
• Acquired
Program DVDs
25. Basic Bus. Model-Financials
• Revenue Sources
Revenue Sources Major CostsCosts
– Major
– Advertising – Production Costs
– Strategic – Advertising +
Partnerships Marketing
– Subscriptions – Tech Management
– Mobile Application – Operations +
– Merchandizing Overhead
– iTunes
– DVD Sales (CPA)
25
26. Legal Implications
• Machinima style videos provide free marketing, As a result, Game
Publishers have avoided a response demanding strict copyright
enforcement
• Precedent
– In 2003, Linden Lab was praised for changing license terms to
allow users to retain ownership of works created in its virtual
world Second Life.
– Rooster Teeth initially tried to release Red vs. Blue unnoticed by
Halo's owners because they feared that any communication
would force them to end the project. However, Microsoft,
Bungie's parent company at the time, contacted the group
shortly after episode 2, and allowed them to continue without
paying licensing fees.
Hayes, Christina (2008). "Changing the Rules of the Game: How Video Game Publishers are Embracing User-Generated
Derivative Works” Harvard Law School, Law Review
Marcus, Todd Davis (2008). "Fostering Creativity in Virtual Worlds: Easing the Restrictiveness of Copyright for User-Created
Content” New York Law School, Law Review 26
Thompson, Clive (August 7, 2005). "The Xbox Auteurs". The New York Times.
30. Appendix 2
CPM estimates from:OpenX.org & Fauls, Professor Thomas, In Person Interview April 15, 2010
CTR Estimates http://www.strangecompany.org/strangeco/mcom
