Upload
louisa-berry
View
213
Download
0
Tags:
Embed Size (px)
Citation preview
CONFIDENTIAL
Project Big Fish: Acquisition Opportunity
July 2006
CHANGED TO JULY
page 2
Agenda
• Executive Summary
• Detailed Analysis: Digital Distribution Landscape
• Appendix
CONFIDENTIAL
Executive Summary
page 4
Executive Summary
• Digital distribution is critical to SPE– Digital video distribution is reaching critical mass, changing the distribution
landscape and creating new opportunities for Sony Pictures– Other studios are investing heavily to capitalize on these opportunities
• Sony Pictures is developing solutions for digital distribution and has three alternatives for market entry
– Build an entirely home-grown solution– Partner with technology vendors and online destinations– Acquire for technology, management, and/or user base
• An acquisition would best address technology challenges and accelerate speed-to-market by providing a platform
– “Big Fish”, a leading destination for user-generated content, is a target which could be a cornerstone for SPE
– Acquisition criteria include access to technology, management expertise, content and revenue potential
– Potential risks relate to retaining and growing customer base and incorporating commercial content
page 5
Digital Video Distribution is Reaching Critical Mass
• Infrastructure is nearly in place– Roughly 50% broadband penetration of U.S. households– Compression technologies continue to improve– Content owners digitizing libraries
• Consumers are engaging with more content, in ways that are unique to a two-way, interactive medium
– Over half of Internet users have visited a social networking site– U.S. video downloads exceeded 18 BN in 2005
• Traction is being demonstrated by multiple players, large and small, new and old– Leading online destinations extending brands to video– Traditional networks establishing online presence– Start-up video and social networking sites building large audiences
page 6
Changing Distribution Landscape and User Behavior Create Opportunities for Sony Pictures
• IP-delivery is decreasing control exerted by traditional distribution partners and increasing the importance of two-way communications
– Consumer time spent watching cable and network TV forecast to remain roughly flat while time spent with interactive media (online, games, mobile) will grow 10%-30% annually
• Unlimited shelf space is increasing the importance of niche content– Major studio content composes 95% of volume for brick-and-mortar retailers but only 80%
for online retailers
• Advertising is becoming increasingly important in the online space– Online advertising grew 30% in 2005 (compared with 6% for traditional media)– Online advertising expected to reach 25% of the $115 BN domestic advertising market
• SPE is creating digital video services to capitalize on these trends and strengthen our position in the market
– Increase control of distribution and build direct, two-way relationships with consumers– Broaden base of content to include user generated and short-form– Increase ownership of ad-supported content
FIXED TYPO IN TITLE, TWEAKED WORDING
page 7
Evolving Infrastructure Represents an Opportunity to Build Direct Relationship with End-users and Increase Control of Distribution
Broadcast Model
Cable Model
Digital Distribution – Licensing/Syndication
Broadcast Network
Broadcast TVLocal Affiliate
Production CustomerDistributionAggregation
SPE
Cable Network
Cable TVCable MSOSPE
Portal PC or TVBroadband ISPSPE
Customer-facing Service
SPE-owned Service
PC or TVBroadband ISPSPE
page 8
Sony’s Efforts to Date Demonstrate the Challenges in Building Core Technology and the Need to Invest Appropriately
Learning and ImplicationsSony Efforts to Dates
• Nanofilms• Chat Cinema• Broadband Channels• Sony Connect• Marketing partnerships
–“When a Stranger Calls” on MySpace• Bundling films on digital media
–Memory Sticks–Flash Memory–Computer Hard Drives
• Initial efforts were ahead of market appetite; current efforts demonstrate market readiness
• Social Networking and User Generated Video sites are effective marketing platforms
–“When a Stranger Calls” has 115K friends on MySpace
• Success requires a significant investment in marketing and infrastructure
• Sony faces challenges in developing differentiated technologies in-house
• Acquiring established brands and technology can be more cost efficient
• Screen Blast• SoapCity• iFilm (early investor)• MovieLink
Current
Previous
page 9
Competitors See Value in User Generated Video Sites and are Investing Heavily in the Space
Online Destinations
• Acquired iFilm for $49 MM
• Acquired Intermix / MySpace for $580MM
• Acquired IGN and Scout for $X
• Acquired iVillage for $592MM
• Promoting new series on YouTube
• Acquired Lightningcast for video advertising technology
• Licensing content through BitTorrent and Guba (social network)
Social Networks Generate Value for Traditional Content Owners
Social Networks Generate Value for Traditional Content Owners
Large audiences provide a legitimate alternative distribution channel
Increasingly supported by advertising revenue
Two-way medium with high degree of interactivity, customer engagement and feedback
Provide opportunities to create popular derivatives of existing properties
Harness users’ creativity to identify and develop new concepts
Large audiences provide a legitimate alternative distribution channel
Increasingly supported by advertising revenue
Two-way medium with high degree of interactivity, customer engagement and feedback
Provide opportunities to create popular derivatives of existing properties
Harness users’ creativity to identify and develop new concepts
Fixed typo (extra space in WB section)
page 10
51.4
20.1
7.7
2.8 2.0 0.8
20.5
7.0
13.9
9.3 9.3 8.04.4 3.2 3.2
8.5 8.05.4 4.7
User Generated Content Sites are Attracting Large Audiences
Social Network Store Channel Promotional
Source: Nielsen NetRatings. Figures as of 6/21/06.* Grouper unique user numbers as provided by company. Number of unique users represents US base of direct and embedded. Worldwide unique users total approximately 8 million.
• Predominantly short video clips that promote the site owner’s content, merchandise, and brand
• May include some advertising, and minimal commerce capabilities, but is promotional in nature
• Includes on-demand videos available in programmed micro-channels, on a show-by-show basis, or in a traditional channel lineup
• Business model primarily includes advertising, with some upsell to subscription
• Aggregates video across content providers for purchase
• Uses a range of models including sell-thru, rental, and subscription
• Generally consists of short video clips from users of the service
• May also provide tools for creating video clips or interacting with video content
• Primarily ad-based business models
Monthly Unique Users (mm)
Changed title
page 11
Acquisition Targets Must Meet the Following Criteria
Focus on these criteria and reasonable valuation to:
Focus on these criteria and reasonable valuation to:
Accelerate time-to-market
Decrease cost of entry
Gain access to new content
Create potential for growth in advertising revenue
Accelerate time-to-market
Decrease cost of entry
Gain access to new content
Create potential for growth in advertising revenue
• Proven track record
• Domain expertiseStrong Management
• Service operation and design
• Tools / software development
• Consumer data usage
Differentiated Technology
• Large and growing base of user-generated content
Breadth of Complimentary Content
page 12
SPE Target and Competitive Landscape
Technology Capabilities
Low High
Lo
w (
< 3
mm
)H
igh
(>
3m
m)
Exi
stin
g S
ervi
ce P
enet
rati
on
Google (97.2)
Yahoo (105.5)
AOL (72.0)
YouTube (20.1)
MySpace (51.4)
Grouper* (2.8)
Brightcove (0.2)Veoh (0.1)
FOX.com (8.5)ABC.com (8.0)
MLB.com (9.3)
Facebook (7.7)
Connect (1.2)
iTunes (20.5)
CBS.com (5.4)MTV Overdrive (4.4)
(Monthly Unique Users in millions)
Source: Nielsen NetRatings. Figures as of 6/21/06.•Grouper unique user numbers as provided by company. Number of unique users represents US base of direct and embedded. Worldwide unique users total approximately 8 million.
Blinkx (0.01)
Metacafe (1.6)
Friendster (0.8)
AddictingClips (1.7)
iFilm (3.2)
Revver (0.1)
Dailymotion (0.4)
vidiLife (0.7)
VideoEgg (NA)
vimeo (0.4)
MovieLink (0.6)
CinemaNow (0.3)
vSocial (0.5)
Guba (0.9)
Roo Media (0.6)
Moved movielink and cinema now higher
page 13
Big Fish Company Overview
• Multi-platform Video Network dedicated to watching, sharing, and creating user generated video
• #2 independent video community (Hitwise May report)Service Summary
Technology Differentiators
Current Status
Partners and Affiliates
• Video distribution technology enables video portability to multiple devices (iPod, PSP, mobile phones)
• Proprietary software client with P2P file sharing
• Supports all major video formats and encodes to Flash Video 8, WMV9, MP4
• Desktop video creation technology featuring video editor, video optimizer, webcam recorder, miniDV transfers and client-side Video
• Plug-and-play rich video functionality on partner sites that enable users to watch, search, upload and share video
• Affiliate agreements with MTV, Friendster, Buy.com, Everyone’s Connected, Logitech, and Pure Digital
• Launched beta version of site and attracted 7MM global UU’s (2.8MM US)
• Pre-revenue; developing version 3 of the service
• Received [quang verify $5M?] of funding to date
• Received a competitive acquisition bid and provided valuation guidance of $50MM
• Currently employees [28] full-time; [X] contractors
tweaked
page 14
Big Fish Service Highlights
WatchWatch
• Home page with “video wall” of user generated content; 80% click-through
• Content can be discovered through:– Rotation in video wall– Search– Channels
• Ability to download content to multiple devices in appropiate format
– iPod– PSP
ShareShare CreateCreate
• Easy upload of user videos
• Add video comments to video from other users
• One click publishing to other sites, including MySpace
• Import address from MSN, Hotmail, and Yahoo to create email groups
• P2P client enables download of original, high quality files (not just streams)
• Real-time recording and upload from web cams and mobile phones
• Proprietary client with easy-to-use editing tools
– Select video– Select photos and tracking /
panning effects– Select music
UPDATEUPDATE
page 15
Big Fish Management Team
• Josh Felser, CEO & Co-founder– President & Co-founder Spinner (Sold to AOL for $320M); GM AOL’s music brands;
Business development at News Corp
• Dave Samuel, President & Co-founder– CEO and Co-founder Spinner; VP Technology AOL, MIT
• Aviv Eyal, CTO & Co-founder– CTO and Co-founder Friskit; Lead engineer Microsoft Multimedia
• Mike Sitrin, VP Revenue & Co-founder– Director Marketing and Commerce AOL, Director of Sales Spinner
• Jonathan Shambroom, VP Product– VP Product Jumpstart, Director Product: Evite (Sold to IAC), When.com (Sold to AOL),
PF.Magic (Sold to Learning Co)
page 16
Big Fish Performance Against Competitors
Ease of UseCommunity
ConnectionsFeaturesQuality of Content P2P Client
TechnologyTechnology ContentContent ManagementManagement
Strength of Leadership
MonthlyUnique
Users (mm)
2.8
1.7
0.4
0.9
3.2
1.6
NA
0.1
0.1
0.7
0.4
0.5
20.1
• Strong, experienced team
• Unknown
• Unknown
• Weak team
• Strong (but captive to Viacom)
• Unknown
• Unknown
• Average
• Unknown
• Unknown
• Unknown
• Unknown
• Young, limited experience
page 17
Cross-Sony Opportunities for Big Fish
• Connect service primarily acts as a digital store, aggregating commercial content for Sony devices
• Big Fish expands service capabilities, adding user-generated content and distributing across all device types
• Big Fish technology built to support ad-based and transactional business models
• Big Fish can expand to become the lead brand for Sony’s broadband channels or support additional channels with new brands
• Big Fish has positioned itself to meet the high demand for online video advertising (supports ad insertion in both streamed and downloaded content)
• SPE ad sales team could sell ad space
Technology As A Platform for Growth
SPE Ad Sales Opportunities
Complementary to Connect
page 18
Risks and Mitigation
MitigationRisks
• Customer retention / increased competition • Differentiated technology provides a better user experience than competitors
• Leverage strategic partners for growth (less dependent on “fads” in user taste)
• Inability to offer commercial content • Ensure SPE appropriately programs content for the channel
• Create new, more interactive content for the Big Fish
• Integration challenges • Structure incentives for acquired management• Allow new management to retain decision-making
authority
• Lack of interest by advertisers • Big Fish struck first deal with MTV• AOL and Google report sold-out ad inventory
page 19
Valuation Based on Multiple of Unique Users for Comparable Companies
• Based on Big Fish’s current 2.8MM US unique users and based on multiples in comparable transactions, initial valuation guidance includes a discount for the company’s pre-revenue status
REVENUE GENERATING COMPARABLES
Transation Purchase Number of EV / Implied (dollars in millions) Date Price Unique Users Unique Users Valuation
Comcast Interactive - thePlatform Jun-06 $80.0 N/A N/A $80.0
Friendster (post-money valuation) Oct-03 $53.0 1.70 $31.2 $87.7
NewsCorp - MySpace / Intermix Jul-05 $580.0 17.00 $34.1 $96.0
NBC Universal - iVillage Mar-06 $600.0 14.00 $42.9 $120.6
Source: Company press releases, VentureSource.com. * Unique user data from Nielsen NetRatings and ComScore MediaMetrix, representing US Unique Users as of Paril 2006.
Median $91.8
Grouper Guidance on Required First Bid $50.0
Implied Discount for Pre-Revenue / Early Stage Company45.6%
page 20
Valuation Based on Venture Funding of Comparable Companies
• Venture funding in this space has also been extremely active, and can provide an implied valuation range considering the percentage of the company given (ranging from 10% to 40%)
VENTURE FUNDING VALUATIONS
# of Monthly Round of(dollars in millions) Unique Users Date Funding Amount Raised 40.0% 30.0% 20.0% 10.0%
BitTorrent 0.4 9/27/2005 1 $8.75 $21.88 $29.17 $43.75 $87.50
YouTube 20.1 3/31/2006 2 8.00 20.00 26.67 40.00 80.00
Brightcove 0.2 11/22/2005 2 16.20 40.50 54.00 81.00 162.00
CinemaNow 0.2 7/27/2004 1 11.25 28.13 37.50 56.25 112.50
Veoh Networks 0.1 4/18/2006 1 12.50 31.25 41.67 62.50 125.00
DivX* 1.1 5/5/2006 4 17.00 167.00 167.00 167.00 167.00
Friendster** 0.8 11/6/2003 1 13.00 53.00 53.00 53.00 53.00
MySpace*** 51.4 7/18/2005 ACQ 146.80 146.80 146.80 146.80 146.80
Source: Funding information provided by VentureSoruce.com. Unique user data from Nielsen NetRatings and ComScore MediaMetrix.* Post money valuation for DivX provided at $167.0 million** Post money valuation for Friendster provided at $53.0 million.*** The remaining 47% of MySpace was acquired by Intermix Media for $69 million - implied valuation stands at $146.8 million.
Mean $63.57 $69.48 $81.29 $116.73
Median 35.88 47.33 59.38 118.75
Low 20.00 26.67 40.00 53.00
High 167.00 167.00 167.00 167.00
Implied Valuation Range
page 21
Deal Memorandum to SCA and Tokyo• Submit non-binding term sheet• Initial feedback on status of bids• Tokyo approval to negotiate binding terms• Initiate negotiations of binding terms
Deal Memorandum to SCA and Tokyo• Submit non-binding term sheet• Initial feedback on status of bids• Tokyo approval to negotiate binding terms• Initiate negotiations of binding terms
Due Diligence• Analyze due diligence materials• Meet with Company• Finalize acquisition valuation
Due Diligence• Analyze due diligence materials• Meet with Company• Finalize acquisition valuation
Process Timeline
Activities/WorkstepsActivities/Worksteps
TimelineTimeline
Acquisition Rationale• Review drafts with Calkins and Carey• Present to Feingold• Present to Lynton and Hendler• Present to SCA (Wiesenthal and Kanagawa)
Acquisition Rationale• Review drafts with Calkins and Carey• Present to Feingold• Present to Lynton and Hendler• Present to SCA (Wiesenthal and Kanagawa)
6/266/26 6/276/27 6/286/28 6/296/29 6/306/30 7/37/3 7/47/4 7/57/5 7/67/6 7/77/7 7/107/10 7/117/11 7/127/12 7/137/13 7/147/14 7/177/17 7/187/18 7/197/19 7/207/20 7/217/21
CONFIDENTIAL
Detailed Analysis
Digital Distribution Landscape
page 23
Broadband Access and Content Availability Are Driving Growth in Digital Video
Source: SG Cowen Research dated June 7, 2005, Morgan Stanley Broadband Update, April 2005
20.125.0
29.433.5 36.6 38.8
13.1
17.6
21.6
25.428.5
30.8
2004 2005 2006 2007 2008 2009
Cable DSL
30% 38% 46% 52% 57% 61%
33.2
42.6
51.0
58.9
69.665.1
1998 2005
Broadband-enabled U.S. Households (MM) Video Downloads (BN)
0.28
18.0
page 24
Downloadable Video Should Drive Growth in Filmed Entertainment
$0
$5
$10
$15
$20
$25
$30
1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995
Rev
enu
e ($
Bill
ion
s)
Pay TV/ Subscription VHS/ Rental DVD/ Sell thru
Evolution of Content Distribution & Revenue Growth of Filmed Entertainment Industry in the US*
New consumer benefits
Introduction drivers
Movies without advertising
Consumer controlled viewing
Ownership, high quality, additional features
New cable network entrants
Consumer electronics manufacturers
Warner Home Video & CE industry
100%=$4Bn
100%=$18Bn
Complete library, convenience & control
Technology Companies
IP Delivery
$37Bn
$47Bn
2004 2008e
$2Bn
$9Bn
Video/DVD
7%TV41%
Box Office52%
Video/DVD41%
TV32%
Box Office27%
Source: Entertainment Industry Economics Vogel 4th ed., PricewaterhouseCoopers Global Entertainment & Media Outlook 2004-2008.
• Models with unique consumer benefits have been consistently adopted by Hollywood• Adoption has often been led by outside entrants and new industry players• Double digit annual growth has doubled the market approximately every 7 years
1995
1980
* Includes revenue generated by films from major studios across content distribution windows – box office, video (rental, sell thru), television (ppv, pay, network, made for TV), and foreign revenues for each
page 25
Digital Video Delivery Represents an Opportunity to Reach a Younger Demographic
Source: Pew Internet & American Life Project, December 2005
27%
22%
14%
8% 8%
Gen Y Gen X Trailing Boomers Leading Boomers Matures
Percent of Each Age Group Downloading Video
(18-28) (29-40) (41-50) (51-59) (60-69)
page 26
SPE Can Best Reach Younger Demographics with Models that Include Two-way Interactivity and Social Networking
Source: Pew Internet & American Life Project, December 2005
66%
52%
38%42%
33%
41%
30%
20% 21%19%
Gen Y Gen X Trailing Boomers Leading Boomers Matures
Percent of Each Age Group Participating in Online Activity
(18-28) (29-40) (41-50) (51-59) (60-69)
Instant Message Read a Blog
page 27
Changein Hours %
1990 2000 2005 2006 2007 2008 2009 ('05-'09) Change
Box Office 12 12 12 12 12 11 11 (1) (8.3%)
Interactive TV/Wireless Content - - 15 19 26 32 42 27 180.0%
Cable & Satellite TV 674 869 871 877 891 881 12 1.4%Broadcast TV 793 679 684 678 675 681 2 0.3%
Consumer Internet 1 104 183 190 195 200 203 20 10.9%Home Video 38 43 76 84 91 95 99 23 30.3%Video Games 12 64 78 82 86 93 96 18 23.1%
Radio 1,135 942 978 975 974 984 984 6 0.6%Recorded Music 235 258 179 175 175 169 165 (14) (7.8%)Daily Newspapers 175 201 183 179 175 170 165 (18) (9.8%)Consumer Magazine 90 135 124 122 122 122 121 (3) (2.4%)Consumer Books 95 107 106 106 106 106 106 0 0.0%
TOTAL MEDIA CONSUMPTION 3,263 3,333 3,482 3,499 3,517 3,548 3,554 72 2.1%
1,470
Consumer Time Shifts in MediaHours Per Person Per Year
Consumers are Shifting Time Away from Traditional Media Toward Online and Interactive Media
Note: Consumer Internet includes both dial-up and broadband
Source: Veronis Suhler Stevenson, Val Morgan, Harris Interactive, L.E.K. Analysis, Jupiter analyst interview, Corporate Development Analysis
• Cable and satellite TV hours rise slightly due to increase in channels, VOD and PPV services• Consumer time spent on broadcast TV may flatten with emerging technologies (a la TiVo)• But the real growth is in Interactive/wireless, home video, internet and games
page 28
New Distribution Models are Shifting Consumer Consumption toward “Long-Tail” Titles
page 29
Studio Content May not Be as Dominant in Emerging Channels
Sources: Nielsen Videoscan data, Wired 2.0, Industry Interviews, select store visits across Los Angeles area
Product Mix of Units
85%70%
30%15%
Bookstore Amazon
Books
98%78%
22%2%
Music Stores Digital
Music
80%
95%
20%5%
"Mart" Retailers Online Retailers
Home Video
Surveyed 6 B&N and Borders stores Calculated number of SKU’s for a sample of fiction titles
Reviewed 8 to 12 stacks Counted the number of separate SKU’s Determined which titles were major (including sub-labels)
Amazon figures are units sold in 2005 (source Wired 2.0 and Bain consumer study)
Publishing analysts from First Research conclude that there is a strong correlation between SKU’s and units sold
Methodology
Niche (All Others)
Major (RH, TW, Simon, HC, Pearson)
Niche (All Others)
Major (Uni, War, Sony/BMG, EMI)
Niche (All Others)
Major (7 Majors)
Surveyed 5 Borders and Best Buy stores Calculated number of SKU’s for a sample of new release and catalog
titles Reviewed 6 to10 stacks Counted the number of separate SKU’s Determined which titles were major (including sub-labels)
Digital figures are units sold in 2005 (source Wired 2.0 and Bain consumer study)
Units sold figures for music via traditional stores is being researched through Nielsen Musicscan data
Surveyed 7 WalMart, Best Buy and Target stores Calculated number of SKU’s for a sample of new release/catalog titles
Reviewed 12 to15 racks Counted the number of separate SKU’s Backed-up SKU findings with units sold data from Nielsen
VideoScan Digital figures are units sold in 2005 via Amazon & other online retailers
page 30
Media spending does not yetreflect consumption
Advertising dollars are shifting online to address the current gap
2003-’05 US Advertising CAGR
Contribution to Growth
Television:
TV Stations 1.5% 2%
Cable Networks 15.6% 19%
Cable MSOs 8.1% 3%
CBS Net, FOX Net 5.8% 9%
Total Television 7.0% 34%
Magazines 8.9% 5%
Newspapers 3.4% 11%
Radio 0.2% 0%
Outdoor 7.1% 5%
Online 50.4% 45%
Total 8.4% 100%
SUMMARY
Traditional Media 5.1% 55%
Online 50.4% 45%
Total 8.4% 100%
Ad Market is Changing Significantly as Ad Dollars Following Consumers and Two-way Infrastructure Becomes Available
Network TV20%
Cable TV25%
Radio27%
Other11%
Magazines4%
Newspaper5%
Games2%
Internet6%
Network TV24%
Cable TV19%
Radio29%
Newspaper6%
Magazines4%
Other14%
Internet2%
Games2%
1999
2005
page 31
SPE Currently Has Limited Ability to Capitalize on the General Growth in Ad Revenues, Particularly in the Online Space
36.6 40.0 39.6 43.2 44.0 47.2 48.2 52.2 53.3
14.214.7 16.3
18.9 21.724.3 26.9
29.733.4
7.16.0 7.3
9.612.6
16.120.0
24.128.2
$0
$20
$40
$60
$80
$100
$120
$140
2001 2002 2003 2004 2005 2006 2007 2008 2009
Broadcast Netw orks Cable Netw orks Online
US
$ (
Bil
lio
ns
)
Overall ’05 – ’09 Projected CAGR: 10.1%
Broadcast ’05 – ’09 Projected CAGR: 4.9%
Cable/Sat ’05 – ’09 Projected CAGR: 11.4%
Online ’05 – ’09 Projected CAGR: 22.3%
TV
& O
nli
ne
Ad
ve
rtis
ing
Sp
en
d
Source: Veronis Suhler, 2005 Note: Cable/satellite growth expected to be driven by increasing audience share of prime time ratings, ability to target within specific demographic groups, improved sales system; broadcast growth expected to be driven by sustained ratings and ad rates, continued appeal as optimal means to reach large audiences
Online %: 12% 10% 12% 13% 16% 18% 21% 23% 25%
57.9 60.7 63.271.7
78.3
87.695.1
106.0114.9
CONFIDENTIAL
Appendix
page 33
Digital Video Offerings Can be Divided into Four Main Categories
Promotional Channel StoreSocial
Network
• Predominantly short video clips that promote the site owner’s content, merchandise, and brand
• May include some advertising, and minimal commerce capabilities, but is promotional in nature
• Includes on-demand videos available in programmed micro-channels, on a show-by-show basis, or in a traditional channel lineup
• Business model primarily includes advertising, with some upsell to subscription
• Aggregates video across content providers for purchase
• Uses a range of models including sell-thru, rental, and subscription
• Generally consists of short video clips from users of the service
• May also provide tools for creating video clips or interacting with video content
• Primarily ad-based business models
page 34
Examples of Online Video Destinations by Category
• CBS.com• Fox.com• NBC.com• Sonypictures.com
• ABC.com• Atomfilms• CBS.com / innertube• ESPN.com• iFilm• In2TV• MLB.com• MTV Overdrive• Yahoo
• Google• iTunes
• Facebook• Friendster• Google• Grouper• Metacafe• MySpace• YouTube• Yahoo
Promotional Channel StoreSocial
Network
LargerAudience
SmallerAudience
• Blinkx• Innertube• Multi-media
Networks• Singingfish
• CinemaNow• Connect• MovieLink
• Dave.TV• Fleapit• Gather• Tag World• Varsity World
page 35
Categories for Online Video Technology Providers
Content Management
Interactivity and Social Networking
Consumer Tools
• Content preparation– Ingestion– Metadata / tagging– Ad insertion
• Content delivery– From content owners to
aggregators– Onto P2P networks
• Content classification and discovery
• Tools and infrastructure for:– Chat– Instant Messaging– Blogs– Ratings– Recommendations– Clickable Video
• Video creation• Video editing• Media mixing software
(integrate video, photo, audio)
• Video publishing (cross-platform)
• Personal channel creation• DVD burning
page 36
Examples of Technology Providers by Category
• Grouper• BrightCove• Maven / The Platform• Veoh Networks• MLB Adanced Media• Roo Media
• Grouper• Sonic• Sony Media Software• Veoh Networks
Content Management
Interactivity and Social Networking
Consumer Tools
MoreEstablished
NewerEntrant
• Extend Media• Intent Mediaworks• Kontiki• Redswoosh• Solid State Networks• SyncCast• Tandberg TV• Zetools
• Avant Interactive• Intent Mediaworks• Imeem• Kozuru• vMix
• Dave.TV (Social Broadcast Network / MyChannels)
• Fleapit• Intercasting / Rabble.com• Oddcast• Participatory Culture• Video Publishing on
Demand (vpod.tv)• vMix
page 37
Key Attributes of Digital Video Services
Content AccessibilityContent Accessibility1
Low Medium High
Content ValueContent Value2
Range of Content ProvidersRange of Content Providers3
Content BreadthContent Breadth4
Degree of InteractivityDegree of Interactivity5
Connected Portable Anytime, Anywhere
Promotional User-Generated Produced
Company Owned Aggregated
Single Genre Multi Genre
On-Demand Ancillary(e.g., blogs and ratings)
Real-Time(e.g., chat, story navigation)
Business Model(Cost to Consumer)Business Model(Cost to Consumer)
6Free Ad-Based Pay
page 38
Promotional Video Websites
OverviewOverview AttributesAttributes
• Predominantly consist of short video clips to promote site owner’s content, merchandise, and brand
• May include some advertising, and minimal commerce capabilities, but is promotional in nature
Content BreadthContent Breadth4 Single Genre Multi Genre
Low Medium High
Content AccessibilityContent Accessibility1 Connected Portable Anytime, Anywhere
Content ValueContent Value2 Promotional User-Generated Produced
Range of Content ProvidersRange of Content Providers
3 Company Owned Aggregated
Degree of InteractivityDegree of Interactivity5 On-Demand Ancillary
(e.g., blogs and ratings)
Real-Time(e.g., chat, story
navigation)
Business Model(Cost to Consumer)Business Model(Cost to Consumer)
6 Free Ad-Based Pay
page 39
Content BreadthContent Breadth4 Single Genre Multi Genre
Broadband Video Channels
OverviewOverview AttributesAttributes
Low Medium High
Content AccessibilityContent Accessibility1 Connected Portable Anytime, Anywhere
Content ValueContent Value2 Promotional User-Generated Produced
Range of Content ProvidersRange of Content Providers
3 Company Owned Aggregated
Degree of InteractivityDegree of Interactivity5 On-Demand Ancillary
(e.g., blogs and ratings)
Real-Time(e.g., chat, story
navigation)
• Includes on-demand videos available in programmed micro-channels, on a show-by-show basis, or in a traditional channel lineup
• Business model primarily includes advertising, with upsell to subscription
Business Model(Cost to Consumer)Business Model(Cost to Consumer)
6 Free Ad-Based Pay
page 40
Video Store (Content Aggregation)
OverviewOverview AttributesAttributes
• Aggregates video across content providers for purchase
• Uses a range of models including sell-thru, rental, and subscription
Content BreadthContent Breadth4 Single Genre Multi Genre
Low Medium High
Content AccessibilityContent Accessibility1 Connected Portable Anytime, Anywhere
Content ValueContent Value2 Promotional User-Generated Produced
Range of Content ProvidersRange of Content Providers
3 Company Owned Aggregated
Degree of InteractivityDegree of Interactivity5 On-Demand Ancillary
(e.g., blogs and ratings)
Real-Time(e.g., chat, story
navigation)
Business Model(Cost to Consumer)Business Model(Cost to Consumer)
6 Free Ad-Based Pay
page 41
Social Network (User-generated Video Sites)
OverviewOverview AttributesAttributes
• Consists of short video clips from users of the service
• May also provide tools for creating video clips or interacting with video content
• Primarily ad-based business models
Content BreadthContent Breadth4 Single Genre Multi Genre
Low Medium High
Content AccessibilityContent Accessibility1 Connected Portable Anytime, Anywhere
Content ValueContent Value2 Promotional User-Generated Produced
Range of Content ProvidersRange of Content Providers
3 Company Owned Aggregated
Degree of InteractivityDegree of Interactivity5 On-Demand Ancillary
(e.g., blogs and ratings)
Real-Time(e.g., chat, story
navigation)
Business Model(Cost to Consumer)Business Model(Cost to Consumer)
6 Free Ad-Based Pay