End-to-End Solutions For Digital Video End-to-End Solutions For Digital Video

MonetizationMonetization

Executive Summary

The media industry is poised for a big growth across all formats and carriers

»Penetration and availability of internet access

»Availability of hand held access devices – laptops, smartphones

»Changing consumer preferences point to greater choice and convenience

Within media, Video is expected to have largest share in growth

»Video expected to be 50% of all internet traffic and 90% of all consumer traffic on internet by 2012

»Video expected to be delivered across multiple carriers (web, TV, mobiles) and formats

»Need to have sufficient media content available to meet this expected need

OPPORTUNITY: Media content owners can monetize their current libraries by meeting this demand

Several issues need to be overcome for content owner/producers to meet this need

»Current content is in offline analog format – not suitable for use on new carriers/formats

»Storage of current media is with owners themselves – in formats not suitable easy retrieval and distribution

»No specialized services for digitization, indexation and storage

OPPORTUNITY: Provide these services to media content owners to enable them monetize their content

Handling entire value chain – production, conversion & distribution

Ability to monetize the media content will depend on the ability to efficiently convert, store and use existing libraries and to control all aspects of media value chain.

Video Enabled

Data Centre

Media Conversion

Monetization=Distribution + Ad revenue

Distribute to end users like:»Mobile VAS »Video-on-demand»Internet TV»Stock Footage»Downloads

Distribute to end users like:»Mobile VAS »Video-on-demand»Internet TV»Stock Footage»Downloads

Data Storage for media content:»Storage»Search»Retrieval»Cost efficiency

Data Storage for media content:»Storage»Search»Retrieval»Cost efficiency

Digitize content efficiently:»Digitization»Tagging (indexation)»Repurposing (for other formats)»Cost efficiency

Digitize content efficiently:»Digitization»Tagging (indexation)»Repurposing (for other formats)»Cost efficiency

Certain factors can help ability to monetize media content

PLAN1-3 months

PLAN1-3 months

BUILD3-6 Months

BUILD3-6 Months

Consulting

Movico has put together a cutting edge video monetization roadmap using senior experts from technology, new media and marketing

Consulting

Movico has put together a cutting edge video monetization roadmap using senior experts from technology, new media and marketing

Distribution

Movico will support and grow multiple distribution and revenue channels – video-on-demand; live streaming; web-2-mobile; iptv; interactive tv etc

Distribution

Movico will support and grow multiple distribution and revenue channels – video-on-demand; live streaming; web-2-mobile; iptv; interactive tv etc

Movico offers an end-to-end solution focused towards monetization that enables content owners to bridge the gap with market demand

Software Development

Movico has created product frameworks that can be leveraged to expedite and lower the cost of your solution.

Software Development

Movico has created product frameworks that can be leveraged to expedite and lower the cost of your solution.

Movico will formulate a digital video monetization plan in consultation with your senior management team.

The plan includes products, applications, technologies, hosting, storage, operations and revenue forecasts

Movico will formulate a digital video monetization plan in consultation with your senior management team.

The plan includes products, applications, technologies, hosting, storage, operations and revenue forecasts

Digital Marketing

Movico will support the property with SEO, social media marketing, forums, blogs, newsletters and other digital marketing programmes.

Regular content updates, enhancements and web-hygiene will be maintained to keep users engaged.

Digital Marketing

Movico will support the property with SEO, social media marketing, forums, blogs, newsletters and other digital marketing programmes.

Regular content updates, enhancements and web-hygiene will be maintained to keep users engaged.

Media Services

Movico will establish data centre with server, storage and bandwidth suitable for your needs.

Movico will staff and operate services team to convert, digitize and index all assets for new media platforms.

Media Services

Movico will establish data centre with server, storage and bandwidth suitable for your needs.

Movico will staff and operate services team to convert, digitize and index all assets for new media platforms.

Movico is able to provide the perfect solutionfor this need

OPERATE & ENHANCE24-36 Months

OPERATE & ENHANCE24-36 Months

Movico offers flexible, low-cost options that grow with revenue growth and minimize upfront CapEx investments

Multiple Advantages » Access to dedicated highly skilled team at cost+ basis » Access to storage, server, services at cost+ basis» Can move existing web+IT costs to new model and save on efficiency and turnover» Can quickly build leadership position extending branding and valuation

Business Models

PHASE PLAN BUILD OPERATE ENHANCE

Type of Charges

• Advisory Fees • Software Development Fees • Hardware & Infrastructure• Media Digitization & Tagging

• Software maintenance• Hardware & Infrastructure

maintenance• Ongoing Media Digitization• Marketing & Sales• Media Buying• Regular updates & operations

• Software Updates• Hardware Updates• Scale Up

Traditional Model

• CapEx • CapEx • OpEx (90%)• CapEx (10%)

• OpEx (70%)• CapEx (30%)

Movico Model

• Spread over duration of term

• Lease model for hardware & software

• Monthly service fees for digitization on cost+basis

• Head-count based cost+basis for staff

• Actual budgets for marketing /sales

• Head-count based cost+basis for staff

• Actual budgets for marketing /sales

Management Expertise» Arvind Jha (Founder/Director) is a recognized technology leader in video domain having served as Director Engg at

Adobe and President at Monsoon Multimedia» Sharad Sharma (Director) is a recognized internet expert having served as CEO-Yahoo India» VN Saroja (Founder) is a recognized internet business pioneer – co-founder of Naukri.com» Management team includes strategic communication and digital marketing experts with 10-20 years of experience

Technology and Methodology Expertise» In-house developed product for video management and indexation (MediaBaron). Offers low-cost tool to convert

and digitize video» In-house developed software frameworks for video catalogs, video-on-demand, webTV, streaming. Lowers time to

market for our customers» In-house media conversion process and methodology - experience of digitization of 1000 hours of professional

video for Indian, US and UK customers» Partnerships with leading hosting, streaming, CDNs and advertising platforms » Partnerships with leading infrastructure providers - storage & servers, bandwidth providers, software vendors

Focus on digital video» Movico is focused on video monetization domain. You benefit as a result of the focus

Why Movico ?

Antriksh Dadhich, BDM, Movico Technologies Private Limited

Phones: 91-124-4235946

(between 9 am and 6 pm India Time)

Mobile:91-9833533321

(available 24X7)

Email: arvind@movicotech.com

For more information, please continue with the presentation.

Thank You for Your Attention

The media market is expected to grow stronglyacross formats and carriers

The information revolution has seen a boom in static as well as audio visual media

Such media finds varied uses: entertainment, information, education, training, corporate, official, edutainment etc.

A huge quantity of content has been produced across photographs, movies, TV, corporate films etc. However, most of the traditional media content has been in ‘linear’ format (analog and digital tape, celluloid)

The IT boom has seen the emergence of various media formats (digital video, MP3/4 etc.) as well as carriers (TV, Theatres, web, mobile, computers, IPTV etc.)

Growing penetration of the internet and computers is expected to fuel further growth of media and uses

Global media market is expected to grow 2.7% annually to $ 1.6 trillion by 2013

Developing economies like LatAm and Apac are expected to grow faster at 5.1% as they catch up with the developed world

Source: Approaching the Zettabyte Era – Cisco SystemsGrowth of Consumer Internet Traffic

Growth in IP Traffic – Business / Consumer

However, characteristics of the Entertainment & Media market are changing

Changes in consumer preferences» Looking for increasing control of consumption – to

watch what they want, when they want, how they want, where they want

» Adopting ‘time-shifting’ - using digital recorders / on-demand for freedom from broadcast schedules

Market driven by technological advances and availability» Mobile access allowing internet access from any

location » High-end devices such as smartphones, iPods, Kindle

etc. combining mobility and access» Increased broadband penetration - segments and

geographies» Improvements in technology allowing better

downloading and streaming of media content» Easy availability of digital media (unavailable in

physical format) through digital channels » Side loading that allows consumers buy media online

cheaply and transfer to mobile devices.

• Migration to digital has reinforced and proliferated new consumption habits

• Consumers looking to control when, where and how they view media and get best value

• Increasing penetration of mobility and communication – TV, Web, Mobile

• Migration to digital has reinforced and proliferated new consumption habits

• Consumers looking to control when, where and how they view media and get best value

• Increasing penetration of mobility and communication – TV, Web, Mobile

• Economic downturn has intensified digital migration for content providers and consumers

• Global E&M market to grow by 2.7% to $1.6 trillion by 2013

• The underlying drivers for digital migration remain unchanged and will accelerate the pace and power

• Economic downturn has intensified digital migration for content providers and consumers

• Global E&M market to grow by 2.7% to $1.6 trillion by 2013

• The underlying drivers for digital migration remain unchanged and will accelerate the pace and power

• Digital technologies to become increasingly widespread across all segments of E&M

• Switch to digital will drive revenue divergence across distribution platforms

• End user spending on digital / mobile platforms to grow to 78% of total consumer / end-user / access market by 2013 from 23.4% currently

• Digital technologies to become increasingly widespread across all segments of E&M

• Switch to digital will drive revenue divergence across distribution platforms

• End user spending on digital / mobile platforms to grow to 78% of total consumer / end-user / access market by 2013 from 23.4% currently

Source: PwC E&M Report 2009-13

Leading to emergence of video as main driver of IP and Mobile traffic growth

Emergence of video as mainstay » The internet in 2012 is expected to be 75 times larger

than in 2002 and video will have an increasing share of the net

» Internet video is already equal to the sum of all forms of video (TV, VoD, Internet, and P2P) and will account for 50% of consumer traffic by 2012 (Fig 1)

» By 2012, 90% of all consumer traffic expected to be video (TV, VoD, Internet, and P2P)

Emergence of Mobile as important player» Mobile data traffic expected to double each year from

now through 2012 (Fig 2)

Opportunity to monetize digital content and increase capture of revenues» Collaboration with partners to open up and exploit

new areas and optimize cost-sharing will become vital

Fig 2: Traffic on Mobile

Source: Approaching the Zettabyte Era – Cisco Systems

Fig 1: Components of Net Traffic

Opportunities to monetize video content, however, face several issues

With the boom in the media market, increased penetration of internet and availability of carriers such as TV, mobiles, web, media content owners have an opportunity to monetize the existing libraries by ensuring they are available to distribution across the new carriers such as IPTV, mobile, Internet TV, computers etc.

However, old content is in various old formats such as tape (digital and analog), celluloid etc.

To truly profit from the expected boom, content owners need to ensure the following for their libraries:» Digitizing – ensuring their media content is available in digital formats that are compatible with the various

carriers» Annotating – the content has to be annotated / indexed / tagged for easy identification» Easily searchable – so that it can be identified and selected quickly (in real time)» Retrievable – the content can be merged and retrieved quickly across normal data lines» Distributable – ensuring that it is in a format that can be easily converted and distributed across carriers

Problems that currently hinder content owners:» Availability of suitable media conversion and digitization platform» Ability of the platform to perform digitization and indexation efficiently» Availability of a suitable media library (data centre) to store all content safely, efficiently and confidentially» A service provider that can handle all above functions in most cost efficient manner

Web-video components

The digital media market can be broadly segmented as follows:

The

Nee

dTh

e N

eed

Raw Video (Stock Footage)

Raw Video (Stock Footage)

Finished ProgramFinished Program Category Category

GenreGenre Institutional (B2B)Institutional (B2B) Retail (B2C)Retail (B2C)

Delivery&

Players

Delivery&

Players

Stock Footage Portals

BBC MotionCorbis Motion

Pond5.comThe Art Studio.com

Stock Footage Portals

BBC MotionCorbis Motion

Pond5.comThe Art Studio.com

Video on Demand

WebTV/VOD PortalsVEOH.com

Ooyala.comDaily Motion.com

Video on Demand

WebTV/VOD PortalsVEOH.com

Ooyala.comDaily Motion.com

Mobile

Physical/Air (3G)Market is expected to mature over next 18-

24 months

Mobile

Physical/Air (3G)Market is expected to mature over next 18-

24 months

Digital VideoDigital Video

RevenueStream

RevenueStream

Licensing FeesLicensing Fees Download / LicenseDownload / LicenseDownloadDownload

Web & Mobile Advertising – Banners, pre/post/mid rolls; Ad breaksWeb & Mobile Advertising – Banners, pre/post/mid rolls; Ad breaks