Video Marketing | Andy Chen, Sunstone Capital (formerly MTV Europe)

Video, a Love Story

Andy ChenSunstone Capital EIR / CEO Preview Networks

Love

Love

Love

Love

Quick update

Was Viacom/MTV Europe…

…Now Sunstone Capital &

Preview Networks

Sorry…

I’m here to talk about video. Not to provide a panacea for your marketing or brand problems.

I’m here to talk about how to manage your communication assets. Not your server cost

I’m here to talk about the present reality. Not predictions 10 years in the future.

In the next +30 min…

• What’s Happening

• Key business challenges

• Key opportunities for brands

What’s Happening

People have ALWAYS loved content…

Especially animated content.

From Text to Moving Pictures

Digital has increased the distribution channels for video

Digital TV

Interactive TV

PVRsTiVo (US), Sky+ (UK),

Pilotime (France)

VODUS cableco’s,

FastWeb (Italy)

On-demand TV

Direct responseVia TV remote, SMS - e.g., to vote, request brochure

Information / services

Electronic TV guide (EPG), Portals for

shopping, banking, etc

ContentChoice of video, extra

footage, iTV games

TV Digital Online ChannelsYouTube, Hulu, Fabebook, MySpace,BBC iPlayer, blah blah blah…

Video is HUGE…

Everyone is doing it…

Internet networking traffic will have quadrupled between 2009 and 2014,

with online video as the primary driver of that growth.

- Cisco Annual Visual Networking Index Forecast, 2010

Video is one of the main areas both Facebook + Google are investing heavily

Branding/Influence/WoM/Earned & Paid Media- Facebook aims to command the 90% of ad spend

($621 billion)- Most content media owners/publishers operate here- Video content generates desire and awareness

Search/Direct Response/Affiliate- Google commands 50% of online advertising spend in

this final stage- Represents only 10% of all ad spend- Video content is increasingly facilitating ecommerce

and transactions

Over $150M raised in Q3 2010 aloneFinancings

Elemental ($7.5M) - July 27 - Steamboat, General Catalyst, Voyager CapitalEnvivio ($15M) - July 28 - UndisclosedPHILO (Undisclosed) - July 28 - North Bridge, DFJ Gotham VenturesTudou ($50M) - Aug. 5 - Temasek HoldingsMyDamnChannel ($4.4M) - Aug. 9 - Intuitive Venture PartnersNetpulse ($2M) - Aug. 10 - UndisclosedOggiFinogi - ($2M) - Aug. 19 - Greycroft, iNovia, Contour Venture PartnersShowUHow ($3M) - Aug. 30 - Syncom Venture PartnersOoyala ($22M) - Sept. 9 - CID Group, ITOCHU Technology VenturesVMIX ($2.5M) - Sept. 9 - UndisclosedConviva ($15M) - Sept. 15 - GGV CapitalInnovid ($4M) - Sept. 24 - Deutsche TelekomQuantenna ($21M) - Sept. 27 - DAG VenturesRedux - ($1M) - Sept. 28 - DFJ, Alsop Louie Partners

Deals

HP Snapfish acquires Motionbox - July 12Pace acquires 2Wire - July 25Limelight acquires Delve Networks - Aug. 2Telestream acquires Anystream division of Grab Networks  - Aug. 13Cisco acquires ExtendMedia - Aug. 26Metacafe acquires Action Sports - Sept. 9KIT Digital acquires Accela Communications - Sept. 9KIT Digital acquires Brickbox - Sept. 15VideoEgg acquires SixApart - Sept. 21AOL acquires 5Min - Sept. 28

Simple proposition, complex eco-system

Traditional broadcast modelA linear distribution model (pipeline = control/power)

ContentCreator

MediaDistributor

(TV/Cable/Satellite Operator etc)

New “microcast” modelA fundamental change to the way content is distributed and consumed

ContentCreator

Syndicator

Aggregator

Distributor

MediaDistributor

**New Marketing Vehicle**

Brands are creating more content

YouTube alone is not a “strategy”

Media capabilities

Media consumption

Media business models

Market Force 1: Technology

• Convergence of platforms and devices• Acceleration of broadband penetration

Market Force 2: Social

• Discovery + Recovery• Democratisation of creation & consumption

How users share video clips

Market Force 3: Spending

• Online video ad revenue is growingGlobal growth expected to go from $1.5B in 2010 to $5.4B in 2014

• Agencies are evolving40% of UK media buyers now use online video as a part of their media buys. This shift is

largely attributed to TV budget.

• POEM (Paid, Owned, & Earned Media)Video is the only form of content that translates into all 3. It is a longtailed “asset” to be

managed.

The Challenges

1. Fragmentation

- Content destinations- Devices/platforms- Format standardization

2. Capabilities

- Hyper collaboration- Technology driven- Open-source and out-sourced

3. Software as marketing platform

- Blurring lines between platform and software- Unprecedented speed of innovation- Emotional desire vs. functional utility

The Opportunities

1. Convergence of PR and Digital

• Everything manual in PR is becoming digital• Digital asset management and distribution

2. Brands as Media Owners

• Think like a publisher and broadcaster• CaaS (Content as a Service)

3. Marketing is more science than ever

• Creativity is a given, but science delivers the experience

• Think “retail distribution”• Manage your assets strategically

The love story is complicated and challenging, but the essence has always been the same.

Give your fans the entertainment to get excited about and share with their friends.

p. 32

ac@previewnetworks.com&

LinkedIn

THANK YOU