Legendary Entertainment presentation at the Chief Analytics Officer, Fall 2016

Disrupting Hollywood Paradigms with Analytics

October 2016

Hollywood Paradigm: Four Quadrants

Note: Using the US population as an illustrative example.

Traditional Hollywood Four Quadrant

Legendary Applied Analytics Micro Segment

Four Quadrant: 4 groups of 80 million Micro Segment: 80 million groups of 4

Hollywood Paradigm: Spray and Pray

General Population

Hard Core Fans

Market To

p D

ow

n

Audience

Box Office

Legendary Analytics: Invert Audience Building

Extended Reach

Efficiency Gain

Market B

otto

m U

p

Box Office

Audience

Hard Core Fans

General Population

People and Locations

Based in Boston

Extension in LA

Diverse set of over 70 people and growing

People and Locations

Based in Boston Extension

in LA

Growing in Beijing

Diverse set of over 70 people and growing

Transform Marketing

Identify, Understand, Reach, Persuade

Individuals

Goal: Reduce Media Spend by 15-20%

Virtuous Cycle

Virtuous Cycle

Conversation

Social People

Content

• 1.5B email addresses • 200M households with PII • Hundreds of attributes per

person from many sources

• 500M Twitter profiles • 100M Facebook profiles • Hundreds of attributes per

person from many sources

• Billions of Tweets • All of Reddit • All of Wikipedia • Thousands of news sites

and blogs

• Box Office by theater for all movies since 2007

• All US ads run since 2007 • Meta data by second for

thousands of movies

Substantial sets of data integrated in unique ways

Virtuous Cycle

Web Traffic

Warcraft Dawn of the Planet of the Apes Hobbit 2 Hobbit 3

Hobbit 1

Godzilla

Jurassic World

Conversation Analysis

Social Interactions by Geography

Extensive analyses using traditional and innovative techniques

Virtuous Cycle

Proprietary, sophisticated platform that integrates data, analytics, and campaigns

Virtuous Cycle

•Build audience profiles •Create hundreds of microsegments • Identify key persuadable points •Produce detailed, actionable insights •Uncover persuadable audience •Measure changes in intent • Test and develop creative

Actionable insights emerging from data and analytics – at a rate of over 50 per movie per week

Virtuous Cycle

Deep API integration allows for scale execution and sophisticated reporting

Virtuous Cycle

Campaign data allows for continual optimization

• Investment • $160 million Production

• $120 million Advertising

• Testing • 8 audience screenings (including extensive biometrics)

• 3 different versions screened in the same night (a record!)

• Reception • 26% by critics on Rotten Tomatoes

• 83% by fans on Rotten Tomatoes

• 98th Percentile in ratio of Critics to Fans reception

WARCRAFT CHINA CASE STUDY THE NEXT PARADIGM DISRUPTED

Extensive global release in June 2016 for a unique property

APPLIED ANALYTICS: WARCRAFT CHINA CASE STUDY TARGETED MARKETING AT SCALE

Four-Quadrant publishing line

TENCENT PLATFORM

QQ tips window: 34.3M targeted ads.

BAIDU PLATFORMS

Nuomi: 29 million individuals targeted.

Maps: 17 million individuals targeted.

Music: 16 million individuals targeted.

Search ads: Thousands of keywords covered

Delivered 79 million impressions (high CTR at 3.5%)

150+ MILLION TARGETED INDIVIDUALS:

6.5x Return on Media

3.0x More Likely to Buy a Ticket

IMPACT:

WARCRAFT CHINA CASE STUDY THE NEXT PARADIGM DISRUPTED

$300M+ box office in its first week, $430M+ total, with a record setting $230M in China

Disrupting Hollywood Paradigms with Analytics

October 2016