nextMEDIA Market Report

PART 1: Technology is Causing a Shift in

Broadcasting, Advertising and Publishing

PART 2: Industry Convergence Between

Broadcasters, Advertisers and Publishers

Creating Interesting Collaborations

PART 1: HOW ONLINE TECHNOLOGY IS

CHANGING INDUSTRIES

ONLINE - Online Video

2ND largest search engine in the world (Socialnomics)Persons 18-24 watch the most online video; 267 videos/month (comScore)

An increase of $12 (2009) to $20 million (2010) dollars towards online video. (IAB Canada). The demand is high, we need more supply.

90% of Canadian Internet users watched online video in March 2011, compared to 81% in the U.K., 83% in France, and 84% in Germany and the U.S. (comScore)

But where can advertisers buy as many impressions as traditional television?

ONLINE - Online Video

Branded Entertainment

Will branded entertainment replace the 30 second spot? Or complement it?

How effective is it?

ONLINE – Online Video: Online

Distribution of Televised Content

Will over the top services cause cord cutting?

How will TV anywhere fare against over the top services?

Viewership up by 67%Viewership up by 200%

ONLINE - Online Video

Original Made for Web Content

Does the revenue justify the cost of production?

ONLINE – E-Commerce

How does online purchasing affect retailing?

Will the trend towards online purchasing replace malls in the near future?

U.S. ecommerce sales totaled $165.4 billion in 2010, up 14.8% (US Census Bureau)

ONLINE – E-Commerce

Group Buying

Is groupbuying replicable across publishers? Will it see consistent growth?

What does a globalized local sales team look like?

441,000 deals sold, more than $11 million in revenue (Mashable)

Other players:

ONLINE – E-Commerce

Subscription

Will 2011 be the year of the paywall?

What does this mean for content producers?

23 million subscribers 100,000 digital subscribers250,000 subscribers

ONLINE – E-Commerce

Micropayments

Are users more apt to pay subscription fees or pay-per-use for content and

entertainment?

$20 billion IPO valuation

Facebook partnering with Warner Brothers creates a new model for micro-retail online

Projected revenue from 2011 is 1.8 billion. Most of this revenue comes from in-game micropayments. (New York Post)

PayPal recently added micropayment solution

HOW MOBILE TECHNOLOGY IS CHANGING

INDUSTRIES

MOBILE

2011 is the year when smartphone sales top PC sales, what are

the implications?

100.9 million global smart phone sales vs 92.1 million global PC sales (comScore)

We’ve reached a mobile tipping point:

MOBILE – What is the operating

system of the future?

How will mobile and desktop operating systems integrate with each other?

comScore

MOBILE – Smartphones

Cloud Services

Will telecommunication companies adjust their rate plans and infrastructure to

allow cloud services to flourish?

Internet users will live mostly in the cloud by 2020 (Elon University)The cloud computing services market to rise to $222.5 billion by 2015 (Global Industry Analysts)

Dropbox’s recent valuation is $5 billion

Companies like Netflix, Yelp and Foursquare use Amazon’s cloud computing system

Google Cloud Connect recently launched

iCloud to launch shortly

MOBILE – App Market Matures

Games

Will gaming apps become a more viable way to launch

entertainment properties?

86% of smartphone owners have downloaded a mobile app (comScore) – games and social media are the more poplar apps

64% of users who downloaded an app in the past 30 days have downloaded a game (comScore)

Downloaded more than 42 million times $1 million in sales in first 9 days

MOBILE – App Market Matures

Social Media

How do you monetize mobile social media traffic?

58 million users in the U.S. accessed a social networking site at least once a month via mobile, increasing by 56% (comScore)

Facebook is the most popular social media app

Youtube is second

Twitter is third

MOBILE - Mobile Marketing

Mobile marketing through couponing, branded apps, mobile ad networks and

location based marketing.

Couponing Branded Apps

Mobile Ad Networks

Location Based Marketing

MOBILE – Couponing

How will groupbuying affect mobile couponing?

Crocs gave out 15% discount on any purchase via text message

In two months time, Crocs has received 94,000 text requests for the coupon from customers shopping in its 180 U.S. stores (Internet Retailer)

MOBILE – Mobile Marketing

Branded Apps

What are the most effective branded apps?

Over 70% answered that they had already downloaded apps from brands (AdMob)

400,000 downloads 1 million downloadsVirgin built Project, an iPad only magazine

MOBILE - Mobile Marketing

Mobile Ad Networks

Where is the best place to buy mobile ads?

The global market should be at $15 billion by 2015 (mobiThinking)

Just landed another$25 million in funding

Recently launched a location based mobile ad network

Covers over 60% of mobileinternet population in China

Are check-ins converting to check-outs?

MOBILE – Mobile Marketing

Location Based Marketing

26% of mobile users regularly use a map, navigation tool or similar service that automatically determines their current location (MMA)

10 million people currently use Foursquare, 400,000 businesses use Foursquare as a marketing tool, and 78,387 venue mayors are ousted each day

Yelp has more than 15 million reviews and 41 million monthly visitors

MOBILE - Tablets and eReaders

20% of tablet owners are using print magazines less, 25% are using print books less and 27% are using print newspapers less (MPA Digital)

Tablet sales will eclipse laptop sales by 2015 (Forrester). How will this affect

your content and marketing strategy?

Will one eReader ecosystem dominate?

The worldwide eReader market to ship 16.2 million units in 2011, a 24% increase over 2010 (IDC)

MOBILE - eReaders

Amazon Kindle is the breakthrough e-reader fueling a nearly $1 billion business

Nook is fast becoming a major player

Kobo eReader has 1.3 million registered users (Kobo)

HOW SOCIAL MEDIA TECHNOLOGY IS

CHANGING INDUSTRIES

Can episodic TV shows reach the same social TV success that live events do?

How do you monetize this audience?

SOCIAL MEDIA – Social TV

86 % of US mobile users watch TV with their devices in hand and 40% are using them for social networking (Yahoo!)

Total number of tweets at 1,269,790

Nearly 1.9 million Facebook status updates were related to the Oscars

31,000 users checked in to the Oscars using GetGlue (Mashable)

Similar social success for:

How does social media marketing change the nature of marketing campaigns

and media planning?

SOCIAL MEDIA – Social Media

Marketing

93% of marketers use social media for business (Socialnomics)

In 2011 advertisers spent $1.7 billion in social media marketing in the US, global spending was $3.4 billion (HubSpot)

The Ford Explorer launch on Facebook generated more traffic than a super bowl ad (Socialnomics)

User-generated advertising contest through Youtube

Do industry incumbents realize the value of social media referrals?

Is discovery the new search?

SOCIAL MEDIA – Social Curation

2.5 million users

Facebook responsible for 3% of traffic to the 25largest news sites (Pew Research Center's Project forExcellence in Journalism)

1.5 million monthly unique visitors

HOW GAMING TECHNOLOGY IS CHANGING

INDUSTRIES

Can casual social gaming be monetized by a mainstream audience or does it

attract a select few?

GAMING – Casual Social

Gaming

Social gamers will buy $6 billion in virtual goods by 2013 (Socialnomics)

50 million users

Over 12 million subscribers

Tagged said the top 1% of its players accounted for 46% of its gaming revenue. About half of those were American, and 59% of those U.S. players were male with an average age of 48. They refer to their high-valued customers as whales

Do gamification marketing campaigns translate to sales?

GAMING – Gamification

Decode debuted at #3 on New York Times bestseller list

Bing’s intent to use is up 20% for young urban males

Video on Decoded Campaign

Do gamification campaigns translate to viewers?

GAMING – Gamification

130 percent increase in page views for the USA network’s Psych show and a 40 percent increase in return visits (USA Networks)

The show has 1.5 million Facebook fans and users spend an average of 22.5 minutes on the Psych site. (VentureBeat)

Are consoles a viable digital distribution channel for content?

GAMING – Gaming Consoles as

Entertainment Devices

Twelve million playing Xbox Live gold members spend 40% of their average three hours a day on the service’s non-game applications. (Joystick.com)

Future of Interactive TV

66.3% of all Netflix streaming occurring through a game console (Gamasutra.com)

Part 2: Industry Convergence Between

Broadcasters, Advertisers and Publishers

Creating Interesting Collaborations

Can this level of cross-media integration work for any brand?

Industry Convergence – Highly

Integrated Entertainment Campaign

Lady GagaZynga launched Farmville style Gaga-ville

Starbucks and Gaga teamed up on SRCH, a digital scavenger hunt

At the end of 2010 she had the top celebrity Facebook likes with 24.7 million

Vevo has exclusively premiered each video from Born This Way

Gaga is the only user to have 10 million followers on Twitter

Are these brands the new entertainment franchises?

Industry Convergence – Brands

Becoming Media Companies

Red Bull Media House

Smirnoff Experience

How can entertainment companies become marketers?

Industry Convergence – Media

Companies Becoming Brands