Revenue Options - Avod, Svod, Tvod, Freemium, Or Hybrid - What Should Determine Direction

This document is offered compliments of BSP Media Group. www.bspmediagroup.com

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http://www.bspmediagroup.com

http://www.bspmediagroup.com

SINCE 2014

Since 2014

www.aaa-entertain.com

SALES AND DISTRIBUTION

• International sales : We are the only African sales company with a stand at the Cannes Marche du Film for the past two years

• Aggregation: aggregate content for multiple international VOD platforms from the whole continent of Africa

• Local distribution to broadcasters, and digital platforms

http://www.aaa-entertain.com


PRESENCE AT ALL THE MAJOR MARKETS AND FESTIVALS EVERY YEAR

• Berlinale - European Film Market

• MIPTV

• Cannes - Marche du Film

• TIFF - Toronto Film Festival

• MIPCOM

• AFM American Film Market

• Festivals : Sundance, TriBeCa, Fantasia, Fantastic Fest, LA Film Festival, AFI*

* Only when a film we represent is selected there



FILMS WE REPRESENTAAA has signed some of the highest grossing SA box office hits since 2014



PRODUCTION AND DEVELOPMENT• Local feature films

• Develop, Produce, Executive Produce

• International Feature Films

• Co-Produce, Executive Produce, Produce

• Local Television

• Produce

• International Television

• Partners at Emmy Award winning LA based Hoplite, Unscripted content mainly



23 YEARS COMBINED PRODUCING EXPERIENCE

Founder Mandela Bay Pictures Co- Founder Association for Transformation in Film and

Television

Founder Amariam Productions Co- Founder Association for

African Audio Visual Distributors

Co-Founder AAA EntertainmentCo-Founder Hoplite Entertainment Africa

Co-Founder AAA EntertainmentCo-Founder Hoplite Entertainment Africa

CEO, Head of Sales EP, Head of Acquisitions



OUR OFFICESJohannesburg LagosLos Angeles / Atlanta

Mayenzeke Baza, CEOPascal Schmitz, Partner

AAA Entertainment :Head Office & Foreign SalesTechnical Aggregation Netflix

Hoplite Entertainment :Africa Branch

Production and Investment

Jon Smith, Managing Partner

Los Angeles Rob Lee, Partner CFO

AtlantaAAA Entertainment :

North America SalesNorth America Productions

Hoplite Entertainment :Head Office

Investment, Development & Production

Biola Sokenu, Partner

AAA Entertainment :Netflix Nigeria AggregationNigerian Co-Productions

Nigerian Distribution



VOD IN AFRICA AND THE WORLD

• As a producer I have been supplying African content to digital screens for 7 years as a producer, since I made my first film in 2009

• For the last 3 years we have been supplying our own and other producers’ content to digital screens as a distributor

• We launched mobile content store on white label platform with our content in 2013

• This is a summary of my experience supplying these digital screens and the revenue that does or does not result from this



EXAMINING THE DIFFERENCE BETWEEN THE SVOD REVENUE MODEL VS ONLINE MOVIE RENTALS

• Globally SVOD is replacing EST (Electronic Sell Through) like iTunes, as can be seen by the shrinking of the one and the growth of the other in overall media revenue reports

• In South Africa placing a film on iTunes historically has not generated enough revenue to justify the cost of delivery (approx. $500)

• EST seems most successful on platforms that are subscribed to and offer TVOD in addition e.g. DSTV’s Box Office



SUBSCRIPTION MIGHT BE PREFERRED - BUT WHAT IS BEST FOR YOUR MARKET?

• How do your consumers behave digitally?

• Do they have sufficient internet access to stream, rent or download?

• Do they have payment facilities to rent, buy or subscribe?

• Can they afford the subscription, rent or download pricing?

• What is their analogue media consumption habit? This will often determine how they want to consume digitally

• Pay TV? SVOD more likely and some TVOD probable

• Free to Air TV? FVOD or AVOD more likely

• DVD? TVOD still not likely. AVOD more likely



ADVERTISING DRIVEN OTT AND VOD SERVICES - HOW WILL IT WORK FOR PLAYERS IN AFRICA?• Whats proven successful in many markets, is content producers selling advertising around and in

their content

• Advertiser funded content can then be bartered with broadcasters or distributed on DVD, as long as the eyeballs are counted

• Digital platforms will need to replicate the same models and provide enough eyeballs to attract advertisers and incentivise producers to sell to them and make content for them

• Brand integration in content will be key versus advertisements around content

• Their is very little collaboration between advertising agencies and content producers



GLOBALLY SVOD IS KING

• TVOD platforms are not financing content or creating original content and only content with mass market appeal works

• AVOD platform also don’t fund content. Youtube is funding content to drive subscription on YouTube RED, which is SVOD

• HYBRID : Amazon is a hybrid but original content is designed to drive subscriptions on Prime , which is SVOD



GLOBALLY CONTENT IS KING• Mediocre or inappropriate content even on a well built and marketed platform does not

attract paying consumers

• Good or appropriate content on any platform will attract paying consumers and they will talk about it

• Consumers go to and stay on platforms because of the content not because of the platform

• House of Cards launched Netflix into the next level of their business

• Consumers want to associate to successful brands, especially in Africa - Aspirational



LOCALLY CONTENT IS KING• Mzansi Magic grew exponentially through successful shows such as Our Perfect

Wedding and Date My Family (unscripted) and Igazi and Isibaya (scripted)

• Initially expectations for the new channel were low and cheap content was being acquired and commissioned. The high end telenovelas and unscripted format shows however brought in the big numbers (similar AR’s to SABC 3)

• VOD players with a footprint on the continent are looking at original content currently, but nobody has launched a high end show with big PR purely on a VOD service to attract subscribers to them to date



CONTENT CONTAINS MORE THAN MOVING PICTURES AND SOUND

• The content contains the elements that attract consumers

• Celebrities - Kevin Spacey created biggest PR for Netflix. Amazon used the publicity around Jeremy Clarkson leaving Top Gear

• Characters - Luke Cage, Daredevil, Pablo Escobar

• Binge watching - Consumers discuss their binge habits at work

• Movements - Planet Earth series moving to Netflix



– @emelizabeth10

“self care isn’t selfish!! have a bath, do a facemask, watch netflix all day, say no to plans!! do what makes YOU feel good”


Revenue Options - Avod, Svod, Tvod, Freemium, Or Hybrid - What Should Determine Direction

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