alliance case study msft & bbc
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Alliance Case Study
Dene Schonknecht – Alliance Manager, Microsoft CorporationDene Schonknecht Alliance Manager, Microsoft Corporation Daren Forsyth – Senior Business Development Manager, BBC
Agenda
An introduction to the BBCAn introduction to the BBCAn introduction to MSFTOverview of the BBC & Microsoft AllianceOverview of the BBC & Microsoft AllianceASAP Conference take outsQ&AQ&A
Who are the BBC
Publicly funded broadcaster via license feeAiming for universally available content across all platformsCurrently broadcasting viaCurrently broadcasting via
Digital SatelliteDigital TerrestrialDigital CableDigital CableIPTVMobileAnd… good old UHF
The Public Purposes of the BBC
• Sustaining citizenship and civil society
• Promoting education and learningPromoting education and learning
• Stimulating creativity and cultural excellence
• Representing the UK, its nations, regions and communities
Bringing the UK to the world and the world to the UK
In promoting its other purposes, helping to deliver to the public the benefit of emerging communications technologies and services and in addition taking a leading role in thecommunications technologies and services and, in addition, taking a leading role in the switchover to digital television
How the BBC delivers its Public Purposes
The BBC’s main activities should be the promotion of its Public P th h th i i f t t hi h i t fPurposes through the provision of output which consists of information, education and entertainment, supplied by means of:
television, radio and online services;
BBC Online performance to date
Reach continues to grow impressively however our relationship withReach continues to grow impressively, however our relationship with users is not that intense.22 million broadband users in the UK16 million users of bbc.co.uk in March 07 (broad and narrow band)14 million users per month press red on their TV remote control8 7 million users access our content from partner sites inc AOL and8.7 million users access our content from partner sites inc, AOL and Yahoo
BBC Technology Alliances to date
Mi ftMicrosoftIBMGoogle / You Tube
The future
Is not about a one way relationshipIs not about a one way relationshipIt’s a two way digital relationship with our audienceThe BBC wants to be part of the web not just a webThe BBC wants to be part of the web, not just a web destinationWe want to empower Britain's to engage with the BBCWe want to empower Britain s to engage with the BBC digitallyAlliances and partnering are critical to BBC’s futureAlliances and partnering are critical to BBC s future
Microsoft in ProfileMicrosoft in Profile
A partner for the future• $38.8bn 2005 revenue • $70.6bn total assets$• $59.9bn brand value
A partner with focus on innovationA partner with focus on innovation• Microsoft’s FY06 R&D budget is ~ $7.6 Billion. • 50% of this is focused on Media and Entertainment making it our single biggest focus.
This drives a long term, strategic approach to:• Platforms for content creation and delivery (Digital Production)• Non-linear broadcast platforms (Digital Distribution)p ( g )• New consumer end-points for experiencing media (Digital Consumption)
The only partner with platforms & services that span business to y p p pconsumer reach……
Why Microsoft?Why Microsoft?
MSN has more than 440M unique users monthly215M active MSN Hotmail subscribers worldwide185M active MSN Messenger subscribers worldwide185M active MSN Messenger subscribers worldwide25M MSN Spaces (blogs) in useMSN Video fed more than 11M streams of hurricane Katrina the day after it made landfall, and more than 51 million t th t kstreams that week
400M Office users worldwideWorldwide PC shipments increased by 17 % last quarter 126M customers on Exchange based corporate email systems126M customers on Exchange-based corporate email systems Leading Online gaming service with Xbox Live serving 2M+ customers in 24 countries40 Million Downloads of Windows Movie Maker 2 120 Million Downloads of Windows Media Player 9 Series
Microsoft
Microsoft Platform Products & Services DivisionMicrosoft
Entertainment & Devices DivisionMission : Focus the company’s efforts in entertainment and related
Kevin JohnsonCo-president
Services DivisionMission : Develop the software platform and software services delivered over the internet
Windows Client
Robbie BachPresident
entertainment and related devices and services
· Microsoft TV· Windows Mobile· Xbox · Games· Windows Embedded
· Windows Client · Windows Server· SQL Server· BizTalk Server· Exchange· Visual Studio· MSDN Windows Embedded
· Connected Services Framework
MSDN· MSN· Hotmail
Microsoft Business DivisionMission: Develop software and services for the workplace
• Office • Publisher • Visio • Project • Live Communications Server • Office Live Meeting
Jeff RaikesPresident
• Office Live Meeting
Media & Entertainment Vision: Any Media & Entertainment Vision: Any Content to Any DeviceContent to Any Deviceyy
IPTVIPTV
TVTV
IPTVIPTV
MusicMusic
CollaborationCollaborationWeb/P2PWeb/P2P
MobileMobile
TapeTapePortalPortal
CollaborationCollaboration
BusinessBusinessIntelligenceIntelligence
DigitalDigitalRightsRights
production“on-ramp”
MobileMobile
GamingGaming
Workflow
VideoVideo RightsRightsMgmtMgmt
BusinessBusinessProcessesProcesses
network“off-ramp”
ggMgmtMgmt
GamingGaming
PortablePortableMediaMedia
MetadataMetadataContentContent
ManagementManagement
TVTV
DVDDVD
PrintPrint
DVDDVD
BBC & MSFT AlliBBC & MSFT Alliance
BBC & MSFT Alliance
What really happened?
Business Development lead was assigned on both sides – responsible for Alliance healthsides – responsible for Alliance healthRelationship moved from transactional to collaborativecollaborative18 months of refinement A culminating event – trans-Atlantic visitA culminating event – trans-Atlantic visitPen-to-paper on a Memorandum of Understanding (September 2006)Understanding (September 2006)
Why are we doing this ?Convergence is driving partnerships
Analogue TV / Analogue TV / Radio BroadcastRadio Broadcast
Windows Windows PC PC platformplatform
g g p p
Radio BroadcastRadio Broadcast
Digital TVDigital TV
NextNext--Gen Gen GamingGaming
Digital TV Digital TV BroadcastBroadcast
Consumer Consumer PortalPortal
Online Online propertiesproperties
Windows Windows MobileMobile
PortalPortal
New New broadband broadband channels channels e g iPlayere g iPlayer
Mobile Mobile DevicesDevices
TV overTV overe.g. iPlayere.g. iPlayer
Digital RadioDigital Radio
TV over TV over broadbandbroadband
Online Online propertiesproperties
Why did this happen?
Microsoft:Business model built on partnershipp pIncreasing vertical focusDesire to collaborate with a leading brandC lli i f i d t i di t t h l th h i t tCollision of industries – media meets technology through internet disruptionPersonal relationships
Why did this happen?
BBCProliferation of delivery platformsC l t h i l i tComplex technical requirementsBusiness process overhaulRequirement for deep Microsoft knowledgeLong term relationship requiredUnique position Microsoft is in
• PC platform distribution• Devices – Xbox, Zune, Windows Mobile• Live Services – MSN Messenger, Hotmail, Content Portals
Content Enablement Content Enablement Distribution & ReachDistribution & Reach Search, Navigation & Search, Navigation & User ExperienceUser Experience
••Digitization of tape archiveDigitization of tape archive••Ingest of digital content Ingest of digital content ••Metadata taggingMetadata tagging••Index optimization Index optimization ••Rights management, Rights management,
l & tl & t
••Efficient distribution Efficient distribution technologies (formats, technologies (formats, encoding, peer enabled) encoding, peer enabled)
•• Joint Audiences Joint Audiences –– by by d hi ( t )d hi ( t )
••Making “Web 2.0” real Making “Web 2.0” real ••Consistent Editorial Consistent Editorial ExperienceExperience•• Combined technologies and Combined technologies and services for optimal userservices for optimal userclearance & payment clearance & payment
systems systems demographic (e.g. teens) or demographic (e.g. teens) or platform ( MSN / Xbox) platform ( MSN / Xbox)
services for optimal user services for optimal user experience experience
Mutually provided Strategy Consultant resource Mutually provided Strategy Consultant resource
Executive Review & Governance Executive Review & Governance
Joint investment in projectsJoint investment in projectsJoint investment in projects Joint investment in projects
Content Archive
Who does this involve?
BBC & MSFT Day-to-Day relationship contactsBBC & MSFT named executive sponsorsMicrosoft
UK Consulting Services, US Product Development Teams, UK Research & Development labsUK Research & Development labs, UK Marketing and PR
Who does this involve
BBC Strategy B i Aff iBusiness AffairsFair Trading Production (online & linear), ( ),Marketing, Creative, R&DR&DInnovation
What was the benefit?
MicrosoftRegular forum to engage with key customer executives at the BBC (90 day review)BBC (90 day review)Ability to articulate full value that we bring – beyond the commercialA 1st call partner for technological collaborationA 1st call partner for technological collaborationMomentum and interest from within the vertical industry
What was the benefit?
BBCBBCRegular forum to engage with key executives at Microsoft (90 day review)Alignment of activity roadmapFast track innovation opportunitiesRaised awareness across the BBC of business critical activityRaised awareness across the BBC of business critical activity –engaging industryHighlighted to BBC creative's, technologists and producers what
ld b iblcould be possibleRevealed proof of concepts from the business to jointly progressThe ability to engage in open and honest dialogue
Where are we today
Detailed dialogue in agreed areasGrowing resource allocationg2nd 90-day review upcoming Technology and service collaboration gy
e.g. Mix07e.g. iPlayer launch (subject to PVT)
Alliance health-check using best practice methodologies
ASAP Conference take outs
PeopleInnovationDiversityDiversityExecutive Sponsorship Communication Communication CommunicationTrustBuyer Seller partnerships are very fragileC bl d d blConsumables and durablesBe the best at alliances and more will follow
ASAP Conference take outs
Cisco are awesome - NVPBT HP Alliance is amazing! gInventing yourself is not viable for growthAlthough the BBC are beginners regards g g gtechnology alliances, with Microsoft’s professionalism, we have made a great start
Finally
“An alliance with a powerful person is never safe.”
Phaedrus quotesq(Roman fabulist, 15-50 B.C.)
Q&A