nextmedia: making sense of the digital landscape

© Achilles Media 2011

© Achilles Media 2011

Let’s Break it DownLET’S

BREAK IT

DOWN

© Achilles Media 2011

© Achilles Media 2011

Average eCommerce growth per year: 13% US stats: comScoreEurope stats: Digital Marketers United

Japan stats: Mastercard Worldwide

KEY 2010 GROWTH AREAS (US)Consumer Electronics (19%)Computer Hardware (17%)Books & Magazines (16%)

Flowers, Greetings & Gifts (13%)Jewellery & Watches (11%)

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By 2015, Brazil, Russia, India, China and Indonesia will have 3 times the number of Internet users as Japan and the US combined.

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GROUP BUYINGLeading player Groupon saw a 712% jump in monthly unique visitors in 2010.*

After being valued at 1.35 billion in April, 2010, Google offered to purchase Groupon for 6 billion in December, 2010.

Groupon’s success has brought other (much bigger?) players, including:

How can content creators get into the growing group buy market?

*comScore

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SUBSCRIPTION

• Emerging field: big in 2011– Netflix – 20 million subscribers, $596 Q4 2010 revenues– Hulu – 1 million– Amazon – launching subscription-based Netflix competitor– New York Times – headed behind paywall this Spring, <$20US/mo– iTunes – subscription-based service rumoured, $10-15US/mo, unlimited music f/ cloud

TV still matters – $200 billion spent on TV subscriptions (cable & satellite) globally in 2010, and is set to grow by another 25% by 2013*

While online video subscriptions also continue to grow:

20 Million Subscribersx $9/month = $2.16B/year

1 Million Subscribers

Subscription model is moving to other sectors, including:

• Music: Rumoured iTunes subscription service offered to its 500 million + users**• News: New York Times to head behind paywall this spring

2011 will be a year of widespread experimentation with digital subscription models, but TV isn’t going anywhere anytime soon.

*PwC**Reuters

600 Million Subscribers

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MICROPAYMENTS

Most of this revenue comes from in-game micropayments.

New model for micro-retail online.

Audiences are willing to pay-as-they-go for episodic content, game levels, behind the scenes, extras, etc. How can you

translate this model to your content?

$10 BILLIONMarch 2011 investment valuation

$1.8 BILLIONProjected revenue for 2011

*New York Post

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TABLETS

Samsung Galaxy HP Slate 500 Blackberry Playbook Dell Streak

Among the 50+ iPad competitors, some of the major contenders:

The tablet market is big, and it’s only going to get bigger and more diverse.

18 MILLIONiPads sold in 2010

83%of the 2010 Tablet Market

50 MILLION TABLETS TO BE SOLD IN 2011*IDC

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TABLET CONTENT = Huge opportunity

News Corp spent 30 million developing their iPad only subscription-based magazine, The Daily.

Hot areas to watch:

VIDEO

CONTENTAGGREGATIONNEWS

Explosion in tablet adoption will lead to new opportunities for producers and content creators.

GAMING

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The smartphone market is now bigger than the PC, and Google’s Android is taking a bite out of leaders in the US and Europe.

*comScore© Achilles Media 2011

THE APP MARKET

iTunes Store:300,000+ apps

Android:30,000+ apps

MOST POPULAR APPS

GamesWeather

Maps/NavigationSocial Networking

Music |News *

With a growing user base and a relatively small selection of apps, there’s big potential in the Android app market.

*App Development Trends Magazine

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CONSOLES – Xbox, PS3, get you there.

52.1 million 85.3 million48.1 million

Kinect: Selling 10 million units in just 4 months, the Xbox 360 Kinect is the fastest-selling consumer electronics device of all time... for now

Physical computing / gestural is emerging as a significant sector.

*vgchartz

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CANADIAN ONLINE ADVERTISING REVENUE

Canadian online advertising revenue grew to 1.82 billion in 2009, projected to grow to 2.1 billion in 2010.

*IAB Canada© Achilles Media 2011

CANADIAN MOBILE ADVERTISING REVENUE

Canadian mobile advertising revenue hit 31.9 million in 2009, 169% over 2008 totals.

*IAB Canada© Achilles Media 2011

BRANDED ENTERTAINMENT

Spotlight on 3 unique case studies:

Easy to Assemble – Brand-financed original web series

The Bannen Way – successful brand integration with web/TV series

In the Motherhood – Intellectual property ownership and new model

Branded entertainment is versatile, adapting to different projects and brands in different ways.

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Online web series created by Illeana Douglas and financed by IKEA

Scored 1.5 million views per month in its second season

Brand-financed projects are finding major viewership online

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High-values web series by Crackle.com, Sony Pictures Entertainment’s digital arm.

Scored product placement deals with brands like Apple, Prada, Jaguar and Rayban.

Posted 13 million views online.

Moved to DVD and was broadcast as a TV mini-series.

Digital branded-entertainment projects can develop large audiences across multiple platforms.

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Began as branded web series financed by Suave Shampoo, Sprint and MSN

After getting big viewership, the series was bought by ABC for a TV version.

For the first time, a brand became a licensor of intellectual property to a broadcaster. ABC paid the brands to use their branded content.

Working with producers and content creators, brands are becoming publishers and licensors of original content.

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WHAT’S HAPPENING IN CANADA?

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Quebecor/Videotron

Shaw/Canwest

Rogers/Citytv

Bell/CTV

TELUS

We’re witnessing an unprecedented consolidation of telecom companies and media outlets.

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WHAT KINDS OF DIGITAL MEDIA

COMPANIES ARE SUCCEEDING IN

CANADA?

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MOBILETablet and smartphone content – Android market the one to

watchSUBSCRIPTION

2011 will see new experiments in subscription-based modelsMICROPAYMENTS

Audiences are willing to spend as they progress through content (episodes, game levels etc.) – how can this shape

what you create?THINK BIG

Think and act internationally and across industry sectors, building effective strategic partnerships in key markets and

sectors.

Most important trends of 2011.

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