Download - Online Video Revenue Models
ONLINE VIDEO REVENUE MODELS
WHAT WORKS, WHAT DOESN'T AND WHY
Jimmy Storrier
Head of Customer Development
Juno Interactive
http://junointeractive.com.au
DID YOU KNOW?
Videos per Day:
Annual Revenues:
2 BILLION
$700 - $900MILLION
Videos per Month:
Annual Revenues:
1 BILLION
$100 - $250MILLION
Annual Revenues:
Mins per Month:
660 MILLION
>$2 BILLION
THIS ISN'T A TEA PARTY ANYMORE
WHAT IS VIDEO CONTENT WORTH?
CONTENT
=
$0
USERS EXPECT CONTENT TO BE FREE
PEOPLE ARE SMART AT DETERMINING VALUE
THEY DON'T KNOW IT, THEY JUST DO IT
YOU HAVE TO LIKEN P2P TO TAP WATER. It is always going to be there;it's free, and people are going to use it.
Wayne Rosso, President, Grokster
BUT BOTTLED WATER MAKERS MAKE A LOT OF MONEY TOO
WE'LL ALL BE ROONED
said Hanrahan
BEFORE THE YEAR IS OUT
The horse is here to stay, but the automobile is only a novelty, a fad.
I think there is a market for maybe five computers
There is no reason anyone would want a computer in their home
While theoretically and technically television may be feasible, commercially and financially it is an impossibility
The telephone has too many shortcomings to be seriously considered as a means of communication
Who the hell wants to hear actors talk?
It's not necessary to change.
Survival is not mandatory.
W. Edwards Deming
OLD MODEL
VS
NEW MODEL
OWN THE DISTRIBUTION
OWN THE CONTENT
=
GET REAL RICH
WHY PEOPLE USED TO PAY:
THE INTERNET
YOU CAN'T OWN THIS
DISTRIBUTION EXCLUSIVITY:
SO WHAT?
CONTENT EXCLUSIVITY:
SO WHAT?
YOUR VALUE CONSUMER VALUE
THE CONSUMER IS KING
NOT IN THE CONTENT BUSINESS
IN THE AUDIENCE BUSINESS
NO CHANGE IN BROADCAST RATINGS
45% INCREASE IN PIRACY
LARGE DECREASES IN WEBSITE TRAFFIC
TRADING ANALOG(UE) DOLLARSFORDIGITAL PENNIES
VALUE OF A PERSON NOT WATCHING
=
$0
WHAT CONTENT OWNERS HEAR:
I'M A PIRATE... ARRRR
PIRATES ARE NOT THE ENEMY
WHAT PEOPLE ARE ACTUALLY SAYING:
GIVE ME WHAT I WANT, WHEN I WANT, WHERE I WANT
VIDEO ADVERTISING
ONLINE VIDEO IS NOT TV 2.0
NOT ALL M'S ARE CREATED EQUAL
TELEVISION CP
ONLINE VIDEO CP
CPM IS EVIL
KILL CPM
LET'S DO SOMETHING DIFFERENT!
MEDIA PLANNER / BUYER
MEDIA PLANNER / BUYER
DETERMINE WHAT ADVERTISERSWANT
CHARGE THEM FOR THAT
1) NOT A TEA PARTY
2) CONTENT IS WORTH NOTHING (ON ITS OWN)
3) VIDEO ADVERTISING IS BROKEN (BUT CAN BE FIXED)
QUESTIONS?
WHY RESEARCH ANALYSTS KEEP THEIR CV UP TO DATE:
The paid download market will continue to grow throughout 2007 - from $98m to $279m at the end of the year but growth will slow significantly at that point
Forrester, 2007
115%
82%
46%
Paid Downloads
YoY Growth:
MOVIE CONTENT