nextmedia: making sense of the digital landscape
DESCRIPTION
An overview of the digital landscape presented at RioContentMarket 2011 and at BANFF Meet Ups across Canada.TRANSCRIPT
© 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.
© Achilles Media 2011
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.
© Achilles Media 2011
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.
© Achilles Media 2011
© Achilles Media 2011© Achilles Media 2011
© Achilles Media 2011© Achilles Media 2011© Achilles Media 2011