Transcript Sean MRP Slides

Agenda
• Executive Summary
• Core Assets
• Programming
• Networks
• Distribution
• Ad Sales
• Financial Appendix
1
1
Short-form Programming by Channel and Content Type
Library
New
Access
Acquisition
Original
[Emphasize that Minisode and
Screening Room will leverage library;
most original content will be against
Funny Bone / AXN; Crackle will be
mostly UGV with potential for some
premium content]
UGV
2
2
Agenda
[CONSOLIDATION OF 5-6 MARKET SLIDES IN
“DIGITAL NETWORKS” SECTION PROCESS]
• Executive Summary
• Core Assets
• Programming
• Networks: Digital
• Distribution
• Ad Sales
• Financial Appendix
3
3
Without Digital Networks, SPT Loses Influence and Revenue
• SPT content continues to build and benefit other parties’ networks,
replicating the current creation-distribution ecosystem
Content
• Talent, seeking multi-platform exposure and marketing of productions,
turns elsewhere
• Opportunity cost to not making library available online
• Traditional networks aggressively build online & mobile audiences,
replicating position & distribution advantage in the digital world
Distribution
• Difficult to secure real estate on digital MSOs for SPT’s a la carte content,
with limited spots available in digital MSO tiers
• Digital MSOs increasingly dictate business models and product
development without SPT input
• Ad dollars shifting from traditional TV to online
• By 2011,Internet
TV content
captures
largest share of online ad
Video
Ad Spending
spending:
$ millions
Advertising
TV: $568 m
$2,000
Music
Video: $447 m
$1,500
News &
Sports: $433 m
$1,000
Other: $145 m
$500
$0
Source: Adams Media Research,
2007
Other
UGV: $137 m
2005
2006
2007
2008
2009
2010
2011
$19
$25
$33
$67
$109
$121
$145
$0
$0
$2
$18
$55
$92
$137
4
4
Strategy: Create Digital Networks to Address Digital Landscape
Why Digital Networks?
Build Assets
Generate Revenue
• Establish 21st century
network / distribution assets
for SPT
• Capture share of developing
revenue streams (IP and
mobile)
• Build foundation for SPTAS
to bring-in new partners and
expand lines of business
• Unlock and monetize SPT’s
vast library
• Give SPT seat at table to
shape digital products and
business models
• Create program franchises
with follow-on windows (e.g.
DVD, Direct to Mobile)
• Provide long-term
distribution leverage for SPT
content
• Provide outlets for new
content and talent
5
5
Four Networks Will Activate SPT’s Multi-Billion Dollar Library*
What: 2 Popular Genres, 2 Popular Formats
Favorite retro TV shows
told in in 4-6 minute
“minisodes”
Your favorite feature length,
contemporary classic films
across all major genres:
comedy, action, drama,
family, sci-fi and cult
• Episodes from the
heyday of sit-coms
• Outrageous shorts and
busted pilots
• Originals by
contemporary comedians
Classic hard-hitting action
TV series and original
takes on today’s favorite
action movies and stars
Why: We matched our assets with market demand
• Extensive library of
much-loved shows
• SPE’s 3,500+ feature
library
• SPT’s “middle tail”
content is hard to find
• Deep action-themed
library
• Format appeals to
today’s “bite sized”
video consumption
• Popular TV format
(Turner, USA, AMC, etc.)
embraced by audiences
but not yet translated to
digital
• Deep classic comedy
library
• SPE relationships with
celebrity action stars
and film franchises
• Edited to meet the
demo’s ironic, camp
sensibility
• Demand for short form,
original comedy exploding
online
• Key young male action
demo also early
adopter of digital technology
*Five including SPT’s investment in FearNet and SPT Mobile’s distribution of FearNet Mobile
6
6
Programming Philosophy Based on 4 Building Blocks
SPE Film
Library
SPT TV
Busted Pilots
New Access
Short-Lived
Series
Prosumer
Acquisition
Short & long
form
New Shows
Original
Production
Star-Driven
Credence Walker
WTF with
Penn Jillette
Traffic Creating
Branded Ent.
7
7
Distribution Philosophy
Network Distribution Approach
Partners
Online
• Portals /
Aggregators
• Syndicators
Mobile
D2C
Other
Online
Mobile
• Carriers
• MSOs & IPTV
• Vertical sites
• WAP
• Non-Carrier
Aggregators
• SCE: PS3, PSP
• Originals sites
• Application
• SEL: Bravia, VAIO
• Text
• Social Networks
• Virtual Worlds
Emphasis on Syndication
8
8
Digital Networks and Crackle Complete SPT’s Offering
• Library play
• Original programming
will also appear on
Grouper
Distribution
Networks are
syndicated to digital
“MSOs” (e.g., Joost,
AOL, MySpace, Yahoo,
MSN) in their
player/environment
• User involvement play
• User involvement
occurs on and is
enabled by Grouper
Distribution
Crackle’s website and
Crackle player central to the
strategy
Originals
Original programming is
more linear in nature,
uses high-end talent
and is professionally
selected and produced
Originals
Short-form programming is
largely meant to spur UGV
development for the
purposes of individual
exposure / fame
Content - selection
Content is all prescreened for quality (like
a network) – an
“upfront” mentality
where we are the buyer
Content - selection
Editorial and user-based
rankings of content drive
pyramid
9
9
Digital Networks Financials
EBIT
Revenue
($ in MM)
($ in MM)
$9
$30
$8
$25
$7
$6
$20
$5
$15
$4
$8.0
$3
$6.0
$2
$25.0
$10
$15.0
$4.0
$5
$1
$20.0
$10.0
$2.0
$0
$0
FY07
FY08
FY09
[Placeholder Numbers]
FY10
FY07
FY08
FY09
FY10
10
10
Agenda
[CONSOLIDATION OF 5-6 MARKET SLIDES IN
“CRACKLE” SECTION PROCESS]
• Executive Summary
• Core Assets
• Programming
• Networks: Crackle
• Distribution
• Ad Sales
• Financial Appendix
11
11
Crackle’s Strategic Focus
• Discuss high-level market issues / trends
• Outline Crackle’s position in marketplace
12
12
Crackle Strategy Overview
Content /
Channels
Goals
Platform /
Product
Differentiate service
Summary level
strategy for
these key issues
Partners /
Distribution
Build audience
Generate revenue
Monetization
13
13
Evolution of Crackle Channels
FY07
FY08
FY09
FY10
Channels
Identify
Specific
Channels /
Concepts
The
Line-Up
Fame
Partners
Improv
SPA
SPT
Discuss evolution of
content on Crackle
(e.g. premium
content?)
Identify
Specific
Partners
14
14
Crackle Platform Development
FY07
• Expansion of embedded player
–Integrate search, upload, comments
and “shoutout” features into player
New
Features
• Syndication via 1-Click publishing (e.g.,
Digg, EBay)
• Online editing functionality
• Branded channel templates (framework
for premium producers, sponsors)
FY08/09
• Continue expansion of embedded player
–Add real-time community features
including chat
• Add geographic data and search
• Personalized recommendations/channel
• Customized functionality
–User profiles, instant messaging
• Family Filter
Device
Support
• Initial camera integration
(Pure Digital)
• Initial R&D for Sony devices:
PS3, VAIO
• Mobile phone integration
• Hardware integration (e.g., PCs, Cameras,
Camcorders, Cell Phones, Set-top Boxes)
15
15
Expansion of Crackle’s Distribution Network
Cross-Sony
Partnerships
• Power video
uploads
• Embed
screensaver
and software
User Driven
“1 Click”
• Users
syndicate
playlists via
embedded
player
Distribution
Partners
• Embed Grouper
player on
partner sites
• Distribute
content
“pyramids”
Marketing
• Purchase
advertising
on high traffic
web sites
• Drive users
back to
Grouper.com
Digital Imaging
16
16
Crackle Revenue Plan
•
Overall trends in sales of advertising against UGV content
•
Ad units (pre-roll / post-roll, overlays, banners)
•
Sales strategy
•
Sponsorship concepts
•
Traction to-date with advertisers
17
17
Key Crackle Metrics
[Include Key Crackle Metrics]
[Placeholder Numbers]
18
18
Crackle Financials
EBIT
Revenue
($ in MM)
($ in MM)
$20
$70
$15
$60
$10
$50
$15.0
$5
$40
$5.0
$0
FY07
FY08
FY09
FY10
$60.0
$30
-$5
-$15.0
-$10
$20
$40.0
-$18.0
$10
$20.0
$13.0
-$15
$0
-$20
[Placeholder Numbers]
FY07
FY08
FY09
FY10
19
19
Agenda
• Executive Summary
• Core Assets
• Programming
• Channels
• Distribution
• Ad Sales
• Financial Appendix
20
20
Digital Distribution Landscape: Growing Demand
U.S. Consumer/Advertiser
Spending ($M)
CAGR%
$4,934
$3,040
79%
242
Subscription VOD 131%
558
IP-VOD
120%
DST
254%
1,864
106
348
$1,812
Total
$477
433
2006
23
64
102
2008
Networks/labels have extended their
brands online
–
2,271
1,500
Online video
advertising
640
2007
•
–
1,086
527
1,070
Media conglomerates have licensed
their content for digital sell-through
–
45
171
$829
•
2009
51%
–
ABC.com: ad-supported full episodes of
primetime shows
Launched AOL In2TV, ad-supported
classic TV episodes
Warner Music Group to distribute library of
music videos via YouTube
CBS to offer wide variety of short-form
video programming (news, sports,
entertainment) on YouTube
2010
Source: Adams Media Research, Veronis Suhler, eMarketer
21
21
Digital Distribution
SPT Strategy & Financials
•
Aggressively build the distribution network
–
•
Continue to expand the overall content offering
–
–
•
Broaden selection of film and TV product
Introduce the most compelling short-form/original content into the offering
Continue to lead the market in innovating the digital product offering and usage models
–
•
Strike partnerships across the complete spectrum of traditional and on-line players
Focus on Digital Sell-Through as foundational/core product
Build a strong, retail-focused organization
–
–
Create innovative marketing and promotional programs
Continue to lead the industry with respect to asset delivery and digital operations
Total Revenue
22
22
Mobile Overview
SPT Strategy & Financials
•
Taken responsibility for game development from SPDE and coordinating greenlights with SPTI
–
•
Slating 8 games per year
Now directly responsible for personalization products focusing on
–
–
•
Tones/graphics based on film/TV properties
Packages based on compelling brands/themes
Market approach
–
–
–
Close carrier relationships and marketing support
Consistent product development
Reinvigorate the library
($ in MM)
EBIT
$9
Total Revenue
($ in MM)
$8.0
$8
$8.0
$35
$30.0
$30
$7
$6.0
$6
$6.0
$25.0
$25
$5
$4.0
$4.0
$4
$25.0
$20.0
$20.0
$20
$30.0
$15
$15.0
$15.0
$3
$2
$2.0
$2.0
$10
$1
$5
$0
Q2/BGT
FY08
FY09
FY10
Q2/MRP
[Placeholder Numbers]
$0
FY07
FY08
FY09
FY10
Budget/Prior MRP
23
23