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How a leading cable channel grew its business by determining where and how to extend its brand into adjacent and distant market categories.
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PROPRIETARY AND CONFIDENTIAL
Identifying growth platforms through a brand-driven innovation process
A case study on the Sci Fi channel
Michael Million [email protected]
University of Chicago Graduate School of Business Innovation Roundtable
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2 University of Chicago GSB Innovation Roundtable
Sci Fi Channel – Background
• A 14 year-old, niche cable channel offering both syndicated and original shows
• Parent company: GE / NBC Universal
• Ranked #7 basic cable channel, after USA, TNT, TBS, FX, SPIKE, and LIFE
• Revenues: $435 million (primarily from licensing and advertising fees)
• Operating profits: 34%; Ratings growth: 8%
• Fully distributed in 88M U.S. homes, with operations in Europe
• SciFi.com ranked #1 Sci-fi website
• Core audience: Older males, average age: 42
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3 University of Chicago GSB Innovation Roundtable
Sci Fi Channel – Background
Strides to change perceptions were being made (more contemporary shows / branding)
Although there were stereotypes of the Sci-fi genre ….
Freaks, geeks, and pocket protectors
… Opportunities to become a “category killer” existed
Space, aliens, dark / apocalyptical, Star Trek
Sci-fi genre includes the top grossing movies
Others successfully grew beyond TV platform
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4 University of Chicago GSB Innovation Roundtable
The Project
Business Strategy & Innovation • Assess strategic business opportunities
• Formulate business cases for extending the Sci Fi brand through various concepts
• Identify new, innovative products and services the Sci Fi brand could offer
• Help prepare for S1M discussions (strategic planning process)
Brand Strategy • Understand the sci-fi / fantasy genre from the consumer perspective
• Explore the potential extendibility of the Sci Fi brand beyond its core television platform
• Refine the brand strategy to allow for significant business growth with a target audiences
Objective: Identify growth platforms by re-imagining the entire business and brand in ways that significantly increase opportunities for expansion
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5 University of Chicago GSB Innovation Roundtable
Approach
Art
Science
External Internal
Size New Businesses
Redefine the Sci Fi Brand
Define Target Segments
New Media
Consumer Electronics
Travel & Leisure
Retail
Explore New Offers
Growth Platforms
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Process
• Defining target consumers
• Redefining the Sci Fi brand
• Brainstorming offer concepts
• Narrowing in on attractive businesses
• Recommendations
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7 University of Chicago GSB Innovation Roundtable
Sci Fi Segments
Involvement None High
Religion Realists
16%
Escapists
16%
• 41 • Female • $50K
• Married / Kids • Low College
• Heavy TV • Heavy Readers
• Love Fantasy
• 40 - 50 • Mothers • Married
• Southern • Moderate TV
• Light Internet • Conservative
• Love God & Family
• 31 • Male/Female • $45K
• Single • Ethnic. Diverse
• Heavy TV • Heavy Gamers
• Love Thrills
Screamers
19%
• 27 • Male • <$40K
• Single • Ethnic. Diverse
• Heavy TV • Heavy Movies
• Love Being Scared
TV Snobs
17%
• 40 • Male/Female • $45K
• Married • Caucasian
• Light TV • Readers
• Love Learning
Young Marvels
16%
SciPhiles
16%
• 42 • Male • $55K
• Married • College
• Light TV • Heavy Internet
• Love science
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8 University of Chicago GSB Innovation Roundtable
Addressing shortfalls with the Sci Fi segments
• Segmentation based primarily on TV watching behaviors – tomorrow's segments will have to be based on broader entertainment consumption
• There was limited future potential with how targets were defined (we did not know enough about them outside of the TV / sci-fi categories)
• High potential groups (children) were not included in the segmentation
Address the shortfall
• We developed a hypothetical consumer framework more useful and actionable for future offer development
• We validated and refined those hypothetical consumer groups with inputs from the qualitative research
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9 University of Chicago GSB Innovation Roundtable
Tomorrow’s target will:
• Look very different than today’s core viewing audience
• Skew considerably younger
• Move toward more of a gender balance, but might slightly skew male
• Consume more forms of entertainment (including digital) vs. traditional TV
• Have higher incomes and more sophisticated tastes
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10 University of Chicago GSB Innovation Roundtable
Target Audiences
Adults Children
Young adults w/ no kids (18 – 30)
Families w/ children 4 – 12
Tweens (8 - 12 )
Young Kids (4 – 8)
All large groups with significant purchasing power and/or influence ~ 35M (people) ~ $750B (total spend)
~ 35M (HH) ~ $1,650B (HH
expenditures)
~ 15M (people) ~ $85B (total spend)
~ 20M (people) ~ $105B (total spend on
kids)
§ Significant purchasing power
§ Extremely tech savvy
§ Hungry for exploration, self expression, sharing of information and new experiences
§ Many interested in sci-fi related genres
§ Increasingly influenced by children
§ Increasingly difficult to target as interests within family fragment
§ Significant influence on parents / family
§ Establishes a pipeline for future offers
§ Less likely to have limiting associations of “sci-fi”
§ Increasing buying power
§ Extremely tech savvy
§ Media-centric – they spend 6.5 hours/day online and/or watching TV
§ Offers developed could be leveraged into young adults
§ Has an affinity for the unknown / sci-fi
§ Tech savvy
§ Heavy TV watchers
§ Heavy readers
§ Impressionable
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An iterative process to redefine the brand and determine the best concepts to consider
• Development of multiple offer ideas from different sources
• From: TV-centric
• To: a broader definition to direct future concept development
• Combining multiple ideas into bigger , broader, more digestible concepts
• Packaging ideas to generate excitement and elicit internal feedback
• Overall Appeal
• Differentiation
• Brand Extendibility
Idea Generation Brand Redefinition
Concept Development
Evaluation & Prioritization
Diverge Converge
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12 University of Chicago GSB Innovation Roundtable
Process
• Defining target consumers
• Redefining the Sci Fi brand
• Brainstorming offer concepts
• Narrowing in on attractive businesses
• Recommendations
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13 University of Chicago GSB Innovation Roundtable
Idea Generation
Participants Internal • Sci Fi • NBC Universal • Prophet • Agencies
partners
Creative Consumers
Pulled from panels consisting of creative thinkers
Genre Enthusiasts
Self identified enthusiasts of the Sci-fi genres
Methodology • Management Interviews
• Channel Retreat - over 50 internal participants
• Full group discussions and break-outs
• 3 - 4 sessions
• Each group to focus on distinct topics to provide breadth of ideas
• Warm-up – getting participants in the right frame of mind (“all things sci-fi”)
• Multiple techniques used
• Several short-burst discussions
Facilitators • Professional facilitator specializing in creative thinking, innovation, and new product development
• Trained to strike appropriate balance between “blue sky” ideation, and idea generation that is more pragmatic
Hundreds of Ideas
& Brand Insights
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Brand Definition & Concept Development
Brand Themes and Filters / Criteria 1. Be entertaining and fun 2. Be thought-provoking
3. Be mysterious / a little quirky 4. Be significant
Hundreds of Ideas & Brand Insights
Business Concepts
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Brand Theme: “Transform”
Transform
From - To
Moment-in-time
Another Realm
Role Playing
New Experiences
Escape
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“Transform” Business Concepts
University of Chicago, GSB Innovation Roundtable Slide 16
• Brand a large plot of land, or self contained property
• Stage fantasies for 6-8 people who share similar fantasies
• Transport consumers to a different time, place, under an assumed role
• Sell take-home products, subscriptions to an online community
Fantasy Destinations
• A room within houses that enables transformation to a different time or place
• “Dynamic media wall”
• Additional accessories (e.g., music, objects, furniture) to enhance the transformation
• Revenues from user fees and media fees
Changing Room Interactive Role Play
• Sci Fi MMORP, based on new sci-fi themes and existing programs
• Participants subscribe to game and purchase characters and tools to advance to higher levels
• Tie-into actual Sci Fi TV content, with winners determining the fate of characters, outcomes
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Brand Theme: “Explore”
Explore
The Journey
Uncover
Unknown
Discovery
Soul Search
Mysterious
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“Explore” Business Concepts
• A kiosk that uses virtual reality technology to provide users with an exploration of the unknown
• Themes to include “time travel” to numerous different combinations of location and time (e.g., space, the human mind, etc.)
• Kiosks could be freestanding or reside in a mall
• An overnight train ride that stages an exploration of themes relating to sci fi
• The staff, always in character, interact with passengers to facilitates exploration
• Periodic stops along the journey brings the exploration to life
• Children and adult versions
Fantasy Train Virtual Reality Pods
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19 University of Chicago GSB Innovation Roundtable
Brand Theme: “Create”
Create
Self-express
Enabled Play
Personal
Connect
Community
Experiment
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“Create” Business Concepts
• Sci Fi stages themed social events; includes creating party entertainment kits
• Event planning that taps into social trend of kid-designed, creative entertainment
• Themes to include space travel, extreme adventure, special effects, alien abduction, etc.
• Web-based, user-generated story creation contest, using tools from Sci Fi including video clips, characters, sample scripts
• Consumers form virtual teams and create a “finished product”
• The winning team has story produced by Sci Fi into multiple media forms
Networked Story-building Staged Events
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Qualitative research to gain insights on the Sci Fi brand and business concepts
• 8 Total Groups (2 hour sessions)
• 3 U.S. Cities
• 3 types of participant make-ups, 8 participants each • Trend-setting young adults w/ no kids (4 groups)
• Progressive adults with kids 4 – 8 (2 groups)
• Social Tweens 11 - 13 (2 groups)
• Key Topic Areas
• Attitudes, perceptions and behaviors relative to entertainment and sci-fi genres
• Reactions to business ideas (favorable or not, why, improvement modifications)
• Perceptions of Sci Fi brand (equity / extendibility relative to business ideas)
• Reactions to brand positioning platforms / identities
• Refinement of ideas (to increase their value, differentiation, and credibility to Sci Fi)
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Evaluation: Appeal and differentiation were based on three things
+
• Fantasy Destinations “If Sci Fi did an amusement park”
• Immersion Pods “It would have to be close to home video games now – high definition”
+
• Fantasy Destinations “You can role play..you can create…it’s a fun family thing”
• Mind Bar
• Role Play Game
• Creativity Game
+
• Changing Room
“I can put anything I want on it - even Johnny Depp”
• Role Play Game
• Fantasy Destinations
-
• Virtual Reality Gear “Earlier versions were crappy”
• HH of the Future “A little out of reach; too futuristic”
- • Immersion Pods “So isolating…it’d be more fun if there were others to interact with”
-
• HH of the Future “It loses the appeal of home – there is no comfort, no warmth”
Believability Interactivity Customizable
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Evaluation: Credibility came primarily from digital gaming and experiences
Digital Games Home Products Entertainment/Experiences
Networked Story Building
(UGC)
Creativity Game
(Education)
Mind Bar (Restaurant)
Fantasy Experiences
(Leisure/Travel) Changeable
Living Spaces
(Furnishings)
Immersion Pods
(Virtual Reality)
Interactive Role Play Game (MMORPG)
Household of Tomorrow
(Appliances/Design)
Bou-tech (Retail)
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Based on the insights, we refined what the brand should stand for in the future
Fueling the Imagination
From To
For those with curious minds and a love for entertainment, Sci Fi is the lifestyle brand that allows consumers to escape to new
realms through continuous transformative experiences
Transformative Escapes
Optimistic
Mind-blowing Immersive Wonderfully Eccentric
The Sci Fi Experience The Sci Fi Personality
Human
Stimulating
High-Quality
Risk-taking
Smart
Relatable
Inviting
TV-Centric Experiential (at home, on-the-go, destinations)
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Process
• Defining target consumers
• Redefining the Sci Fi brand
• Brainstorming offer concepts
• Narrowing in on attractive businesses
• Recommendations
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26 University of Chicago GSB Innovation Roundtable
Category Distillation
1. Aerospace & Defense 2. Agriculture 3. Auto. & Transport
4. Banking 5. Beverages
6. Business Services 7. Charitable Orgs.
8. Chemicals 9. Computer Hardware 10. Computer Services
11. Computer Software 12. Construction
13. Consumer Products 14. Consumer Services
15. Cultural Institutions 16. Education
17. Electronics 18. Energy & Utilities 19. Envt. Svcs, & Equip.
20. Financial Services
21. Food
22. Foundations
23. Government
24. Health Care
25. Industrial Mfct.
26. Insurance
27. Leisure
28. Media
29. Membership Orgs.
30. Metals & Mining
31. Pharmaceuticals
32. Real Estate
33. Retail
34. Security Pdcts & Svcs.
35. Telecom. Equipment
36. Telecom. Services
37. Transportation Svcs.
Started with 37 SIC codes
Media Consumer Products Leisure
Ended with 3 Categories
B2C
Entertainment or Educational
Lifestyle Oriented
Sci Fi Screens
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Related Industries – Opportunity Landscape
• Conventions
Accessories • Mobile • merchandise
Gaming Hardware • Consoles, devices, PCs
• Gaming gear
Home Appliances • Sci Fi inspired smart appliances
Ready to Assemble • Changeable Living Spaces
HH of tomorrow
Architectural Lighting
• Illuminated wallpaper
Lighting units • Line of floor,
desk & wall lights
Technology enabled apparel & jewelry • Multi-function
wearable device • Bou-tech
Multiple IPTV channels
Service Provider
Content Extensions • ringtones &
Ring backs • Wallpaper • Text Alerts
Hotels & Resorts • Fantasy
Destinations
Amusement Parks /
• Fantasy Destinations
• Arcades / FECs
Gaming Software • Video Games, Online Games,
Mobile Games, Computer games • Interactive Role Play Game • Creativity Game
Home Storage, Org. Products, &
accessories
Audio Video Equipment • Media Wall • Immersion pods
Internet / Digital Music Distribution
& Downloads
Cable TV Broadcast
TV Production & Distribution
Motion Picture Production & Distribution
(long format)
Travel Services
• Staged events
Leisure
Music Media Consumer Products (non-retailing)
Commemorative Products
Television Film & Video
Book Publishing
Periodicals • Online story-
building
Trading Cards & Comic Books
Digital Content
Distribution Online
story-building
Publishing
Consumer Electronics
Toys & Games
House wares
Home Furniture
Lighting
Appliances
Apparel & Jewelry
Lodging
Entertainment
Specialty Eateries • Mind Bar
Restaurant & Cafes
Training Services (support)
Mobile
8
7 6
5
4
3
2
1
3 Categories
18 Industries, 8 high priority
36 sub-industries, 13 high priority (darker backgrounds)
Concept bundles from bottom-up exploration
#
Abcd
Opportunity Landscape
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28 University of Chicago GSB Innovation Roundtable
Industries were profiled across key dimensions
Entertainment - Theme Park (Experience/Ride)
Restaurant (Themed Full Service )
Lodging (Mid-Level Hotel)
Entertainment – Conventions
Entertainment – Arcades / FECs
Economics § $11.3B market § 3% CAGR § 20-30% op. margin § Avg. $67 for one day ticket /
$115 for multi-park
§ $510 (total), $174B (themed restaurants)
§ 6-7% CAGR § 10-20% op. margin § Avg. HH spend / year: $2,434
§ $121B (total), $42M (mid-level)
§ 5% CAGR § 35-35% op. margin § Avg. spend for leisure: $85 -
90 / night
§ $10.8B market § 5% CAGR § Low op. margins
§ $1.4B market § (2-3%) CAGR § 10% avg.op. mgns. § Wide range of op.
margins fr. 0 – 17%)
Market Outlook & Trends
§ Mature, saturated market w/ low growth and limited revenue opportunity
§ High OPEX required, as an operator
§ Industry in transition Revenue drivers: § Admission fees (55% of
revenue), then food, games, and merchandise
Trends § Increasingly sophisticated (and
costly) rides – more immersive, interactive
• Mature, saturated market w/ low growth and limited revenue opportunity
• Difficult business to sustain growth (23% restaurants fail by year one, 60% by year three)
Revenue drivers • Traffic, revenue per table, high
margin items (i.e., dessert, liquor)
Trends § Migration from price to
experience (“eater-tainment”) § Less expansion, more
remodeling / re-invention
§ Mature market w/ low growth § Higher rev. generation
opportunity § High OPEX required, as an
operator Revenue drivers: § Occupancy and room rates,
other services (food, spa) Trends § From function to experience § Many competitors reinventing
offers with design, ingredient brands (Heavenly, Bliss)
§ Slowly growing market with low op. margins
§ Coordination intensive
Revenue drivers: § Qty. of shows /
fees, growth in segment
Trends § Increased role of
conventions as promotional tools
§ Small, declining market w/ stagnant prices
§ Severe competition from substitutes (in-home & mobile video games)
Revenue drivers: § Games, admission fees,
repeat attend. Trends § Decreased availability of
new games § Neg. public image
Competition § Top five operators account for most indust. revenues)
Critical Success Factors: § Location (near large tourist
destinations) § Continuous innovation § Ability to bundle services § Access to capital § Brand reputation Major players: § Disney: 48%, $5.4B § Universal: 10%, $1.1B § Six Flags 10%, $1.1B § Anheuser-Busch 10%, $1.1B
§ Highly fragmented, regional, multiple entrants and exits
Critical Success Factors: § Differentiated offering § Location § Access to capital § Op. & HR management § Recognized brand Major players: § McDonalds: 1.4%, $7B § YUM!: 1.2%, $5.9B § Darden: 1.2, $5.7B § Wendy’s: 0.5%, $2.4B § Landrys 0.3%, 1.2B
§ Somewhat fragmented Critical Success: § Advantage comes § Differentiated offering § Location § Access to capital § Op. management § Strong brand portfolio § Loyalty programs Major players (%- rooms): § Cendant: 9.9%, $3,.3B § Marriott: 8.7%, $11.5B § Hilton: 8.1%, $4.4B § Starwood: $5.9B
§ Highly fragm., few large operators assoc. w/ major centers
§ Low entry barrier § Accounts for 1/3 of
hotel revs. Critical Success: § Strong planning /
coordination § Alliances § Word of mouth Major players: § The Freeman Co.:
9.3%, 1B
§ Fragmented: largest eight account for <30% of revs.
§ High fixed cost and capital expenditures
Critical Success: § Location § New games § Control on op. exp. Major players: § D&B: 25%, $0.4B § Chuck E. Ch.: $0.7B § Game Works: 4%, $60M
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29 University of Chicago GSB Innovation Roundtable
Each industry was scored to determine attractiveness
Entertainment / Other Restaurants Lodging (Hotels)
Amusement Parks Conventions Arcades / FECs Financial Objectives (revenue & profit potential)
§ Moderate size ($11.3B) § Slow growth (3%) § Healthy op. margins (15%) § High fixed costs
§ Moderate size ($10.8B) § Slow growth (5%) § Low op. margins
§ Small market ($1.4B) § Declining (-2-3%) § High failure rate § High fixed costs
§ Large market ($510B) § Slow growth (6-7%) § High failure rate (60%) § Limited rev. potential
§ Large market ($121B) § Slow growth (5%) § High op. margins § High OPEX
Business Strategy (alignment w/ strategy)
§ Limited potential to broaden viewer ship but high potential to monetize brand § Will diversify business well § Very synergistic w/ other offers and Universal
§ Limited potential to broaden viewer ship or monetize brand, but relatively easy to enter § Not as diverse as others, more for mktg. than rev.
§ Limited potential to broaden viewer ship or monetize brand § Could diversify bus. & increase exposure, only if large scale
§ Limited potential to broaden viewer ship § High potential to monetize brand § Will diversify business § Somewhat synergistic
§ Limited potential to broaden viewer ship § High potential to monetize brand § Will diversify business § Somewhat synergistic
Brand Strategy (reinforces future aspirations)
§ Very good oppty. to be “transformative” / immersive / fun / unique § Good oppty. to change limiting perceptions of Sci Fi § Natural fit wit the brand
§ Limited potential to be “transformative” / immersive § Risk of perpetuating current brand image § Won’t help change percpetions
§ If executed well, can be “transformative” / differentiating § Neg. perceptions of industry could reflect poorly on brand
§ If well executed, can be “transformative” / diff. § Oppty. to change limiting perceptions of Sci Fi § Food elements could diminish “escape”
§ If well executed, can be “transformative” / diff/ § Oppty. to change limiting perceptions of Sci Fi § Current perceptions might limit trial
Target Segments (fit with target segments)
§ Very good fit with target’s preferences & behaviors (avg. age: 25 – 44, esp. families) § Captive audience (avg. stay is 5.3 nights) § Increasing interest by adults (1/2 of those visiting Disney World) , rejuvenile phenom.
§ Good fit with target (families, tweens), but limited exposure to mass audience § Conventions for sc-fi related content is growing in popularity
§ Trends moving away from entertainment ctrs. and more toward themed restaurants (eater-tainment) and in-home / mobile games § Possible oppty. with tweens, but untested
§ Very good fit with target’s preferences & behaviors § Increasing spend and traffic of families § Increas. popularity of themed eater-tainment restaurants w/ families
§ Good fit with consumer trends (blend of uses – lifestyle oriented) § Those who choose a destination based on a TV / Movie more likely to be younger, higher income, college educated, w/ children
Overall Attractiveness
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30 University of Chicago GSB Innovation Roundtable
We then developed financial models for each industry
Aggressive Scenario
INCOME STATEMENT Revenues
Cost of Goods Sold
Gross Profit Gross Margin
Operating Payroll
Operating Profit Operating Margin
CASH FLOW PROJECTIONS Operat. Cash Flow
Capital Expenditures Net Cash Flow OPEARTING DATA FIXED ASSET DATA
Total Investment
Moderate Scenario
INCOME STATEMENT Revenues
Cost of Goods Sold
Gross Profit Gross Margin
Operating Payroll
Operating Profit Operating Margin
CASH FLOW PROJECTIONS Operat. Cash Flow
Capital Expenditures Net Cash Flow OPEARTING DATA FIXED ASSET DATA
Total Investment
1 Established appropriate line item details for a 5-year pro forma
Conservative Scenario Year 1 Year 2 Year 3 Year …
INCOME STATEMENT Revenues
Cost of Goods Sold
Gross Profit Gross Margin
Operating Payroll
Operating Profit Operating Margin
CASH FLOW PROJECTIONS Operat. Cash Flow
Capital Expenditures Net Cash Flow OPERATING DATA FIXED ASSET DATA
Total Investment
2 Determined scenarios to model conservative to aggressive projections
3 Made educated assumptions for key financial inputs based on secondary industry data from analogous companies and offers
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31 University of Chicago GSB Innovation Roundtable
Process
• Defining target consumers
• Redefining the Sci Fi brand
• Brainstorming offer concepts
• Narrowing in on attractive businesses
• Recommendations
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32 University of Chicago GSB Innovation Roundtable
Six platforms to grow the business
Non-Media Related ($15MM: License: $12MM, Memberships: $3MM)
Online gamin ($5MM) Mobile ($5MM)
Programming for Youth Market ($15MM Ads)
Home – Sci Fi Surround ($20MM)
Low-hanging Fruit – Extensions ($30MM) Media Related ($15MM: $6MM License, $9MM Content)
Custom Devices ($20MM license) Media / Gaming Content ($10MM)
Mobile – Sci Fi Jolt ($30MM)
International Extensions ($40MM)
Low-hanging Fruit ($30MM)
Gaming – Sci Fi Blast ($85MM)
Video Games ($10MM
Licensing)
Online Games ($60MM) (Content: $50MM; Ads: $10MM)
Destination Games ($15MM
Licensing)
Household Products ($10MM Licensing) Multi-media Home Theater ($10MM Licensing)
Children Adults
1
6
3
2
5
4
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33 University of Chicago GSB Innovation Roundtable
The expected revenue growth from these opportunities is $220 MM over the next 5 years
Sci Fi Channel (20XX)
Low-hanging Fruit
Gaming (Sci Fi Blast)
Home (Sci Fi Surround)
Total 20XX $0
$500
$750
$436MM
$720 MM
$ M
illio
n in
Rev
enue
s
Mobile (Sci Fi Jolt)
International Sci Fi Channel Incremental
(20XX-20XX)
$64MM
$250
$30MM $40MM
Video & Destination ($25MM)
Online ($60MM
) HH
Products ($10MM)
Multi-media home
theater ($10MM)
Devices ($20MM)
Content ($10MM)
Youth market programming
$15MM
§ DVDs § New Broadband Channel § Digi-sodes § Print Publishing § Mobile extensions § Toys & games § Accessories § Consumer electronics § Logo-wear apparel § Conventions § Clubs
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34 University of Chicago GSB Innovation Roundtable
Developments driven by our recommendations
Gaming • Compiled list of 40 potential acquisition/partnership
target based on following criteria: 1. Specializes in games that appeal to SCI FI audience
2. Develops games across platforms
3. Is of a manageable size allowing for rapid acquisition
4. Has track record of releasing successful games
5. Has operations in close proximity, with similar culture
6. Has publishing experience/capabilities
Low-hanging Fruit Extensions • New Broadband channels:
• Exploring creation of “Sci Fi classics” broadband channel utilizing public domain genre programming
• SCI FI Anime – early stage exploring acquiring or partnering with existing library companies
• Print Publishing: • Structuring deal with Hollywood Entertainment (book
packager) for novelizations of SCI FI Pictures movies
• SCI FI mobile storefront being developed through NBCU Digital team (content to include ringtones, wallpapers, games - launching X)
• “Digi-sodes” – Establishing a MGM/Stargate deal for iTunes/Amazon
International Extensions • Soon to launch in Scandinavia, Australia
• Developing Asia, Latin America
• Structuring a global brand management infrastructure
Programming for the Youth Market • Kids
• Exploring Joint Venture with BKN to create a Sci Fi branded Saturday morning on-air programming block and corresponding broadband portal - to include ad sales (on-air, online), DVD & licensing/merchandising
• Youth/Young Adults • Negotiating Joint Venture with Virgin Comics - initial
scope to co-develop/own 5 properties to be executed as comic books, then owned asset to develop TV, film merchandise efforts.
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In Conclusion
• Brands are very important to consider when innovating - they can either be a source of inspiration or limiting factor of inflated ego
• Brands are typically more or less credible in entering new businesses / offerings than companies think they are
• Rarely do companies know exactly how far their brand can / should stretch as they innovate for white space opportunities
• Flexibility around process is also important • A iterative art / science and top-down / bottom-up approach can garner the best
results, but an overly structured approach could limit uncovering the best insights
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36 University of Chicago GSB Innovation Roundtable
Michael Million Bio & Contact Information
Michael is a partner at FullSurge, a management consultancy focused on driving growth through brand, marketing and innovation strategies. He has over 20 years experience advising companies on customer, brand, and go-to-market strategies, as well as the communication and design systems driven by those strategies. Michael’s ability to solve a broad set of underlying business challenges comes from his extensive knowledge of insight methodologies, conceptual and strategic skills, and ability to clarify the complicated. Prior to FullSurge, he was a partner at VSA, where he built the agency’s strategy practice to address broader business issues of its clients. Prior to VSA, Michael held senior level positions at top tier brand consultancies including Prophet and Landor Associates. Throughout his career, Michael has successfully led large engagements for a wide variety of Fortune 500 clients including GE, IBM, DuPont, Boeing, CDW, Cargill, Textron, KeyCorp, Kohler, and United Airlines, as well as mid-sized companies such as the College of American Pathologists, Sea Ray Boats, the Syfy Channel, and the Blue Bird Bus Company. Michael has guest lectured on branding and strategy at the Kellogg Graduate School of Management at Northwestern University and Haas Business School at University of California, Berkeley. He has facilitated workshops for the American Management Association, was a panel member for high-ranking business schools, and has frequently spoken at Board Meetings for his clients. [email protected] 312-957-5801 312-498-1515 C