Embed Size (px)
DESCRIPTION
Citation preview
www.activate.com
RedefineRs: CaptuRing Media gRowtH dollaRs
2
WILL GO TO THOSE WHO
IN THE NEXT 3 YEARS
325 BILLION GROWTH DOLLARS
REDEFINE THE MEDIA BUSINESS
Source: Activate analysis and estimates; Veronis Suhler, 9/10; PWC, 6/10; eMarketer, 2011; Yankee, 2011; Analyst Reports & Company Data, 2010/2011
MEDIA COMPANIES HAVE A CHANCE TO BE THE REDEFINERS
3
4
growth from media businessesExISTING
growth from media businesses
NEW
MEDIA GROWTH DOLLARS
5
$212 billion
NEW BuSINESSGROWTH MATTERS MOST
$1.4 trillion
$325 BILLION MEDIA GROWTH DOLLARS
$1.1 trillion
$113 billion
existing business growth
[3% p.a.]
20142010
newbusiness growth
[15% p.a.]
Source: Activate analysis and estimates; Veronis Suhler, 9/10; PWC, 6/10; eMarketer, 2011; Yankee, 2011; Analyst
Reports & Company Data, 2010/2011
6
WHO WILLWIN?
7
HOW MEDIA COMPANIES CAN BuILD NEW GROWTH BuSINESSESTHE REDEFINERSA new generation of upstarts has an advantage in winning media growth dollars, scaling quickly with new cheap technologies. To compete, media companies need to become redefiners themselves.
HACK THE ORGANIZATIONMedia companies will create more value from building, rather than acquiring, emerging digital businesses. ‘Hacking’ – creating a virtual startup outside the organization – enables a build-first strategy.
AN UNFAIR ADVANTAGECompanies that want to gain an advantage in creating the next wave of media businesses must face the challenge of combining content and technology to build new user experiences.
REDEFINING STRATEGYStrategies must address the fact that there will be multiple business models, audiences, devices and platforms. Companies need to determine how to win as their businesses are being redefined.
THIS PRESENTATION:
hack the organization
AN UNFAIRADVANTAGE
REDEFINING STRATEGY
THE REDEFINERS
8
9
WHO ARE THE REDEFINERS?Businesses Born at the intersection of tech and media
driven By human experience first, Business model follows
will Be the ones to win the Battle for growth dollars
10
REDEFINERS ARE FREE FROM THE LIABILITy OF LEGACy
ContraCts
TradiTional righTs
Production and editorial models
UnbUrdened by legacy constraints tHey can tHrive even witH lower margins
Distribution Deals
11
Today redefiner
12
DISRUPTORS
NATIVE TO THE WEB AND APPS ERA
FOCuS ON BETTER SERVING INCuMBENTS’ CORE CuSTOMERS
DRIVEN By A BETTER ExPERIENCE
RESuLT IS A NEW BuSINESS
REDEFINERS
REDEFINERS: SuCCESSORS TO DISRuPTORS
Driven by technology
Focus on targeting the periphery oF incumbent companies’ business
removes the value or revenues From an establisheD market
result is chaos
13
WHO WILL REDEFINEyOuR BuSINESS?
IF IT’S NOT yOu
14
ExPECT HITSFROM NOWHERE
15
ONE GAME PROGRAMMER WORKING ALONE GENERATES 2 MILLION PAYING DOWNLOADS AND OVER $30 MILLION IN REVENUES IN LESS THAN TWO YEARS.
expect hits from nowhere
Source: Company data, 4/11
16
140 million downloads of the game in 18 months, creating characters that spawn merchandise & films.
expect hits from nowhere
Note: Paid & free; includes iOS and other platformsSource: Company data, 3/11
17
Pioneered location-based aPPs, reaching 500 mm check-ins from 8 mm users in just over two years.
expect hits from nowhere
Source: Company data, 3/11
18
iPhone APP showing PotentiAl for hyPer-growth by reAching 1MM users in 8 weeks And 3MM in 9 Months.
expect hits from nowhere
Source: Company data, 4/11
19
Most popular Music subscription service, with over 10% of 10 MM users choosing to pay freeMiuM subscription.
expect hits from nowhere
Note: Based off total number of free usersSource: Activate analysis of company and industry data, 2010/2011
20
25MM USERS, STANDING OFF COMPETITION FROM AMAZON, GOOGLE AND MICROSOFT.
expect hits from nowhere
Note: Grew from 4MM users in 2010Source: Company data, 4/11
21
HITS yET TO COMEexpect hits from nowhere
22
REDEFINERS DON’T WANTALL THE CuSTOMERS, they want the
MOST VALuABLEOnes.
WHEN SOMEONEGETSRICHTechnology Doesn’T sTop
23
24
TECHNOLOGy DOESN’T STOP WHEN SOMEONE GETS RICH
AN UNFAIRADVANTAGE
REDEFINING STRATEGY
25
HACk THE ORGANIzATION
the redefiners
26
EVERyONE’S INNOVATION quESTION
Buy OR BuILD?
27
(And mediA compAnies need To AVoid suckinG The life ouT of Acquired sTArTups)
yOu CAN Buy TALENT,Buy INNOVATION.But You
can’t
28
THE RARE ACquISITIONS THAT HAVE THRIVED WERE
GIVEN SPACE TO INNOVATE
™
29
EVERyONE’S INNOVATION quESTION
Buy OR BuILD?
30
GROWTH DOLLARSBuILDING yIELDS
31
BuILDING A NEW BuSINESS MEANS
HACkING yOuR ORGANIzATION
32
Work outside of the media company org chart
Liberate team from the Legacy business compLiance and constraints
aLLoW the team to Work independentLy
focus on buiLding neW (vs protecting the oLd)
HOW TO HACk yOuR ORGANIzATION
HACkING MEANS BuILDING A
VIRTuAL STARTuP
33
34
USE TODAY’S ASSETS AS THE SEED FOR TOMORROW’S NEW BUSINESS
THINK ABOUT YOUR GOALS FIRST, AND RISKS SECOND
PUT A STRONG LEADER IN CHARGE, NOT A COMMITTEE
OPTIMIZE FOR GROWTH, NOT SHORT TERM MARGINS
DRAW THE BEST TALENTS FROM WHEREVER YOU CAN FIND THEM
BuILD A VIRTuAL STARTuP:
35
THE HEIST FILM STARTuP MODELASSEMBLE THE BEST TEAM FOR THE JOB
36
HACKING THE ORGANIZATION ENABLES A
BuILD-FIRST STRATEGy
37
WORkSHACkING
38
ACTING AS AN INDEPENDENT NIMBLE VIDEO STARTUP HELPED HULU ATTRACT A WEB SCALE AUDIENCE INCLUDING 1 MM PAyING USERS.
&
Source: Company data, 4/11
39
Conde nast worked with aCtivate to assemble a virtual startup to build the first-ever massively multiplayer magazine.
40
UniqUe mUlti-media celebrity-news bUsiness: television show, app and website; watched by 2.1m tv hoUseholds nightly and 16m UniqUe visitors per month.
&
Note: TV show ratings and website trafficSource: The Nielsen Company, 2010/2011
41
THE ANDROID TEAM LAUNCHED LIKE A STARTUP WITHIN GOOGLE, GROWING FROM NO MARKET PRESENCE INTO THE MOST POPULAR SMARTPHONE PLATFORM IN A FIERCELY COMPETITIVE MARKET.Note: Based on share of U.S. smartphone subscribers as of January 2011Source: Comscore, 3/11; The Nielsen Company, 3/11
42
yOu’RE A MEDIA COMPANy NOT A DATA CENTER
43
ONCE-COstly tEChNOlOgy CapabilitiEs arE NOw availablE as frEE Or OpEN sOurCE
iNvEst iN thE parts that arE uNiquE tO yOur busiNEss
yOu CaN makE a grEat ExpEriENCE by CONNECtiNg thEsE piECEs
tEChNOlOgy EvOlutiON is ONly gOiNg tO gEt fastEr
databaseCMS real-time messaging search
DON’T INVENT TECHNOLOGy
44
hacked organizations
AS TECHNOLOGyEVOLVES
THRIVE
45
LEARNING FROM
REDEFINERSUX FIRST
LOW COST
LAUNCH + LEARN
TAKE FROM THE BEST IDEAS
FAST IS BETTER THAN PERFECT
REDEFINING STRATEGY
46
AN uNFAIRADVANTAGE
hack the organization
the redefiners
47
EVERy STARTuP WISHES THEy HAD GREAT CONTENT
48
quALITy CONTENTis anuNFAIR ADVANTAGE
CONTENT COMBINED WITH TECH DELIVERS NEW ExPERIENCES
49
50
over time
TECH BECOMES A COMMODITy,CONTENT DOES NOT.
51
quALITy CONTENT BuILDBuyone.
an audiencethan to
can make it cheaper to
quALITy MATTERS: CONTENT FARM SuBSIDIES ARE DEADFactory Farms are as unhealthy For content as they are For Food
Businesses which treat users like cattle are vulneraBle to Being redeFined By those creating For actual humans, instead oF search engine roBots
52
53
Fully exploit the Features, Formats and experiencesoF each platForm
don’t createshovelware
A NATIVE ExPERIENCE ON EVERy DEVICE quALITy DEMANDS
54
No platform wiNNer takes all: there will Never be aNother wiNdows
it’s Not just oNe persoN, oNe device
plaN for dozeNs of platforms aNd billioNs of devices today, aNd a New successful device every moNth
platform promiscuity is a virtue
AND MORE DEVICES MATTER
55
REDEFINED MEDIA COMPANIES DON’T JuST MAkE MEDIA,THEy HELP PEOPLE CREATE MEDIA
56
yOuR FINISHED PRODuCT IS THEIR RAW MATERIAL The momenT qualiTy media is
released To The world isn’T The end of The process, iT’s The beginning.
57
LET THE MASSES MANuFACTuRETHE AUDIENCE WON’T JUST SHARE YOUR CONTENT, THEY WILL REMIX IT AND TURN IT INTO PHYSICAL GOODS.
58
REDEFINING STRATEGy
AN UNFAIRADVANTAGE
hack the organization
the redefiners
59
it’s not a
it’s aDIGITAL STRATEGy
STRATEGy
60
STARTuPS OVERuSETHE WORD
BUT IT’S STILL AN IMPORTANT IDEA FOR MEDIA COMPANIES
PIVOT
61
RedefineRs know they need to change diRection when new oppoRtunities demand it
media gRowth RequiRes continually aligning the business to the customeR
to gRow, a media business can piVot by changing audiences, pRoducts, content, functionality, inteRnational maRkets oR foRmats
WHy IS EVERyONE TALkING ABOuT “PIVOT”?
62
from magazine publisher to continuity marketer for books, video, events in health and wellness
from giant screen documentaries at museum theaters to mainstream blockbuster 2d/3d films in multiplexes
from mailing dvds to streaming
from “the point” group organizing to group buying
PIVOT TO BIG BuSINESSESBringing
The
63
GROW A WEB-SCALE AuDIENCE
1 millionapps: success
100 millionweb: success The Apps business is fundAmenTAlly
differenT from The Web business
Apps don’T (yeT!) go virAl The WAy WebsiTes do
App Audiences Are A differenT scAle, requiring A differenT kindof AdverTising business
64
uSE APIs AS MEDIA BIz DEV 2.0
PartnershiPs should start from what PeoPle want, not what comPanies want
use social networks as a Platform
don’t just send your biz devs to the meeting, also send your develoPers
Facebook is not always your Friend
GooGle’s neither Good nor evil
TwiTTer followers are noT a digiTal sTraTegy
AMAZON NEEDSTO BE NAVIGATED CAREFULLY
65
Most new successes will be in the freeMiuM Model
custoMers care what the price is, not what your costs are
assuMe that pricing will evolve as an iterative conversation with custoMers
GIVE PEOPLE A REASON TO PAy
$$$$$$
66
Focus on measurability, not cPc resPonse rates
Don’t conFuse social meDia metrics with real aDvertising metrics
strategy must anticiPate a Future where every imPression can be connecteD to real consumer behavior
MAkE ADVERTISING ACCOuNTABILITyAN OPPORTuNITy
67
WIN.REDEFINERSWILL
68
HACK THE ORGANIZATION BUILD NEW GROWTH BUSINESSES AS VIRTUAL STARTUPS
ANTICIPATE HITS FROM NOWHERE
PIVOT THE STRATEGY TO EXPLOIT NEW OPPORTUNITIES
USE CONTENT AS AN UNFAIR ADVANTAGE
CREATE ENGAGING NATIVE EXPERIENCES FOR EVERY AUDIENCE
TO CAPTuRE MEDIA GROWTHDOLLARS, BECOME A REDEFINER
69
Michael J. Wolf [email protected] tWitteR: @MJW
anil Dash [email protected] tWitteR: @anilDash
Michele anDeRson [email protected] tWitteR: @Micheleactivate
hiMesh Bhise [email protected] tWitteR: @hiMeshBhise
chRistopheR MoRf [email protected] tWitteR: @chRisMoRf
© 2011 Activate Text CC BY - SAPlease remix and reuse this presentation by attributing and linking it to: http://activate.com/redefiners
CREATED By
