Alyson Blume + Kate McKendry

Table of contents

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Concept Mission Statement Brand Target Market Demographics Area For Growth Marketing Advertising

Subscription How The Site Works Programming & Distribution Interactivity Legal Implications Distribution/Revenue Basic Business Model Strategic Partnerships

Concept •  Definitions

–  L337 or LEE7 refers in the computer gaming world to the higher echelons of nerd hierarchy.

– Machinima: A type of CGI filming style in which a movie or animated short is filmed using 3D models from video games.

•  This network will serve as an online interactive entertainment network for those who appreciate the technique of using video games for their art

3 http://www.urbandictionary.com/define.php?term=L337 www.machinima.org/machinima-faq.html

Definitions

Idea

Example

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Mission Statement L337 is the network for and about the video game

enthusiast. In addition to network produced content, this interactive network allows the user to step beyond the role spectator to participate, showcase and share original gaming centric content. Users will be able to reach our network via Internet, mobile and video game consoles. Content will include trailers, gameplay, montages, music videos and original machinima series and movies created in World of Warcraft, Halo, Sims 2, GTA, Battlefield, Counterstrike and many more games.

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Target Market

•  Gaming and Machinima Enthusiasts

– Men

–  Age:16-34

–  Technology Savvys

6 “Online Video Content-Who’s Watching,” GMI MINTEL February 2009

Primary Market

Demographics

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• Online Video: • Two thirds of internet users watch online video. • 90% of 16-19-year-olds watch internet video. • The most enthusiastic viewers are male.

• Video Games • Men age 14-24 spend roughly 12 hours a week gaming • The amount of male gaming activity remains high until 35 • Two thirds of teen boys said that they “always” tell their friends about games that they like • Teen boys actively seek out information about video games. They watch ads or videos on the Internet about new video games.

“Online Video Content-Who’s Watching,” GMI MINTEL February 2009 “Video Games-Race and Ethnicity,” GMI MINTEL July 2008

Online Video

Video Game

Areas for Growth-Secondary Market

•  Hispanic –  Spanish Language Speaking

–  Hispanics buy substantially more games on a per capita basis than any other racial or ethnic group.

–  Hispanics are more likely than any other race to be enthusiastic about a game if they can use it to socialize or learn something

8 “Video Games-Race and Ethnicity,” GMI MINTEL July 2008

Hispanics

How The Site Works •  Entertainment

–  Original & Acquired Content –  User Generated Video –  Content divided by Genre –  Spanish Language Video

•  Education –  Online Articles –  Blog –  “How To” Videos –  Calendar of Events

•  Interactivity

–  Video Contests –  Continue A Story –  Ability to Rate Videos + Write

Reviews –  Message and Discussion Boards –  Ability to Personalize Homepage

•  Skin •  Recommended Videos

•  Social

–  Send SMS to Join in Discussion Via Cell

–  Online Chat –  Profile Links to personal

facebook, twitter, linkedin accounts+ blogs

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Entertainment

Education

Interactivity

Social

Programming

•  Original Programming * Channels based off of genre

- sports - action/adventure - classics - music video - comedy - fantasy - family-friendly - romance - independent channel - mystery

•  Syndicated Comics

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•  Recommended section - staff picks - L33B picks

•  L33B of the week •  Most popular (most visited) •  Section for series •  Section for shorts •  - Subsections : professionally

produced versions sponsored by the company, user generated content, etc

•  Spanish Language Section •  Online tutorials

L337 will feature, original, syndicated, user generated and interactive content. The goal is to entertain, educate and provide a community for the talents and

ideas of our viewers

Original Programming •  Game Sponsored Content

•  Professionally Produced

•  Promotes and Creates Buzz

•  Develops Game Characters and Legends

•  User Generated Videos

•  Content Contributed by Users

•  Can Be Either Short Films or Web Series

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Game Sponsored Content

User Generated Content

Original Programming

•  Education – Original Videos offering tutorials, tips and

suggestions to people wanting to create their own machinima style videos

– V-logs about machinima news and events of interest

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Educational Content

Acquired Programming

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•  L33T will be treating it’s subscribers to old, video-game based cartoons for the viewer’s own nostalgic, viewing pleasure.

•  The cartoons will be shortened in length, keeping only the important parts of the episode so the story still makes sense.

• Links to purchase DVDs of these shows will be provided

•  Some cartoons that will be used:

•  Double Dragon

•  Earthworm Jim

•  The Legend of Zelda

•  Mega Man

•  Mortal Kombat: Defenders of The Realm

•  Sonic The Hedgehog

•  Street Fighter

Interactivity

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•  Continue A Story

-  For certain series, L33t subscribers will be given the opportunity to create the next episode. They will submit their content and L33t employees will decide which video will get posted as the next part of the story.

•  Modes of Contact

-  When subscribing to L33t, users will be given the opportunity to include modes of contact (AIM, Yahoo! Account, Twitter, MySpace name, Facebook, E-mail address, etc.) so other users can easily connect with them.

•  Submit Your Own Video

-  Subscribers will have the opportunity to create their own content and upload it to the L33t website for other subscribers to be able to view.

•  BAWLS Presents:

“Kick Ass Clip Of The Week”

-  Subscribers will be able to vote on scenes from different series to decide which clips will make it into the BAWLS - sponsored video.

Modes of Contact

Continue A Story

Submit Your Own Video

BAWLS Presents

Distribution

•  L337 Website •  YouTube •  Facebook •  iTunes •  Game Consoles •  Mobile Application

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Subscription •  Hierarchy within social communities encourages heighted and engaged

consumption

•  Subscription on the website will be done in tiers, allowing more access and abilities depending on which tier is subscribed to.

•  N00b - the basic subscription level, free for anyone. N00b’s are allowed to watch videos, limited space for original uploads and get some sneak peaks for anticipated video games.

•  L33t - the lower of the paid subscriptions. L33t users are allowed access to archived videos that are no longer available and a larger designated amount of storage for original videos they want to upload.

•  L33b - the highest level. The most expensive, users have access to unlimited content storage and discounted ticket advantages to conventions.

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Other perks: •  Subscribers can submit original content into contests

Schaue, HopeJensen et al., “How Brand Community Practices Create Value” Journal of Marketing, American Marketing Association, September 2009.

Marketing-Strategic Partnerships

•  Only titles from the largest companies have the budget for television advertising and, in particular, national advertising. In addition, the primary target market for many video games—young males—are harder to reach on television as they have shifted much of their time to the Internet and gaming.

•  The game is the brand: The title of the game is featured much more prominently than the name of the developer or publisher.

•  The content is the draw

•  At least one of the four games more than quadrupled sales following the clip's appearance in machinima style videos.

•  Boys like humor: In addition to clips, many ads utilize humor and dramatizations to promote the game.

17 “Video Games-Advertising,” GMI MINTEL July 2008 http://magellansproductions.blogspot.com/2007/10/frank-discussion-of-machinima.html

Strategic Partnerships

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•  G4TV

- The gamer-centric cable channel will show clips from L337 series on one of their programs, while G4 will have advertisements on the L337 website.

•  BAWLS

-  The energy drink will sponsor “Kick Ass Clips Of The Week”

•  New Game Releases

-  Various game companies, such as Electronic Arts, will have the ability to promote their new game releases, while L337 will have trailers for their popular series at the beginning of these games.

•  Apple

-  L337 will allow for 5 free episode downloads with the purchase of an iPhone, iPod Touch, iPod Classic, or the iPad.

G4TV

BAWLS

New Game Releases

Apple

Marketing

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•  Target Demographic is Very “Internet Friendly”.

•  L337 Will Have Accounts and Advertisements in:

• Promotions at Live Events

• Advertising in Comics, Graphics, Novels

• Trailers before Video Games

Analog

Digital

Facebook

•  Place for L337 subscribers to not only get the latest updates, but converse with one another as well.

•  Facebook is a popular site for the gamer-type.

•  Similar Networks have 20,000 fans on their Facebook fan page.

YouTube •  L337’s Youtube Channel would have a specific number of episodes from different series

•  Great exposure - YouTube users can easily stumble across our videos without searching for them - can become fans after this.

•  There will be a link back to the L337 page on the channel.

•  Similar Networks have 978,277 fans on their YouTube Channel.

Twitter •  A spot for L337 subscribers to get all the latest news about new and upcoming releases.

•  Twitter is a great “one-stop shop” for quick news.

•  Exposure - fans can re-tweet so whoever is following them will also get the news.

•  There will be a link back to the L337 page on the Twitter profile.

•  Similar Networks have over 1M subscribers on their Twitter page.

Advertising as a Revenue Source

•  Advertisements for consoles on the website

•  Advertisements for conventions

•  Mini webisode series for video games to promote new releases

•  Banner ads

•  Sponsor ads

•  Videos made by energy drinks and junk foods where the characters speak about the specific product

•  Sponsored content

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L337 Store

•  Available in Store •  Clothing +

Paraphernalia •  Mobile

Application •  Video

Downloads •  Acquired

Program DVDs

Available In Store

Basic Bus. Model-Financials

•  Revenue Sources – Advertising

– Strategic Partnerships

– Subscriptions

– Mobile Application

– Merchandizing

– iTunes

– DVD Sales (CPA)

– Major Costs

– Production Costs

– Advertising + Marketing

– Tech Management

– Operations + Overhead

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Revenue Sources Major Costs

Legal Implications •  Machinima style videos provide free marketing, As a result, Game

Publishers have avoided a response demanding strict copyright enforcement

•  Precedent

–  In 2003, Linden Lab was praised for changing license terms to allow users to retain ownership of works created in its virtual world Second Life.

–  Rooster Teeth initially tried to release Red vs. Blue unnoticed by Halo's owners because they feared that any communication would force them to end the project. However, Microsoft, Bungie's parent company at the time, contacted the group shortly after episode 2, and allowed them to continue without paying licensing fees.

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Hayes, Christina (2008). "Changing the Rules of the Game: How Video Game Publishers are Embracing User-Generated Derivative Works” Harvard Law School, Law Review Marcus, Todd Davis (2008). "Fostering Creativity in Virtual Worlds: Easing the Restrictiveness of Copyright for User-Created Content” New York Law School, Law Review Thompson, Clive (August 7, 2005). "The Xbox Auteurs". The New York Times.

Thank You

Appendix 1

http://magellansproductions.blogspot.com/2007/10/frank-discussion-of-machinima.html

Appendix 2

CPM estimates from:OpenX.org & Fauls, Professor Thomas, In Person Interview April 15, 2010 CTR Estimates http://www.strangecompany.org/strangeco/mcom