Private Equity: Strategies For 2010 In Spite of Avatar, The Movie Business is Still Dead. March 4 th 2010: 10:00 am PST / 1:00 pm EST

Transcription

1 Private Equity: Strategies For 2010 In Spite of Avatar, The Movie Business is Still Dead March 4 th 2010: 10:00 am PST / 1:00 pm EST

2 Overview Webinar Protocol Webinar Purpose An Interview with Lee Muhl Managing Director, Growthink s New Media and Entertainment Practice Conclusions

3 Webinar Protocol Minute Webinar 2. Questions/comments as we go: Type in utilizing GoToWebinar toolbar 3. After Call: Survey feedback Within 2 hours after the call, you will receive, via , copies of the reviewed slides and a recording of the presentation **This presentation does not constitute a general offering or solicitation to purchase or acquire securities.

4 Purpose of this Webinar 1. To share best practices of investing in emerging, entrepreneurial companies Because it is good for you Because it is good for America and the world 2. To share Lee s advisory experience regarding: Which new media business models to back Which to avoid

5 About Lee Muhl Managing Director, Growthink s New Media and Entertainment Practice 100 Growthink engagements completed-to-date Heavy new media focus, trained in traditional film/tv Well over $100MM raised for film/tv Daily experience with new media trends Multiple startup CEO experience Former partner in two leading Los Angeles media law firms Current member of the California Bar and the Hollywood Writer s Guild

6 Overview Important and convulsive changes in: Film, Music, Gaming, Television, Internet Why Is Everything in Such a State of Flux? Where to focus NOW

7 Film Distribution Shifts. From Domestic to Foreign From Theatrical to DVD From DVD to online modes Leading to Production/Distribution Shifts Tentpole and real Indie Middle ground is going away (like the middle class)

8 Case Study Clint Eastwood s Gran Torino 6 Million Video-on-Demand Downloads #1 Performing Global VOD for Million DVD and Blue-Ray Discs Sold

9 Music What happened in music IS and WILL happen to film Internet is the great leveler Music as recorded content is considered advertising for live performance and merchandising

10 Gaming Casual gaming, advergaming Cloud Gaming Removal of bottleneck of big 5 distributors (Wal-mart, BestBuy, Target, GameStop) New revenue models (stream subscription, embedded ads, product placements)

11 Television Advertisers Paying Less More local content on global TV sites Loss of power of writers-producers Consumer distaste for ads (Tivo, etc.) Fragmentation of cable audience

12 Internet Social Media is the NEW Entertainment Internet Video Currently: 70% of data on Internet is un-monetized video Endgame: Monetization Content marketing cross-overs Compression technologies making IPTV viable in the VERY short term

13 Why Is Everything in Such a State of Flux? 1. Digital Content 2. Convergence 3. Globalization 4. Shifting consumer tastes Distaste for passive entertainment Seek involvement in the experience 24/7 Anytime On-Demand Access 5. The entertainment experience is a constantly moving tectonic plate

14 Business Models To Avoid Traditional content plays (film, music, games) unless budget is micro and distribution is set Technology plays with short shelflives (3D?) Even DVD has lasted less than 10 years Single platform distribution concepts Technology solutions in search of a reason to be, i.e., not founded upon a major market need

15 Where to Focus Now Singles & Doubles Mobile Applications / Facebook Applications Casual / Inexpensive (to create and consume) Games Distribution / Infrastructure / Information Technology Roku Set-top Box Smartphone holograms Global music concerts online Workable content search concepts

16 Where to Focus Now Home Runs 3 Traditional Home Run Plays no longer realistically accessible Blockbuster movie TV show into syndication Touring musical play (aka Cats)

17 Where to Focus Now Home Runs Subscription based models (dating, affinity groups, lifestyle) Finding exploitable celebrities, and cross platform market them (Kim Kardashian, Ashton Kutcher, Chelsea Handler, etc.)

18 Recap Important and convulsive changes in: Film, Music, Gaming, Television, Internet Why Is Everything in Such a State of Flux? Where to focus NOW

19 To Learn More Questions / Discussion Return our survey Contact: Stacey Polychronis: stacey.p@growthink.com