Do Movies Even Matter Anymore? Opportunities in Entertainment and New Media, featuring Mr. Lee Muhl. June 24 th 2010: 10:00 am PDT / 1:00 pm EDT

Transcription

1 Do Movies Even Matter Anymore? Opportunities in Entertainment and New Media, featuring Mr. Lee Muhl June 24 th 2010: 10:00 am PDT / 1:00 pm EDT

2 Overview Webinar Protocol 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 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

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

6 Film Relative diminution of the U.S. Market Increasing dominance of ancillary revenue streams DVD & VOD primarily Middle ground is going away (like the middle class)

7 Television TV was R.I.P. a few years ago Has become the industry gorilla Entertainment conglomerates most valuable properties Most interesting art is now Television NOT movies Cable TV is niche, targeted programming

8 Internet Internet Video Currently: 70% of data on Internet is unmonetized video Endgame: Monetization Content marketing cross-overs Compression technologies making quality streaming viable in the VERY short term Veetle.com

9 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

10 Why Is Everything in Such a State of Flux? 1. Dysfunction in movie business is massive Historic entertainment financing model hugely broken 2. Convergence 3. Globalization

11 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

12 Where to Focus Now Singles & Doubles iphone / ipad / Twitter / Facebook Applications Useful / meaningful applications Games Casual and Inexpensive Distribution / Infrastructure / Information Technology Roku Set-top Box Smartphone holograms Global music concerts online Workable content search concepts

13 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)

14 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.) Foreign Television

15 Recap Important and convulsive changes in Film, Television, Internet Why Is Everything in Such a State of Flux? Where to focus NOW Bunts, Singles, Doubles, & Home Runs

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

17 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

18 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)