Entertainment & Media Industry

Transcription

1 Entertainment & Media Industry Radio and Print Media, 2006 Industry Amount Radio FM Radio Stations, U.S. 9,042 AM Radio Stations, U.S. 4,751 Number of Radio Stations Broadcasting Digitally, U.S. 994 Print Media U.S. Magazine Revenues $23.1 Bill. Total Number of Daily and Sunday Newspapers, U.S. 2,366 Total Book Publishing Net Sales, U.S. $27 Bill. Sources: Plunkett Research, FCC, Publishers Information Bureau, Editor & Publisher, Newspaper Association of America

2 Entertainment & Media Industry Movies, 2006 Industry Amount Film U.S. Box Office Revenues $9.49 Bill. Average U.S. Ticket Price $6.55 Number of Movie Tickets Sold, U.S Bill. DVD Rentals and Sales at retail, U.S. $24.9 Bill. Sources: Plunkett Research, NATO, Adams Media Research, MPA

3 Entertainment & Media Industry Music, 2006 Industry Music Album Sales, US Global Dow nloaded Music Sales Satellite Radio Subscribers Number of ipods Sold in the U.S. Amount 619 Mill. Units $2 Bill Bill Bill. Sources: Plunkett Research, IFPI, Apple Computer

4 Entertainment & Media Industry Television, 2006 Industry Television Number of Mobile Phone TV Subscribers Mobile Phone TV Revenues Number of TiVo Subscribers, U.S. Amount 3.4 Mill. $350 Mill. 4.4 Mill. Source: Plunkett Research

5 Entertainment & Media Industry Television, 2006 Industry Amount Television U.S. Households with Televisions Mill. Broadcast TV Stations, U.S. 2,890 Cable TV Subscribers, U.S Mill. Worldwide Digital Cable Subscribers 31.4 Mill. Worldwide Cable Modem Subscribers 29.9 Mill. Sources: Plunkett Research, FCC, Nielsen Media Research, Kagan Research LLC

6 Box Office Revenues and Admissions United States, US$ Billions 10 9 Box Office (L) Admissions (R) Billion Source: MPA

7 World Internet Statistics March 2007 Population, Internet Usage World Region Millions % of World Usage, Growth % Population % World ( 2007 Est.) Population Millions (Penetration) Users Africa % % 3.6% 3.0% Asia 3, % % 10.7% 35.8% Europe % % 38.9% 28.3% Middle East % % 10.0% 1.7% North America % % 69.7% 20.9% Latin America/Caribbean % % 17.3% 8.7% Oceania / Australia % % 53.5% 1.7% WORLD TOTAL 6, % 1, % 16.9% 100.0% Source:

8 Internet Users Per 100 Inhabitants Region World Developing Regions Northern Africa Sub-Saharan Africa Latin America and the Caribbean Eastern Asia Southern Asia South-Eastern Asia Western Asia Oceania Commonwealth of Independent States Transition Countries of South-Eastern Developed Regions Least Developed Countries (LDCs) Landlocked Developing Countries (LLDCs) Small Island Developing States (SIDS) Source: United Nations

9 Drivers to Online Music Buying What made you start buying music online? 50% 49% 42% 22% Source: IFPI/M-Lab Survey

10 U.S. MP3 Player Sales Share February 2007 Source: NPD Group

11 Estimated Blog Count As of February 2006 Source: The Blog Herald Blogs Country (Ths.) United States 60,000 South Korea 20,000 China 36,820 Japan 10,000 France 4,500 United Kingdom 4,000 Poland 1,600 Spain 1,500 Ireland 750 Canada 700 World Estimate > 200,000

12 Business Software Piracy 10 Watch List Countries, 2006 Source: Business Software Alliance Country Piracy Rate (percent) Loss (US$ Mill.) Brazil China India Indonesia Mexico Pakistan Paraguay 81 7 Russia Spain Ukraine

13 MPAA Advertising Distribution 2006 Advertising Expenditures Network, 21% Spot TV, 14% Internet, 4% Trailers, 4% Newspaper, 11% Other Non- Media, 22% Other Media, 24% Source: MPA Worldwide Market Research & Analysis, 2006

14 Web Logs How Many Blogs Exist? Google blog and choose from over 1.33 billion search results. Results 1-10 of about 1,330,000,000 for blog [definition]. (0.04 seconds)

15 Mobile Internet Users United States, Millions Source: MPA

16 Internet and Game Consumption Hours Per Person United States, Hours Consumer Internet (L) Video Games (L) Wireless Content (R) Hours Source: Veronis Suhler Stevenson

17 Film and Television Consumption Hours Per Person United States, Hours Cable and Satellite TV (L) Broadcast TV (L) Home Video and DVD (R) Box Office Movies (R) Hours Source: Veronis Suhler Stevenson

18 Print Media Consumption Hours Per Person United States, Hours Daily Newspapers (L) Magazines (R) Books (R) Hours Source: Veronis Suhler Stevenson

19 DVD Titles Available and Average DVD Player Price United States, Thousands Titles Available on DVD (L) Average DVD Player Price (R) US$ Source: MPA

20 Television Households and Penetration United States, Millions TV Households (L) TV Penetration Rate (R) Percent Source: MPA

21 Basic Cable Households and Penetration United States, Millions Basic Cable Households (L) Basic Cable Penetration Rate (R) Percent Source: MPA

22 Premium Cable Households and Penetration United States, Millions Premium Cable Households (L) Premium Cable Penetration Rate (R) Percent Source: MPA

23 Satellite TV Households United States, Millions Source: MPA

24 Video on Demand Households and Penetration United States, Millions Video on Demand Housholds (L) Video on Demand Penetration (R) Percent

25 Personal Computer Households and Penetration United States, Millions PC Housholds (L) PC Penetration (R) Percent

26 Total Legitimate Online Movie Revenues Broken Down by Region Millions Asia Pacific Europe Latin America Middle East and Africa North America Source: Informa Media Group

27 Total Legitimate Online Movie Revenues Broken Down by Type of Download Millions Online Hard Copies Online Downloads Online Streaming Online Subscriptions Source: Informa Media Group

28 Illegal Video Downloads 2006 Statistics 1 Legal: 5 Illegally Downloaded Video Files 8% of U.S. Households downloaded 1 or more copyrighted video in the past 3 months Most Common Platforms: P2P and BitTorrent sites Illegally downloaded mainly adult-film content (60%), TV shows (20%), mainstream movie content (5%) Source: NPD Group

29 Legal Video Download Business Model Restrictions Apply Movielink and CinemaNow began offering movie downloads concurrent with DVD purchase at B&M video retailers like Wal-Mart and Blockbuster (4/3/2007). Offer 2 for 1 deals initially Movies cannot be burned onto DVDs Limit number of computers that can replay. Direct competition with Brick and Mortar, and with traditional venues like HBO, Showtime Source: BusinessWeek

30 Legal Movie Downloads Hollywood s Movie Download Services

31 Trends in DVD Sales and DVD Rentals United States, US$ Billions DVD Sales DVD Rentals Source: Digital Entertainment Group

32 Total Spending on Home Video United States, US$ Billions Total Spending on Home Video (DVD & VHS) Total Spending on DVD Gap represents VHS sales Source: Digital Entertainment Group

33 Video Sharing Websites A Handful of Websites Eyespot Grouper Revver Vimeo YouTube MSN Video Google Video Jumpcut Videoegg vsocial Ourmedia ifilm

34 Format Founders Blu-ray and HD DVD Blu-ray Sony Corporation HD DVD Toshiba Corporation Philips Electronics Hitachi Corporation

35 Blu-ray Supporting Companies

36 HD DVD Supporting Companies

37 China s Growing Computer Appetite 2007 Projections 14 Million 1 st Time PC Business Buyers Estimated Sales = $18 Billion 13% year-on-year increase Source: Access Markets International Partners

38 Hollywood vs. Bollywood Comparing Stats Hollywood Born 1910 Produces 500 Films Worldwide audience 2.6 Billion $25.82 Billion Global Box Office (2006) Saturated U.S. market >$60 Million = Average Cost/ Movie Bollywood Born 1899 Produces 1000 Films Worldwide audience 3 Billion $1.75 Billion Revenue (2006), $3.4 Billion (2010) Thriving future market $5 Million = Average Cost/ Movie Source: WordPress.com

39 The Standards War: A Betamax Moment Two Case Studies Betamax vs. VHS Video Cassette War (1980s) Blu-ray vs. HD DVD Optical Disc Format War

40 Top 10 Videogames 2006 Source: NPD Group

41 Broadband Internet Statistics Per 100 Inhabitants Country DSL Cable Other Total Korea Netherlands Denmark Iceland Switzerland Canada Finland Belgium Norway Sweden Japan United States United Kingdom Source: OECD, 2006

42 Broadband Subscribers Per 1000 People Source: World Bank 2006

43 U.S. Online Game Market Millions Broadband Subscribers (L) Online Video Game Penetration (R) Percent Sources: PricewaterhouseCoopers LLP, Wilkofsky Gruen Associates

44 Videogame Console Sales December 2006, Life-to-Date Statistics Source: NPD Group

45 Videogame Console Sales February 2007 Source: NPD Group

46 U.S. Computer and Video Games Sales Comparison Sources: NPD Group / Point-of-Sale Information,

47 Total Worldwide Online Game Subscription Revenue Source: DFC Intelligence

48 Successful Internet Business Model Key Points Develop an unique website Control the product line Introduce new products on a regular basis Ensure easy and reliable credit card payment methods Provide customer-friendly policies On-time delivery Keep promises Develop a clever marketing strategy Source:

49 E-market Wisdom Signs of Success Increasing revenue Profit generation Success in creating meaningful alliances Success in expanding into new markets Differentiating product/company Ranked among the top 5 in a search engine Source:

50 Interactive Websites Web 2.0 Defined Web 2.0 = Applications which can only exist on the Internet, deriving their power from the human connections and the network effects. Examples: ebay, craigslist, Wikipedia, Skype, Adsense Source: O'Reilly Radar

51 Search Engine Optimization Tips Search Term Relevancy Link Popularity Link Reputation Listing in Open Directory ( Fresh Content URL containing search term Well Optimized Meta Tags Source:

52 Interactive Websites Open Source Defined Open Source Environment Defined as an environment that promotes public access to the production and to the design processes, e.g. of software source codes Enables public collaboration, user-generated software content, more software testers Source: Wikipedia

53 Internet Terminology Viral Marketing Defined Viral Marketing Marketing techniques that use pre-existing social networks to increases in brand awareness. -Delivery via word of mouth (blogs, amateur websites), enhanced online using Internet s network effect Source: Wikipedia

54 Internet Terminology Affiliate Marketing Defined Affiliate Marketing Method of promoting web businesses in which an affiliate is rewarded for every visitor, subscriber, customer, and/or sale provided through his/her efforts. Compensation can be made based: 1)Impression (CPM) 2) Click (Pay per click) 3) New registrant 4) Sale Source: Wikipedia

55 Growing Interest in Technologies Planned investment in Web 2.0 technologies over the next 3 years by industry % of respondents Retail Source: 2007 McKinsey Survey on Internet technologies High Tech Financial Services Telecommunications Pharmaceuticals

56 Web 2.0 Business Satisfaction Company Satisfaction Percent Early Adopter Fast Follower Others Somewhat Satisfied Very Satisfied Dissatisfied Neutral Source: 2007 McKinsey Survey on Internet Technologies

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