Hollywood Goes Digital

Hollywood Goes DIGITAL ONLINE VIDEO REVENUE STREAMS* *Source June 2009 UBS report 23 77 55% percentage of total online video revenue obtained from percentage of total online video revenue obtained from paid subscritions. Content Subscriptions 45% ad supported video. Discrete Downloads $5.4B projected online video revenue by 2010. NETFLIX ONLINE SUBSCRIBER ACCESS 61% 37.5% NETFLIX NETFLIX number of Netflix users watching streaming content from computers not connected to their TV. number of Netflix users watching streaming content from devices connected to their televisions. Watch Instantly Watch Instantly This data tells us that Netflix, and consumer electronics manufacturers, have a long way to go to integrate digital services with home TV sets. On the positive side, the 37.5% will almost certainly increase as more manufacturers start selling internet ready TVs. HOUSEHOLDS WATCHING ONLINE CONTENT* *Parks Associates report 25M the # of households that watched number of US broadband 20M households that watched premium online content, including movies and TV shows, in the fall of 2009 compared to a year earlier. the # of households that watched full-length movies online. full-length TV shows online. November 2009 20% A complicating factor |Streaming Video in assessing the digital Downloaded Video 15% video content economy is a growing trend toward charging for access to content (i.e., streaming), Streaming Video 10% 5% rather than charging for outright ownership Downloaded Vide0 (i.e., downloading). 06/08 09/08 04/09 10/09 "If you remove yourself for a minute from the raw data and just observe the iGens (under 25s) around you, you can see how ownership of content is either non-existent or tremendously devalued. You do not need data to comprehend that. ...There is a much more profitable frontier around the corner-and it is called 'access.' What is TV Everywhere but ubiquitous access to content? What is Hulu but ubiquitous access to content?" - Prominent Entertainment Attorney, Fred Davis MAJOR MOVIE STUDIO ONLINE ADVERTISING SPENDING bing YAHOO! oogle $$$$$$$ SONY UNIVERSAL $2.65B % of Overall Film Advertising budgets 2009 7.7% amount film studios will spend on online advertising by the year 2013, up from $1.24 billion in 2009. 2013 14.2% CASE STUDY In a Twitter game called and a potential coup for twitter Resistance2018, which engagement-based was used to promote the Warner Bros. post- advertising. apocalyptic epic Sal Ladestro, executive "Terminator Salvation," VP of marketing for members of the film's Sony Pictures, the Human Resistance film's distributor in communicate through most territories outside Twitter to decode the US, said in a intercepted transmissions statement: “In the fight from the villainous against Skynet and the Terminators and the Skynet Terminators, mass supercomputer. To play the communication is vital, so it's no surprise that game, users must follow Resistance2018 on Twitter the resistance would and then visit turn to Twitter. We Resistance2018.com to think this is the perfect find the instructions for TERMINATOR SALVATION little ivolved for the casual ERESISTANCE 2018= environment for the game play. Terminator game as it allows users to While all this may be a interact with the movie, their friends Twitter user, it is a fairly and other game players progressive marketing step instantaneously." Source : eMarketer % of Consumers