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Media Club 2nd Meeting FSN_RMM_PL
Transcript of Media Club 2nd Meeting FSN_RMM_PL
The Current Dilemma: Consumer Spending on DVD and Blu-ray discs fell 8% in 2009 Online video minutes increased 50% in US, 30% in Spain - TV shows and movies account for half those minutes. Is video becoming a zero sum game in which rising online video consumption comes at the expense of reduced TV viewership and sales?
Who is the real winner from the growth of online video?
To what effect is their cannibalization
and how does that affect the industry?
Total video viewing consumption has remained broadly the same
In the US/UK those who watched long-form content online DVD viewing decreased up to 32%
In Spain, the only growth sectors were online and mobile (up 30%) = BIG TIME CANNIBALIZATION!!!! THE BIG FIGHT!!!! Advertising Dollars What does it all mean? Every hour of online TV content produces $.92 less in ad revenue that regular TV
In July 2009, viewers watched 46 million hours of video on Hulu - $42.5 million in lost revenue if online video is 100% cannibalistic It's a puzzle... Ad volumes or ad prices have to rise significantly to make up for lost revenue BUT: Surveys show online users would rather watch ads than pay for content but they won't tolerate a four-fold increase in online ads to watch a TV show
In order to match TV revenues without increaseing advertising, HULU CPMS would have to rise to $280, a price likely intolerable to advertisers The likely solution: Meanwhile: Additional methods of online video consumption grow in popularity posing additional threats The latest in Digital Media: GEOSOCIALNETWORKING
...what is that? It's a social networking with geographic services and capabilities where user submitted location data can allow social networks to connect and coordinate users with local people or events that match their interest.
What's in your mind? What's happening? Where are you? Why anyone would care where someone else is? Instead of having to call people to tell them where you are (how antiquated!), you instead just have your geo-spatial location tracked, and have your friends become alerted to this location in real-time What's hot from a social point of view? Social networks such as Facebook, Myspace, etc. lead to a disconnected relationship to the physical world not an enhanced one.
On the other hand, geo-social networks that track where we are would enhance the 2.0 human relationship. What about your privacy?
Do you want to be "on the radar" or "off the grid"? What's hot from a business point of view? The recent popularity of geo-social networks is driven by the tremendous pull of 3g phones and the maturity of social networks concept Geo-social networks have triggered a new form of highly relevant and personalized mobile advertising.
Ok cool video!
....but are Foursquare and similar applications a funny game that affects our social relationships or an incredible and subtle way to monetize digital media contents? is a geo-social networking website and mobile application that allows registered users to connect with friends and update their location through a "game".
The service was created by Dennis Crowley and Naveen Selvadurai; Crowley had previously founded the similar project Dodgeball, which Google bought in 2005 and shut down in 2009. As of early 2010, the website has about 450,000 members. STATIC ADVERTISING: Local businesses are offering discounts and other benefits to users who check-in or become mayors of their restaurant or coffee house, for example.
DYNAMIC ADVERTISING: When users, with their mobile device and geo social-apps in tow, come in proximity to a certain businesses- various ads, offers and other promotions can automatically be sent to encourage that user to enter the business. WORLDWIDE BOX OFFICE CONTINUES TO SOAR; U.S. ADMISSIONS ON THE RISE
The 3D market gave the U.S./Canada box office a boost accounting for 11% of the total compared to just 2% in 2008
Global box office receipts reached an all time high of $29.9 billion, an increase of 7.6% over 2008
A short Introduction to the Advertising Market Approx. 400 billion USD spent on advertising in the past year
While the number of individual agencies has as increased
Ownership of those agencies has concentrated dramatically
Mergers&Acquisitions AGENCY FAMILY TREES YOUTUBE VIDEOS Ogilvy&Mather
LOWE Leo Burnett
Adidas, AmEx, Siemens, Coca-Cola, GlaxoSmithKline,
Kraft The Economist,
Holiday Inn Kellogg's,
Procter & Gamble,
H. J. Heinz Company,