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Hosting DVDs in the Cloud

How to turn existing DVD libraries into a SaaS business model
by

Jacco vanderKooij

on 3 July 2013

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Transcript of Hosting DVDs in the Cloud

Pressure is building NBC as Content partner promotes a LIVE broadcasr What am doing about it This is the story of a Brick Wall Turning DVD libraries
into a
SaaS business Thousands of dollars invested, 'Emotional' attachment Increase stickyness! Process Licensing Revenues vs Pay Per View One-Time Sale Access to my Library Anytime Anywhere On all my devices Subscribes on-line Solution ONLINE PORTAL to host my DVD's Most of the challenges for a hosted DVD service have dissappeared Hosting digital cinematic content Security of Electronic distribution DVD revenue threatened Studios are threatened
over their role Bandwidth to stream it Cross Platform Support Consumers willingness to pay for it How to deal with the physical DVD's? Uniform Encoding $100,000,000 Brick Walls "Brick walls are there for a reason. The brick walls are not there to keep us out. The brick walls are there to show how badly we want something. Because the brick walls are there to stop the people who don’t want something badly enough. They are there to keep out the other people" - Randy Pausch - This is the story
of a brick wall And what like to do about it Studios willingness to license content small library 50-200 titles average library 100-500 titles Large library 500-1,000 DVD library vs.
long tail 1 Mail-in your library 2 On any licensed device Enjoy your library 3 Encode Encrypt License Streaming Report Encoding in uniform encoding scheme. 90% of all titles to be encoded are the same. Drives value add bandwidth demands for service providers Detailed Reporting is a MUST Technology is widely available Achievable against a monthly all inclusive $19.95 hosting fee Hosting is a consumer trend (pictures/e-mail) This is primarily a political issues The time is right for some of the studio's to transition into a
content licensing business based on recapturing revenue from
sold long tail content.

How badly do you want to take the DVD of the market Key Technologies DVD Mailing Increase annual revenue Hosting No significant hosting Only license management Value Chain THE NEED Key Value Proposal for MyFlix Using NETFLIX existing infrastructure On a service for which the DVD was already sold Providing kick-back + valuable statistics to the studio Increasing stickyness and reducing churn Billions of DVD's $100,000,000 Increase revenue by $100M+ Provide a DVD hosting services, for $4.95 per month - the going rate of a basic 5-page web-site hosting service - and offer consumers Digital Rights of their own DVD library across all STREAMING enabled devices generating an annual revenue stream of $100+M - at a 9% penetration rate. How to Offering playout of this DVD library across enabled electronic devices The idea in brief Studio's have been notoriously slow to adopt new services but they are going to be very interested as it provides a NEW revenue stream against long-tail content, and takes DVD's of the market. This realizes studios long time dream to become a content licensing business and fits with its UltraViolet and KeyChest initiatives Average titles a consumer owns 100+ -vs- Consumer Encoding is a cumbersome process The Opportunity Increase Annual Revenue Reduce Churn & Lack of Create political value with customer towards studio The Reward Example 50 titles 100 titles 500 titles $ 2.95 / month $ 4.95 / month $ 9.95 / month Hosting Services for 12 months Monthly Payment Digital Copy Rights SD streaming to enabled devices Rights to upgrade to HD (extra charge) (License to upgrade to HD) Viewer Statistics DVD's returned Piece of the revenue e-TAILER STUDIOS Digital Viewing License Business Model Consumer e-TAILER CONSUMER STUDIOS Future Proof Viewer Statistics* Revenue for viewing Digital Viewing License Distribution infrastructure With a business model that scales internationally* Distribution Infrastructure DVD Library! 1 $4.95 per month NETFLIX is just used as an example, and not reflective of any discussions etc. e-TAILER ??? Created by Jacco van der Kooij, January 2011, published April 2013
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