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www.activate.com
325 BILLION
WILL GO TO THOSE WHO
Source: Activate analysis and estimates; Veronis Suhler, 9/10; PWC, 6/10; eMarketer, 2011; Yankee, 2011; Analyst Reports & Company Data, 2010/2011
GROWTH DOLLARS
REDEFINE
REDEFINERS
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growth from
growth from
$1.4 trillion
$113 billion
existing business growth [3% p.a.]
Source: Activate analysis and estimates; Veronis Suhler, 9/10; PWC, 6/10; eMarketer, 2011; Yankee, 2011; Analyst Reports & Company Data, 2010/2011
$1.1 trillion
2010
2014
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WHO WILL
WIN?
THIS PRESENTATION:
Media companies will create more value from building, rather than acquiring, emerging digital businesses. Hacking creating a virtual startup outside the organization enables a build-first strategy.
Companies that want to gain an advantage in creating the next wave of media businesses must face the challenge of combining content and technology to build new user experiences.
Strategies must address the fact that there will be multiple business models, audiences, devices and platforms. Companies need to determine how to win as their businesses are being redefined.
THE REDEFINERS
AN UNFAIR ADVANTAGE
REDEFINING STRATEGY
REDEFINERS?
Businesses Born at the intersection of tech and media driven By human experience first, Business model follows will Be the ones to win the Battle for growth dollars
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TradiTional righTs
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Today
redefiner
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REDEFINERS
NATIVE TO THE WEB AND APPS ERA FOCuS ON BETTER SERVING INCuMBENTS CORE CuSTOMERS DRIVEN By A BETTER ExPERIENCE RESuLT IS A NEW BuSINESS
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ONE GAME PROGRAMMER WORKING ALONE GENERATES 2 MILLION PAYING DOWNLOADS AND OVER $30 MILLION IN REVENUES IN LESS THAN TWO YEARS.
Source: Company data, 4/11
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140 million downloads of the game in 18 months, creating characters that spawn merchandise & films.
Note: Paid & free; includes iOS and other platforms Source: Company data, 3/11
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Pioneered location-based aPPs, reaching 500 mm check-ins from 8 mm users in just over two years.
Source: Company data, 3/11
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Instagram
iPhone APP showing PotentiAl for hyPer-growth by reAching 1MM users in 8 weeks And 3MM in 9 Months.
Source: Company data, 4/11
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Most popular Music subscription service, with over 10% of 10 MM users choosing to pay freeMiuM subscription.
Note: Based off total number of free users Source: Activate analysis of company and industry data, 2010/2011
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25MM USERS, STANDING OFF COMPETITION FROM AMAZON, GOOGLE AND MICROSOFT.
Note: Grew from 4MM users in 2010 Source: Company data, 4/11
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MOST VALuABLE
Ones.
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RICH
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the redefiners
AN UNFAIR ADVANTAGE
REDEFINING STRATEGY
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Buy OR BuILD?
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yOu CAN
But You cant
(And mediA compAnies need To AVoid suckinG The life ouT of Acquired sTArTups)
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Buy OR BuILD?
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BuILDING yIELDS
GROWTH DOLLARS
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HOW TO
VIRTuAL STARTuP
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BuILD-FIRST
STRATEGy
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HACkING
WORkS
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&
ACTING AS AN INDEPENDENT NIMBLE VIDEO STARTUP HELPED HULU ATTRACT A WEB SCALE AUDIENCE INCLUDING 1 MM PAyING USERS.
Source: Company data, 4/11
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Conde nast worked with aCtivate to assemble a virtual startup to build the first-ever massively multiplayer magazine.
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&
UniqUe mUlti-media celebrity-news bUsiness: television show, app and website; watched by 2.1m tv hoUseholds nightly and 16m UniqUe visitors per month.
Note: TV show ratings and website traffic Source: The Nielsen Company, 2010/2011
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THE ANDROID TEAM LAUNCHED LIKE A STARTUP WITHIN GOOGLE, GROWING FROM NO MARKET PRESENCE INTO THE MOST POPULAR SMARTPHONE PLATFORM IN A FIERCELY COMPETITIVE MARKET.
Note: Based on share of U.S. smartphone subscribers as of January 2011 Source: Comscore, 3/11; The Nielsen Company, 3/11
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yOuRE A NOT A
ONCE-COstly tEChNOlOgy CapabilitiEs arE NOw availablE as frEE Or OpEN sOurCE iNvEst iN thE parts that arE uNiquE tO yOur busiNEss yOu CaN makE a grEat ExpEriENCE by CONNECtiNg thEsE piECEs tEChNOlOgy EvOlutiON is ONly gOiNg tO gEt fastEr
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hacked organizations
THRIVE
AS TECHNOLOGy EVOLVES
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LEARNING FROM
UX FIRST
REDEFINERS
LOW COST LAUNCH + LEARN TAKE FROM THE BEST IDEAS FAST IS BETTER THAN PERFECT
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the redefiners
AN uNFAIR ADVANTAGE
REDEFINING STRATEGY
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is an
quALITy CONTENT
uNFAIR ADVANTAGE
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over time
quALITy CONTENT
BuILD Buy
an audience than to
one.
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quALITy MATTERS:
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quALITy DEMANDS
dont create shovelware
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RAW MATERIAL
The momenT qualiTy media is released To The world isnT The end of The process, iTs The beginning.
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LET THE WONT JUST SHARE YOUR CONTENT, THEY WILL MASSES MANuFACTuRE THE AUDIENCE
REMIX IT AND TURN IT INTO PHYSICAL GOODS.
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the redefiners
AN UNFAIR ADVANTAGE
REDEFINING STRATEGy
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its not a
DIGITAL STRATEGy
its a
STRATEGy
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PIVOT
BUT ITS STILL AN IMPORTANT IDEA FOR MEDIA COMPANIES
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Bringing The
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WEB-SCALE AuDIENCE
The Apps business is fundAmenTAlly differenT from The Web business Apps donT (yeT!) go virAl The WAy WebsiTes do App Audiences Are A differenT scAle, requiring A differenT kind of AdverTising business
apps: success
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PartnershiPs should start from what PeoPle want, not what comPanies want use social networks as a Platform dont just send your biz devs to the meeting, also send your develoPers
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$$$$$$
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REDEFINERS WILL
WIN.
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CREATED By
Michael J. Wolf anil Dash
Michael@activate.coM tWitteR: @MJW anil@activate.coM tWitteR: @anilDash
chRistopheR MoRf
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