PROPRIETARY & CONFIDENTIAL. SOCIAL MEDIA ANALYSIS OF GOOGLE’S ACQUISITION OF WAZE.
CONFIDENTIAL Digital Services and Distribution Acquisition Strategy -- Appendices.
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Transcript of CONFIDENTIAL Digital Services and Distribution Acquisition Strategy -- Appendices.
CONFIDENTIAL
Digital Services and DistributionAcquisition Strategy -- Appendices
CONFIDENTIAL
APPENDIX AAdditional Strategy Pages
page 3
Market Leaders Consolidating to Expand Brand and Capture Audience
Deeper OfferingsInception Tipping Point Consolidation
• Multiple market entrants grow at similar rates
Market Dynamic
Minimum Requirements
to Compete
Areas of Differentiation
Examples
(2004 – 2005) (Early 2006) (Late ’06 / Early ‘07) (Late ’07 / Early ‘08)
• Content and features on-par with competitors
• Limited differentiation
• Dozens of pure-play UGV sites struggle to reach a million unique users
• Leaders break-out from the pack
• Single compelling characteristic
• Unique piece of content
• Ease-of-use
• YouTube explodes with “Lazy Sundays”
• MySpace users flock to improved community features
• Leaders invest to expand audience and address priority content segments
• Large audience• Large content base• Relationships with
advertisers
• Content that appeals to high-value customer segments
• Site syndication
• Google/YouTube• Yahoo/JumpCut/Bix• Viacom/Atom• NewsCorp/MySpace
• Leaders add niche content and features for heavy users
• Supplement broad offering with depth in specific verticals
• Growing audience for niche offerings
– Askaninja– Loneleygirl
• Large audience• Brand known for an
area of expertise
page 4
Approach to Specific Service Features
Content
Audience
Functionality
GrouperIn-place Build / Grouper
• Small base of UGV content
• Original, low cost short-form• Prosumer content/services• SPE TV library, clips,
minisodes
Break / Heavy• Owned content for male
youth
Roo• Aggregated, topical content
Licensors• Licensed premium,
niche video to fill out portfolio
Buy
Phase 1 Growth
• Mid-sized audience
• Skews toward males, 18-35
• Embedded player
• P2P sharing
• Downloadable video editor
• Web cam upload
• 1 click publishing
DoubleClick• Ad insertion
Audible Magic• Filtering
TBD• Search
Partner
Licensors• Niche audiences
through content licenses
Break / Heavy• Large on-site audience
Roo• Audience through syndication
• Expand embedded player• Mobile uploads / downloads• Online editor• Branded channel template
• On-site audience (aspiring content creators)
• Syndicate to 3rd party sites with embedded player
Roo• Ad insertion• Syndication• Real-time content ingestion
page 5
Content Pureplay
Audience Pureplay
Content With Audience
Acquisition Priorities
Description
Valuations
Speed
Priority
Moderate
Targeted / niche content with small
audience
Moderate
Content with large audience in high-value
demographics
FastGain critical mass
quickly
SlowRequires multiple
acquisitions
High Medium Low
Expensive
Sites with audience but no differentiated
content
SlowRequires content
and deals to supplement
page 6
Potential Cross-Sony Approach to UGC Services
Store & Publish
Online Video Social Networking / Communities
Leader Others
Sony Approach
Leader Others
Sony Approach
Leader Others
Sony Approach
• Acquire to reach scale; continue to build on Grouper
• Enhance Grouper embedded player; form syndication partnerships with leading sites
• Potential Cross-Sony opportunity to acquire leading player (e.g., PhotoBucket); integrate with Sony digital cameras and handi-cams
CONFIDENTIAL
APPENDIX BProfiles for Tier 1 Acquisition Targets
page 8
Break.com
Content OfferingContent Offering
• Online entertainment network and community powered by traditional user-generated content
• Content base skews heavily toward 15-35 year old male-oriented humor, sports and other categories
• Majority of the content is original and created by users specifically for Break.com (Break owns much of its content. Takes an exclusive license to content it doesn’t own)
• Pays $250/ video for videos it wants to feature, incentivizing users to create high-quality videos
PartnershipsPartnerships
Strategic ProfileStrategic Profile
• Established in 1998 as, a video-sharing site
• Purchased in May 2004 by Keith Richman, co-founder of Billpoint
• 100% owned by Richman and a few business partners – has never taken any venture financing
• Generate revenue through custom advertising deals, PPC content plugs, banners and text links
• Based in Beverly Hills, CA with 33 employees
• Leverages AdBrite to sell its banner and text ads
• Established partnerhsip with Amp’d Mobile in Nov. 2005 to distribute videos through mobile, charging $2.99/ month for unlimited access
User MetricsUser Metrics
2.6 2.53.5
2.6 2.9 3.3
Jul-06 Aug-06 Sep-06
MM NR
Web page views (MM)
Time/ person(min.)
141.2 189.2 135.4
16.1 21.5 15.3
Internal Break.com sources estimate uniques of approx 14.7MM.
Unique Users (MM)Note:
estimated to generate ~100MM streams/ month
Source: Nielsen//NetRating used for page view, time data, AdBrite; BambiBlogs.com; Break.com; Multichannel News; Amp’d Mobile; PureVideo; ComScore Video Matrix
page 9
Break.com
Advertising:
• Banner ads – no pre-rolls or text
Content
• User-generated
• Share it with friends (viae-mail)
• Embed & blog it
Interactivity:
• Promote to home page
• Rate It
• Recommend
• Comment
page 10
ROO Group Business Overview
Content (100+ Partners) Sites
Advertisers
Entertainment
News
Lifestyle and Family
200+ Partner Sites
Owned and Managed
Ingestion Engine
Ad Network and Insertion
Program Channels
Video Player
Licensing fees, payment-per-stream
and ad revenue share
page 11
ROO Group, Inc. (NASDAQ: RGRP)
Technology and Service OverviewTechnology and Service Overview
Core Services provided include:
• ROO Video Solutions - Customized video solutions for specific customers or industry segments; platform accommodates video broadcast over the Internet and to emerging technologies such as wireless devices and set top boxes
• ROO Syndication of Licensed Video Content - Provides a turnkey, global solution for customers to incorporate licensed, topical, programmed video channels into their web sites
• Current customers for this service include Verizon in the United States, Bulldog Broadband in the United Kingdom and News Interactive a subsidiary of News Corp
• ROO’s Online Advertising Network - Through syndication clients, ROO has developed a network of web sites across which the company can sell advertising inventory
• Advertising includes traditional banner ads and television-style 15 second and 30 second commercials, which can be programmed to play before and after video clips that are targeted toward advertisers' chosen demographic
• Syndication clients receive a percentage of the advertising revenue generated on their websites
• Recent advertisers include Microsoft, Apple, Honda, Hyundai, Target, Proctor & Gamble and Pfizer
page 12
NASDAQ Yearly Performance (as of 11/10/2006)NASDAQ Yearly Performance (as of 11/10/2006)Financial OverviewFinancial Overview
ROO Group, Inc. (NASDAQ: RGRP)
Recent DevelopmentsRecent Developments
• On August 18, 2006, the Company entered into a Common Stock Purchase Agreement pursuant to which the Company sold an aggregate of $5,506,250 of shares of common stock and warrants; each investor will be issued warrants to purchase a number of shares of common stock equal to 50% of the number of shares of common stock purchased
Management TeamManagement Team
• Robert Petty, CEO and Chairman of the Board, ROO Group• Robin Smyth, CFO and Executive Director, ROO Group• Steve Quinn, COO• Tristan Place, VP Sales/Strategic Partnerships• Max Moore, VP Business Development
page 13
ROO Group Video Stream Comparison
Roo Group Inc. 5,841 186 31.3
page 14
8.3 7.5 6.8
3.0 3.5 2.7
Jul-06 Aug-06 Sep-06
MM NR
Heavy.com
Content OfferingContent Offering
• Broadband entertainment network focused on providing high-quality content
• Content base skews toward 18-34 year old male-oriented humor and racy categories
• Takes full and exclusive ownership of a range of content (mix of video, animation, and games) created by Heavy and/or its partners, e.g., NBC delivered through distinct channels
• Generates revenue through banner ads, pre-rolls, and branded production, e.g., Burger King videos
PartnershipsPartnerships
Strategic ProfileStrategic Profile
• Established in 1999 as a P2P digital content sharing site by Simon Asaad & David Carson
• Polaris venture capital holds a 25% stake in Heavy; Polaris lead a $10MM round in January 2006
• Expected to generate ~$20MM adv. revenues in 2006, a 300% increase over 2005
• Ad sales and marketing conducted internally
• Based in New York, NY with 20 employees
• Recently announced partnership with TiVo to provide content for TiVo’s VoD service
• Established partnership with Verizon Wireless in April 2006 and created a channel on V-Cast subscription mobile offering
• Parnter with Sony PSP, video iPod, and Virgin Mobile to distribute non-wireless mobile content
User MetricsUser Metrics
Web page views (MM)
Time/ person(min.)
9.3 10.4 6.6
1.5 1.2 1.0
Unique Users (MM)Note:
estimated to
generate 80-90MM streams/ month
Source: Nielsen//NetRating used for page view, time data, Heavy.com; Multichannel News; PureVideo; ComScore Video Matrix; paidContent.org; FT.com; VCMike’s Blog
page 15
Heavy.com
Advertising:
• Banner ads
• Pre-rolls
Content sharing:
• Heavy/ partner produced channels
• Share it with friends (via e-mail)
• Blog it
Interactivity:
• Rate It
• Comment
page 16
1.2 1.2 1.31.6 1.8
2.1
Jul-06 Aug-06 Sep-06
MM NR
digg.com
Content OfferingContent Offering
• Online user-driven news/ information community providing direct links to stories and video sites
• Target IT professionals, developers, professional “geeks” and news junkies
• Content is a mix of categorized text (primary) and video (secondary) postings from blogs, professional news sites and random Web sites
• Users tag news stories they like (dig) and dislike, driving what content appears on the home page
PartnershipsPartnerships
Strategic ProfileStrategic Profile
• Established in Nov. 2004 as an information and news sharing site by Kevin Rose
• Closely held (Rose owns ~30-40%) with minimal venture financing – received $2.8MM round in Oct. 2005 to support initial growth
• Expects ~$3MM in advertising revenues in 2006 (recently valued at $200MM – source: BusinessWeek, 8/2006)
• Generate revenue through banner and text ads only – focused on growing audience with minimally invasive ads
• Based in San Francisco, CA with ~20 employees
• Leverages Federated Media to sell its banner ads
• Digg.com founders started a video production company, Revision3, in Sept. 2006
– Focused on high-end humor and tech content targeted at young, tech-oriented people
– Advertising model is 1950s throwback – based on sponsors named in advance of ‘shows’ by hosts
User MetricsUser Metrics
Web page views (MM)
Time/ person(min.)
6.1 4.9 11.7
2.2 2.1 2.5
Unique Users (MM)Note:
estimated to
generate 20-30MM streams/ month
Source: Nielsen//NetRating used for page view, time data, Digg.com; Multichannel News; PureVideo; ComScore Video Matrix; Federated Media; HowStuffWorks.com; BusinessWeek (8/06); Red Herring
page 17
digg.com
Advertising:
• Limited banner and text ads
• No pre-rolls (link directly to other video sites, e.g., YouTube)
Content
• User-posted and recommended
• Share it (viae-mail)
• Blog it
Interactivity:
• Edit It
• Rate (Digg) It
• Comment
page 18
Bolt Media
Content OfferingContent Offering
• Online entertainment network and community powered by social network aspects where creative users can upload and submit content for competition
• Content base skews toward 18-34 year olds with focus on “prosumer” content
• Encourages interaction/feedback through the user's content – facilitating comments and blogs
PartnershipsPartnerships
Strategic ProfileStrategic Profile
• Established in 1996 as a teen community, Bolt has relaunched as an online network and community focused on posting creative content and network
• Focus on 18-34 year old audience
• Bolt Media has also launched Bolt2.com, enabling kids, tweens, and younger teens to create content, meet people, and play games in a safe and age-appropriate environment
• Based in New York, NY
• Currently leveraging creative relationships with the Hip Hop Theater Festival
• Developed significant advertising partnerships with companies such as Toyota, Coke P&G and Nike where users can enter immersive environments
User MetricsUser Metrics
3.54.3
3.4
Jul-06 Aug-06 Sep-06
MM NR
Web page views (MM)
Time/ person(min.)
20.9 25.0 82.4
2.3 1.5 6.2
Unique Users (MM)Note:
estimated to generate ~100MM streams/ month
NA NA NA
Source: Nielsen//NetRating used for page view, time data, Bolt.com; ComScore Video Matrix; BusinessWeek (8/06); TechCrunch.
page 19
Advertising:
• Banner ads – no pre-rolls or text
Content
• User-generated
• Embed & blog it
Interactivity:
• Community
• Rate It
• Recommend
• Comment
Bolt Media
Advertising:
• Banner Ads
• Video Ads
page 20
Metacafe
Content OfferingContent Offering
• Online entertainment network and community powered by traditional user-generated content and high-end produced content that is licensed in
• Utilizes VideoRank™ technology, allowing the site to mine and filter content
• Filtering system focuses Metacafe on a smaller number of high-quality selected videos to drive a large amount of traffic
• Developing revenue share with posters based on CPMs
PartnershipsPartnerships
Strategic ProfileStrategic Profile
• Founded in 2004, Metacafe boasts a global audience of 17 million unique visitors (comScore Media Metrix)
• A desktop client is used to upload and download the videos only about two dozen of which are newly approved each day
• Revenue model based on advertising (banner ads)
• Original round of funding yielded $5 MM from Benchmark Capital; Significant backing from Accel Partners and Benchmark Capital in second round, receiving $15MM in venture funding in July 2006
• Based in Tel Aviv, Israel and Palo Alto, CA
• Currently seeking significant partners for licensing content
User MetricsUser Metrics
3.54.3
3.4
Jul-06 Aug-06 Sep-06
MM NR
Web page views (MM)
Time/ person(min.)
84.6 78.8 101.4
31.4 23.0 25.5
Unique Users (MM)Note:
estimated to generate ~100MM streams/ month
NA NA NA
Source: Nielsen//NetRating used for page view, time data, Metacafe.com; ComScore Video Matrix; BusinessWeek (8/06); TechCrunch.
page 21
Content
• User-generated
• Embed & blog it
Interactivity:
• Community
• Rate It
• Recommend
• Comment
Advertising:
• Banner Ads
• Video Ads
Metacafe
page 22
0.2
0.5
0.8
1.0
0.03
Aug-06 Sep-06 Oct-06 Nov-06 Dec-06
bix.com
Recent InvestorsRecent Investors • Enables consumers to create their Web-based talent competitions and enter existing competitions
• “Bix is a platform for creating contests online much in the mold of American Idol … The company plans to allow end-users to download their own audio clips and use them as ringtones for a small charge. Eventually the same content could be sold to others, and at that point the company is going to split the proceeds with the creators … Bix is hoping to cash in on the shift of ad-dollars to the online medium … these contests will be ideal vehicles for brand advertising.” (gigaOm)
Content OfferingContent Offering
Strategic ProfileStrategic Profile
• Formerly known as 900Seconds.com, bix.com was recently launched and operates a user-generated contest site
• Mike Speiser, Co-Founder and CEO was also the Co-Founder of ePinions
• Currently, the website is ad-free, depending solely on corporate-sponsored contests for revenue
• Bix.com is seeking alternative revenue sources, including advertisements on its site and user-generated ringtones
• Based in Palo Alto, California
• Workforce of 16 employees, mostly engineers from eBay
User MetricsUser Metrics
Unique Users (MM)
* Bix was launched on August 8th, 2006. Forward estimates provided by Citigroup.
Number of Rounds: 1
Total Amount Raised ($ in mm): $6.77
Investors:
Geoff Ralston
Source: Motngomery & Co.
page 23
bix.com
Advertising:
• Sponsored Contests
Content
• Contest featuring user-generated content
page 24
Photobucket
Ranking Among Photo SitesRanking Among Photo Sites
• Popular sites offers subscriber based services for uploading and sharing photos
• Reliable service that enables efficient sharing and publishing of visual digital content online
• Images and videos can be directly linked form Photobucket to an site, including MySpace, eBay, LiveJournal, Xanga, Friendster, and Neopets
Content OfferingContent Offering
Strategic ProfileStrategic Profile
• Founded in 2003 and managed by Alex Welch
• Named fasting growing site of 2005 by Nielsen/Netratings and now has over 25 million users
• The site features free sharing and publishing of online images, graphic art and videos that can be directly linked from Photobucket to any site
• Revenues based on subscription for premiere products and banner advertising
• Based in Palo Alto, California and has workforce of 25
User MetricsUser Metrics
Unique Users (MM)15.9 14.6 15.0
10.4 11.4 11.9
Jul-06 Aug-06 Sep-06
MM NR
Web page views (MM)
Time/ person(min.)
453.8 522.3 375.8
12.1 11.6 8.4
Source: Citigorup Corporate and Investment Bank.1. ComScore MediaMetric. September 2006.
page 25
Advertising:
• Banner Ads
Content
• Slideshows and sharing
• Premiere product bundles
Photobucket