From Primetime to Lifetime Dick Gerbrands. 2 Content provider’s situation Content Provider sales &...
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Transcript of From Primetime to Lifetime Dick Gerbrands. 2 Content provider’s situation Content Provider sales &...
From Primetime to Lifetime
Dick Gerbrands
2
Content provider’s situation
ContentProvidersales &
development
Internet
Mobile
TV
Other
OperatorsNL
Unilever
HeinekenAhold
OperatorsNL
OperatorsNL
OperatorsNL
OperatorsNL
Billing?
Capacity?
Connectivity?
Uniformity?
3
Traditional Value-Chain for content
Writer
Publisher
Whole-Sale
Bookshop
Reader
4
Mobile Value-Chain for content
Content owner
Content aggregator
MASP
Operator
Consumer
5
MASP Model: Content Provider’s situation
ContentProvidersales &
development
Internet
Mobile
TV
Other
OperatorsNL
Unilever
MASP
HeinekenAhold
OperatorsNL
OperatorsNL
OperatorsNL
OperatorsNL
6
The mobile value chain…
Content Aggregator Boxes
BSCCells
Content Aggregator MASP telecom operator user
smsvoice
7
8
Endemol’s situation
9
10
11
12
13
Basic Business model concept
MASP
Goal: Increase $ and %S through the values input of MASP controlled by own business goals/plans
MASP: Mobile Application Service Provider: facilitates fast, innovative and cost effective in the mobile service provisioning for MASP
Endemol: Leader in content; CMG: Leader in mobile data service solutions
Endemol
CMG
Carrier
Carrier
Carrier
End-user
End-user
B2C
(Brand owner)
$
%$%$ - ESP unit price% (%$ - ESP unit price)
Content related to m-service
Facilitating m-service
technology
B2C may buy or have own m-service infrastructure
= user rights = revenue streams
Back to back link in risk and payment taking
14
P&L Example
P & L (€M) Revenues Customer Revenues 2002 2003 2004 2005 Non-recurring Revenues: From content creation, SI, SW development and
service is not included Recuring Revenues After revenue share with operator and brand owner Mob. Service Provider 3,04 15,15 50,74 105,87 Total Revenues 3 15 51 106 Costs 2002 2003 2004 2005 Non-Recurring Costs Equipment & Network Costs 0,97 3,75 6,11 6,11 Recurring Costs Personnel Costs (incl. Hosting) 3,45 7,19 23,33 47,94 Network Costs ,76 2,80 4,58 4,58 Total Costs 5 14 34 59 Total Margin -2 1 17 47 % of Revenue -70% 9% 33% 45%
15
NetworkEquipmentNetwork
Equipment
Application provider
Application provider
Device
Portal
NetworkoperatorNetworkoperator
Application DeveloperApplication Developer
VirtualOperatorVirtual
OperatorContentProviderContentProvider
EnablingTechnology
EnablingTechnology
ConsumerConsumer
BusinessBusiness
End-User
Mobile DataValue Web
Reasons to partner
16
Cell Broadcast (CBS) (1)
• Cell broadcast is broadcasting through the mobile telephone. An SMS-like message to be send in real-time to all users, who have activated the channel. Various (info) channels can be activated and messages can vary by the region (up to the cell level).
• Complications: - CBS is in principal a cost: revenues are to be generated through
broadcast time charging or return paths as SMS, voice response or other venues (see attachment for business model & expected revenues)
- Education: Informing the end-user about the service (content) and the required telephone settings for service access
- Mobile operators are still struggling with the commercial model
• From the content perspective opportunities seem present, but given small user base, we need a paying client.
• In Germany, France and Portugal the operators have commercial CB operations. Endemol/CMG could scan opportunities there.
17
Cell Broadcast (CBS) (2)
• Some operators were visited
• Main outcome:
- All agreed on the before mentioned business model, but have not yet communicated how they intend to commercialise CBS. They are defining the strategy to manage the CBS key complications and to maximise the indirect revenue.
- Agree that services should be present at all operators in order to have real impact on the market. They have seen this in Big Brother (Loft Story) SMS, where the operators all had the service.
- Paying for content is not an established concept.
• Conclusions:
- Opportunity is present, but Endemol needs to get local commitment from it’s local operations.
18
Business assessment of Cell Broadcast
Gross estimates for France
• 12 mil. Mobile subscribers
• CBS users: 2002 1-3% and in 2005 15-25%
• Soft and heavy users (85% : 15%)
• 1-2 advertising messages/week soft users; 1-2 adv.messages to heavy users
- 15-25% of CBS messages being read;heavy users 15% more
- cost per read advertisement message (at least) 0,03 euro
• 2-3 reaction type messages-soft users; 5-9 reaction messages to heavy users
- 20-30% of CBS messages being read; heavy users 15% more
- reaction on 4-10% of read messages, continues dialogue 1,25-2,5 times
- revenue share on standard and premium priced SMS
And voice response (+ other applicable services)
www.cmg.com
© 2001