Gear 3: Business Strategy ReportTeam C: The Nomadic Travelers

1

semaJ nitisrKrammA tihoRahtibaT werdnA

ervra lT seiaom dN c

What is history? An echo of the past in the future; a reflex from the future on the past? -Victor Hugo

3

Table of Contents

Part 1: Value Exchange

Part 2: Experiments

and Quick Wins

Part 3: ECHO Activity System

4

Executive SummaryVALUE EXCHANGE: The ECHO platform will provide new opportunities for value exchange between the CBC and its stakeholders by providing a strong business system that benefits all partners. Three new elements of revenue generation include rating and donation system fees from a proprietary crowd-funding platform, new sources of advertising revenue on the ECHO platform, and better targeted marketing due to more sophisticated consumer pattern analysis. This new multi-faceted value exchange model will diversify CBC’s revenue stream by providing great opportunities for content creators while engaging Millennials with more choice and relevancy in content offerings. This system of balanced value exchange creates a sustainable revenue model, and can be easily pioneered, as there is existing technology to support ECHO [i.e., crowd-funding systems (e.g. Kickstarter), pay-as-you-like models (e.g. Humble Bundle), and algorithm-tailored customization (e.g. Netflix)].

EXPERIMENTS/QUICK WINS: Because the ECHO platform is dependent on users for content creation, it is important to know if users will produce meaningful content that is of interest to Canadian Millennials. In order to test this hypothesis, CBC can run an experiment in the form of a contest. Using either CBC.com or YouTube.com, CBC can host a contest with monetary and promotional rewards for the best submission. Experienced industry-experts will judge the quality of the submissions, while analytics will measure the volume and types of submissions, number of views and votes per submission, as well as demographic information about users. If the contest is a success, CBC can continue to use CBC.com or YouTube.com as a platform to further develop the ECHO concept, keeping costs down and allowing CBC to conduct further experiments before fully investing in the ECHO platform.

ACTIVITY SYSTEM: The ECHO activity system revolves around four unique value prepositions: creating an engaging experience for Millennials, encouraging culturally relevant content, building a community of content creators, and building a shared brand experience. Integrating the ECHO activity system with CBC’s current activity system will leverage CBC’s current capabilities; in particular, those of developing and maintaining in-house journalistic talent and independent Canadian producers will be both leveraged and grown through the ECHO platform. These integrated activity systems are synergistically-linked and will drive new value for the CBC, Millennials, and other stakeholders. The ECHO activity system mobilizes the CBC into a new, bright, and sustainable path for the Millennial generation and beyond.

5

Existing Revenue Generation Future Sources of Revenue

Advertising (18%)

Government funding (64%)

Services, syndication, other

revenue: 18%

Consumer behavioural pattern

data analysis

New sources of advertising on ECHO

platform

User system fees/ CBC’s share of “rate &

donate” model

Remapping CBC’s Value Exchange Model

High risk model: CBC government dependency

Few opportunities for content creatorsDisengaged Millennials

Multi-faceted model: Diversified and stronger CBCNew creator opportunities

Engaged Millennials6

The Last Ocean501,243 AMPS

The Millennials411,546 AMPS

DONATIONS

☆☆☆☆ ☆ 4.0

3,514,245 views

$2,536 raised

364,253 shares

301,243 AMPS

THE LAST OCEAN Contributor: John RoeCreated: 21/05/2013

How much would you like to donate?

$10 $20 $50

What % should go to the content creator?

HOME

VIDEO

TOPICS

NEWS

Get AMP’D

Get MIC’D

HOME

VIDEO

TOPICS

NEWS

Value Exchange Example: Rate & Donate

25% 50% 75%

7

Hypothesis: With the right incentives, content creators will produce meaningful content that is of interest to Canadians

Experiment: Create a contest with incentives (monetary and promotional) hosted on CBC.com or YouTube.com

Measurement: Use the following metrics to evaluate the hypothesis:

• Number of submissions• Quality & relevance of

submissions• Number of views • Number of votes

EXPERIMENT

What is the quick win: If the hypothesis is validated, CBC can continue to run contests on CBC.com or YouTube.com to generate a base of Millennial content creators and content viewers

Why is it a quick win:

1. CBC can use these existing platforms at little or no cost

2. Faster execution than building a new website

3. Can continue to run experiments before launching official site

4. Can generate a user base

QUICK WIN

8

ECHO Hubs

Creating an engaging

experience for Millennials

Building a shared, unique

brand experience

Building a community of

content creators

Encouraging culturally relevant content

ECHOAn online platform

WEBSITE & PORTABLE DEVICES

9

Integrating with social media

Providing mentorship from experts

Organizing expert classes

Staging an annual content creation

challenge

Appealing to the spirit of nationalism relevant

cultural topics

Cross promotion with CBC platforms

Using data analytics to quantify the voice of

Canada

Gamifying the experience of content

creation

Providing the option of customization

Crowd funding the process of creation

ECHO Activity System

Collaboration with Millennial brands

WEBSITE

PORTABLE DEVCIES

Organically growing the ECHO Brand via

users

Piloting shows or other broadcasts for

feedback

Creating an engaging

experience for Millennials

Building a shared, unique

brand experience

Building a community of

content creators

Encouraging culturally relevant content

ECHOAn online platform

WEBSITE & PORTABLE DEVICES

10

listen. share. be heard.

11

Appendices

12

Social:The CBC has a long history of association with Baby Boomers and hence a strong societal impact but is currently not catering to the needs of Millennials.

Technology:Across economies, the behavior patterns of Millennials are partially unidentified. There is an increase in investment being made in data analytics to identify the drivers of Millennial consumption of entertainment.

Economic:20% of the Canadian demographic is Millennial. There is a great need for identifying and monetizing the untapped economic value they can provide.

Environment:There is a general increase in Millennial’s awareness of and concern about environmental issues.

Political:CBC aims to reduce the current government funding level of 64%. They are aiming to establish a new essence of Canadian content on a world scale.

Key Trends (S.T.E.E.P.)

13

Website

Services/Other Revenue

Government Funding (CBC)

International Syndication

News Content Inside

TV

Radio 2

Radio 1

Advertising Revenue

Regional Centres

Media Ecosystem

Content

In-house Journalistic

Talent

Value

Independent Canadian Producers

Integrating with social media

Using data analytics to quantify the voice of

Canada

Gamifying the exp. of content creation

Providing the option of customization

Appealing to the spirit of nationalism/ hot

topicsCrowd funding the process of creation

Piloting the broadcast for

feedback

Providing mentorship from experts

Organizing expert classes

Staging an annual content creation

challenge

Cross promotion with CBC platforms

Collaboration with millennial brands

ECHO Brand

Building a shared,

unique brand experience

Building a community of content creators Encouraging

culturally relevant content

Creating an engaging

experience for Millennials

ECHO

ECHO/CBC Integrated Activity System

14