cntv 467 future of digital media- tv world
DESCRIPTION
TRANSCRIPT
TV WORLDKartik Shah | Rhea Shroff | Vincent Tsao | Melanie Yamamoto
CNTV 467
2
• Value Proposition• Customers
Product
• Key resources• Key partners
Operations
• Cost Structure• Revenues
Financials
• 4 platforms
Marketing
Bringing Western TV Shows to India
TV WORLD
3
BACKGROUND CONCLUSIONP R O D U C T | O P E R AT I O N S | F I N A N C I A L S | M A R K E T I N G
India is moving online rapidly
71% in cities vs. 29% in rural
2011 2012 2013 2014 2015 2016 20170
50
100
150
200
250
# of Unique Internet Users in India
133.1
Use
rs In
M
illio
ns
Sourced from newmediawatchtrend.com
4
BACKGROUND CONCLUSIONP R O D U C T | O P E R AT I O N S | F I N A N C I A L S | M A R K E T I N G
Indian TV consumption is increasing
2009 2010 2011 20120
20
40
60
80
100
120
140
160
Min
utes
per
day
Average daily TV viewing timeSourced from statista.com
4-5% increase per year
5
BACKGROUND CONCLUSIONP R O D U C T | O P E R AT I O N S | F I N A N C I A L S | M A R K E T I N G
Western TV shows are popular
6
BACKGROUND CONCLUSIONP R O D U C T | O P E R AT I O N S | F I N A N C I A L S | M A R K E T I N G
No legal service to access latest episodes
Shows 1 or 2 seasons behind
No Streaming
AlternativesPiracy
7
BACKGROUND CONCLUSIONP R O D U C T | O P E R AT I O N S | F I N A N C I A L S | M A R K E T I N G
Current competitive landscape
Watching television set Pirated DVDs and Streams (poor quality)
8
• Value Proposition• Customers
Product
• Key resources• Key partners
Operations
• Cost Structure• Revenues
Financials
• 4 platforms
Marketing
Bringing Western TV Shows to India
TV WORLD
9
BACKGROUND CONCLUSIONP R O D U C T | O P E R AT I O N S | F I N A N C I A L S | M A R K E T I N G
What’s our value proposition?
We offer quality, convenient, and legal access to the latest and greatest in American and Western television offerings
through an online streaming service.
10
BACKGROUND CONCLUSIONP R O D U C T | O P E R AT I O N S | F I N A N C I A L S | M A R K E T I N G
What is the business model?
• Computer platformOnline Streaming
• $10 per month• Unlimited access to content library
Subscription Service
• The most recent episodes• Past episodes and seasons
25-30 Shows Initially
• Encourage subscriptionsTwo-Week Trial
11
BACKGROUND CONCLUSIONP R O D U C T | O P E R AT I O N S | F I N A N C I A L S | M A R K E T I N G
Target market
73%
27%
Internet Users
18-34Other
• 133.1 millionInternet User
Upper- and Middle-Class
English Speaker
Young(ages 18-34)
12
• Value Proposition• Customers
Product
• Key resources• Key partners
Operations
• Cost Structure• Revenues
Financials
• 4 platforms
Marketing
Bringing Western TV Shows to India
TV WORLD
13
BACKGROUND CONCLUSIONP R O D U C T | O P E R AT I O N S | F I N A N C I A L S | M A R K E T I N G
How do we obtain our key resources?
• Key Resources:
Content Rights
14
BACKGROUND CONCLUSIONP R O D U C T | O P E R AT I O N S | F I N A N C I A L S | M A R K E T I N G
Who are we working with?• Key Partners:
15
• Value Proposition• Customers
Product
• Key resources• Key partners
Operations
• Cost Structure• Revenues
Financials
• 4 platforms
Marketing
Bringing Western TV Shows to India
TV WORLD
16
BACKGROUND CONCLUSIONP R O D U C T | O P E R AT I O N S | F I N A N C I A L S | M A R K E T I N G
How Much is it Going to Cost?How Much is it Going to Cost?• Total Investment (Initial) = $200 million
CostsLicensing Fees = $180 million
Website Development = $1 million
Government Licenses = $4 million
Marketing = $10 million
Misc. Expenses = $5 mil-lion
17
BACKGROUND CONCLUSIONP R O D U C T | O P E R AT I O N S | F I N A N C I A L S | M A R K E T I N G
Subscription cost- $10 per month• Need only 1.7 million 12-month subscribers to break-even
out of the potential 97.1 million subscribers2%
98%
Subscribers needed to break-evenPotential Subscribers
18
BACKGROUND CONCLUSIONP R O D U C T | O P E R AT I O N S | F I N A N C I A L S | M A R K E T I N G
• If we manage to get just 5% of the target demographic, we can make a profit of over…
• As our revenues keep growing, we will put in more money towards licensing more shows
Making a profit in the first year
50 million in the 1st fully operational year
19
• Value Proposition• Customers
Product
• Key resources• Key partners
Operations
• Cost Structure• Revenues
Financials
• 4 platforms
Marketing
Bringing Western TV Shows to India
TV WORLD
20
BACKGROUND CONCLUSIONP R O D U C T | O P E R AT I O N S | F I N A N C I A L S | M A R K E T I N G
Bidding for Google Adwords• Consumers use Google to search for content• Free trial mention
21
BACKGROUND CONCLUSIONP R O D U C T | O P E R AT I O N S | F I N A N C I A L S | M A R K E T I N G
Tapping into social media • Facebook market in India is 3rd largest in the world• 2 out of 3 internet users in India access social media sites
everyday
22
BACKGROUND CONCLUSIONP R O D U C T | O P E R AT I O N S | F I N A N C I A L S | M A R K E T I N G
Distributing print material• Billboards• Newspapers • Flyers with the movie ticket
23
BACKGROUND CONCLUSIONP R O D U C T | O P E R AT I O N S | F I N A N C I A L S | M A R K E T I N G
Airing commercials during shows• Approximately $12,000 for a 30 second spot in a top show
24
• Value Proposition• Customers
Product
• Key resources• Key partners
Operations
• Cost Structure• Revenues
Financials
• 4 platforms
Marketing
Bringing Western TV Shows to India
TV WORLD
25
BACKGROUND CONCLUSIONP R O D U C T | O P E R AT I O N S | F I N A N C I A L S | M A R K E T I N G
Why not Netflix?
83%
17%
Subscribers in the US
International subscribers
• Netflix has 29 million subscribers in the US, but only 6 million in international markets
• Poor international performance
• Currently investing in original programming
26
BACKGROUND CONCLUSIONP R O D U C T | O P E R AT I O N S | F I N A N C I A L S | M A R K E T I N G
Why are they not doing well internationally?
After expanding to so rapidly in such a short time, Netflix does not have resources to expand to India.
Netflix uses a standardized model and does not cater to the unique needs of the different markets.
27
BACKGROUND CONCLUSIONP R O D U C T | O P E R AT I O N S | F I N A N C I A L S | M A R K E T I N G
Why us?
• We have done extensive market research to identify the needs of the target market.
• Our product is designed to satisfy all these needs.
28
BACKGROUND CONCLUSIONP R O D U C T | O P E R AT I O N S | F I N A N C I A L S | M A R K E T I N G
Important topics moving forward
Platformization Adding content 34-49 demographic
29
BACKGROUND CONCLUSIONP R O D U C T | O P E R AT I O N S | F I N A N C I A L S | M A R K E T I N G
Timeline
2013 May Jun Jul Aug Sep Oct Nov Dec Jan2014 Feb Mar Apr 2014
Launch4/1/2014
Marketing Campaign4/1/2014
Beta testing2/1/2014
Licenses paid and rights obtained
12/31/2013
Raising money10/1/2013
Begin soliciting licensing agreements
7/1/2013
Create web site5/31/2013
May Jun Jul Aug Sep Oct Nov
TV WORLDKartik Shah | Rhea Shroff | Vincent Tsao | Melanie Yamamoto
CNTV 467
31
A P P E N D I X
AppendixBackgroundIndia online usersIndia TV consumptionPopular Western TV showsCurrent accessCurrent competitors
ProductValue propositionBusiness modelTarget market
OperationsLicensing*Key resourcesKey partners
FinancialsRaising Money*Cost StructureSubscription & break evenProfit
MarketingGoogle AdwordsSocial mediaPrint materialsTV commercials
ConclusionWhy not NetflixNetflix InternationallyWhy usFuture topicsTimeline
32
BACKGROUND CONCLUSIONP R O D U C T | O P E R AT I O N S | F I N A N C I A L S | M A R K E T I N G
Obtaining the licensing deals
Pitching and Pestering• Use personal networks
Only option is piracy• No one making money
33
BACKGROUND CONCLUSIONP R O D U C T | O P E R AT I O N S | F I N A N C I A L S | M A R K E T I N G
How we can pitch to raise money
Demonstrating the ability to payback quickly
2013 2014 2015 2016
-500
-250
0
250
500
750
1000 3 Yr Net Income Projection