convergence of traditional & new: the unique optionality of mass (mar/2013…
DESCRIPTION
The growing consensus is that the traditional media are losing value to newer media. We disagree with this view on two counts: (1) The distinction between the two groups is increasingly vague; (2) the more important difference is between advertising-based & transactional media. With this backdrop, we think there is great value in the large & engaged audience that the traditional media have amassed & we believe this value will start to be recognized as all media sectors evolve. This presentation illustrates some of the historical & anticipated trends described. It is not a comprehensive review of industry activities or a survey of competitors. Nor is it an analysis or set of recommendations for purposes of assessing any investment, public or private.TRANSCRIPT
The growing consensus is that the traditional media are losing value to newer media. We disagree with this view on two counts: (1) The distinction between the two groups is increasingly vague; (2) the more important di!erence is between advertising-based & transactional media. With this backdrop, we think there is great value in the large & engaged audience that the traditional media have amassed & we believe this value will start to be recognized as all media sectors evolve.
This presentation illustrates some of the historical & anticipated trends described. It is not a comprehensive review of industry activities or a survey of competitors. Nor is it an analysis or set of recommendations for purposes of assessing any investment, public or private.
CONVERGENCE OF TRADITIONAL & NEW:THE UNIQUE OPTIONALITY OF MASS
MARCH / 2013 UPDATE
BACKGROUND
MARCH / 2013 UPDATE
4
IN THE VALUE COMPETITION BETWEEN TRADITIONAL & NEW MEDIA, NEITHER HAS EMERGED A CLEAR WINNER
MARCH / 2013 UPDATE
DJUSME = Dow Jones US Media IndexFDN = First Trust DJ Internet Index Fund (ETF)
5
WHILE THE DIGITAL TECH LANDSCAPE CONTINUES TO SHIFT & FIND ITS EQUILIBRIUM…
Facebook Google
Amazon Apple
S O C I A LI N F O R M
AT I ON
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AN
SA C T I O N A L E N T E R T A I N
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MARCH / 2013 UPDATE
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S O C I A LI N F O R M
AT I ON
TR
AN
SA C T I O N A L E N T E R T A I N
ME
NT
I N F O R MAT I O
N
I N F O R MAT I O
N
AppleAmazon
I N F O R MAT I O
N
Google + FB Graph Search
iBooks & iTunesKindle Fire
FB Credits
AMZN Reviews/Suggestions
Android
Siri Voice Search
Google Shopping
Kindle Silk
FB Apps
iMessage
Retailers & Advertisers
Enterprise
News & Media
Telcos & Devices
Finance
Government
Travel & Leisure
Data
News Organizations
Specialty Networks
Broadcast TV & Radio
Public Relations
Specialty Publications
Government
Retailers & Advertisers
Security
Telcos
Device Manufacturers
Media Conglomerates
Cable & Satellite
Telcos
Gaming Software & Consoles
Broadcast & News
Cable Networks
Entertainment
Retailers
Advertisers & Marketers
Commercial Banks
Credit Cards & Payment Networks
Telcos
Mobile Device Makers
Data
Tumblr
MySpace
Friendster
StockTwits
Yelp Flickr
InstagramSkype
Bing
Wikipedia
Quora Yahoo!
WebMDWeather.com
MapQuest
TechCrunch
GigaOm Business Insider
Aol MSN
Netflix
Hulu
Spotify
Pandora
Turntable.fm
Zynga
YouTubeEBay
Groupon
Gilt
Kayak
Etsy
Priceline
Zillow
Foursquare
Hailo
Square
Uber
Craigslist
PayPal
MARCH / 2013 UPDATE
... COMPETITORS ARE REPOSITIONING & ADAPTING TO NEW TRENDS
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AS THIS OCCURS, MEDIA’S CORE PRODUCT - ADVERTISING - HAS FRAGMENTED & BECOME INCREASINGLY COMPLEX…
MARKETERS
AGENCIES
$
$$$
BRANDS
$
$
$
$
$
$
$$
$
$ $
$$
$
$
$
$
AD SERVERS
EXCHANGES
NETWORKS
SELL-SIDE PLATFORMSFILTERS
DATA ANALYTICS
PLACEMENT
LEAD GEN
$$
P.R.$$
$
$
$
TRADING DESKS
RETARGETING
SECURITY
MARCH / 2013 UPDATE
8
… WHILE DIRECT COMMERCE HAS GAINED MOMENTUM & THRIVED
E-COMMERCE
PAYMENTS
MOBILE COMMERCE
SUBSCRIPTIONS
DATA
CPA-BASED
MERCHANT SOLUTIONS
MARCH / 2013 UPDATE
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A DIVERGENCE BETWEEN MEDIA OPPORTUNITIES HAS THUS BECOME INCREASINGLY APPARENT, WITH TRANSACTIONAL MEDIA OUTPERFORMING
MARCH / 2013 UPDATE
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IN THIS ENVIRONMENT, THERE IS POTENTIALLY UNTAPPED VALUE IN THE MASSIVE AUDIENCE OF TRADITIONAL MEDIA...
U.S. Magazine Circulation (Top-100): 237 millionSource: Wikepedia (2H2011)
... WHICH WILL NOT NECESSARILY BE TAPPED IN THE TRADITIONAL WAYS
U.S. Radio Listenership: 241 million (93%, 12 or older)Source: Arbitron (1Q2012)
U.S. Newspaper Circulation: 47 millionSource: Newspaper Association of America (2009)
U.S. Traditional Television Viewers: 284 millionSource: Nielsen (4Q2011)
MARCH / 2013 UPDATE
OPPORTUNITYNEW PATHS FOR TRADITIONAL MEDIA
MARCH / 2013 UPDATE
12
THE VALUE OF TRADITIONAL MEDIA IS IN ITS BRAND, FRANCHISE, PROPRIETARY CONTENT, MERCHANT RELATIONSHIPS & LARGE COMMUNITIES
MERCHANTS MEDIA CONSUMERS
information
informationinformation
information
MAGAZINES
RADIO
FILM
EVENTSDIRECTORIES
TV
BOOKS
OUTDOOR
MARCH / 2013 UPDATE
13
THIS CONSTRUCT HAS FOR A LONG TIME BEGUN TO MIGRATE TO NEW WEB-ENABLED & MOBILE DELIVERY PLATFORMS
TRADITIONAL
NEW
WEB
RSS
MOBILE
IPADSECOND SCREEN
DIGITAL SIGNAGE
MARCH / 2013 UPDATE
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AS TRADITIONAL MEDIA CONTINUES TO EVOLVE & FIND ITS PLACE WITHIN A FOUR-SPHERE ECOSYSTEM…
Gilt
Wikipedia
Yahoo!
CONTENT
S O C I A LI N F O R M
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I N F O R MAT I O
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S A C T I O N A L E N T E R T A I NM
EN
T
DISTRIBUTION
MARCH / 2013 UPDATE
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… ITS VALUE PROPOSITION WILL INCREASINGLY STAND OUT & CONTRIBUTE IN ACCRETIVE WAYS...
Gilt
Wikipedia
Yahoo!
TRADITIONALMEDIA
S O C I A LI N F O R M
AT I ON
I N F O R MAT I O
N
TR
AN
S A C T I O N A L E N T E R T A I NM
EN
T
AUDIENCE
COMMUNITY
ACCESS
ENGAGEMENT
MARCH / 2013 UPDATE
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... IN INFORMATION...
Amazon Apple
PREMIUM CONTENT
DISCOVERY
FRONT-END TOOLS
RELIABILITY
AUDIENCE
COMMUNITY
ACCESS
ENGAGEMENT
MARCH / 2013 UPDATE
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... IN ENTERTAINMENT...
Facebook Google
Amazon
EDITORIAL
PRODUCTION
TASTE-MAKING
AUDIENCE
COMMUNITY
ACCESS
ENGAGEMENT
MARCH / 2013 UPDATE
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... IN SOCIAL MEDIA...
Amazon Apple
INTERACTION
FEEDBACK
COLLABORATION
AUDIENCE
COMMUNITY
ACCESS
ENGAGEMENT
MARCH / 2013 UPDATE
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... IN TRANSACTIONAL MEDIA
Facebook Google
AppleMERCHANT/BRAND/MARKETER RELATIONSHIPS
AUDIENCE
COMMUNITY
ACCESS
ENGAGEMENT
MARCH / 2013 UPDATE
AS NEW SECTORS COMBINEIN THE LONGER TERM
MARCH / 2013 UPDATE
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S O C I A LI N F O R M
AT I ON
TR
AN
SA C T I O N A L E N T E R T A I N
ME
NT
I N F O R MAT I O
NFacebook
I N F O R MAT I O
N
AppleAmazon
I N F O R MAT I O
NGoogle
Google + FB Graph Search
iBooks & iTunesKindle Fire
FB Credits
AMZN Reviews/Suggestions
Android
Siri Voice Search
Google Shopping
Kindle Silk
FB Apps
iMessage
Retailers & Advertisers
Enterprise
News & Media
Telcos & Devices
Finance
Government
Travel & Leisure
Data
News Organizations
Specialty Networks
Broadcast TV & Radio
Public Relations
Specialty Publications
Government
Retailers & Advertisers
Security
Telcos
Device Manufacturers
Media Conglomerates
Cable & Satellite
Telcos
Gaming Software & Consoles
Broadcast & News
Cable Networks
Entertainment
Retailers
Advertisers & Marketers
Commercial Banks
Credit Cards & Payment Networks
Telcos
Mobile Device Makers
Data
Tumblr
MySpace
Friendster
StockTwits
Yelp Flickr
InstagramSkype
Bing
Wikipedia
Quora Yahoo!
WebMDWeather.com
MapQuest
TechCrunch
GigaOm Business Insider
Aol MSN
Netflix
Hulu
Spotify
Pandora
Turntable.fm
Zynga
YouTubeEBay
Groupon
Gilt
Kayak
Etsy
Priceline
Zillow
Foursquare
Hailo
Square
Uber
Craigslist
PayPal
MARCH / 2013 UPDATE
AS CONVERGENCE BETWEEN THE FOUR SPHERES OF DIGITAL TECH & MEDIA CONTINUES…
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… MEDIA IS ITSELF BEING REDEFINED TO INCLUDE NEW ENTRANTS…
COMMERCE FINANCE
B & N
WALMART
ETSY
SQUARE
ETRADE
SECOND MARKET
PAYPALAMEX
LENDING CLUB BLOOMBERG
EXAMPLES
MARCH / 2013 UPDATE
23
COMMERCE MEDIA
… IN FINANCE…
EVENTS
INVESTOR RELATIONS
ANALYTICS
RESEARCH
MARKETS VENDING
TOOLS
FINANCEPLATFORMS
MARCH / 2013 UPDATE
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MEDIA FINANCE
… & IN COMMERCE
BUYERS
MERCHANTS
BROKERS
TRADERS
PAYMENT PROCESSORS
MAKERS
SELLERS
CONSUMERS
INFLUENCERS
ISSUERS
INVESTORSCOMMERCIALCUSTOMERS
MARCH / 2013 UPDATE
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IN THIS ATMOSPHERE OF RESHAPED & OVERLAPPING SEGMENTS & APPLICATIONS…
DATA
SECURITY
FIN TECH
PAYMENTS
E-COMMERCE
ALTERNATIVE MARKETS
LOCAL
NETWORKING
MOBILE COMMERCE
COMMERCE FINANCEMEDIA
MARCH / 2013 UPDATE
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… ACCESS POINTS TO THE LARGEST COMMUNITIES OF USERS, BUSINESSES & TRAFFIC WILL BE HIGHLY PRIZED...
MEDIA
Issuer
Producer
Seller
Borrower
Investor
Buyer
Lender
Consumer
INFORMATION
INFORMATION
INFORMATIONINFORMATION
$ $
$$
INFORMATIONINFORMATION
MAGAZINES
RADIO
FILM
EVENTSDIRECTORIES
TV
BOOKS
OUTDOOR
MARCH / 2013 UPDATE
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MEDIA
Issuer
Producer
Seller
Borrower
Investor
Buyer
Lender
Consumer
INFORMATION
INFORMATION
INFORMATIONINFORMATION
$ $
$$
INFORMATIONINFORMATION
... & THE TRADITIONAL MEDIA WILL BE INCREASINGLY RECOGNIZED FOR THEIR UNIQUE & LASTING VALUE
AUDIENCE
COMMUNITY
ACCESS
ENGAGEMENT
MARCH / 2013 UPDATE
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CONCLUDING NOTE:
FACEBOOK PRICED ONE OF THE LARGEST IPOs & AS OF THIS DATE HAS A MARKET CAP OF MORE THAN $60 BILLION, LARGELY REFLECTING THE OPTION VALUE OF ITS EXPANSIVE USER NETWORK...
... THERE IS ALSO OPTIONALITY IN OTHER LARGE COMMUNITIES
WHEN AN INDUSTRY IS IN VOLATILE TRANSITION
MARCH / 2013 UPDATE
WHERE ARE YOU IN THIS LANDSCAPE?WHERE ARE YOU HEADING?
MARCH / 2013 UPDATE
30www.coriseco.com
CoRise Co., LLC535 Fifth Avenue, 4th floorNew York, NY 10036Telephone: (646) 532-6690email: [email protected]
TO DISCUSS FURTHER:
CONTACT INFORMATION
MARCH / 2013 UPDATE