grouper 3.0 / crackle update june 2007. 2 executive summary from acquisition to-date, spe has...
TRANSCRIPT
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Executive Summary
• From acquisition to-date, SPE has focused on integration and audience expansion
– Leveraged SPE content and marketing strength (Seinfeld, Rescue Me, Spiderman)
– Integrated Grouper into Sony hardware platforms (PSP, VAIO, Bravia)
– Increased on-site audience and established distribution network to 100+ million monthly streams
• The market for user-generated video has evolved since our acquisition of Grouper
– Competition among general UGV sites continues to intensify
– Proliferation of low quality video is making it harder for users to find compelling content
– Advertisers want to associate their brands with higher quality content
• SPE and Grouper are uniquely positioned to exploit the emerging market opportunity
– Leverage Sony content expertise to marry Hollywood quality with viral nature of UGV
– Utilize programming and incentives to attract and feature the best content
– Syndicate the viral player and channels across the Global Video Network
– Monetize audience through advertising sales by SPTAS and rep firms
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Q1 '05 Q2 '05 Q3 '05 Q4 '05 Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07 Q2 '07
Uniq
ue U
sers
(M
M)
Historical Growth of Grouper and the Global Video Network
Grouper 1.0“Share your videos
with friends”
Grouper 2.0“Share your videos
with the world”
SPE Acquisition
Grouper 3.0“Marriage of Hollywood Quality & Viral Video”
Mar ‘05
Nov ‘05
Aug ‘06
Growth of Global Video Network
July ‘07
* Excludes ValueClick customers
Grouper has seen significant growth in its audience since acquisition
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Integratedwith SPE
Integrated Across Sony
FY08Initiatives
• Grouper in the PSP firmware
• Grouper service on IP-enabled Bravia
• Integrating Grouper for video sharing with Sony Ericsson and Sony Digital Imaging
• Grouper screensaver on all VAIOs
• Licensing content for digital delivery on PS3, including HOME initiative
• Unique SPE content offering -- ScreenBites
• DVD promotion for Seinfeld Season 7
• Contests for SPE theatrical releases (Pursuit of Happyness & Spider-Man 3)
• Firehouse channel tie-in with Rescue Me
Grouper’s Support for “Sony United”
Digital Imaging
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Evolution of the Grouper Home Page
AT ACQUISITIONImmersed Users in a Wide Variety of UGV
TODAY Presents Editorialized Content on a Channel Basis
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“Hollywood” Content Viral VideoThe Opportunity
• High quality content viewed by many
• Less viral and offers less variety than UGV
• Combine the viral nature of user-generated video with the quality of “Hollywood” content
• Unlimited variety of content• Highly viral• Lacks quality of traditional
studio content
Number of Videos in the Category
Nu
mb
er
of
Vie
we
rsThe Grouper 3.0 Opportunity
Product re-launch positions Crackle to exploit the “mid-tail” strategy of online video
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Key Tenants of the Grouper 3.0 Strategy
Content Fame Distribution Monetization
Product
• The best content not on TV
• Programmed in narrowly defined channels
• Institutionalize Fame
• Offer incentives that money can’t buy (status, distribution)
• Syndicate through network of partner sites
• Integrate with Sony hardware
• Leverage SPT Ad Sales relationships
• Monetize through ads and channel sponsorships
• High quality video playback
• Fame partner brands tightly integrated
• External player syndicates full experience
• Support for a wide range of ad types