2Business ModelWhat is the Business Model in Transmedia / Cross-media / Multi-platform / Digital (pick the buzzword of your choice) Content production?
3Business ModelPaid by the AudiencePaid by Advertisers
4Paid by Advertisers Ad breaks. Pre-rolls. Sponsors. Product placement. Ad Funded programming.
5Paid by the Audience Live events (ticket sales). Paid downloads (music, eBooks, videos).Apps and Mobile Games.Videogames.Premium SMS / Calls.Paid VoD.Products (Books, DVDs, Toys, etc).Crowdfunding.
6Financing Model vs Business Model Financing ModelsFinancing Model vs Business Model
7Why the established model works? Film and TV Broadcasters and Distributors are funders and marketers of the content produced, providing MGs against expectations of revenues on a territory by territory basis.Tax Credits and soft money is granted to producers based on distributors validation or Cultural merit of the creative work.Local or European content quotas increase the demand for local produced or co-produced content.
8Why it doesn’t work for Cross-media? New on-line platforms (Youtube, Vimeo, Hulu, Facebook) and digital stores (App Store, iTunes, Amazon) allow producers to reach their clients on a global scale but (usually) don’t provide advances on revenues that could be used to finance production.So, how can I finance my project?
9Extending a TV/Film property Mobile AppsLicensed ProductsGameMOVIE orTV SERIESWebsiteBooksFacebook PageSequels
10SolutionIt’s still rare to find funding entities that will finance the full cross-media project.Funding is still organized on a platform by platform basis.Co-productions between producers from different territories and with companies with different skills are necessary to overcome funding limitations.Producers should prepare their sales pitches accordingly to this reality.
11The Funding ModelNew sources of funding are available for Feature Film / TV producers that want to extend their movies to other platforms:Media Interactive (mainly apps and games)Wallimage Interactive (Belgium)Creative ScotlandNorthern Ireland ScreenUK (several regional funds).France (CNC)Germany (Regional funds and Game funds)Canada (several funds and regional funds and TAX Credits)Hi5 for Kids.
12The Funding ModelThese national and regional funds allow producers to partner (a new type of co-productions) with Game Developers and Digital Agencies to develop and create Games, Apps, Digital content that complements their movie.Funding can range from a 20k to 200k.Additional “marketing” funding can be obtained to promote the movie/TV series.Additional content can be given away for free to generate buzz or sold to audiences.
13The New CommissionersOn-line VoD services are putting advances, commissioning or licensing content for their platforms: Hulu, Youtube, Netflix, Yahoo, Amazon, etc.In Europe, Youtube already gave advances to +60 production companies to develop professional made Youtube Channels.Advertisers and media agencies are also commissioning Web series to communicate their brand values.A few broadcasters and some existing Film/TV funds are starting to fund Web series as experimental productions.
14Videogame Finance VC / Private Equity National and regional game development fundsDigital publishersCrowdfundingMedia Desk Denmark created a document with sources of funding available in Europe for Games and other forms of digital content =>
15Audience = RevenuesWith an existing property and a community, producers are able to attract better licensing deals from traditional gatekeepers, as also advertising revenues from agents, brokers (eg: Youtube Partners program) or directly negotiating with media agencies.
16Our Transmedia Plan Web/Mobile as your first media. Seed it with content and grow the fan base.Social Media creates engagement and allows user participation.Promote it on-line and off-line. Printed media and Radio helps the marketing of the Web presence.After initial success, expand the property to other off-line medias: TV, Film, Books, Events, Licensed products, games, etc.Sell the format internationally.
17The Funding Model Self-funding. Development funding (e.g. Media Interactive).Product placement / Sponsorship.R&D Funding – Prototyping.