what's next in media - navonil

What’s Next In Media ?

Navonil Roy

Maxis

Why Me ?

Media Communications

Telecom

Changing Face of Media

Everywhere & Everyform

Getting Complex By The Day

Watched 20,000 hours of TVPlayed 10,000 hours of games

Talked 10,000 hours Sent/received 250,000 emails

Radio – 38 yearsTV – 13 years

Internet – 4 years

1984: 1,0001992 – 1,000,000

2006 – 600,000,000

Underlying Forces

What’s Next

In Media ?

Underlying Forces Impacting Evolution

Interactive

Data Rich

EaseSelective

Content Linked Customise

Time

Tech

Facebook

Twitter

Dabbawalla

Toilet

QQ

Line Dance

Will Impact Future

Interactive

Data Rich

EaseSelective

Content Linked Customise

Time

Tech

?

So, What’s Next In Media

• Appears to be in flux

• Difficult to predict specifics

• But aligned to underlying forces

• Painting picture v/s understanding implications

Some Implications of What’s Next in Media

1. Breaking down of Walled Garden

2. Potential of Consumer Revenues

3. Expanding Content Revenue Streams

4. Importance of Blockbuster Content

1. Media has existed in Walled Gardens

Access via subscription

License to operate

Spectrum

CapexBouquet offering

What’s Next in Media :Breakdown of Walls

Free content

A la carte choices

Wider Competition…

Key QuestionHow is your organisation planning to survive

without protective walls ?

2. Advertising Revenue :Sole Focus of Growth

• With increasing media platforms

• Limited by GDP

• Asian Adex USD 90 billion

What’s Next in Media :Potential of Consumer Revenue

• Disposable income USD 3310 billion

• Growing at faster rates

• Propensity to pay for intangibles – Virtual goods USD 7 billion

• Constrained by micro payment

Key QuestionDoes your business have a good mix of

advertising and consumer revenue ?

3. Content Revenue :Core of Value Chain

• Driven by direct revenue– Movie ticket– Music CD…

• Diminishing content revenues

• Need to look beyond traditional

What’s Next in Media :Expanding Content Revenue Streams

USD 833.2 million

USD 800 million

What’s Next in Media : Expanding Content Revenue Streams

Key Question

How is your organisation expending its revenue streams to replace core revenue ?

4. Content Ecosystem :Long tail v/s Blockbuster Content

Long Tail ContentProvides opportunity for niche content

Amateur/User generated Function of search and storage

Differentiator for internet companies

Blockbuster Professional ContentHighly popular

Professionally createdDriven by stars, marketing, distribution

Conventional model for movies, books…

Time

Popularity

What’s Next In Media :Importance of Blockbuster Content

Time

Popularity

Top 10% titles 48% of movie rental (Quickflix)

78% of music plays (Rhapsody)

Source : Anita Elberse

Key QuestionHow are you protecting the blockbusters

within your portfolio ?

What’s Next In Media :Key Points to Remember

• Not What’s Coming

• Accepting change and benefiting

• Underlying forces

• Specific implications1. Breaking down of Walled Garden

2. Potential of Consumer Revenues

3. Expanding Content Revenue Streams

4. Importance of Blockbuster Content

Happy to take the conversation beyond this 15 min

navonil@maxis.com.my