droidcon: licensing and open source

8/9/2019 Droidcon: Licensing and Open Source

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Who is this guy?

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Corporate Strategy - Licensing - M&A / Corporate Finance


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Why am I talking about Licensing?


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Here it Comes


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Q: Do brands care for open source?

A: No.

Brands are platform-agnostic.


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Licensing rationale

Developer

License

$$$


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Common Solutions:

2.1.


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The Average Licensing Model(Simplified Version of how it was, is and always has been)


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Licensor puts out RFPOR

Developer approaches licensor directly

Developer manages to get Licensorsattention

OR Developer loses...

The Parties negotiate hard and for weeks(or months) until they reach commonground (which Licensor think is shabby

and leaves Developer wondering how toever repay his debt...

Developer prepares reply to RFPOR Developer prepares offer outlining

creative concept and commercial case.

Developer (or his banker) gets heart attack and pushesback with elaborate explanation on development effortneeded.

If successful, Licensor comes back withhuge royalty (50% minimum!!!) and MGdemands (including sizable up-frontpayments; mid-6 figures).

In the latter case, go back to

Developer gets formaldesign document underway and files forapproval.

Period of negotiations between expensive lawyersover every little term (best efforts vscommercially reasonable efforts, etc, etc, etc, etc)

Deal is signed!

Kick-off meeting betweenLicensor and Developer: willinclude creative teams, approvaldepartments, etc. Look forintroductions to other licenseesas it helps with co-marketing

Developer waits forapproval.

Licensor approvesdesign.

See the green star...

Developer goes ahead.Finalises beta build andfiles for approval.

See green star...

Game is finished andfiled for approval.

Developer looks atroadmap and realises heneeds another license

Developer distributes through his channelsAND/OR Developer finds publishers and/or aggregators

to distribute it through

Go back to


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Result

1. Lucky 2. Not so lucky

I am not saying that this is a bad game.But it IS a poor use of a brand.

This game delivered on brand value,execution and commercial success.


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Not very compelling.


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Show me the money...


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Its in your pocket...

Just ask the right question!

Catchy phrase inspired by Jonathan MacDonald


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BRAND Licensing

Q: What do brands look for?


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A: Users.

Users are also commonly known as customers or consumers


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Sell or Else...

David Ogilvy


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BRANDS...

Sell Services & products. Promote their Image & Message.

Open additional revenue streams...- Licensing!?

Licensing is NOT core!


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Media vs Non-Media Brands

Non-media (e.g. VW, P&G, Carling):extendtheir brand and image.

Media (e.g. FT, Hasbro, Fox):

(also) building additional verticals.


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How can youhelp them?

The right question:


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Heres your Pitch:


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Use Media to Extend Reach!

Digital media advantage vs

analogue media:interactive, i.e. multi-directional.


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Use Mobile to Extend Reach!

Mobile is the most powerfuldigital medium to date.

Why?

1.Its Big (numbers)2.Its Personal (nature)3.Its really personal

(Identification of needs)


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1,500,000,000

4,600,000,000

1,700,000,000

2,250,000,000

Number of Internet users

Number of credit cards

Number of tooth brushes in use

Number of mobile phone subscriptions

480,000,000Daily global circulation of newspapers


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The Nature of Mobile: Its a 1st!

Personal mass media Always carried Always on

Built-in billing system Always present at the point of creativeimpulse

Accurate audience identification

Tomi Ahonen, Mobile the 7th Mass Media, 2008;Alan Moore & Jonathan MacDonald, The Glittering

Allure of the Mobile Society, 2008


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Significance of Mobile to Users...

91% of people have their mobile within arms reach 24/7.

64% of Americans are not willing to share their mobile with

anyone. 60% of married people will not share their mobilewith their spouse!

I takes an average of 26 h for a user to report a lost wallet

but only 68 minutes to report a lost mobile phone.

Morgan Stanley 2007

Unisys Survey

Wired Magazine 2006

8 out of 10 German men would rather lose their wife thantheir mobile phone.

Jonathan MacDonald; Survey of 10German men at 1am in a bar...


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... and how Brands use it...

In 2008, Procter & Gamble spent 0.17% of theiradvertising budget on mobile.

Volkswagen spent 1% of their DIGITAL budget on

mobile (that was 2008...).

Informa/Acision/OgilvyOne

VW CRM Manager cited by Andrew Grill

BUT

Volkswagen also just announced that the ONLYcampaign for the 2010 VW Golf GTI will be aniPhone Game (Real Racing GTI)... Quick learning!*

* This is autumn 2009


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(c) gapingvoid


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Change the Language...


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Engagement!

Engage, dont lecture.

Be Sincere. Mean what you say. Result: users become brand ambassadors.

No Fine Print

+YOU!


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Engagement!

Games & apps are perfect for this!- Interaction.- Less intrusion.- Brand takes centre stage: shine!- Love it, recommend it.74% of all purchases are made because of

recommendations by friends!Bain Consulting


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Old World vs New World: It works now.176x208 J2ME games Current-generation iPhone games


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01100110101101001100100100100

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1010011001001110010101010111010100110010011100101010101110

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1010011001001110010101010111010100110010011100101010101110X


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Its here:Well, it COULD be here (if the Open

Handset Alliance executes well).


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Lets ask again:

Q: Do brands care for open source?

A: Yes.


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123,296,966,069,999,387,456

The Law of Big Numbers

This is why:

d d ( )


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How Android apps compare (1)

Distimo, CTIA San Diego, 2009

88,000

12,0002,900

Apple Android BlackBerry

Apple App Store

Google Android Market

BlackBerry App World 76%

36%

77%

24%

64%

23%

Free Paid

Total # of apps Paid vs Free

H d d ( )


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How Android apps compare (2)

Flurry Analytics Blog, 6 Aug. 2009


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Android is set to explode.Eric Schmidt, CEO Google


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Inspiration!

$

t

A d id W


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Androids Weapon

OPEN = Infinite scale!Platforms

Vendors

Th E ti


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The Equation:

Brands want users.+ Users want good stuff (and dont care if it

is open/closed, widget/app, this/that... aslong as it works)

+ Brands want big numbers.+ Android has (OK: will have) big numbers.+ Android can deliver kool-aid.

= Great Opportunity for Brands

(= $$$ for Everyone [incl. Developer]) S i


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Summing up:

Engage, dont lecture. Treat licensing as a brand extension, notas a (presumed) means to sell 0.x% more.

Forget tech-heavy preaching. Just delivercompelling stuff to your users.

Deliver it in big numbers.

Got all that? You have a winner!

BTW: Winner means that the user wins! The rest (incl. $$$) comes then almost on its own...

Image & Video Credits


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Image & Video Creditshttps://reader010.{domain}/reader010/html5/0601/5b10ac35440ab/5b10ac4b8e851.jpghttp://1.bp.blogspot.com/_Vr8Xl0cbUZA/SVJzaekjMQI/AAAAAAAAFWU/gvOyNNzcdis/s400/Image+%3D+clueless+is+no+excuse.jpghttp://www.mtco.com/~rkblack/Open-Door_0032a.jpg

http://filmgordon.files.wordpress.com/2009/03/conneryaston.jpghttps://reader010.{domain}/reader010/html5/0601/5b10ac35440ab/5b10ac4d36b4c.jpghttp://www.iphoneincanada.ca/wp-content/uploads/2008/07/carling_ipint.pnghttp://www.mobileshop.com/blog/wp-content/uploads/2008/10/ipint-virtual-beer-under-fire.bmphttp://farm4.static.flickr.com/3250/3074199062_f434be862a_o.jpghttp://miraloqueveo.files.wordpress.com/2008/09/david-ogilvy.jpghttp://www.nationalserviceexpress.com/mogulus-user-uploads.s3.amazonaws.com/B6A8222A-4B39-2BD5-CF85-179823589EF8.jpghttp://gapingvoidgallery.comhttp://nexus404.com/Blog/2009/10/23/2010-volkswagen-gti-presented-in-iphone-game-play-firement-real-racing-and-win-a-2010-vw-gti-exclusively-on-the-iphone/

http://www.toptenreviews.com/i/rev/misc/articles/old_blog/blog_963_1.jpghttp://www.iphonic.tv/assets_c/2009/07/barclaycard-waterslide-extreme-1-thumb-430x285-92255.pnghttp://www.oneighturbo.com/wp-content/uploads/2009/09/01-oneighturbo-sciroccoR-iphone-091509.jpghttp://media.photobucket.com/image/papa%20roach/crazyOAgirlFERlife/Papa_Roach.pnghttp://www.youtube.com/watch?v=dPYM-XTqcechttp://markhirschfeld.files.wordpress.com/2009/08/open-door1.jpghttp://www.freeverse.com/assets/games/9003/screenshots/456/174114905.jpghttp://www.firemint.com/realracing/screenshots.htmlhttp://i264.photobucket.com/albums/ii187/botvinya/worker_mechanic.jpg

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http://i264.photobucket.com/albums/ii187/botvinya/worker_mechanic.jpghttp://www.firemint.com/realracing/screenshots.htmlhttp://www.freeverse.com/assets/games/9003/screenshots/456/174114905.jpghttp://markhirschfeld.files.wordpress.com/2009/08/open-door1.jpghttp://www.youtube.com/watch?v=dPYM-XTqcechttp://media.photobucket.com/image/papa%20roach/crazyOAgirlFERlife/Papa_Roach.pnghttp://www.oneighturbo.com/wp-content/uploads/2009/09/01-oneighturbo-sciroccoR-iphone-091509.jpghttp://www.iphonic.tv/assets_c/2009/07/barclaycard-waterslide-extreme-1-thumb-430x285-92255.pnghttp://www.toptenreviews.com/i/rev/misc/articles/old_blog/blog_963_1.jpghttp://i264.photobucket.com/albums/ii187/botvinya/worker_mechanic.jpghttp://i264.photobucket.com/albums/ii187/botvinya/worker_mechanic.jpghttp://www.firemint.com/realracing/screenshots.htmlhttp://www.firemint.com/realracing/screenshots.htmlhttp://www.freeverse.com/assets/games/9003/screenshots/456/174114905.jpghttp://www.freeverse.com/assets/games/9003/screenshots/456/174114905.jpghttp://markhirschfeld.files.wordpress.com/2009/08/open-door1.jpghttp://markhirschfeld.files.wordpress.com/2009/08/open-door1.jpghttp://www.youtube.com/watch?v=dPYM-XTqcechttp://www.youtube.com/watch?v=dPYM-XTqcechttp://media.photobucket.com/image/papa%20roach/crazyOAgirlFERlife/Papa_Roach.pnghttp://media.photobucket.com/image/papa%20roach/crazyOAgirlFERlife/Papa_Roach.pnghttp://www.oneighturbo.com/wp-content/uploads/2009/09/01-oneighturbo-sciroccoR-iphone-091509.jpghttp://www.oneighturbo.com/wp-content/uploads/2009/09/01-oneighturbo-sciroccoR-iphone-091509.jpghttp://www.iphonic.tv/assets_c/2009/07/barclaycard-waterslide-extreme-1-thumb-430x285-92255.pnghttp://www.iphonic.tv/assets_c/2009/07/barclaycard-waterslide-extreme-1-thumb-430x285-92255.pnghttp://www.toptenreviews.com/i/rev/misc/articles/old_blog/blog_963_1.jpghttp://www.toptenreviews.com/i/rev/misc/articles/old_blog/blog_963_1.jpghttp://nexus404.com/Blog/2009/10/23/2010-volkswagen-gti-presented-in-iphone-game-play-firement-real-racing-and-win-a-2010-vw-gti-exclusively-on-the-iphone/http://nexus404.com/Blog/2009/10/23/2010-volkswagen-gti-presented-in-iphone-game-play-firement-real-racing-and-win-a-2010-vw-gti-exclusively-on-the-iphone/http://nexus404.com/Blog/2009/10/23/2010-volkswagen-gti-presented-in-iphone-game-play-firement-real-racing-and-win-a-2010-vw-gti-exclusively-on-the-iphone/http://nexus404.com/Blog/2009/10/23/2010-volkswagen-gti-presented-in-iphone-game-play-firement-real-racing-and-win-a-2010-vw-gti-exclusively-on-the-iphone/http://gapingvoid.com/http://gapingvoid.com/http://www.nationalserviceexpress.com/mogulus-user-uploads.s3.amazonaws.com/B6A8222A-4B39-2BD5-CF85-179823589EF8.jpghttp://www.nationalserviceexpress.com/mogulus-user-uploads.s3.amazonaws.com/B6A8222A-4B39-2BD5-CF85-179823589EF8.jpghttp://miraloqueveo.files.wordpress.com/2008/09/david-ogilvy.jpghttp://miraloqueveo.files.wordpress.com/2008/09/david-ogilvy.jpghttp://farm4.static.flickr.com/3250/3074199062_f434be862a_o.jpghttp://farm4.static.flickr.com/3250/3074199062_f434be862a_o.jpghttp://www.mobileshop.com/blog/wp-content/uploads/2008/10/ipint-virtual-beer-under-fire.bmphttp://www.mobileshop.com/blog/wp-content/uploads/2008/10/ipint-virtual-beer-under-fire.bmphttp://www.iphoneincanada.ca/wp-content/uploads/2008/07/carling_ipint.pnghttp://www.iphoneincanada.ca/wp-content/uploads/2008/07/carling_ipint.pnghttp://www.gapingvoidgallery.com/images/talkedjgif002.jpghttp://www.gapingvoidgallery.com/images/talkedjgif002.jpghttp://filmgordon.files.wordpress.com/2009/03/conneryaston.jpghttp://filmgordon.files.wordpress.com/2009/03/conneryaston.jpghttp://www.mtco.com/~rkblack/Open-Door_0032a.jpghttp://www.mtco.com/~rkblack/Open-Door_0032a.jpghttp://1.bp.blogspot.com/_Vr8Xl0cbUZA/SVJzaekjMQI/AAAAAAAAFWU/gvOyNNzcdis/s400/Image+%3D+clueless+is+no+excuse.jpghttp://1.bp.blogspot.com/_Vr8Xl0cbUZA/SVJzaekjMQI/AAAAAAAAFWU/gvOyNNzcdis/s400/Image+%3D+clueless+is+no+excuse.jpghttp://www.explodingdog.com/drawing/ihavenoidea.jpghttp://www.explodingdog.com/drawing/ihavenoidea.jpg


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Thank you!

@vhirsch

[email protected]

+44 7843 599 678

http://bluebeck.co.uk
http://www.bluebeck.co.uk/http://www.bluebeck.co.uk/mailto:[email protected]:[email protected]://www.bluebeck.co.uk/http://www.bluebeck.co.uk/

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