brand driven growth platforms
TRANSCRIPT
Propr ietary & Confiden0al
brandgrowthstrategy
Iden0fyinggrowthpla5ormsthroughabrand-driveninnova0onprocess(acaseoftheSciFiChannel)Roundtablediscussiononbehalfof:
TheUniversityofChicagoBoothSchoolofBusiness
PROPRIETARYANDCONFIDENTIAL
SUBSECTIONTITLE
2
SciFiChannel–Background
§ A14year-old,nichecablechannelofferingbothsyndicatedandoriginalshows
§ Parentcompany:GE/NBCUniversal
§ Ranked#7basiccablechannel,aUerUSA,TNT,TBS,FX,SPIKE,andLIFE
§ Revenues:$435million(primarilyfromlicensingandadver0singfees)
§ Opera0ngprofits:34%;Ra0ngsgrowth:8%
§ Fullydistributedin88MU.S.homes,withopera0onsinEurope
§ SciFi.comranked#1Sci-fiwebsite
§ Coreaudience:Oldermales,averageage:42
PROPRIETARYANDCONFIDENTIAL
SUBSECTIONTITLE
3
SciFiChannel–Background
Stridestochangepercep0onswerebeingmade(morecontemporaryshows/branding)
AlthoughtherewerestereotypesoftheSci-figenre….
Freaks,geeks,andpocketprotectors
…Opportuni0estobecomea“categorykiller”existed
Space,aliens,dark/apocalyp0cal,StarTrek
Sci-figenreincludesthetopgrossingmovies
OtherssuccessfullygrewbeyondTVplaHorm
PROPRIETARYANDCONFIDENTIAL
SUBSECTIONTITLE
4
TheProject
BusinessStrategy&Innova0on
• Assessstrategicbusinessopportuni0es
• FormulatebusinesscasesforextendingtheSciFibrandthroughvariousconcepts
• Iden0fynew,innova0veproductsandservicestheSciFibrandcouldoffer
• HelpprepareforS1Mdiscussions(strategicplanningprocess)
BrandStrategy
• Understandthesci-fi/fantasygenrefromtheconsumerperspec0ve
• Explorethepoten0alextendibilityoftheSciFibrandbeyonditscoretelevisionpla5orm
• Refinethebrandstrategytoallowforsignificantbusinessgrowthwithatargetaudiences
Objec0ve:
Iden0fygrowthpla5ormsbyre-imaginingtheen0rebusinessandbrandinwaysthatsignificantlyincreaseopportuni0esforexpansion
PROPRIETARYANDCONFIDENTIAL
SUBSECTIONTITLE
5
Approach
Art
Science
External Internal
SizeNewBusinesses
RedefinetheSciFiBrand
DefineTargetSegments
NewMedia
ConsumerElectronics
Travel&Leisure
Retail
ExploreNewOffers
GrowthPlaHorms
PROPRIETARYANDCONFIDENTIAL
SUBSECTIONTITLE
6
Process
§ Definingtargetconsumers
§ RedefiningtheSciFibrand
§ Brainstormingofferconcepts
§ Narrowinginonaerac0vebusinesses
§ Recommenda0ons
PROPRIETARYANDCONFIDENTIAL
SUBSECTIONTITLE
7
SciFiSegments
Involvement None High
ReligionRealists16%
Escapists
16%
§ 41§ Female
§ $50K§ Married/Kids
§ LowCollege§ HeavyTV§ HeavyReaders§ LoveFantasy
§ 40-50§ Mothers
§ Married
§ Southern§ ModerateTV
§ LightInternet§ Conserva0ve§ LoveGod&Family
§ 31§ Male/Female
§ $45K§ Single§ Ethnic.Diverse§ HeavyTV§ HeavyGamers
§ LoveThrills
Screamers
19%
§ 27§ Male
§ <$40K§ Single§ Ethnic.Diverse§ HeavyTV§ HeavyMovies
§ LoveBeingScared
TVSnobs
17%
§ 40§ Male/Female
§ $45K§ Married
§ Caucasian§ LightTV§ Readers§ LoveLearning
YoungMarvels16%
SciPhiles
16%
§ 42§ Male
§ $55K§ Married
§ College§ LightTV§ HeavyInternet§ Lovescience
PROPRIETARYANDCONFIDENTIAL
SUBSECTIONTITLE
8
AddressingshortfallswiththeSciFisegments
§ Segmenta0onbasedprimarilyonTVwatchingbehaviors–tomorrow'ssegmentswillhavetobebasedonbroaderentertainmentconsump0on
§ Therewaslimitedfuturepoten0alwithhowtargetsweredefined(wedidnotknowenoughaboutthemoutsideoftheTV/sci-ficategories)
§ Highpoten0algroups(children)werenotincludedinthesegmenta0on
AddresstheshorHall
§ Wedevelopedahypothe0calconsumerframeworkmoreusefulandac0onableforfutureofferdevelopment
§ Wevalidatedandrefinedthosehypothe0calconsumergroupswithinputsfromthequalita0veresearch
PROPRIETARYANDCONFIDENTIAL
SUBSECTIONTITLE
9
Tomorrow’stargetwill:
§ Lookverydifferentthantoday’scoreviewingaudience
§ Skewconsiderablyyounger
§ Movetowardmoreofagenderbalance,butmightslightlyskewmale
§ Consumemoreformsofentertainment(includingdigital)vs.tradi0onalTV
§ Havehigherincomesandmoresophis0catedtastes
PROPRIETARYANDCONFIDENTIAL
SUBSECTIONTITLE
10
TargetAudiences
Adults ChildrenYoungadultsw/nokids
(18–30)Familiesw/
children4–12Tweens(8-12)
YoungKids(4–8)
Alllargegroupswithsignificantpurchasingpowerand/orinfluence
~ 35M(people)~ $750B(totalspend)
~ 35M(HH)~ $1,650B(HHexpenditures)
~ 15M(people)~ $85B(totalspend)
~ 20M(people)~ $105B(totalspendonkids)
§ Significantpurchasingpower
§ Extremelytechsavvy
§ Hungryforexplora0on,selfexpression,sharingofinforma0onandnewexperiences
§ Manyinterestedinsci-firelatedgenres
§ Increasinglyinfluencedbychildren
§ Increasinglydifficulttotargetasinterestswithinfamilyfragment
§ Significantinfluenceonparents/family
§ Establishesapipelineforfutureoffers§ Lesslikelytohavelimi0ngassocia0onsof“sci-fi”
§ Increasingbuyingpower
§ Extremelytechsavvy
§ Media-centric–theyspend6.5hours/dayonlineand/orwatchingTV
§ Offersdevelopedcouldbeleveragedintoyoungadults
§ Hasanaffinityfortheunknown/sci-fi
§ Techsavvy
§ HeavyTVwatchers
§ Heavyreaders
§ Impressionable
PROPRIETARYANDCONFIDENTIAL
SUBSECTIONTITLE
11
Aniterativeprocesstoredefinethebrandanddeterminethebestconceptstoconsider
• Developmentofmul0pleofferideasfromdifferentsources
• From:TV-centric
• To:abroaderdefini0ontodirectfutureconceptdevelopment
• Combiningmul0pleideasintobigger,broader,morediges0bleconcepts
• Packagingideastogenerateexcitementandelicitinternalfeedback
• OverallAppeal
• Differen0a0on
• BrandExtendibility
IdeaGenera0on BrandRedefini0on
ConceptDevelopment
Evalua0on&Priori0za0on
Diverge Converge
PROPRIETARYANDCONFIDENTIAL
SUBSECTIONTITLE
12
Process
§ Definingtargetconsumers
§ RedefiningtheSciFibrand
§ Brainstormingofferconcepts
§ Narrowinginonaerac0vebusinesses
§ Recommenda0ons
PROPRIETARYANDCONFIDENTIAL
SUBSECTIONTITLE
13
IdeaGeneration
Par0cipants Internal§ SciFi§ NBCUniversal§ Prophet§ Agenciespartners
Crea0veConsumers
Pulledfrompanelsconsis0ngofcrea0vethinkers
GenreEnthusiasts
Selfiden0fiedenthusiastsoftheSci-figenres
Methodology § ManagementInterviews
§ ChannelRetreat-over50internalpar0cipants
§ Fullgroupdiscussionsandbreak-outs
§ 3-4sessions§ Eachgrouptofocusondis0ncttopicstoprovidebreadthofideas
§ Warm-up–geqngpar0cipantsintherightframeofmind(“allthingssci-fi”)
§ Mul0pletechniquesused
§ Severalshort-burstdiscussions
Facilitators § Professionalfacilitatorspecializingincrea0vethinking,innova0on,andnewproductdevelopment
§ Trainedtostrikeappropriatebalancebetween“bluesky”idea0on,andideagenera0onthatismorepragma0c
HundredsofIdeas
&BrandInsights
PROPRIETARYANDCONFIDENTIAL
SUBSECTIONTITLE
14
BrandDefinition&ConceptDevelopment
BrandThemesandFilters/Criteria1. Beentertainingandfun2. Bethought-provoking3. Bemysterious/alielequirky
4. Besignificant
HundredsofIdeas&BrandInsights
BusinessConcepts
PROPRIETARYANDCONFIDENTIAL
SUBSECTIONTITLE
15
BrandTheme:“Transform”
Transform
From-To
Moment-in-0me
AnotherRealm
RolePlaying
NewExperiences
Escape
PROPRIETARYANDCONFIDENTIAL
SUBSECTIONTITLE
16
“Transform”BusinessConcepts
§ Brandalargeplotofland,orselfcontainedproperty
§ Stagefantasiesfor6-8peoplewhosharesimilarfantasies
§ Transportconsumerstoadifferent0me,place,underanassumedrole
§ Selltake-homeproducts,subscrip0onstoanonlinecommunity
FantasyDes0na0ons
§ Aroomwithinhousesthatenablestransforma0ontoadifferent0meorplace
§ “Dynamicmediawall”
§ Addi0onalaccessories(e.g.,music,objects,furniture)toenhancethetransforma0on
§ Revenuesfromuserfeesandmediafees
ChangingRoom Interac0veRolePlay
§ SciFiMMORP,basedonnewsci-fithemesandexis0ngprograms
§ Par0cipantssubscribetogameandpurchasecharactersandtoolstoadvancetohigherlevels
§ Tie-intoactualSciFiTVcontent,withwinnersdeterminingthefateofcharacters,outcomes
PROPRIETARYANDCONFIDENTIAL
SUBSECTIONTITLE
17
BrandTheme:“Explore”
Explore
TheJourney
Uncover
Unknown
Discovery
SoulSearch
Mysterious
PROPRIETARYANDCONFIDENTIAL
SUBSECTIONTITLE
18
“Explore”BusinessConcepts
§ Akioskthatusesvirtualrealitytechnologytoprovideuserswithanexplora0onoftheunknown
§ Themestoinclude“0metravel”tonumerousdifferentcombina0onsofloca0onand0me(e.g.,space,thehumanmind,etc.)
§ Kioskscouldbefreestandingorresideinamall
§ Anovernighttrainridethatstagesanexplora0onofthemesrela0ngtoscifi
§ Thestaff,alwaysincharacter,interactwithpassengerstofacilitatesexplora0on
§ Periodicstopsalongthejourneybringstheexplora0ontolife
§ Childrenandadultversions
FantasyTrain VirtualRealityPods
PROPRIETARYANDCONFIDENTIAL
SUBSECTIONTITLE
19
BrandTheme:“Create”
Create
Self-express
EnabledPlay
Personal
Connect
Community
Experiment
PROPRIETARYANDCONFIDENTIAL
SUBSECTIONTITLE
20
“Create” Business Concepts
§ SciFistagesthemedsocialevents;includescrea0ngpartyentertainmentkits
§ Eventplanningthattapsintosocialtrendofkid-designed,crea0veentertainment
§ Themestoincludespacetravel,extremeadventure,specialeffects,alienabduc0on,etc.
§ Web-based,user-generatedstorycrea0oncontest,usingtoolsfromSciFiincludingvideoclips,characters,samplescripts
§ Consumersformvirtualteamsandcreatea“finishedproduct”
§ ThewinningteamhasstoryproducedbySciFiintomul0plemediaforms
NetworkedStory-building StagedEvents
PROPRIETARYANDCONFIDENTIAL
SUBSECTIONTITLE
21
QualitativeresearchtogaininsightsontheSciFibrandandbusinessconcepts
§ 8TotalGroups(2hoursessions)
§ 3U.S.Ci0es
§ 3typesofpar0cipantmake-ups,8par0cipantseach§ Trend-seqngyoungadultsw/nokids(4groups)
§ Progressiveadultswithkids4–8(2groups)
§ SocialTweens11-13(2groups)
§ KeyTopicAreas§ Aqtudes,percep0onsandbehaviorsrela0vetoentertainmentandsci-figenres
§ Reac0onstobusinessideas(favorableornot,why,improvementmodifica0ons)
§ Percep0onsofSciFibrand(equity/extendibilityrela0vetobusinessideas)
§ Reac0onstobrandposi0oningpla5orms/iden00es
§ Refinementofideas(toincreasetheirvalue,differen0a0on,andcredibilitytoSciFi)
PROPRIETARYANDCONFIDENTIAL
SUBSECTIONTITLE
22
Evaluation:Appealanddifferentiationwerebasedonthreethings
+
• FantasyDes0na0ons“IfSciFididanamusementpark”
• ImmersionPods“Itwouldhavetobeclosetohomevideogamesnow–highdefiniAon”
+
• FantasyDes0na0ons“Youcanroleplay,youcancreate…it’safunfamilything”
• MindBar
• RolePlayGame
• Crea0vityGame
+
• ChangingRoom
“IcanputanythingIwantonit-evenJohnnyDepp”
• RolePlayGame
• FantasyDes0na0ons
-• VirtualRealityGear“Earlierversionswerecrappy”
• HHoftheFuture“AliKleoutofreach;toofuturisAc”
-• ImmersionPods“SoisolaAng…it’dbemorefuniftherewereotherstointeractwith”
-• HHoftheFuture“Itlosestheappealofhome–thereisnocomfort,nowarmth”
Believability Interac0vity Customizable
PROPRIETARYANDCONFIDENTIAL
SUBSECTIONTITLE
23
Evaluation: Credibilitycameprimarilyfromdigitalgamingandexperiences
DigitalGames HomeProductsEntertainment/Experiences
NetworkedStoryBuilding(UGC)
Crea0vityGame(Educa0on)
MindBar(Restaurant)
FantasyExperiences
(Leisure/Travel)ChangeableLivingSpaces(Furnishings)
ImmersionPods(VirtualReality)
Interac0veRolePlayGame(MMORPG)
HouseholdofTomorrow
(Appliances/Design)
Bou-tech(Retail)
PROPRIETARYANDCONFIDENTIAL
SUBSECTIONTITLE
24
Basedontheinsights,werefinedwhatthebrandshouldstandforinthefuture
FuelingtheImaginaAon
From To
For those with curious minds and a love for entertainment, Sci Fi is the lifestyle brand that allows consumers to escape to new
realms through continuous transformative experiences
TransformaAveEscapes
Op0mis0c
Mind-blowing Immersive WonderfullyEccentric
TheSciFiExperience TheSciFiPersonality
Human
S0mula0ng
High-Quality
Risk-taking
Smart
Relatable
Invi0ng
TV-Centric Experien0al(athome,on-the-go,des0na0ons)
PROPRIETARYANDCONFIDENTIAL
SUBSECTIONTITLE
25
Process
§ Definingtargetconsumers
§ RedefiningtheSciFibrand
§ Brainstormingofferconcepts
§ Narrowinginonacrac0vebusinesses
§ Recommenda0ons
PROPRIETARYANDCONFIDENTIAL
SUBSECTIONTITLE
26
CategoryDistillation
1. Aerospace&Defense2. Agriculture3. Auto.&Transport4. Banking5. Beverages6. BusinessServices7. CharitableOrgs.8. Chemicals
9. ComputerHardware
10. ComputerServices
11. ComputerSoUware
12. Construc0on13. ConsumerProducts
14. ConsumerServices
15. CulturalIns0tu0ons16. Educa0on17. Electronics18. Energy&U0li0es19. Envt.Svcs,&Equip.
20.FinancialServices
21.Food
22.Founda0ons
23.Government
24. HealthCare25. IndustrialMfct.
26. Insurance27. Leisure28. Media
29. MembershipOrgs.
30. Metals&Mining
31. Pharmaceu0cals
32. RealEstate33. Retail34. SecurityPdcts&Svcs.35. Telecom.Equipment
36. Telecom.Services
37. Transporta0onSvcs.
Startedwith37SICcodes
MediaConsumerProductsLeisure
Endedwith3Categories
B2C
EntertainmentorEduca0onal
LifestyleOriented
SciFiScreens
PROPRIETARYANDCONFIDENTIAL
SUBSECTIONTITLE
27
RelatedIndustries–OpportunityLandscape
• Conven0ons
Accessories• Mobile• merchandise
GamingHardware• Consoles,devices,PCs
• Gaminggear
HomeAppliances• SciFiinspiredsmartappliances
ReadytoAssemble• ChangeableLivingSpaces
HHoftomorrow
ArchitecturalLigh0ng
• Illuminatedwallpaper
Ligh0ngunits• Lineoffloor,desk&walllights
Technologyenabledapparel&jewelry• MulA-funcAonwearabledevice
• Bou-tech
Mul0pleIPTVchannels
ServiceProvider
ContentExtensions• ringtones&Ringbacks
• Wallpaper• TextAlerts
Hotels&Resorts• Fantasy
DesAnaAons
AmusementParks/
• FantasyDesAnaAons
• Arcades/FECs
GamingSoUware• VideoGames,OnlineGames,MobileGames,Computergames• InteracAveRolePlayGame• CreaAvityGame
HomeStorage,Org.Products,&accessories
AudioVideoEquipment• MediaWall• Immersionpods
Internet/DigitalMusicDistribu0on&Downloads
CableTVBroadcast
TVProduc0on&Distribu0on
Mo0onPictureProduc0on&Distribu0on(longformat)
TravelServices
• Stagedevents
Leisure
MusicMediaConsumerProducts
(non-retailing)
Commemora0veProducts
TelevisionFilm&Video
BookPublishing
Periodicals• Onlinestory-
building
TradingCards&ComicBooks
DigitalContentDistribu0onOnline
story-building
Publishing
ConsumerElectronics
Toys&Games
Housewares
HomeFurniture
Ligh0ng
Appliances
Apparel&Jewelry
Lodging
Entertainment
SpecialtyEateries• MindBar
Restaurant&Cafes
TrainingServices(support)
Mobile
8
76
5
4
3
2
1
3Categories
18Industries,8highpriority
36sub-industries,13highpriority(darkerbackgrounds)
Conceptbundlesfromboeom-upexplora0on
#
Abcd
OpportunityLandscape
PROPRIETARYANDCONFIDENTIAL
SUBSECTIONTITLE
28
Industrieswereprofiledacrosskeydimensions
Entertainment-ThemePark(Experience/Ride)
Restaurant(ThemedFullService)
Lodging(Mid-LevelHotel)
Entertainment–Conven0ons
Entertainment–Arcades/FECs
Economics § $11.3Bmarket§ 3%CAGR§ 20-30%op.margin§ Avg.$67foroneday0cket/$115formul0-park
§ $510(total),$174B(themedrestaurants)
§ 6-7%CAGR§ 10-20%op.margin§ Avg.HHspend/year:$2,434
§ $121B(total),$42M(mid-level)§ 5%CAGR§ 35-35%op.margin§ Avg.spendforleisure:$85-90/night
§ $10.8Bmarket§ 5%CAGR§ Lowop.margins
§ $1.4Bmarket§ (2-3%)CAGR§ 10%avg.op.mgns.§ Widerangeofop.marginsfr.0–17%)
MarketOutlook&Trends
§ Mature,saturatedmarketw/lowgrowthandlimitedrevenueopportunity
§ HighOPEXrequired,asanoperator
§ Industryintransi0onRevenuedrivers:§ Admissionfees(55%ofrevenue),thenfood,games,andmerchandise
Trends§ Increasinglysophis0cated(andcostly)rides–moreimmersive,interac0ve
• Mature,saturatedmarketw/lowgrowthandlimitedrevenueopportunity
• Difficultbusinesstosustaingrowth(23%restaurantsfailbyyearone,60%byyearthree)
Revenuedrivers• Traffic,revenuepertable,highmarginitems(i.e.,dessert,liquor)
Trends§ Migra0onfrompricetoexperience(“eater-tainment”)
§ Lessexpansion,moreremodeling/re-inven0on
§ Maturemarketw/lowgrowth§ Higherrev.genera0onopportunity
§ HighOPEXrequired,asanoperator
Revenuedrivers:§ Occupancyandroomrates,otherservices(food,spa)
Trends§ Fromfunc0ontoexperience§ Manycompe0torsreinven0ngofferswithdesign,ingredientbrands(Heavenly,Bliss)
§ Slowlygrowingmarketwithlowop.margins
§ Coordina0onintensive
Revenuedrivers:§ Qty.ofshows/fees,growthinsegment
Trends§ Increasedroleofconven0onsaspromo0onaltools
§ Small,decliningmarketw/stagnantprices
§ Severecompe00onfromsubs0tutes(in-home&mobilevideogames)
Revenuedrivers:§ Games,admissionfees,repeataeend.
Trends§ Decreasedavailabilityofnewgames
§ Neg.publicimage
Compe00on § Topfiveoperatorsaccountformostindust.revenues)
CriAcalSuccessFactors:§ Loca0on(nearlargetouristdes0na0ons)
§ Con0nuousinnova0on§ Abilitytobundleservices§ Accesstocapital§ Brandreputa0onMajorplayers:§ Disney:48%,$5.4B§ Universal:10%,$1.1B§ SixFlags10%,$1.1B§ Anheuser-Busch10%,$1.1B
§ Highlyfragmented,regional,mul0pleentrantsandexits
CriAcalSuccessFactors:§ Differen0atedoffering§ Loca0on§ Accesstocapital§ Op.&HRmanagement§ RecognizedbrandMajorplayers:§ McDonalds:1.4%,$7B§ YUM!:1.2%,$5.9B§ Darden:1.2,$5.7B§ Wendy’s:0.5%,$2.4B§ Landrys0.3%,1.2B
§ SomewhatfragmentedCriAcalSuccess:§ Advantagecomes§ Differen0atedoffering§ Loca0on§ Accesstocapital§ Op.management§ Strongbrandpor5olio§ LoyaltyprogramsMajorplayers(%-rooms):§ Cendant:9.9%,$3,.3B§ Marrioe:8.7%,$11.5B§ Hilton:8.1%,$4.4B§ Starwood:$5.9B
§ Highlyfragm.,fewlargeoperatorsassoc.w/majorcenters
§ Lowentrybarrier§ Accountsfor1/3ofhotelrevs.
CriAcalSuccess:§ Strongplanning/coordina0on
§ Alliances§ WordofmouthMajorplayers:§ TheFreemanCo.:9.3%,1B
§ Fragmented:largesteightaccountfor<30%ofrevs.
§ Highfixedcostandcapitalexpenditures
CriAcalSuccess:§ Loca0on§ Newgames§ Controlonop.exp.Majorplayers:§ D&B:25%,$0.4B§ ChuckE.Ch.:$0.7B§ GameWorks:4%,$60M
PROPRIETARYANDCONFIDENTIAL
SUBSECTIONTITLE
29
Eachindustrywasscoredtodetermineattractiveness
Entertainment/Other Restaurants Lodging(Hotels)
AmusementParks Conven0ons Arcades/FECs
FinancialObjec0ves(revenue&profitpotenAal)
§ Moderatesize($11.3B)§ Slowgrowth(3%)§ Healthyop.margins(15%)§ Highfixedcosts
§ Moderatesize($10.8B)§ Slowgrowth(5%)§ Lowop.margins
§ Smallmarket($1.4B)§ Declining(-2-3%)§ Highfailurerate§ Highfixedcosts
§ Largemarket($510B)§ Slowgrowth(6-7%)§ Highfailurerate(60%)§ Limitedrev.poten0al
§ Largemarket($121B)§ Slowgrowth(5%)§ Highop.margins§ HighOPEX
BusinessStrategy(alignmentw/strategy)
§ Limitedpoten0altobroadenviewershipbuthighpoten0altomone0zebrand§ Willdiversifybusinesswell§ Verysynergis0cw/otheroffersandUniversal
§ Limitedpoten0altobroadenviewershipormone0zebrand,butrela0velyeasytoenter§ Notasdiverseasothers,moreformktg.thanrev.
§ Limitedpoten0altobroadenviewershipormone0zebrand§ Coulddiversifybus.&increaseexposure,onlyiflargescale
§ Limitedpoten0altobroadenviewership§ Highpoten0altomone0zebrand§ Willdiversifybusiness§ Somewhatsynergis0c
§ Limitedpoten0altobroadenviewership§ Highpoten0altomone0zebrand§ Willdiversifybusiness§ Somewhatsynergis0c
BrandStrategy(reinforcesfutureaspiraAons)
§ Verygoodoppty.tobe“transforma0ve”/immersive/fun/unique§ Goodoppty.tochangelimi0ngpercep0onsofSciFi§ Naturalfitwitthebrand
§ Limitedpoten0altobe“transforma0ve”/immersive§ Riskofperpetua0ngcurrentbrandimage§ Won’thelpchangepercpe0ons
§ Ifexecutedwell,canbe“transforma0ve”/differen0a0ng§ Neg.percep0onsofindustrycouldreflectpoorlyonbrand
§ Ifwellexecuted,canbe“transforma0ve”/diff.§ Oppty.tochangelimi0ngpercep0onsofSciFi§ Foodelementscoulddiminish“escape”
§ Ifwellexecuted,canbe“transforma0ve”/diff/§ Oppty.tochangelimi0ngpercep0onsofSciFi§ Currentpercep0onsmightlimittrial
TargetSegments(fitwithtargetsegments)
§ Verygoodfitwithtarget’spreferences&behaviors(avg.age:25–44,esp.families)§ Cap0veaudience(avg.stayis5.3nights)§ Increasinginterestbyadults(1/2ofthosevisi0ngDisneyWorld),rejuvenilephenom.
§ Goodfitwithtarget(families,tweens),butlimitedexposuretomassaudience§ Conven0onsforsc-firelatedcontentisgrowinginpopularity
§ Trendsmovingawayfromentertainmentctrs.andmoretowardthemedrestaurants(eater-tainment)andin-home/mobilegames§ Possibleoppty.withtweens,butuntested
§ Verygoodfitwithtarget’spreferences&behaviors§ Increasingspendandtrafficoffamilies§ Increas.popularityofthemedeater-tainmentrestaurantsw/families
§ Goodfitwithconsumertrends(blendofuses–lifestyleoriented)§ Thosewhochooseades0na0onbasedonaTV/Moviemorelikelytobeyounger,higherincome,collegeeducated,w/children
Overall Attractiveness
PROPRIETARYANDCONFIDENTIAL
SUBSECTIONTITLE
30
Wethendevelopedfinancialmodelsforeachindustry
AggressiveScenario
INCOMESTATEMENT
Revenues
CostofGoodsSold
GrossProfit
GrossMargin
Opera0ngPayroll
Opera0ngProfit
OperaAngMarginCASHFLOWPROJECTIONSOperat.CashFlow
CapitalExpenditures
NetCashFlowOPEARTINGDATAFIXEDASSETDATA
TotalInvestment
ModerateScenario
INCOMESTATEMENT
Revenues
CostofGoodsSold
GrossProfit
GrossMargin
Opera0ngPayroll
Opera0ngProfit
OperaAngMarginCASHFLOWPROJECTIONSOperat.CashFlow
CapitalExpenditures
NetCashFlowOPEARTINGDATAFIXEDASSETDATA
TotalInvestment
1Establishedappropriatelineitemdetailsfora5-yearproforma
Conserva0veScenarioYear1 Year2 Year3 Year…
INCOMESTATEMENT
Revenues
CostofGoodsSold
GrossProfit
GrossMargin
Opera0ngPayroll
Opera0ngProfit
OperaAngMarginCASHFLOWPROJECTIONSOperat.CashFlow
CapitalExpenditures
NetCashFlowOPERATINGDATAFIXEDASSETDATA
TotalInvestment
2Determinedscenariostomodelconserva0vetoaggressiveprojec0ons
3Madeeducatedassump0onsforkeyfinancialinputsbasedonsecondaryindustrydatafromanalogouscompaniesandoffers
PROPRIETARYANDCONFIDENTIAL
SUBSECTIONTITLE
31
Process
§ Definingtargetconsumers
§ RedefiningtheSciFibrand
§ Brainstormingofferconcepts
§ Narrowinginonaerac0vebusinesses
§ Recommenda0ons
PROPRIETARYANDCONFIDENTIAL
SUBSECTIONTITLE
32
Sixplatformstogrowthebusiness
Non-MediaRelated($15MM:License:$12MM,Memberships:$3MM)
Onlinegamin($5MM) Mobile($5MM)
ProgrammingforYouthMarket($15MMAds)
Home–SciFiSurround($20MM)
Low-hangingFruit–Extensions($30MM)MediaRelated($15MM:$6MMLicense,$9MMContent)
CustomDevices($20MMlicense)Media/GamingContent($10MM)
Mobile–SciFiJolt($30MM)
Interna0onalExtensions($40MM)
Low-hangingFruit($30MM)
Gaming–SciFiBlast($85MM)
VideoGames($10MMLicensing)
OnlineGames($60MM)(Content:$50MM;Ads:$10MM)
Des0na0onGames
($15MMLicensing)
HouseholdProducts($10MMLicensing) Mul0-mediaHomeTheater($10MMLicensing)
Children Adults
1
6
3
2
5
4
PROPRIETARYANDCONFIDENTIAL
SUBSECTIONTITLE
33
Theexpectedrevenuegrowthfromtheseopportunitiesis$220MMoverthenext5years
SciFiChannel(20XX)
Low-hangingFruit
Gaming(SciFiBlast)
Home(SciFiSurround)
Total20XX$0
$500
$750
$436MM
$720MM
$MillioninReven
ues
Mobile(SciFiJolt)
Interna0onalSciFiChannelIncremental(20XX-20XX)
$64MM
$250
$30MM$40MM
Video&Des0na0on($25MM)
Online($60MM
)HHProducts($10MM)
Mul0-mediahometheater($10MM)
Devices($20MM)
Content($10MM)
Youthmarketprogramming
$15MM
§ DVDs§ NewBroadbandChannel§ Digi-sodes§ PrintPublishing§ Mobileextensions§ Toys&games§ Accessories§ Consumerelectronics§ Logo-wearapparel§ Conven0ons§ Clubs
PROPRIETARYANDCONFIDENTIAL
SUBSECTIONTITLE
34
Developmentsdrivenbyourrecommendations
Gaming• Compiledlistof40poten0alacquisi0on/partnershiptargetbasedonfollowingcriteria:
1. SpecializesingamesthatappealtoSCIFIaudience
2. Developsgamesacrosspla5orms
3. Isofamanageablesizeallowingforrapidacquisi0on
4. Hastrackrecordofreleasingsuccessfulgames
5. Hasopera0onsincloseproximity,withsimilarculture
6. Haspublishingexperience/capabili0es
Low-hangingFruitExtensions• NewBroadbandchannels:
• Exploringcrea0onof“SciFiclassics”broadbandchannelu0lizingpublicdomaingenreprogramming
• SCIFIAnime–earlystageexploringacquiringorpartneringwithexis0nglibrarycompanies
• PrintPublishing:• StructuringdealwithHollywoodEntertainment(book
packager)fornoveliza0onsofSCIFIPicturesmovies
• SCIFImobilestorefrontbeingdevelopedthroughNBCUDigitalteam(contenttoincluderingtones,wallpapers,games-launchingX)
• “Digi-sodes”–EstablishingaMGM/StargatedealforiTunes/Amazon
Interna0onalExtensions
• SoontolaunchinScandinavia,Australia
• DevelopingAsia,La0nAmerica
• Structuringaglobalbrandmanagementinfrastructure
ProgrammingfortheYouthMarket• Kids
• ExploringJointVenturewithBKNtocreateaSciFibrandedSaturdaymorningon-airprogrammingblockandcorrespondingbroadbandportal-toincludeadsales(on-air,online),DVD&licensing/merchandising
• Youth/YoungAdults• Nego0a0ngJointVenturewithVirginComics-ini0alscopetoco-develop/own5proper0estobeexecutedascomicbooks,thenownedassettodevelopTV,filmmerchandiseefforts.
PROPRIETARYANDCONFIDENTIAL
SUBSECTIONTITLE
35
InConclusion
§ Brandsareveryimportanttoconsiderwheninnova0ng-theycaneitherbeasourceofinspira0onorlimi0ngfactorofinflatedego§ Brandsaretypicallymoreorlesscredibleinenteringnewbusinesses/offeringsthan
companiesthinktheyare
§ Rarelydocompaniesknowexactlyhowfartheirbrandcan/shouldstretchastheyinnovateforwhitespaceopportuni0es
§ Flexibilityaroundprocessisalsoimportant§ Aitera0veart/scienceandtop-down/boeom-upapproachcangarnerthebestresults,
butanoverlystructuredapproachcouldlimituncoveringthebestinsights
PROPRIETARYANDCONFIDENTIAL
SUBSECTIONTITLE
36
ClicktoeditMastertitlestyle
Thankyou