brand driven growth platforms

36
Proprietary & Confiden0al brand growth strategy Iden0fying growth pla5orms through a brand-driven innova0on process (a case of the Sci Fi Channel) Roundtable discussion on behalf of: The University of Chicago Booth School of Business Michael Million [email protected]

Upload: fullsurge

Post on 22-Jan-2017

378 views

Category:

Marketing


1 download

TRANSCRIPT

Propr ietary & Confiden0al

brandgrowthstrategy

Iden0fyinggrowthpla5ormsthroughabrand-driveninnova0onprocess(acaseoftheSciFiChannel)Roundtablediscussiononbehalfof:

TheUniversityofChicagoBoothSchoolofBusiness

[email protected]

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

[email protected]

Thankyou