Post on 12-Aug-2015
Chris Van Noy Industry Experience
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Industry Experience Spectrum
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Tradi<onal Media Digital Media Technology Movie Studios TV Networks MVPDs Publishing Adver<sing Media Measurement Marke<ng
TV Produc<on Film Produc<on Music O&O Sta<ons
Content Distro Commerce Social Media Mobile Adver<sing
CDN Security CE Devices Cloud Compu<ng Data
PlaIorm Ecosystems Media Measurement Marke<ng
Emerging Tech Adtech Telcos Video Tech
Career Trajectory
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Engineer
Co-‐Head, Ad Network Program Manager
Director, Business Dev
Vice President, Distribu<on
Chief Strategist, Media
MBA
Producer
Value Prop / Key Bullet Points
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Experience 15 Years experience in digital media and technology. Digital Media Pioneer involved in launches and building of high profile Brands and Technology.
ESPN, Hulu, ABC News, Disney, NBA, NFL etc., First Adver<sing Network, Early Streaming Media, Social Media beginnings, Early Digital Content Ecosystems
Knowledge • Media / Technology Ecosystem -‐ Tradi<onal Media (Film, TV, Music), Digital Media, Technology
• Cross Industry Interworking -‐ (Consumer Electronics, MVPDs, Adver<sing, Commerce, Technology, Security, Trad media, Finance, Start up world, Finance)
• Interna<onal Markets • Legal and Poli<cal
Strategic Insight Deep understanding of separate Media Businesses, Digital Media, Technology, Legal/Poli<cal and how they do work together now and how they can in the future (Digital Media, eCommerce, Commerce, Film, Television)
Broad Network Deep Network in Digital Media, Tradi<onal Media, Technology, Finance (less deep in Adver<sing, Consumer electronics, MVPD, interna<onal)
Understanding of Disciplines
Career Arc (increased responsibility at each step) – engineer, product, management (Tech and Adver<sing), business development (management), Finance (school), Strategy/own biz, Biz Dev / Strategy (Hulu), Strategy / Evangelism / Speeches (Akamai).
Biography
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Chris Van Noy is an industry thought leader and a 15-‐year veteran of digital media. He is an Industry expert in the intersec<on of technology, digital media and tradi<onal media (this includes adjacent industries – CDN, telecom, consumer electronics, commerce, adver<sing, MVPDs and finance -‐ VC and large scale investment). A key member of the Hulu launch team, Jumpwire Media and an early member of Starwave Corpora<on -‐ ESPN.com, NBA.com, NFL.com, Disney.com, Ticketmaster.com, ABCNews.com -‐ the first family of ver<cal Internet media proper<es.
Most recently Chief Strategist, Media for Akamai Technologies, Chris is currently a writer, speaker and strategic advisor for large, mul<-‐hyphenate companies, investment firms and promising start-‐ups.
h^p://www.linkedin.com/in/chrisvannoy
View of Coverage: Valuable Informa<on for Hedge Funds
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• Informed, Contrary Opinions
• Informa<on or Analysis that Others (or most) Do Not Have
• Reasons/Predic<ons of Vola<lity • Informa<on About Disruptors of Large Public Companies or
Industries
• M&A Poten<al
• Quick, Focused Educa<on on Company, Industry or Ver<cal
• News Explana<on
The Informa<on That Hedge Funds Want:
View of Coverage: Breadth of Informa<on
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Good info or forecas<ng is not just about a Company…
…but the pressures from and on the ecosystem
Also consider effects from the legal realm
And the poli<cal world (both government and boardroom)
Nothing Happens In Isola<on. Informa<on and Strategies need to viewed through mul<ple filters.
Company Industry Legal Poli<cal Macroeconomic Macroeconomic effects can be predictors of company/Industry strategy or ac<on
View of Coverage: Breadth of Informa<on -‐ Examples
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Company, Industry, Legal, Poli<cal, Macroeconomic Industry Legal Poli@cal Company/News Item
Aereo is going to expand into 22 markets. Key Issues: ReTrans Nego<a<ons “Breaking the Bundle”
• Puts pressure on Broadcast Nets
MVPDs • Good for
Adver<sers CE device makers MVPDs?
TV Nets injunc<on case denied. Many more cases. My opinion: Aereo’s case is not good enough to win in SCOTUS
TV Nets threaten to go cable only. Masked message to congress: “Your ad rates will explode unless you help”
Revealed that companies have been paying MVPDs for be^er connec<ons to their networks.
Key Issues: Net Neutrality, Cost of internet growth
• MVPDs get extra rev • Extra cost for internet/media companies
• NeIlix et al trying to circumvent
Legality of forcing a purchase of backbone service for access to network. Level 3, Comcast
This process circumvents Net Neutrality laws. Will this be addressed? What companies have incen<ve and poli<cal pull to influence FCC
Contact Informa<on
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Chris Van Noy
Website: www.cvnnyc.com Linkedin: www.linkedin.com/in/chrisvannoy/ Email: chris.vannoy@gmail.com Twi^er: @chrisvannoy
Examples
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Studios (Theatrical, HE Combined)
Metadata File
Mezzanine File
Supplemental
Material
Enhanced Services, Fulfillment & Distribu<on
Theaters Interna<onal Distribu<on
Display
Sy
stem
s Contract Management Business Intelligence Product Metadata Rights & Avails
Fulfillment Metadata Mgmt Transcoding
Encryp<on/DRM Storage
Enhanced Services Packaging Sub<tling
Dubbing, etc. QC
Distribu<on Fast Transfer Physical Satellite
Billing & Finance Opera<ons/Repor<ng Digital Asset Management
Theatrical Workflow Opportuni<es -‐ Physical
Produc<on
File
Archive Long Term Archive Disaster Recovery
Retailers Cable /
Broadcasters / Satellite
Digital Cinema
Closed Networks
DVD Distributors
Film Asset
DVD / Blu-‐Ray
MPEG 2
Development Pre-‐Produc<on
Sales Manufacturing
Marke<ng Stream Screeners Ancillary Media Adver<sing
Measurement
Post-‐Produc<on Transport Mezz Enhance Video
Opera<ons Archive
Transport Mezz Externally
Produc<on Transport Video Stream Dailies
Accoun<ng Asset Tracking Royalty/Rights
Tracking
Tape Asset
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Development Pre-‐Produc<on
Sales Manufacturing
Studios (Theatrical, HE Combined)
Metadata File
Mezzanine File
Supplemental
Material
Enhanced Services, Fulfillment & Distribu<on
Intermediary
Display Adver<sing Payment
Authen/Author Metadata MGMT
DRM Recommenda<ons Asset Rights Data
E-‐Retailers E-‐Retailer Servicing
Storefront/ Inventory Storage CMS
Media ID Media
Recommend Secure CE delivery Ad MGMT
Cloud
POS Royalty Statements Intermediaries
Contract Terms Pricing Promos Distribu<on Availability
Sy
stem
s Contract Management Business Intelligence Product Metadata Rights & Avails
Audience Measurement
Royalty/Revenue Tracking & Fulfillment
Asset profitability Measurement
Fulfillment Metadata Mgmt Transcoding
Encryp<on/DRM Watermarking
Storage
Enhanced Services Packaging Sub<tling
Dubbing, etc. QC
Distribu<on Fast Transfer Physical Satellite
Marke<ng Stream Screeners Ancillary Media Adver<sing
Measurement
Post-‐Produc<on Transport Mezz Enhance Video
Opera<ons Archive
Transport Mezz Externally
Produc<on Transport Video Stream Dailies
Accoun<ng Asset Tracking Royalty/Rights
Tracking
Billing & Finance Opera<ons/Repor<ng Digital Asset Management
Theatrical Workflow Opportuni<es -‐ Digital
Produc<on
File
Archive Long Term Archive Disaster Recovery
Mezzanine or Display
File
Metadata File
Supplemental
Material
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Retailer Rela<onship
Ecommerce Back End
Ecommerce Front End Website, Apps
Custom
er Service – B2C
DRM Protec<on -‐ Hos<ng
Delivery of Content/Security
Transforma<on of Content/Formats
Storage
Metadata/Biz Rules Management
Transcoding
Ingest
Storage\Ed
ge Storage
CMS\DA
M (A
PIs)
DRM Protec<on – Encryp<on
Fulfillment
Retail
Adver<sing Management Cu
stom
er Service – B2B
Strategic Pieces of Basic Digital Content Commerce Ecosystem
The en<ty that has the rela<onship with the retailer will dictate the ecosystem partners, contribute to architecture and revenue distribu<on
The CMS/DAM is the retailer interface -‐-‐ control of content workflow -‐-‐ control of content business rules The CMS/DAM is integral to business and s<cky to retailer. Biz Rules determines biz model of each asset. Metadata – reviews, ra<ngs, tags, op<ons – important to manage. At cri<cal mass a high hurdle to move.
Customer Data – valuable, protected customer data that is the main value to the Retailer. Control of the data via Security, efficiency or scale would be strategic
Any service that can demonstrate unique compe<<ve advantage or unques<onably superior than the compe<<on for the foreseeable future. i.e. – proprietary delivery security “approved” by all the studios
APIs to Other Digital Lockers
Customer Account Data
Authen<ca<on/Authz
Customer Personal/ Ecomm Data
(API to Retailer Cust Data) Digital Locker
Storage – Providing primary, secure storage for a content provider’s digital assets gives the advantage of first crack at distribu<on, layering value added services (versioning, metadata, transforma<on etc) and creates a trusted rela<onship. Co
nten
t Managem
ent P
osi<on
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Media Warehouse
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CDN Opportuni<es Media/Entertainment Industry
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• HTTP Object Delivery
• Large File Delivery
• Analy<cs • Streaming
• Mul<cast support
• Stream priori<za<on
Site, App Accelera@on
Cloud Storage
Mobile Delivery
Professional Services
Security
Content Management
Core + Premium
• Cellular Net Op<miza<on
• Op<cal Network Op<miza<on
• MVPD Capacity
• Streaming
Network Extension
B2C B2B
Mone@za@on
• Iden<ty Layer
• Adver<sing • Payment
Protec<on/facilita<on
Licensed CDN
Content Transforma@on
Content Crea@on/Commerce
• Secure Transport
• Secure Display
• Collabora<on • Accoun<ng
Data
Security – Site, Content, Commerce Tracking – Commerce, Accoun<ng etc.
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B2B Secure Media Delivery
564 Broadcast Partners TV
Syndica<on HE VOD
The MCDN Solu<on Pre-‐configured servers or souware deployed that would include the automated workflow souware, op<mized for the Akamai network and security services – WAF, IPA etc. The network would be maintained by Akamai – Maximizing Efficiency and Minimizing Complexity
Workflow Tools CDN File Accelera<on Management Security
1 + 1 = 3
Scale Reliability Infrastructure Mgmt
One Network Removes Complexity Lower Cost
MCDN
World Map
NeIlix Global Rollout
Netflix International Streaming: In ‘13 Netflix is available in over 20 countries with 10.5M Subs.
Netflix International Rollout: In ‘14 we believe that Netflix will continue to grow in Scandinavia and launch in the rest of Western Europe through ’15 & ‘16 Major launches in Japan, S Korea, Australia in ’15 Countries in Eastern Europe and SE Asia will being to have access in ‘16 – ‘18
NeIlix, HBO Revenue Streams
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62.9% 16.2%
20.8%
Domestic Sub
DVD / Digital
Int’l Sub
Content Licensing
Int’l HBO Go
Domestic Sub
Int’l Sub
DVD Rental
HBO Observations ‘13 – ‘16
• Aggressive Int’l Growth • Drastic Decline in DVD • Domestic still Growing
in Rev
Netflix Observations ‘13 – ‘16
• Content Licensing Growth • HBO Go Int’l Minimal • Still Some Juice in
DVD/Digital • Dom & Int’l Sub Growing in
Rev but Int’l in %
HBO 2013 Rev: $4,373
HBO 2016 Rev: $5,181
Netflix 2016 Rev: $7,150
Netflix 2013 Rev: $4,358
61.9%
30.5%
7.7%
63.9%
4.3%
22.8%
8.2%
0.8%
60.2%
3.5%
26.5%
8.7%
1.2%
NeIlix vs. HBO ARPU, Costs and Profitability
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2013 2014 2015
Netflix HBO Netflix HBO Netflix HBO
$7.99 $7.67 $7.99 $7.98 $7.99 $8.22
Content Licensing
Original Content
Marketing
Contribution Profit
ARPU / Month
* HBO and Netflix Domestic
As HBO’s domestic business stabilizes it’s only growth is in APRU forced from MVPDs Netflix has increasing costs on multiple fronts but subscriber growth is enough to increase profit margin
22.5%
47.0% 24.6%
40.6% 28.5% 35.9%
10.1%
4.3%
8.5%
9.7%
7.5% 13.4%
9.9%
21.5%
11.8%
22.6%
14.9%
23.6% 57.5%
27.2%
55.0%
27.1% 49.1%
27.1%
NeIlix vs. HBO ARPU, Costs and Profitability
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16.9%
47.4%
22.5%
47.2%
24.6%
44.0% 28.5%
41.3% 37.7% 29.8%
11.8%
4.1%
10.1%
4.1%
8.5%
6.5%
7.5%
8.3% 6.2% 17.1%
20.7%
9.9%
21.5%
11.8%
22.5%
14.9%
23.5%
16.0% 26.2%
71.3%
27.8%
57.5%
27.2%
55.0%
27.0%
49.1%
26.9% 40.0%
26.9%
2012 2013 2014 2015 2016
NeIlix HBO NeIlix HBO NeIlix HBO NeIlix HBO NeIlix HBO
$7.99 $7.67 $7.99 $7.98 $7.99 $8.22 $7.99 $8.46 $8.99 $8.72
Content Licensing
Original Content
Marke<ng
Contribu<on Profit
ARPU / Month
* HBO and NeIlix Domes<c
Opportunity: Interna<onal Markets
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Emerging Markets moving from Commodities Economy to Durables and Services Economies
The world market for entertainment – both Pay-TV (HBO) and SVOD (Netflix and HBOGo) -- is rapidly growing as the gains in average per capita income creates a large, international consumer middle class. In 17 yrs. there will be Three Billion more consumers for video entertainment
Source: Goldman Sachs Investment Research
Average income increases from $12.5K to $23K USD
Emerging Market Avg: $12K Emerging Market Avg: $23K