Achieving Revenue Targets - WikiLeaks · 4/7/15Sony Confidential6 *Revenue Sources – Business...
Transcript of Achieving Revenue Targets - WikiLeaks · 4/7/15Sony Confidential6 *Revenue Sources – Business...
DRAFT05/21/2012
*Achieving Revenue Targetsi.believe
4/7/15Sony Confidential2
*Goals for the Session
Review targets as stated in the business plan to Tokyo
Discuss current situation
Brainstorm on potential paths to achieving goals
Identify actions to: Further define our marketplace Begin attacking strategic areas
Build a tactical timeline to hit Year2 targets
4/7/15Sony Confidential3
*Tactical Timeline
June
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What do we need to do now to hit the ground running?
What do we need to do to make our Target?
The MCS Ecosystem
MCS Toolbox
Rich API / Developer Tools
MCS Workforce
Rich API / Developer Tools
MCS Marketplace (Tools and Services)
DBB
- Project and workflow configuration / product lifecycle planning and management
- Bidding tools / RFP management / Deal management- Workforce services / search / recommendations / ratings / qualifications
MBC
CFP
4/7/15Sony Confidential5
*Revenue Sources – The Vision
Long Term Revenue Projections are Based on 4 Sources
Core ServicesStorage, Workflow, Security, Versioning,
Transport, Content ProcessingAPI(s), Ingest / Outgest, Real time Capture
Sony Tools Per Seat License and Per Production License
3rd Party Tools Revenue Share, White Labeled Core Services
Marketplace Per Seat Usage, Revenue Share, Referral Fees
4/7/15Sony Confidential6
*Revenue Sources – Business Case
Our Business Case is Built Exclusively on Core Services and Sony Tools
Core ServicesStorage, Workflow, Security, Versioning,
Transport, Content ProcessingAPI(s), Ingest / Outgest, Real time Capture
Sony Tools Per Seat License and Per Production License
3rd Party Tools Revenue Share, White Labeled Core Services
Marketplace Per Seat Usage, Revenue Share, Referral Fees
Category Year1 Year2 Year3 Year4 Year5 Total
Enterprise Licenses $0.0M $4.9M $22.4M $35.7M $37.9M $101.0M
Per Production Licenses $0.0M $5.6M $18.5M $41.9M $45.6M $111.8M
Core Services $0.0M $5.2M $16.2M $36.0M $40.9M $98.3M
Total $0.0M $15.7M $57.1M $113.6M $124.4M $311.1M
*Revenue Targets Summary
4/7/15Sony Confidential8
*Current Situation
Beachheads established at NBCU, ABC and Disney for CFP per seat licenses
High level conversations started with potential “Production” Customers (Core Services and Per Seat)
National Geographic ITV Zoo
Very initial conversations started with potential Customers for Core Services
Disney Studio MGM
Good (potential) customer base at Sony Pictures across all three sources of revenue
4/7/15Sony Confidential9
*Potential Paths to Achieving Goals
Broaden our current footprint Establish more beach heads Branch out across the organization
Penetrate the Production Market Film TV (Scripted) TV (Unscripted)
Establish our International Presence
Attack other Verticals Mid-Market Non-Entertainment
Disney 200ABC 150Lionsgate 5NBCU 200CBS 50MGM 5Fox Studios 10WB 10Bin Volt 50Transatlantic 50Sony 200
930
AETV 20HBO 20Showtime 20National Geographic 20Discovery 20Fox Sports 50E! 20MTV 50Univision 50ESPN 150Fox Television 50CNN 150Turner 200DirecTV 200PBS 20CW 20Travel Channel 20
1080
*Target Customer Assumptions
*SPE LandscapeDepartment Current EAGL / CFP User Other 3rd Parties
Functionality (Projected)
Legal EAGL RATS
Clearance
Theatrical Marketing EAGL
HE Marketing (Dom and Intl) EAGL
TV Marketing (Dom and Intl) EAGL
Consumer Products EAGL PIX
Development PIX, DAX
Finance ?
Corporate Development ?
HE Sales EAGL
TV Sales EAGL
Theatrical Releasing
WPF EAGL, CFP
Post Media Center CFP AVID, Protools
Colorworks EAGLBaselight, AVID,
Homegrown
Resident Production Companies ?
Imageworks Homegrown
TV Channels ?
Crackle EAGL Homegrown
Music ?
Third Party Affiliates PIX
*SPE LandscapeDepartment Current EAGL / CFP User Other 3rd Parties
Internal Production TheatricalAspera with Storage,
PIXInternal Production TV Cineshare + Sample Digital
4/7/15Sony Confidential13
*Broaden Current Footprint -- Challenges
Are the number of potential seat estimates accurate?
Is our average price per year accurate?
Do we have the right offerings across multiple organizations – if not, when will we?
How do we leverage “Sony as a Customer”
Do we have the right list of target Customers?
4/7/15Sony Confidential14
*Core Service Size Estimation Input Data
Segment Productions
GB per show
Months of Storage
Total GB- Months per show
Feature Films (Budget > $10M)
300 50,000 6 50,000 x 6 = 300,000
Television Episodes 4800* 6,000 3 6,000 x 3 = 18,000
*Assumption: TV productions by major studios in US = 20% of total (~200 out of 1000) Other addressable TV productions in US = 200 (same size as those by Major Studios)Total TV Episodes = (200 + 200) x 12 = 4800
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*Core Service Adoption Estimation
Segment Productions
Year 1
Year 2 Year 3 Year 4 Year 5
Feature Films (Budget > $10M)
300 0% 15% 25% 40% 40%
Television Episodes
4800 0% 10% 15% 20% 30%
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*Core Service Adoption Estimation
Segment Productions
Year 1
Year 2 Year 3 Year 4 Year 5
Feature Films (Budget > $10M)
300 0 45 75 120 120
Television Episodes
4800 0 48 720 960 1440
4/7/15Sony Confidential17
*Penetrate the Production Market -- Challenges
Do we have services Productions want / need? What are we missing?
What’s the right list of Customers to target?
Is our pricing in line with Customer expectations?
How do we get the adoption we need?
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*Total Weighted Revenue ProjectionsYear 1 Year 2 Year 3 Year 4 Year 5
US $- $21.3M $38.8M $52.3M $59M
ROW $- $10.7M $38.8M $65.4M $73.6M
Sub-Total $- $32M $77.6M $117.7M $143.6M
Partial Year Adjustment
N/A 50% 75% 100% 100%
Price Erosion N/A 0% 7% 7% 7%
Weighted Total $- $16M $57.1M $113.7M $124.4M
4/7/15Sony Confidential19
*Establish our International Presence -- Challenges
Do we have the right offerings at the right price?
How do we determine which markets to attack when?
What does the business and technical operations team look like, and when do we need them?
4/7/15Sony Confidential20
*Other VerticalsSegment Targets Comments
Seat Licenses
Qualified Film and TV 11 Disney, ABC, Lionsgate, NBCU, CBS, MGM, Fox, WB, Bin Volt, Transatlantic, Sony
Target Film and TV 24 HBO, Showtime, National Geographic, Discovery, Paramount, E!, MTVN, Univision, ESPN, Fox TV, CNN, Turner, DirecTV, PBS, CW, Travel Channel, Éclair, Studio Canal, TV1 (France), Gaumand, Pathe, Europa Corp, Pinewood
Post Production Houses (Major/Small) 80 Online Listings
Sports and Content Producers/Owners 9 Equal to Majors
Advertising 80 Equal to Post Production
Others 17 Unaccounted segments / equal to Independent
Core Services and Per Production Seats
Film productions 300 Total Addressable Films
TV productions 400 Total Addressable TV Episodes
4/7/15Sony Confidential21
*License Adoption Estimation
Segment Estimated Available Seats(Licenses)
Year 1 Year 2 Year 3 Year4 Year 5
Qualified Film and TV 930 0% 50% 75% 75% 75%
Target Film and TV 1080 0% 5% 50% 50% 50%
Post Production Houses (Major/Small)
400 0% 5% 10% 15% 20%
Sports and Content Producers/Owners
930 0% 5% 10% 15% 20%
Advertising 400 0% 5% 10% 15% 20%
Others 1080 0% 5% 10% 15% 20%
Film productions 300 0% 15% 25% 40% 40%
TV productions 400 0% 10% 15% 20% 30%
Total Adoption % 5520 0% 13% 30% 34% 37%
*License Projections SummaryYear Year1 Year2 Year3 Year4 Year5
Seats
Qualified 0 465 700 700 700
Target 0 54 540 540 540
Sports 0 47 90 140 190
Post Houses 0 20 40 60 80
Ad Agencies 0 20 40 60 80
Other 0 54 110 165 215
Sub-Total 0 660 1520 1665 1805
Per Title
Film Seats 0 45 75 120 120
TV Seats 0 40 60 80 120
Total 0 745 1655 1865 2045
4/7/15Sony Confidential23
*Attack other Verticals
Confirm we have the right list of Verticals
What are the services by vertical, and how should they be priced?
Do we have the right skills on the team to be successful?
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*Tactical Timeline
June
201
2
Ye
ar 1
Tar
get (
04/1
4)
Pi
lot L
aunc
h (0
9/12
)
R1
Laun
ch (0
4/13
)
What do we need to do now to hit the ground running?
What do we need to do to make our Target?
4/7/15Sony Confidential25
*ROW Build Up (un-weighted)
Year 1 Year 2 Year 3 Year 4 Year 5
Multiplier $- 50% 100% 125% 125%
Seat Revenue $- $3.3M $15.2M $20.7M $22.5M
Per Production Revenue
$- $3.9M $12.6M $24M $27M
Core Services $- $3.5M $11M $20.7M $24.1M
Total $- $10.7M $38.8M $65.4M $73.6M