Media & Entertainment

BRANDS IN A DISRUPTIVE WORLD

Next Steps …

First, some perspective…

…let’s examine brands in a disruptive worldasking three questions:

What?So What?Now What?

WHAT?(we’ve reached anINFLECTION POINT, and it has changed the game)

Going forward…

BRANDS WHO CANNOT MARKET AND DISTRIBUTEACROSS BOTH “B2B” AND “B2C” BUSINESS MODELS…

…will NOT be industry leaders.

Media and Entertainment companies now have to identify all interactions among ecosystem participants, to learn how their content and accompanying sales and distribution processes give value to customers.

Imagine a world where a disrupter like Facebook not only owns its customers’ social feeds, but a distribution infrastructure as well.

So, how can established Media Brands disrupt the disruptors?ANSWER: Transition from just creating impressions, to building DIRECT RELATIONSHIPS between consumers and brands,benefiting marketers who advertise on their brands.

“ ‘What the studios need to do is start embracing the front end of the business: to start knowing who their customers are; to start building mechanisms to communicate with them …selling media is going to get a lot more interesting, more precise, cheaper, efficient,’ said Steve Jobs, the late Apple CEO…but Hollywood is still struggling with how to efficiently reach audiences and contain mushrooming marketing costs.” - Variety 3/08/2016

SO WHAT?(maybe what is TRANSFORMINGare the business models)

IF THE TV NETWORK MODEL FAILS and content windows collapse, then every content company Is essentially in the SVOD licensing business.

Audience/Consumers’ ATTENTION IS THE NEW HOLY GRAIL. Addressable audiences are possible, but will require a data advantage. Ad revenue is declining yet viewership numbers are increasing across universe of devices, due to fragmentation.

TWO ENTERTAINMENT TITANS dominated the charts for the last few months of 2016: Disney…and Ryan, a five-year-old boy. Disney’s films topped America’s box office in 9 of the last 10 weeks of the year. Ryan’s YouTube channel, was the site’s most watched in America for the last 20 weeks of the year.

THE TRADITIONAL STUDIO SYSTEM HAS NEVER SEEN THIS BEFORE: Technology has turned human distraction into its metric of profit.

A BATTLE FOR DOMINANCE IS TAKING SHAPE IN TWO ARENAS: Free (Ad-Supported) and Premium Content (Subscription).

The first is being waged by the social platforms that trade in users’ eyeballs rather than subscriptions.

In the second arena, Netflix and Amazon compete against the traditional studios to see who can persuade the most people to pay for their products.

Studios must revolutionize how the audience connects with their brands

PROACTIVE MARKETING &

SEAMLESS TRANSITION

Through all channels &

through out the process

SEAMLESS TRANSITION

From Anonymous to

Known AND Across Channels

Optimize Value

RIGHT FOR CUSTOMER

AND PROFITABLE

Use Customer Context

IN REAL TIMEGUIDED,

ADVISORY SALES PROCESS FOR

EASY ACCEPTANCE

NOW WHAT?(exactly how do you ACHIEVEa new competitive advantage?)

Data about customer

Best Actions

CustomerEvent Patterns

Action & Offer Lifecycle Management

Propensities, Scoring & Modeling

CustomerIdentification & Matching

CustomerProfile & Journeys

CustomerInteraction History

Customer Strategies & Rules

Information

Insight

Action

The “Always-On” Customer Brain

Take a deeper look at:

http://www.pega.com/insights/resources/customer-decision-hub

What if you could CONNECT your brands to the audience …with real time contextual intelligence?

https://www.pega.com/products/pega-7-platform/decision-hub

+2016

PegasystemsAppian

IBM

2016

Salesforce

Pegasystems

MicrosoftOracleSAP

+

Continuous Sensing & Orchestration

Prescriptive Insights for Every Moment

Institutional Memory & Accountability

A redefinition of CRM

In the Cloud or On-Premise. Using visual models – no code – to create/change on-fly enterprise applications

Our single, complete, unified Platform wraps end-to-end around existing ecosystem & not need to be system of record

PEGA connects all “consumer brains” to back-end operations,AT SCALE, IN REAL TIME, ACROSS ALL CHANNELS

2015

IBM

AppianPegasystems

2016

LEADER IN CRM #2#1 BUSINESS PROCESS MGMT

#1 REAL-TIME INTERACTION MANAGEMENT

#1 CASE MANAGEMENT

LET’S DISCUSS FURTHER

Pegasystems Inc. (NASDAQ: PEGA)3,500+ employees worldwide

30,000+ certified professionals

A Forbes “Most Trustworthy Company”

Pega connects enterprises to their customers, in real-time, across all channels…and adapts to meet rapidly changing market requirements.

Edward GilPega Media & Entertainment Practice

818-746-6999 ED.GIL@pega.com