Onlin

e Vide

o &Internet

Mechanics

A PRESENTATION BY BERTRAM GUGEL

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ONCE UPON A TIME...

August 1998, 15.000 Views/Day

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... FAST FORWARD TO TODAY.

25 Million Views since November 2009

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Kittens & Kids are so cute ...

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... BUT, what about professional content?

26m 56m 164m

24m 44m 74m

46m 109m 14m

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Internet Mechanics 10 Rules

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1. The Internet doesn‘t care about

YOUR RIGHTS!

§

Oct. 9th, 2006

Ask WARNER MUSIC

„Google and Warner Music Group Announce Agreement to Offer Google Video Users WMG's Music Video Content.“

„Warner Music Group Corp. said it began removing its songs and videos from Google Inc.'s YouTube video-sharing Web site this weekend, after the two sides failed to renegotiate a licensing deal.“

Dec. 22nd, 2008

Sep. 29th, 2009 „Warner Music Comes Back to YouTube“

What happened?

http://www.tubemogul.com/blog/2009/09/on-youtube-its-the-music-labels-and-then-everyone-else/

Warner left millions of Dollars on the Table!

The alternative ...

JK Wedding‘s Video generated 50 millions views.

What happened?

http://googleblog.blogspot.com/2009/07/i-now-pronounce-you-monetized-youtube.htmlhttp://www.wired.com/epicenter/2009/07/we-wont-get-boyled-again-sony-chris-brown-monetize-wedding-dance-video/#ixzz0fWYhFlpQ

Sony made thousands of Dollars

„In the last week, over a year after its release, Chris Brown's "Forever" has again rocketed up the charts, reaching as high as

#4 on the iTunes singles chart and

#3 on Amazon's best selling MP3 list.“

JK Wedding Video

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2. The Internet doesn‘t (financially) reward

ONE HIT WONDERS ...

1

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2. The Internet doesn‘t (financially) reward

ONE HIT WONDERS ...

26m 56m 164m

24m 44m 74m

46m 109m 14m

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... but it‘s easy to connect with your audience

AND BUILD A FOLLOWING!

Design a show!

Test and refine your production!

Put it in the wild!

Enjoy!

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... but it‘s easy to connect with your audience

AND BUILD A FOLLOWING!

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... but it‘s easy to connect with your audience

AND BUILD A FOLLOWING!

Digitsshow„THANK YOU to all of our fans for helping us reach

9 Million Views!!! 600k in the last four days! You guys rock!“

5.000

150.000

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3. The Internet is a piece of technology so

THINK OUTSIDE THE BOX.

Example: DEMAND MEDIA

http://www.wired.com/magazine/2009/10/ff_demandmedia/all/1

Algorithms define what videos to produce & their estimated value

Editors refine the suggested video titles

Produces log in online and sign up to produce the video.

Finally the video‘s checked, put online and monetized through ads.

Results?

421,255,914 Video views

261,179 Rating

300,854 Comments

138,951 Videos

442,014 Subscribers

55 million unique users

3 Billion social media interactions

1 Billion cummulative video streams

$17 million a year to writers, editors, and video producers

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4. The Internet will strip your content of its

CONTEXT

VIDEO

MetadataPlayer

Ads

Seeding

SEO

Site

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4. The Internet will strip your content of its

CONTEXT

http://www.avc.com/a_vc/2005/11/the_future_of_m.html

Microchunk it

Free it

Syndicate it

Monetize it

Reduce the content to its simplest form.

Put it out there without walls around it or strings on it.

Let anyone take it and run with it. 

Put the monetization and tracking systems into the microchunk.

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so put monetization into your

CONTENT

Ford @ Roommates

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so put monetization into your

CONTENT

Wii @ Nerd Perfect

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A big opportunity for

established producers!

= No Partner – no reach!

3,8 M Views

8,8 M Views

7,4 M Views

75k Views

130 M Views

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So please get it right next time and follow

ALL SUGGESTIONS!

http://www.avc.com/a_vc/2005/11/the_future_of_m.html

Microchunk it

Free it

Syndicate it

Monetize it

Reduce the content to its simplest form.

Put it out there without walls around it or strings on it.

Let anyone take it and run with it. 

Put the monetization and tracking systems into the microchunk.✓

✓

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5. The Internet will

TALK BACK!

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so you better

LISTEN ...

Tara Stiles Yoga @ YouTube

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so you better

LISTEN ...

1.581.954 Views

6.346 Ratings

3.579 Comments

1 Comment for every 450 Views

... and JOIN the conversation!

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PAST PRESENT FUTURE

Own Production Coop eration

A g g r

e g a t

i o .n

THERE‘S A NEW USER INTERACTION PARADIGM.

Users suggestand comment!

Users createand amend!

Users relaxand consume!

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6. The Internet often offers

INDIRECT REWARDS.

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6. The Internet often offers

INDIRECT REWARDS.

Soulja Boy @ YouTube

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But may have quite

an IMPACT.

Soulja Boy vs. Sony BMGearly 2008

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But may have quite

an IMPACT.

‣ Ø 550.000 Video Views/Day

‣ 226 Million Video Views on YouTube

‣ Universal Music Deal

‣ #1 Billboard-Charts USA

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7. The Internet favors

DIGTITAL NATIVES!

001010110111100011010101010111101010010101

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A 13 year old YOUTUBE star...

> 25 Mio users/month

...is generating more clicks than the BILD.de video content.

MEET FRED

Early Star: Rocketboom

2004

700 views/day

1 Video format1 page

2006

„The Rise of the Video Blog“Rolling Stone

100.000 views/day

$80.000 in advertising4 Video formats1 page

2008

Distribution deal with Sony Pictures TV

250.000 views/day

Werbung, Sponsoring12 Video formats12 pagesAppleTV, TiVo, PS3, PSP, ...

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Online Acitivities commmand a

strong FOLLOWING

3,5M Views @ YouTube

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MEET

MACHINIMA @ YouTube

2,5M Views per Day

938.744.906 Total Views

6.529.271 Comments

7.600 Videos on YouTube

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8. The Internet

DEMANDS ADOPTION!

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3 m

50 cm

10 cm

Plan and produce for different

USAGE SCENARIOS!

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Enable

INTERACTION!

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Adapt existing content

IN A CREATIVE WAY!

>60m Views @ YouTube

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9. The Internet offers new

DISTRIBUTION MEANS!

From a few EXCLUSIVE distribution channels to U B I Q U I T Y .

THE NEW DISTRIBUTION PARADIGM.

iPod vending machine

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300 Million Views for NNN‘s Shows in 2009

70 Million Views for Revision3‘s shows with 1,5Bn minutes watched

70% (NNN) and 50% (R3) more sponsors and deals in 2009 vs. 2008

Both added new shows to their portfolio

There‘s help:

Web Video Networks

http://www.nextnewnetworks.com/post/16222/press-release-our-2009-milestones

http://www.prnewswire.com/news-releases/revision3-continued-to-lead-internet-television-in-2009-with-over-15-billion-minutes-of-video-served-83336552.html

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10. The Internet forms a

NEW VALUECHAIN

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Production Repurposing Aggregation Distribution Ad Inventory Consumption

THE NEW VALUE CHAIN PARADIGM.

Production Packaging Ad inventory Distribution Access/Device Consumption

New Player AudienceTraditional Player

TRADITIONAL

EMERGING

Access/Device

GOT IT?

THANK YOU.

ContactBertram Gugel

M: +49 179 22 1 77 63

info@gugelproductions.dewww.gugelproductions.de