Next 5 Years in Online Media

ICT Summit: June 15th, 2010

Fuji TV TV Tokyo

NBC FOX

The Next 5 Years will be a Renaissance for Traditional Media

The Crunchyroll Time-Machine

source: 1. quantcast, google-analytics

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500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000US Global

Monthly Unique Visitors1

+16% Q/QGrowth

Transition to 100% Professional

2.2x growth since Series A

Core: 13 - 34 Year Old Anime & Drama Audience Internationally

6 million+ visitors worldwide

The Crunchyroll Time-Machine

United States44.01%

Canada8.37%

United Kingdom3.82%

Australia2.13%

Philippines7.23%

Singapore4.09%

Malaysia2.73%

Indonesia2.20%

Germany1.95%

Mexico1.43%

Rest of World22.05%

The Crunchyroll Time-Machine

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10

20

30

40

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60

Youtube Crunchyroll Google Video Hulu

13 – 34 Year Old Affinity

Crunchyroll users are early adopters of technology

1. Shift in Eyeballs

1 TDG: http://www.maxxomedia.com/blog/americans-will-be-watching-more-online-video-than-broadcast-tv-by-2020-tdg-report/

Viewers and Advertising will shift quickly to Online in next 5 years

2. Explosion of Media Consumption Devices

Media Consumption Devices will open entire new markets while revitalizing existing ones

Personal Experience Living Room Experience

3. Rise of Social and Gaming

The Last AirbenderNaruto Shippuden Gundam Wing

Interactive consumption of media critical to reach users

4. Anti-Piracy

Legal solutions, platform, and proactive measures will drastically reduce the effects of piracy

How to Make Money Online?

Broadcast TV34%

Cable TV29%

Satellite TV10%

Movie5%

DVD/BR11%

Gaming6%

Music5%

Media/Entertainment - US$204 Billion (USD) Monetization: Subscription and

Advertising will still dominate.

Distribution: Content needs to be everywhere. Social and anti-piracyare very important to grow mindshare.

The core businesses of subscription and advertising are still very viable. These core business models must be complemented by 360 degrees of periphery services to maximize content’s true value online.

The New Model for Content Business

Mobile(iPhone,Android,

iPad)

Social(facebook, myspace)

Feed(twitter)

TV(set-top, net-tv)

Embed(mrss)

Console(xbox,

wii, ps3)

Web Stream(on-site)

Anti-Piracy(DMCA)

Traditional Models

Advertising

Subscription

Core business is a freemium model of advertising and recurring subscription. Surround core businesses with a comprehensive set of periphery services to reach today’s audience. Leverage social gaming, anti-piracy, syndication and devices as marketing and user acquisition vehicles.

Crunchyroll Platform lets Content Licensors reach Worldwide Audience Directly

CR powers Anime videos on sites such as:TV.com (CBS), Atlusonline, PerfectWorld, ANN

CR Video Experience:Robust system allows content to be seamlessly distributed across sites, platforms and devices

Crunchyroll users can stream on CR.com, on facebookapps, mobile devices, all with a single login

Since TV Tokyo started working with CR on Naruto:- Piracy down over 70%- Generating significant revenue- Naruto is a Top 10 brand in Yahoo and Google search