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August 2007

August 2007. Power of 10 First-run Syndication Strategy. Confidential Draft. POWER OF 10 Strategy Highlights. POWER OF 10 becomes available for syndication in Fall 2009

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August 2007

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  1. August 2007 Power of 10 First-run Syndication Strategy Confidential Draft

  2. POWER OF 10 Strategy Highlights • POWER OF 10 becomes available for syndication in Fall 2009 • SPT is evaluating the opportunity to accelerate the launch of POWER OF 10 with particular consideration paid to the following: • In-house expertise on the product and the relevant marketplace • Available timeslots and market appetite e.g., POWER OF 10 must compete with several shows for available time-slots for Fall 2008 (e.g., DEAL OR NO DEAL, STEVE HARVEY, etc.) • Affiliate partners e.g., NBC and Tribune • Broad distribution vs. selective 2-Year rollout plan to gain momentum • License fees and barter models • Ad sales opportunities e.g., barter, product placement, digital, etc. • Effect of a syndicated show on its network version (i.e., ratings erosion) • Budgets for marketing and publicity campaigns • Digital expansion opportunities • Overall revenue opportunity from license fees, barter and digital offerings • Launch calendar • If an accelerated launch proves opportunistic, SPT will request permission from CBS to make POWER OF 10 available for syndication by Fall 2008 • SPT is very well positioned to strategically bring POWER OF 10 out-to-market

  3. Develop Product and Market Expertise Develop Sales Tools Research and Sales Support • Continuously conduct local and national ratings research to develop expertise on the product and the relevant marketplace • Identify an overall picture of the market and most likely partners through market reconnaissance • Current customer and potential demos for expansion • Strengths & weaknesses of the show from a viewer and partner standpoint • Available timeslots, markets, network interest • Draft the message in the sales book with guidance from the sales and marketing teams • Assist marketing/publicity efforts by creating buzz in the marketplace through emails sent to potential partners/affiliates • Provide polling assistance to garner consumer feedback

  4. Timing Targets Revenue Distribution Strategy Summary • Go out Fall 2008 • Need a green-light from CBS – to review plan with Les Moonves • Will need to compete with other shows coming to market • DEAL OR NO DEAL • STEVE HARVEY • FIRST-RUN SYNDICATED COURT SHOWS • Broad roll-out • 50% Affiliates (60% daytime / 40% early-fringe) • 50% Non-traditional affiliates (45% daytime / 55% early-fringe) • Likely targets: • NBC O&Os 9am – 4pm (M – F) • Tribune affiliates 5 – 6:30pm (M – F) • Analysis shows sufficient time-slots open Fall 2008 • Annual license fees, barter and digital opportunities

  5. Key Assumptions Target Advertisers Product Placement Digital Ad Sales Strategy • Spots: Three :30 spots per day, 1.5 minutes a day, 15 spots per week • Ratings: Based on a 2.2 rating • Rates: $XMM – XMM dollars a week • Pharmaceutical • Soft-drink • Consumer goods • Identify any product placement opportunities for the syndicated show • Evaluate appropriate online ad sales strategy

  6. Case Study • Effect of a syndicated show on its network version • CASE STUDY TO COME FROM RESEARCH

  7. Provide Resources for Superior Sales Effort Marketing Support to Reach Core Audience Marketing Effort Comments SPT has traditionally budgeted $5-7MM to launch a show of this caliber Marketing Plan

  8. Syndication PR Builds on Network Success Timing/Targeting for Trade Stories for Syndication Message for Syndication Publicity • Ratings announcements continue to be strong • Drew Carey publicity/support continues • Anticipate trade ads when CBS picks-up the show • Announce after syndication partners are locked • Announce broadly with specific outreach to stations and Hollywood trades • Highlight launch partner and time slots • POWER OF 10 brought out by SPT, the studio responsible for the #1 and #2 games show of all time • Call out POWER OF 10 strong performance on network • Promote new host for syndication • Highlight success of SPT’s other recently launched gamer shows • Identify companion shows (e.g., Cross Words, if applicable)

  9. Mobile Online Game Online Player Crackle Digital Strategy • Development of mobile game • Mobile personalization products – wallpapers, ring-tones, etc. • SMS related activities inside the show – text answer to 4Sony during the show • Development of online game • PC play, online web versions and downloadable versions for the PS3 and Xbox • Use Crackle syndicated player to syndicate show • Full ability to put episodes – full and clips – online and mobile • Additional digital rights including DST/VOD • Allow users to suggest questions • Air episodes or clips or Minisodes • Use online game

  10. Sales Process Timeline Date Action Item * Launching prior to September 2009, subject to CBS approval. Strong initial ratings imply potential to syndicate early

  11. Appendix

  12. Power of 10 Strategy Highlights Maximize Revenues • $11-12MM in revenues from syndication (~$225K per week) • Generate [$XMM] in revenues from ad sales and product placement • Extend the brand to digital platforms, increasing exposure and driving [$XMM] in revenues Superior Sales and Marketing Support • Maximize Conduct detailed research on the show’s audience and performance to tailor the sales message and focus on the most likely buyers • A $5-7MM marketing investment to support the show through a comprehensive marketing and publicity program • Provide the best sales tools to effectively showcase The Power of 10

  13. Mobile Game Online Game Online Player Crackle Digital Strategy [Issues we’ve asked Sean’s team to address] • Development (Does SPT mobile do it? Use Java Ground?) • Carriers (Exclusive 1 month w/ Verizon to get marketing commit? Then broad?) • Pricing and unit expectations; total dollar expectations • “For sale game” -- Speaking to Jeff Weiss about ability to create “for sale” game; speak with SOE about development responsibilities • “Promotional game” Re-skin CBS version?Promote at POWER OF 10 website? And affiliate websites? And Crackle? • Potential to reach XXMM unique users • Syndicate to all affiliate pages? XXMM viewer reach • DST/VOD potential? • Allow users to suggest questions? • Air Minisodes? • Use online game

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