1. Introduction of Disruptive Technologies into the market - You Tube, file sharing, cheap animation production tools, new animation technologies that offer a production advantage
2. Fragmented, and diffused audience / Market - A highly diffused market that expects a consistent offering of differentiated novelty entertainment products. With a massive range of available content competing across multiple platforms (TV, Internet, mobile devices, and cinema)
3. Government Regulated environment - changing regulatory landscape - The screen industry is governed by a rating system imposed through government mechanisms. There is a challenge to manage projects within the boundaries of these ratings ,as these to a large extent effect the audience that can get access to your content
Also Kids animation (the backbone of the animation industry) is funded largely from the advertising revenue of 'Junk Food' - With the current focus on childhood obesity there is pressure to ban these ads from timeslots that are designated for children. This means that as revenue models are shifting there is a challenge for companies look to alternate funding and revenue models. Identifying and Managing change in the market
4. Brand perception - Animation is not just for kids ( How do you change perceptions/ behaviours to grow / expand market share of animation in the overall screen market
5. Complex Channel relationships - Animation production companies are in essence pitching a market segment to a buyer (distributor). The buyer is actually buying an entertainment property to fill a market segment
6. How do you differentiate in a highly differentiated market?
2. Fragmented, and diffused audience / Market - A highly diffused market that expects a consistent offering of differentiated novelty entertainment products. With a massive range of available content competing across multiple platforms (TV, Internet, mobile devices, and cinema)
3. Government Regulated environment - changing regulatory landscape - The screen industry is governed by a rating system imposed through government mechanisms. There is a challenge to manage projects within the boundaries of these ratings ,as these to a large extent effect the audience that can get access to your content
Also Kids animation (the backbone of the animation industry) is funded largely from the advertising revenue of 'Junk Food' - With the current focus on childhood obesity there is pressure to ban these ads from timeslots that are designated for children. This means that as revenue models are shifting there is a challenge for companies look to alternate funding and revenue models. Identifying and Managing change in the market
4. Brand perception - Animation is not just for kids ( How do you change perceptions/ behaviours to grow / expand market share of animation in the overall screen market
5. Complex Channel relationships - Animation production companies are in essence pitching a market segment to a buyer (distributor). The buyer is actually buying an entertainment property to fill a market segment
6. How do you differentiate in a highly differentiated market?
Posts
2 comments:
Just quick notes regarding first & fourth challenges.
Seems to me e-channels like uTube and FaceBook can play two contradicting roles in this regard. We need to clarify this as some people can argue us in terms of helping animation companies to spread the word about certain products and/or characters and brands.
As for the brand perception I guess this is industry perception problem not only brand. The whole industry field is affected by this fact.
Points of thoughts from Marketing Research site:
From Getting Animated: PEVE 2003 papert at
http://www.the-infoshop.com/study/scr17721_animatated.html
+ + [Ahmed AbuRob]: Seems the channel and type ie such as TV is still one of the strongest challenges for companies.
Key points in the article:
Key points
European consumers spent an estimated ?1.3m on buying animation on video (VHS+DVD) in 2002.
Hollywood titles such as Finding Nemo and Shrek dominate the animation sector, but strong local properties can also thrive.
A strong animated title or franchise can generate revenues for years on video.
Animation accounted for 26 per cent of European VHS sales in 2002 but just 8 per cent of DVD sales.
Sales of animation on DVD are still lagging behind those of other genres.
Belgium has the highest proportion of animation sales on video; but UK and France are the largest animation markets by volume.
Theatrical or TV exposure are key to generating interest in a new animation brand; video can then build on this interest.
----------------------------------
The article "Online Movies and Entertainment: Emerging business models and technologies"
Found on: http://www.the-infoshop.com/study/scr12929_online_movies.html
+ [Ahmed AbuRob]: Emphasises on some of the challenges we agreed on such as the market fragmentation int ems of audiences , distribution
etc... The good thing is that it offers us a solution for that through utilizing the Internet as a strategic delivery channel for animation companies.
Article's abstract:
The emerging market for digital content distribution via Internet to PC, TV and wireless platforms is becoming increasingly important to the revenue prospects of major content owners such as broadcasters and movie studios. Meanwhile, a pioneering band of specialist Web entertainment content providers continues to experiment with different content forms and revenue models in a way that enables the medium's chief advantage - interactivity - to overcome key
limitations such as bandwidth and audience fragmentation. Online movies and entertainment: Emerging business models and technologies
provides the most comprehensive market analysis available to date of how content creators, online distributors, infrastructure providers,
technology companies, network operators and service providers are harnessing media delivery technologies to deliver movies and other
entertainment content to online consumers.
The report predicts which content genres will prove the most successful online, forecasts future revenues from Web content to 2005
and predicts that the MPEG-4 delivery format will help to fuel user adoption of streaming video. Screen Digest also surveys the US and
European markets for short form and long form online content distribution while predicting which providers of security, content
delivery and digital asset management (DAM) software and services will benefit most from the predicted explosive growth in demand for
online content. Particularly useful for content owners is the in-depth assessment of the wide range of digital rights management (DRM)
technologies that have emerged to meet the threat of Internet movie piracy provided in the report.
+ [Ahmed AbuRob]: The following section explore terrific ideas that
Guides us in our analysis for the challenges and feasible solutions
Questions raised and analysed:
How many people will be viewing online movies and entertainment
globally by 2005?
Which delivery platforms will be most popular?
Which content providers are likely to dominate?
Where are online movies and entertainment likely to emerge first as a
market reality?
How much revenue will multi-platform (PC, TV and wireless) online
entertainment content be generating by 2005?
Which content genres (including Flash animations, short films, 'fuzzy media', multiplayer games and feature films) will prove most successful?
Which revenue models (including subscription, pay-per-view, pay-per-play, advertising and syndication) will prove the most durable?
What is the common attribute shared by all successful online entertainment content?
How are traditional media companies such as broadcasters and Hollywood movie studios reacting to the challenge of Internet delivery?
How will the legal and antitrust issues surrounding the delivery of premium movie content over the Internet be resolved? Will ventures such as the major studio movies-on-demand services Movielink and Movies.com prove successful?
How successful will GPRS and 3G wireless content and applications prove in the short-to-medium term?
Which companies will dominate the infrastructure, content distribution, digital asset management (DAM) and digital rights management (DRM) value chain that makes possible the delivery of rich media content to consumers?
To what extent do peer-to-peer file sharing applications such as Kazaa and BearShare, as well as lesser known piracy channels such as IRC (Internet Relay Chat), FTP (File Transfer Protocol) and Usenet, pose a threat to rights holders' chances of generating revenues from their content online?
Will MPEG-4 win the race to become the standard for digital video delivery or will proprietary networks from RealNetworks and Microsoft continue to hold sway?
To what extent will streaming and other forms of rich media advertising enhance the value of content on PCs, TVs and wireless devices?
---------------------------------------------------------------
From Knowledge Process Outsourcing
Found on http://www.the-infoshop.com/study/go43849-knowledge_toc.html
+ [Ahmed AbuRob]: : Seems outsourcing is a very valid and strong solution
for the high cost production. More interestingly the following article
confirms the needs for reducing the significant expenditure by outsourcing to services providers. It also confirms that the problems resulted from outsourcing(such as quality, experience,etc..) will be outstripped supply by experienced outsourcing providers:
Article: "Outsourcing in Next Generation Games Development:
Delivering cost and production efficiency"
Found on: http://www.the-infoshop.com/study/scr36801-next-g-
games.html
Abstract
A quiet revolution is transforming the games industry as developers
turn to outsourcing to control spiraling next generation costs.
Outsourcing in Next Generation Games Development -- reveals a sea
change in games development that is resulting in significant expenditure being shifted to outsourced services providers, many
located in Eastern Europe and South Asia.
This study by Screen Digest is the first detailed study of this increasingly important and rapidly growing market.
The report's author, Rick Gibson, says: "Every transition to a new generation of consoles is painful, but this one is proving much more
difficult and more expensive than before. Outsourcing is one of the few effective strategies in use today by the world's largest games
studios to keep costs, particularly resource costs, under control."
Key findings:
The global market for games outsourcing will reach $1.1bn by the end of 2006 and is set to grow to $2.5bn by 2010 -- representing 40% of
total games development spend outsourcing is already common -- it is estimated that 60% of games
studios outsource today, with this figure projected to rise to 90% by 2008
If left unchecked, production for games developed for the new
generation of games consoles will increase by 50% demand for quality art and animation will soon outstrip supply by experienced outsourcing providers Undersupply of skills will result in rising prices and the continued
suppression of the number of new titles in development.
Post a Comment