Futurescape Web TV and social TV reports – essential insights for digital business development and creative approaches

© Futurescape Ltd 2010 – www.futurescape.tv
Web TV and Social TV Research and Reports

SAMPLE PAGES FROM THE BIRTH OF ONLINE TV

WEB SERIES BUSINESS PROFILE – In The Motherhood

Synopsis US comedy about three mothers, starring Leah Remini, that invited women to
send in their true-life experiences for the script; sponsored by Sprint and Suave.

Production company Conceived by Mindshare Entertainment, video by Science +
Fiction, interactivity by FanLib.

Commissioner / sponsor / revenue
 Co-sponsored by Sprint and Unilever‟s Suave.
 Unilever promoted the Suave range of hair, skin and deodorant products: Suave is “a
brand for the average mom who puts her family first.”
 Mobile operator Sprint promoted family safety, family calling, entertainment services.

Budget
 Approx $1m.

Number of episodes and length 5 X 5 mins.

TX dates and schedule
 Show premiered 11 May 2007 (also on The Ellen DeGeneres Show), with subsequent
episodes on 22 May, 29 May, 5 June and 12 June.

Key innovative and interactive features
 Show invited target audience of mothers to contribute script ideas from their own
real-life experiences, with site users voting which ideas were best.
 Characters had Sprint Digital Lounge music playlists.

Distribution
 Show site www.inthemotherhood.com
 Online: MSN | Suave | Sprint site | Sprint TV (mobile) | FanLib for contributions.
 Television: Clips and episodes shown on The Ellen DeGeneres Show.

Promotion / marketing
 The Ellen DeGeneres Show also featured Remini and invited viewers to send in ideas.

Success
 Claims 5.5 m video views in first season and that during the campaign the site was
the fifth most popular site for mothers on the Web.
 Second season started in February 2008.
 Developed by ABC for broadcast TV version in 2009.



Online TV funding, revenue sources and sponsorship

Funding for studios

Until early 2008, Web show studios and production companies were launching with ever-
increasing funding and support from major investors. Due to the recession, there has
been little activity since the second half of 2008.

Significant exceptions are Agility Studios, which launched in November 2008 with
“several million” dollars from Mantucket Capital, and DECA, which managed to secure a
remarkable $10m second round in January 2009, from previous investors Mayfield Fund,
General Catalyst and Atomico, together with newcomer Rustic Canyon Ventures. Michael
Eisner‟s Vuguru secured a major deal with Rogers Communications in October 2009.

More details are in the studio and production company profiles and summarised below.

Table: Significant studio funding deals (high to low)

Studio / production co Funding Investors
$23m Spark Capital, Goldman
Next New Networks  $8m – launch Jan 2007 Sachs, Velocity Interactive,
 $15m – March 2008 Saban Media, Bob Pittman
$15m Mayfield Fund, General
DECA  $5m – launch Sept 2007 Catalyst, Atomico, Rustic
 $10m in January 2009 Canyon Ventures
$9m Greylock, LinkedIn CEO
Revision3  $1m – launch Sept 2006 Reid Hoffman, entrepreneur
 $8m – June 2007 Marc Andreessen
NBCU, Hearst, Greycroft,
Worldwide Biggies $9m – launch Aug 2007 Platform Equity, Prism
VentureWorks
$6m – March 2008 (two MK Capital, Velocity
Generate years after launch) Interactive
$2m – July 2009
Eqal $5m – launch April 2008 Spark Capital, Marc
Andreessen and others
Independent Comedy $5m – launch 2007 Angel investors
Netwk
Tudor Investment
60Frames $3.5m – launch July 2007 Corporation, Pilot Group,
SpotRunner, UTA
$2.2m ConsensusOne Ventures
For Your Imagination  $1.2m – launch Jan „07
 $1m – March 2008
Electric Farm Sold 10% stake for $2m in Granada American
Entertainment August 2008
Agility Studios “Several millions” – launch Mantucket Capital
Nov 2008
Vuguru “Multimillion dollar” – Oct Rogers Communications
„09 (two years after launch)

Source: Futurescape



Production in action

Show and season lengths

Very short forms vs narrative

There is a widespread preconception that online viewers will not watch video for more
than a few minutes. Says Mark Karlan, media strategist at Lowe Worldwide, New York:
“We know people‟s attention spans online are short.”

But is this true? And why are so many producers shooting episodes at more than five
minutes? Geoff Goodwin, head of the multi-platform teen service BBC Switch, sums up
the assumption about length: “[People say] „Oh, they‟ve got 19 things in their room, so
we‟re only going to be able to get them for 3.8 minutes, so we need to do [episodes at]
that length.‟

“But videogames are as long as they‟ve ever been. Sit down and play Halo and the
promise is you‟re there for weeks. Look at the Harry Potter films and Lord of the Rings,
some of the popular media for this generation. It‟s long and getting longer.”

The assumption that episodes have to be one to five minutes long comes at least in part
from the content on video sharing sites such as YouTube, which are very often at that
length. Yet it is important to bear in mind that YouTube caps video length at 10 minutes.
It is not possible to upload a longer clip. And many YouTube contributors are not working
in scripted narrative formats, but producing video blog entries that do not require 15-
minute running times.

Another consideration is the commercial pressure to keep it short. Kathleen Grace, co-
creator of The Burg, sums up the tension between advertiser requirements and
narrative. “The ad industry says three to five minutes because you can get more
impressions and views with shorter content. But we've had very successful episodes that
are longer. Our general barometer for The Burg and The All-For-Nots has been if we got
bored while watching it. If it feels tight and moves along then we don't worry about the
number of minutes it is. People will watch five minutes, 15 minutes, or even 22 minutes
online as long as it's compelling.”

This was certainly true of one of the biggest successes so far, Dr Horrible‟s Sing-Along
Blog. The superhero musical is arguably closer to a condensed feature film than a TV-
style series, as it runs for 45 mins total, and was released in three, 15 minute episodes.
Online viewers were first able to watch it streaming via Hulu.

Balancing the competing demand of advertisers – for more impressions via a larger
number of short episodes – with a producer‟s aim to deliver a strong narrative via longer
episodes, is one of the key challenges that must be addressed for online television to
progress commercially. It may be that a format will emerge, analogous to the broadcast
television sit-com, that manages to resolve the issue. Or there may be several formats
that each work with a different commercial model. For instance, a single sponsor may
find a longer episode format entirely acceptable if it delivers a good audience and the
sponsor‟s product is featured effectively.


ABOUT THE BIRTH OF ONLINE TV

“Futurescape's The Birth Of Online TV report is, without question,
the most comprehensive, functional resource I've seen to date
for anyone in the business of delivering on the promise of
Web television. Truly invaluable.”

Wilson Cleveland, Senior Vice President & Director,
CJP Digital Media

Creative and commercial strategies for a new entertainment medium

Inform your digital strategy with Key questions answered
comprehensive coverage of the
fast-growing market for original  How is the boom in Internet video
Web TV and transmedia shows, viewing building an audience for
their funding, production and original Web TV shows?
success.
 How are Hollywood studios, British
broadcasters and production
 Key data and market trends to inform
companies in both countries
strategic planning, forecasting and
pioneering new online series?
business development
 What are the essential insights from
 How US Web TV studios are funded
the most significant successes and
failures in Web shows?
 Detailed analysis of revenue sources
for Web shows: advertising,
 What new online formats and forms of
sponsorship, commissioning, download
interactivity are emerging?
sales and more
 How do shows find and build an
 Comparative budgets: per season and
audience?
per-minute
 What kinds of distribution, marketing
 Detailed profiles of major Web TV
and promotion are in use?
comedy and drama series: rapidly
compare formats and commercial
 Which famous actors and directors are
models, including branded
embracing the creative and
entertainment
commercial opportunities in Web TV?
 Comprehensive listing of Hollywood
 What kinds of productions are they
studios‟ digital divisions and Web TV
making?
production companies - and what
kinds of shows they make - for
 And which brands are backing them?
competitive analysis

 Listings of major brands that 100 pages / 40,000 words, 15 tables, 14
sponsored American and European Web show business profiles.
shows, revealing which advertisers are
active in the sector and what genres
they sponsor Second edition, August 2009.

 Comparative budget data and revenue
sources to assist production budgeting Fast digital delivery as a PDF.


In the report Who should read this?

 Covers original Web TV scripted
comedy and drama shows in the USA
 Business development executives,
and UK digital executives and
commissioners in studios,
 15 tables: online video viewing broadcasters, and Web video and
figures, studio funding, production social networking sites
budgets, episode lengths, self-declared
Web show viewing figures
 Branded entertainment specialists
 Listings of key market players: in advertising and media buying
58 studio digital units and Web show agencies
producers: studio and production
company listings for BBC, CBS,
Channel 4, Disney, Fox, NBCU,
 Innovative brand managers
Paramount, Sony, Warner Bros and
49 production companies seeking new opportunities for their
brand portfolio in the online video
 Advertiser and sponsor listings for space
US and European Web series: sole
sponsors and multiple product
integration  CEOs, senior executives and
producers in television and new
 Brand sponsors referenced in the media production companies
report include Carl‟s Jr, CIBA Vision,
Ford, Red Bull, Sprint, Suave, Tampax,
Tide, Toyota and many more The Birth Of Online TV enables you
and your team to get up to speed with
 14 in-depth Web show business
the fast-moving Web TV sector.
profiles: full creative and commercial
details, each with a colour still from
the production, plus 23 further
significant US, UK and European shows Our buyers include global
listed advertising agencies, broadcasters,
Hollywood studios and producers:
 13 major trends for the future of the AT&T, BBC Worldwide, Digitas,
Web show market Disney, Eutelsat, Fox, HBO, ITV,
MediaCom, Ogilvy, Publicis, RTE,
 4 industry expert interviews Warner Bros.
 Itemised analysis of funding and
revenues sources for shows, with
Futurescape's research is regularly
examples
quoted in media and marketing
 Live links to all Web shows and publications such as Variety's Video
production companies to take you Business, Broadcast, Televisual, TV
direct to their Web sites Week, MediaPost and Campaign.

 Methodology: the analysis is based
on production company information,
authoritative industry sources and
original research

To order your copy online visit: www.futurescape.tv


Full Media Coverage: Second Edition

Quoted in Variety, HuffPo and more publications

Click on the red links to see the original articles online.

While the future of television is continually being debated, the news media are starting
to analyse the significance of Web shows for the entertainment and advertising
industries.

As Futurescape is a key source of independent research on the sector, the second edition
of our pioneering report The Birth Of Online TV is receiving even wider coverage than
before, both trade and consumer.

There‟s a comprehensive write-up by Jennifer Netherby in Variety's Video Business.

Greg Mitchell, editor of Editor & Publisher (the main trade magazine for the US
newspaper industry), quotes our findings in his Huffington Post article, After Emmys: Are
Web Series a New Threat to Primetime TV?

Other entertainment industry press includes:

 The Business Week Internet television blog

 The Informa newsletter New Media Markets (subscription only)

 The digital edition of Cynthia Turner‟s e-mail newsletter Cynopsis

 Media news specialist MediaBistro

 IPTV news site TVover.net


Web shows as branded entertainment, funded by major advertisers, is the focus for
Brand-e.biz and Product Placement News.

In consumer media, Keanu Reeves and
other stars appearing in or making Web
series is the hook for Home Media
Magazine and the home theatre blog
Wired At Home.
The relationship between a Web show and
its fans, which we‟ve written about
extensively in our WeVision report, is
evident in this screenshot from Twitter
(left).
American soap star Crystal Chappell
retweets the TVover.net article
mentioning her forthcoming series Venice
- and her fans pass it on.
The original release is here on PRWeb.


Full Media Coverage: First Edition

What do Web shows cost?

Daisy Whitney used the production cost analysis from The Birth of Online TV for a
fascinating comparison of current Web shows in her New Media Minute video.

What does it really cost to produce a Web video series? $200 per minute or
$2000? Or maybe $20,000? The numbers may surprise you. This week's "New
Media Minute" breaks down a range of costs for Web series such as “Dorm Life,”
“Sanctuary” and “Foreign Body” and compare those price tags to traditional TV.

Click to see the video


Online TV myths

Gavin O‟Malley at MediaPost, essential reading for media planners and buyers, writes:

“Thanks to viral marketing, engaging and well-produced content will distribute itself
online, right? Wrong, according to a new report from Futurescape, a London-based
digital entertainment R&D firm, which details several myths related to original Web
content production in the U.S. and U.K.”

He goes on to discuss in detail three of the myths we identified in our report The Birth of
Online TV:

1) Good content will automatically go viral (it actually requires promotion)

2) Internet shows are cheap (in fact, there is a wide range of budgets)

3) The industry is still in an experimental phase (complete end-to-end production models
are already in place)

Read the full article here


Table of Contents – The Birth Of Online TV
EXECUTIVE SUMMARY 6
 Proven successes and star power
 Differing strategies at Hollywood studios
 Mixed fortunes for Web TV studios
 UK market sustained by the BBC, Bebo and Channel 4
 The sector is still seeking advertiser commitment
 Advertisers do support specific interests
 Proven sources of revenue have emerged
 Emerging relationships between Web TV and broadcast TV
 Evolving formats

WHAT THE REPORT COVERS 10

Criteria for including studios and production companies

Criteria for including shows

Industry experts interviewed
 Brad Curtis – Science + Fiction
 Geoff Goodwin – BBC Switch
 Kathleen Grace – Dinosaur Diorama Productions
 Garrett Law – Attention Span Media

WHY ONLINE TV IS BOOMING 12

The new Internet video environment
 Ubiquitous broadband means video viewing is soaring
 Table: Viewing online video at home
 Who is viewing?
 Table: US online viewing by age ranges
 Tables: US demographics of Internet users visiting video-sharing sites
 Falling television viewing?
 Table: Internet access reducing television viewing globally
 Audience aggregators – YouTube, MySpace, Bebo
 Internet TV platforms
 Video search engines
 New funding, revenue and advertising opportunities
 Plunging production costs

The new production and funding environment
 From independent filmmaking to online television
 The Hollywood writers‟ strike – the catalyst for online television?

The new producers behind the boom
 Studios 2.0
 Independent production companies
 Talent-led production
 New entrants
 Talent agencies

Major studios’ digital divisions
 CBS Interactive
 Disney-ABC‟s Stage 9
 Disney-ABC‟s Take180


 Fox Television Studios‟ 15 Gigs
 NBC Universal Digital Studio
 Paramount Digital Entertainment
 Sony‟s Crackle.com
 Warner Bros‟ Studio 2.0

British broadcasters and production companies
 The BBC
 Channel 4
 Independent production companies

ONLINE TV FUNDING, REVENUE SOURCES AND SPONSORSHIP 24

Funding for studios
 Table: Significant studio funding deals

Revenue for shows

Advertising and sponsorship
 Ad-supported
 Branded entertainment
 Product placement
 Sponsorship deal after start of production
 Table: Sponsorship fees and revenues

Commissions
 Broadcaster commission – online-only
 Broadcaster commission – online and TV
 Broadcaster commission after online launch
 Broadcaster distributes after online launch
 New studio commissions
 Social networking site commission
 Social networking site distribution

Other revenue
 Destination site
 Download sales
 Viewer contributions
 DVD sales
 Format sales
 International distribution
 Social networking site direct payment
 Merchandise

PRODUCTION IN ACTION 33

Budgets
 More for the money
 Can established producers produce to low budgets?
 Budget inflation
 Table: Total show budgets per season
 Table: Per-minute show budgets – low to high
 Profitability

Production: show and season lengths
 Very short forms vs narrative


 Table: Episode running times
 How many episodes?
 Total running time
 How many seasons?

Production: interactivity
 Interactivity within shows – Signs of Life
 Interactivity from the viewers – In The Motherhood, Where Are The Joneses?
 Interactivity from the community – KateModern
 Community interactivity – safety net or straitjacket?

FINDING AND BUILDING THE AUDIENCE 42

Distribution
 Own site vs third-party sites
 Distribution deals
 Table: Types of third-party distributors and revenue
 What windows are emerging?
 What is the shelf life of an online show?

Marketing and promotion
 A continuing role for offline promotion
 Promotion via live events
 The big bang launch – promotion via broadcast television
 The slow burn promotion
 Preparing to go viral – but avoiding the “viral fallacy”
 Table: Video viewers sharing content

Online and television – competing or co-operating?
 From online to television
 Co-ordinating online with television

What about copyright?

HOW TO EVALUATE SUCCESS? 49
 Creative criteria
 R&D criteria
 Commercial criteria
 Recommissions – proven success
 Engagement criteria
 Evaluating popularity
 Video viewing statistics
 Table: Self-declared show viewing figures
 Public statistics
 Limitations of viewing figures
 Social networking and online buzz

TRENDS 53

Shows and production
 Increasingly well-known talent involved
 Mainstream interests addressed by Web productions
 Simultaneous production for online and television
 TV shows reaching out to audiences online
 Web-only spin-offs from TV series
 Rise of the online soap
 Producers aim for global breakout hits


 Episodes are becoming longer
 More simultaneous distribution via online, mobile and television

Funding
 Branded entertainment is the most effective funding model – so far
 More selective product integration
 The new funders become the new gatekeepers
 New funding intermediaries challenge ad and digital agencies

EXPERT INTERVIEWS 59
 Brad Curtis – In the Motherhood
 Geoff Goodwin – Wannabes and Signs of Life
 Kathleen Grace – The Burg
 Garrett Law – Dorm Life

WEB SERIES BUSINESS PROFILES: BUDGETS, SPONSORS, INTERACTIVITY 71
 Angel of Death
 The Burg
 Clark and Michael
 Crescent Heights
 Dr Horrible‟s Sing-Along Blog
 Dorm Life
 Dubplate Drama
 In The Motherhood
 It‟s a Mall World
 Prom Queen
 Quarterlife
 Signs of Life
 Web Therapy
 Where Are The Joneses?

FURTHER NOTABLE SERIES IN 2008-09 90
 US productions
 UK productions
 European productions

WEB TV STUDIO AND PRODUCTION COMPANY BUSINESS PROFILES 94

Web TV studio profiles
 60Frames
 Agility Studios
 DECA
 Filmaka
 Generate
 Independent Comedy Network

Web TV production company profiles
 Ag8
 Alloy Entertainment
 Attention Span Media
 Avalon TV
 BermanBraun Interactive
 Big Fantastic
 Break Media
 Conker Media
 Dinosaur Diorama Productions


 Electric Farm Entertainment
 Endemol Digital Studios (UK)
 Endemol USA
 EQAL
 FM78.TV
 For Your Imagination
 FremantleMedia's FMX
 Fuel Industries
 Funny or Die
 Go Go Luckey
 GoTV Networks
 Hollywood Disrupted
 IAC companies
 Imagination
 Intelligent Life Productions
 Iron Sink Media
 Joe Digital
 KoldCast Studios
 MWG Entertainment
 My Damn Channel
 Next New Networks
 Nu Media Studios and Management
 RDF Digital
 Reveille
 Revision 3
 Safran Company
 Science + Fiction
 Shimmer Productions
 Strike.TV
 SXM
 Virtual Artists
 Vuguru
 Worldwide Biggies

ADVERTISER AND SPONSOR LISTINGS 103-104
 Sole sponsors of American Web shows, listed by brand
 Multiple sponsorship and brand integration in American shows
 Sole sponsors of European Web shows, by brand
 Multiple brand integration and product placement in European shows


Sample Pages from UK Web Shows Now

Web series business profile – The Secret World Of Sam King

Drama series about Sam King, a fictional junior employee working in the real offices of
Universal Music UK, who sets up his own, secret record label.

Production
 Produced by: Indie TV production company Monkey Kingdom and Universal Music‟s
production arm, Globe Productions
 Commissioned by: Bebo
 Production company Web site: www.monkeykingdom.com

Advertising and sponsorship
 Universal Music – the company‟s artists, such as The Automatic and Sam Sparro,
appear in cameos on the show
 Virgin Mobile and Sony Ericsson: some episodes have been shot on location at the
Ibiza Rocks festival, sponsored by Sony Ericsson, and at Virgin‟s V Festival

Key innovative and interactive features
 Whole production includes three content strands:
 The Secret World Of Sam King drama on Bebo
 Katie‟s Love-In: a music TV show on Bebo presented by Sam‟s love interest, Katie
o Negotiations are in progress for this show to transfer to broadcast television,
in a 30-minute or five-minute version, the latter fitting into the schedule after
US shows that are too short to fill one hour of broadcast time in UK television
 Johnny‟s radio podcast, a weekly radio show DJed by Sam‟s friend
 Dual storylines: Sam setting up his record label in a glamorous setting and also a
“traditional domestic drama” about personal relationships, closer to Bebo members‟
own lives
 In Sam‟s blog, the character talks to Bebo members about his fictional label and how
they can take part in it, inviting them to help him make decisions via online polls
 Multiple competitions, including choosing the record label‟s logo and an opportunity
to become Sam‟s intern and help him on Bebo
 Guest appearances by major artists, including The Jonas Brothers, The Pussycat Dolls

Web site www.bebo.com/samking

Premiere date and schedule
 August 2008, new episodes weekdays, 3pm, also weekly preview and recap episodes
 Season one ran for three months, approx 65 episodes x 3 – 5 mins
 Season two has been commissioned for 2009

Notes The Secret World Of Sam King is designed to “appeal to creative Bebo users with
broad-ranging interests – all connected to music” (David Joseph, chief executive,
Universal Music UK). The label claimed in mid-October that 5.4m people had watched the
show, which was averaging 100,000 viewers a day on Bebo and more on YouTube.

The show is part of a broader initiative by Bebo to improve its music offering in
competition with MySpace – in June 2008, the company extended its Open Media
strategy to include music companies as well as broadcasters, enabling record labels to
make their own pages and keep the advertising revenue. The storyline is featured on the
teen entertainment site beRed, owned by Bebo‟s owner AOL – www.bered.com

Producer Monkey Kingdom also makes the Orange Unlit music Web show and BBC
Switch‟s Sound television music show, while Universal Music‟s Globe Productions also co-
produces the Britannia High teen music drama with ITV Productions.


Sam King screenshots

Sam King on Bebo (top) and Sony Ericsson sponsor page



DIGITAL STRATEGY: SUPER-INDIES INVEST IN ONLINE
PRODUCTION

Start-ups

In Futurescape‟s first report on the state of the Web show market, The Birth of Online
TV, we revealed a significant scale of investment in new American studios and
production companies dedicated to making original online television. Start-ups such as
Lonelygirl15 producer Eqal, Next New Networks and Revision3 between them attracted
at least $52m in funding from a range of sources, including the venture fund Spark
Capital and Atomico, the investment company started by Skype founders Niklas
Zennström and Janus Friis.

The British scene is significantly different. Web show production as a whole has from the
outset been entwined with the well-established independent television production sector.
Many of the shows are made by existing indies and commissioned by the terrestrial
broadcasters with whom they already have a relationship.

There are a number of UK start-ups aiming to produce primarily for the Internet, but
they appear to be much smaller than their American counterparts. The only one with
publicly-declared launch funding (as opposed to production funding) is Be Entertainment.
It has gained support out of a £250,000 digital media development fund set up by the
development agency Invest Northern Ireland and the media development agency
Northern Ireland Screen.

What is striking about the start-ups is that most of them appear to have firm
foundations, regardless of their size, in that they have either completed productions to
their credit or they have some funding for development, either from a supporting
company or from some form of production finance. The individuals involved have a track
record in the film or television industry, or have moved quickly to establish one.

Table: Web production company start-ups in 2007 – 2008

Company Support
Be Entertainment Support from Invest Northern Ireland and
Northern Ireland Screen, plus continuing
production of Sofia‟s Diary
Fortune Cookie Backed by established creative media
group Everybody‟s
Greenroom Entertainment Completed student sitcom Fresh! for BBC
Switch, working on sitcom for BBC Wales
Shimmer Productions Awarded €25,000 for an interactive project
from the EU MEDIA fund
Silk Press Productions Has self-funded soap Spinning Jenny as its
first production
Te Papa Films Has completed online romantic comedy
feature film All Bar Love
Teen Star Inc Making sponsored student vox pops series
Meet the Freshers, distributed via Bebo
Touch Illumina Multiplatform joint venture between Touch
Productions and All3Media‟s Illumina
Digital, with a major BBC commission



PRODUCTION TRENDS

Which production companies are in the market?

Although Web show production mainly consists of external commissions by broadcasters
and advertisers from established independent production companies, plus some in-house
commissions, not all indies have yet entered the market. In the following table, we
summarise all parties – indies, broadcasters and others – that have made any Web
shows, together with indies starting up to do so.

Table: UK Web show producers

Producer Show Title Genre Description Commissioner
Academy Somebody Drama Global drama Nokia
Films / Big Else's Phone about a model,
Balls Films film director and
PR executive in
London, Los
Angeles and
Shanghai
Avalon Mouth To Comedy-drama Follows the BBC3
Television Mouth career of the
fictional girl band
Cat‟s Eyes
Baby Cow / Where Are Interactive Road trip Ford
Imagination The Joneses? comedy mockumentary
about a sister
and brother
travelling Europe
to find their
numerous
siblings via their
sperm-donating
father
BBC Switch The 5.19 Entertainment Talk show about In-house
Show fashion, celebrity
and music with
chat, sketch
comedy and
guest gigs by
new bands
BBC Switch Them Factual Documentary In-house
series about the
UK‟s different
teen “tribes”
BBC Switch To Be Interactive The drama is In-house
Continued... drama created between
BBC Switch and
“young budding
actors,
screenwriters
and directors”


ABOUT UK WEB SHOWS NOW

“Far-sighted indies are already carving a new niche in Web-only
content, as the report from research company Futurescape reveals.”

Broadcast deputy editor Emily Booth

Discover how British producers Key questions answered
are pioneering new online TV
formats and business models  How are British broadcasters and
producers gaining a competitive edge
The UK is already a key territory for the by innovating original online TV show
creation of highly innovative Web formats that work?
television and transmedia formats and the
commercial models for their production.  How are pioneering producers, brands
and broadcasters developing and
UK Web Shows Now is the only business applying the new business
report to cover the market‟s original Web opportunities in creating online shows?
TV series, made-for-mobile shows and
online feature films, across scripted  What kind of programmes and
comedy and drama, entertainment and interactivity are being made to attract
factual genres. The report provides: the teen and young adult Internet
audience?
 Key data on market trends, growth,
budgets and commissioning to inform  Which production companies are
strategic planning, forecasting and leading the market – and why?
business development
 How can brands bypass broadcasters
 In-depth coverage of shows as to reach viewers online?
branded entertainment: fully-funded
by a single brand or featuring multiple  What new production models are
product placement emerging, in which production
companies collaborate with other
 Detailed profiles of 39 major Web TV partners?
comedy, drama, entertainment and
factual series so you can rapidly 150 pages / 48,000 words, 17 tables, 39
compare their formats and commercial Web show business profiles. First
models published November 2008, updated
October 2009.
 Comprehensive listing of independent
production companies making online
TV shows, for competitive analysis Fast digital delivery as a PDF.


In the report Who should read this?
 Covers British original Web TV and  Business development executives,
transmedia scripted comedy and digital executives and
drama, entertainment and factual commissioners in studios,
shows, including branded broadcasters, and Web video and
entertainment productions
social networking sites
 8 key findings on the market-leading
production companies, the competitive
environment and brands bypassing  Branded entertainment specialists
broadcasters in advertising and media buying
 17 tables: commissions, budgets, agencies
advertiser-funded shows, brands
sponsoring shows, UK Web show
production companies and their series  Innovative brand managers
(6 pages), companies with several seeking new opportunities for their
shows or seasons, recommissioned brand portfolio in the online video
shows space
 In-depth business profiles for
31 Web TV shows, 5 made-for-mobile
series, 3 feature films: full creative  CEOs, senior executives and
and commercial details producers in television and new
 62 colour stills and screenshots of media production companies
show Web sites
 Listings of key market players: UK Web Shows Now gives you and
49 production companies, 6 brand
your team a thorough understanding
integration agencies and 13
government and other relevant
of the UK's dynamic Web TV market
organisations, each with a live link to and its innovative formats.
take you direct to their Web site
 Growth of the market from 2007, Our buyers include global
with breakdowns for scripted, advertising agencies, broadcasters,
unscripted and mobile shows,
Hollywood studios and producers:
commissions by broadcasters and
social networking sites, and self-
AT&T, BBC Worldwide, Digitas,
commissions by independent Disney, Eutelsat, Fox, HBO, ITV,
production companies MediaCom, Ogilvy, Publicis, RTE,
Warner Bros.
 Brand sponsors referenced in the
report include Cadbury, Colgate, Ford,
Jacob‟s Creek, Nokia, O2, Orange,
Toyota and many more Futurescape's research is regularly
 Case study: The production process publications such as Variety's Video
for Nokia‟s international multiplatform
Business, Broadcast, Televisual, TV
drama Somebody Else‟s Phone
Week, MediaPost and Campaign.
 In-depth interview with Luke Taylor,
co-founder of leading Web show
production company Big Balls Films
 Methodology: the analysis is based
on production company information,
authoritative industry sources and
original research


Full Media Coverage

“As traditional TV funding comes under threat, the Web offers a way forward.
Far-sighted indies are already carving a new niche in Web-only content, as the report
from research company Futurescape reveals.”

Emily Booth, deputy editor, Broadcast

Click on the links below to see the original articles

Extensive media coverage for the research included news article and the editor‟s
column in Broadcast.

Plus other news articles in New Media Age, Brand Republic, Netimperative, and The
Stage, which emphasises brands bypassing broadcasters for online product placement
opportunities.


Table of Contents – UK Web Shows Now

INTRODUCTION 7
 New medium, new business
 The UK Web show market as pioneer

EXECUTIVE SUMMARY 8

Key findings
 The market leaders: Big Balls Films, Endemol and Conker Media
 Indies are moving to seize new business opportunities
 Broadcasters are confronting social networks competing for online viewers
 Competition is intensifying for teen and young adult viewers
 Major brands are bypassing broadcasters and commissioning shows directly
 New, collaborative production models are emerging
 Shows are becoming increasingly complex to make
 Productions are increasingly ambitious

Does the downturn support online television?

Challenges for online production

GROWTH OF THE UK WEB SHOW MARKET 2007 - 09 15

Drivers for growth
 Broadband penetration rising
 HD production costs falling
 In-browser viewing has triumphed
 Increasing online viewing

Growth in scripted and unscripted productions
 Table: Scripted and unscripted productions 2007 – 08
 2007 scripted shows
 2007 unscripted shows
 2007 mobile shows
 2008 scripted shows
 2008 unscripted shows
 2008 mobile shows
 2008 feature films
 2007 – 09 multiplatform productions
 2007 – 09 external and internal commissions
 Table: External and in-house commissions 2007 – 09

2009 production predictions
 External commissions
 In-house commissions and in development

2007 – 09 scripted show budgets
 Table: Scripted show budget range 2007 – 08
 Minimum scripted market size for 2009
 Table: Minimum scripted show budgets for 2009


DIGITAL STRATEGY: SUPER-INDIES INVEST IN ONLINE PRODUCTION 24

Start-ups
 Table: Web production company start-ups in 2007 – 2008

Investments by super-indies and others
 Table: British television companies investing in Web show producers, 2008
 The significance of the deals

Endemol – the major British web show producer
 Table: Endemol‟s productions
 Endemol‟s digital ambitions and digital media fund
 John De Mol – at the heart of British Web show production

All3Media – positioning itself for the digital future
 Table: All3Media companies and digital production

Other potential investors in British producers
 FremantleMedia Talent Fund
 NBC Universal
 Saban Capital Group

Commercial innovation
 Company structures and partnerships
 London – already a Web show production hub
 Outside London

COMMISSIONING COMPETITION HEATS UP 32

The BBC’s £1.3m fund for online drama
 BBC online drama since 2005
 How much drama for £1.3m?

Competition in the teen to young adult market
 BBC Switch and BBC3 vs Channel 4 vs Bebo

BBC Switch in-house commissions
 The 5.19 Show
 To Be Continued
 Them

BBC Switch external commissions
 Meta4orce
 Fresh!
 Myths
 TxtME

BBC3 commissions
 Upstaged
 Bryony Makes A Zombie Movie
 Mouth To Mouth

Channel 4 commissions
 Dubplate Drama
 Bite
 Runners


 Year Dot
 Central Station
 4IP Digital Production Fund
 Children‟s multimedia content fund

Social networking sites as commissioners

Bebo commissions
 Bebo Originals
 KateModern
 Sofia‟s Diary
 The Gap Year
 The Secret World Of Sam King
 Chelsey: OMG!

Bebo partner projects
 The Leon Jackson Show
 A Message From Earth
 Meet The Freshers

The Bebo production method

MySpace commissions
 Beyond The Rave
 Faintheart
 I Luv Chieftown

Other commissioners
 MSN commission: Kirill
 iVillage (NBCU) commission: Parentshood
 ITV commissions
 BSkyB commissions
 Other broadcasters‟ commissions
 Babelgum commissioning
 Broadcasters licensing shows

In-house commissions from indies
 Be Entertainment
 Channel X
 Fourth Passenger
 Silk Press Productions
 So Television
 Talkback Thames

Producers vs broadcasters for distribution

ADVERTISERS FUND INCREASINGLY AMBITIOUS PRODUCTIONS 48

Advertiser-funded commissions
 Table: Advertiser-funded shows from Ford, Nokia and others

Ford-sponsored shows
 Bite
 Neon Candy


Mobile-sponsored shows
 The Cell
 Orange Unlit
 Somebody Else‟s Phone

ADVERTISING AND PRODUCT PLACEMENT 50

The product placement learning curve
 Table: Major brands sponsoring Web shows
 Product integration fees
 Results: Golddigga in Sofia‟s Diary

PRODUCTION TRENDS 53

Which production companies are in the market?
 Table: UK Web show producers

Web show market leaders
 Table: Production companies with several shows or seasons

Successful productions
 Table: Shows that have been recommissioned
 Distribution rights acquired by a third party
 Table: Self-reported viewing figures

Risk and reward in creating new shows
 Low risk broadcaster commissions
 Indies and risk
 Managing risk with the Bebo method

Global traffic: Web show exports and imports
 Exports
 Imports

GOVERNMENT AND THE PUBLIC SECTOR: ACCELERATOR OR BRAKE? 66
 Anticipating and stimulating market growth
 Increasing government support and intervention
 How might the Digital Britain plan affect Web video?
 Will government regulate online video?
 Will government restrict Web show advertising?
 Regulation vs innovation?
 Public sector Web show funding
 Support for the sector to develop
 Project development and training courses

INTERVIEW: LUKE TAYLOR, CO-FOUNDER, BIG BALLS FILMS 72


WEB SERIES BUSINESS PROFILES: BUDGETS, SPONSORS, INTERACTIVITY 76

Web shows
 Bite
 Bryony Makes A Zombie Movie
 Chelsey: OMG!
 Dubplate Drama
 The 5.19 Show
 Fresh!
 The Gap Year
 The Gloryhunter
 KateModern
 Katie & Co
 Kirill
 The Leon Jackson Show
 Meet The Freshers
 A Message From Earth
 Meta4orce
 Mouth To Mouth
 Neon Candy
 Orange Unlit
 The Secret World Of Sam King
 Signs Of Life
 Sofia‟s Diary
 Somebody Else‟s Phone
 Case study: The production process for Somebody Else‟s Phone
 Spinning Jenny
 Them
 To Be Continued
 Toyboize
 Upstaged
 Wannabes
 Year Dot

Mobile TV shows
 The Belly Dancing Mobi-Diaries
 The Cell
 The Gym
 The Hot Desk
 When Evil Calls

Online feature films
 All Bar Love
 Beyond The Rave
 Faintheart

Shows awaiting release
 Block X
 Central Station
 Extinction Sucks
 Flatmates
 I Luv Chieftown
 Myths
 Noostar
 Parentshood
 Runners


 Shimmer Productions projects
 TxtME

WEB SHOW PRODUCER LISTINGS AND LINKS 132
 Academy Films
 All3Media
 Avalon Television
 Baby Cow
 BBC Switch
 Be Entertainment
 Big Balls Films
 Big Kid
 Bloc Media
 Channel X
 CogApp
 Conker Media
 Endemol UK
 Eqal
 FMX
 Fortune Cookie
 Fourth Passenger
 Globe Productions
 Greenroom Entertainment
 Hammer Films
 Hat Trick
 Hub TV
 Illumina Digital
 Imagination
 Intelligent Digital
 ISO Design
 Livity
 Mobstar Media
 MoMedia
 Monkey Kingdom
 Navelgazing
 Off The Fence
 Pure Grass Films
 RDF Digital
 Red Mullet
 RSA Films
 Silk Press Productions
 So Television
 Talkback Thames
 Te Papa Films
 Teen Star Inc
 Touch Illumina
 UMTV
 Vertigo Films
 World of Wonder


SELECTED MEDIA AND BRAND INTEGRATION AGENCIES 144
 Brandirector
 Endemol New State
 Kameleon Worldwide
 MindShare
 Vizeum

GOVERNMENT AND ORGANISATION LINKS 145
 BERR
 DCMS
 EU MEDIA fund
 Film London
 InSync
 Invest Northern Ireland
 London Development Agency
 NESTA
 Northern Ireland Screen
 Pact
 Power To The Pixel
 Skillset
 Yorkshire Screen

FURTHER READING 146
 Futurescape
 Broadcast
 PaidContent

ABOUT THE AUTHORS 147
 Acknowledgements
 Copyright notice


Sample Pages from WeVision: Introduction

Social entertainment is the new opportunity for television online

WeVision – a paradigm for original online media

Mass media organisations face serious challenges in making the transition from legacy
businesses to digital. Nowhere is this more evident than with the struggle to identify the
future of television programming on the Internet.

This report reveals the original Web TV series – talk shows, sitcoms, reality and real-
time productions – with innovative formats that are pioneering effective online business
models and meeting the entertainment needs of the new global audience.

WeVision is a unique framework for a new medium that is distinct from broadcast
television. It describes the business and creative principles for how online media should
engage, communicate and connect with their viewers.

WeVision is a four-step process:

Match advertisers with the show and its community

Engage with an enthusiastic community

Inspire engagement via charismatic figures

Co-create the show with the community

How the model solves commercial issues for mass media on the Internet:

Copying and piracy

The entertainment value of these shows is rooted in social interactivity, amongst
community members and between fans and producers. It is impossible to copy or pirate
an interactive experience.

Revenue

The series address very specific communities that can be matched with brands and
engaged via product integration. Advertising becomes relevant again.

A model based on success

The paradigm is derived from Futurescape‟s research into more than 50 original Internet
TV productions for our pioneering reports The Birth Of Online TV and UK Web Shows
Now. These American and British series come from major broadcasters, international
production companies and Web TV studios, and are based on familiar television genres:
factual, reality, scripted comedy and drama.

We identified series we consider to be successful according to two criteria.
 They attracted major sponsors or
 They have been produced for more than one season


We then made an in-depth analysis of successful productions to find their common
features. These are detailed in the case studies of Diggnation, The Guild, Sofia’s Diary
and The Gap Year. Two more series demonstrate the potential of the Internet-native
real-time format: Orange Unlit and Frankmusik.

Diggnation has now run into 200 episodes since 2005. The Guild has completed two
seasons, with sponsorship from Sprint and Microsoft, including an innovative distribution
deal across Microsoft platforms.

Sofia’s Diary is an internationally popular format that is continually being licensed for
new versions, from Chile to China. The premiere season of The Gap Year attracted no
fewer than 14 major sponsors.

The real-time formats, Orange Unlit and Frankmusik, were chosen to illustrate the
interactive potential of Internet shows. Even though they are arguably “experimental,”
each gained a major sponsor: Orange for Unlit, Blackberry for Frankmusik.

Case studies

The case studies include:
 Commercial models for media on the Internet
 Advertising effectiveness
 A history of the production process
 Key innovative features unique to Internet media
 Social interactivity and online community engagement

Diggnation
 US tech and pop culture talk show based on the popular news recommendation Web
site Digg.com and its community, produced by start-up Web TV studio Revision3

The Guild
 Independently-produced US sitcom about online games players, created by actor
Felicia Day of Buffy the Vampire Slayer, distributed on Microsoft platforms

Sofia’s Diary
 Breakthrough multiplatform drama format about a teen girl facing the challenges of
life in a new city, licensed around the world by Sony Pictures Television International

The Gap Year
 Global reality travel show following backpackers on a six-month world trip, made by
super-indie Endemol for international social networking site Bebo

Real-time shows: Orange Unlit and Frankmusik
 Orange Unlit – concert series following singer-songwriter Jont on tour, performing
gigs in people‟s homes
 Frankmusik – reality-gig format challenging rising pop star Frankmusik to play gigs at
venues suggested by fans, relying on them for transport and accommodation


Sample WeVision Screenshots Page: Sofia’s Diary

Bebo home page – clearly described as sponsored production

Merchandise as key revenue source – book promoted on Bebo home page


ABOUT WEVISION

“Great, very insightful and very useful.”
Jim Louderback, CEO, Revision3 Web TV studio

The production company behind Diggnation

Discover how top Web TV shows Key questions answered
and transmedia productions
create compelling audience  What are the four essential steps in
engagement that increases building an effective interactive Web
advertising effectiveness by TV production?
implementing social media
 What are the benefits of community
principles. interactivity for producers,
commissioners and advertisers?
The four-step WeVision model is based
on detailed analysis and case studies  How do leading Web series
of successful, innovative Web TV significantly differ from broadcast TV
productions and it: shows in their content, viewer
experience, technology and funding?

 Explains how successful shows  What are their business models -
mitigate risk by: funding, distribution and revenue?

o Targeting niche online communities  How can building interactivity into a
with engagement that works Web show make content piracy
irrelevant?
o Covering costs before production
begins by matching the show and  What are the key interactive
its community with sponsors techniques for engaging online
audiences?
 Provides a combined creative and
business development strategy:  What is the role of charismatic talent
ensure both sides of a show‟s in motivating Internet communities?
development process are always in
sync 37 pages / 14,000 words, 12 colour Web
site screenshots, 6 in-depth case studies.
 Reveals the future of interactive Web Published May 2009.
series with examples of the real-time
format now being pioneered Fast digital delivery as a PDF.


For studios, broadcasters, For producers
social networks and advertisers
While you are conceptualising an online
 Build a digital strategy for effective series, the model offers insights into how
interactive projects you can most effectively identify the
 Understand content, interactivity and prospective online audience, together with
engagement architecture for Web TV strategies for engaging them. This then
enables you to build a solid business case
 Access examples of successful Web
to justify your show‟s value to potential
show sponsorship
sponsors and commissioners. During
production, use it to make sure the whole
Apply the WeVision model as a reality
production team keeps sharply focused on
check when commissioning or sponsoring
both the creative and commercial
new shows. Does the production company
opportunities in interacting with Web
pitching to you genuinely understand its
viewers.
prospective online audience and how to
interact with them to maximise the show‟s
chances of success? Rapidly identify and
Who should read this?
correct a concept‟s shortcomings and old-
fashioned TV-centric thinking before you  Business development executives,
commit funding and resources. digital executives and commissioners
in studios, broadcasters, and Web
In the report video and social networking sites
 4-step paradigm for Web TV show  Branded entertainment specialists in
creative and business success advertising and media buying agencies
 Predicting the future of online TV:  Innovative brand managers seeking
the highly interactive real-time format new opportunities for their brand
portfolio in the online video space
 6 highly detailed, multi-page case
studies of successful and innovative  CEOs, senior executives and producers
American and British Web show in television and new media production
productions, made by major companies
production companies and start-ups
 Shows include multiple genres:
WeVision is an essential business tool
comedy, drama, talk, reality, real-time
format for Web show conceptualisation,
commissioning, sponsorship and
 All with their business model fully production.
described and with live links to take
you to the shows‟ Web sites
 12 colour Web site screenshots Our buyers include global advertising
agencies, broadcasters, Hollywood studios
 Brand sponsors referenced in the and producers: AT&T, BBC Worldwide,
report include Adagio Teas, Digitas, Disney, Eutelsat, Fox, HBO, ITV,
Blackberry, Clinique, Herbal Essences, MediaCom, Ogilvy, Publicis, RTE, Warner
Microsoft‟s Xbox Live, Orange and Bros.
more
 Diagram: effectiveness of product
integration in teen drama Sofia‟s Diary Futurescape's research is regularly
 Methodology: The paradigm is publications such as Variety's Video
derived from Futurescape‟s research Business, Broadcast, Televisual, TV Week,
into over 50 original Internet TV MediaPost and Campaign.
productions for our reports The Birth
Of Online TV and UK Web Shows Now.


WeVision in Variety's Video Business magazine

The WeVision paradigm - that top Web shows succeed by creating interactive
relationships with online viewers – was covered in this in-depth article from Variety's
Video Business magazine.

Study: Interactive Web series more successful

DIGITAL: Social media used to attract viewers, advertisers

MAY 6 | DIGITAL: What do top Internet video series The Guild, Diggnation, The Gap Year
and Sofia‟s Diary all have in common? They use social media to engage their audiences,
making the viewing experience more interactive and luring in viewers and advertisers,
according to a new case study, “WeVision: The Four Steps to Online Media Success,”
from digital media research company Futurescape.

Click to read the full article.


Table of Contents – WeVision
INTRODUCTION 3

A NEW PARADIGM FOR ONLINE MEDIA SUCCESS 5
 Mass media‟s challenges on the Internet
 The solution: online content that is native to the Internet

THE FOUR STEPS – MATCH, ENGAGE, INSPIRE, CO-CREATE 6
 Overview
 The paradigm‟s benefits
 Social interactivity: its key role in online TV shows
 Techniques for interactivity
 Essential shared values

STEP 1: Match advertisers with the show and its community 8

STEP 2: Engage with an enthusiastic community 9
 Community first, production second
 Identify a nascent community
 Communities mean niche audiences – and good business
 A show and community example
 How many niche audiences?

STEP 3: Inspire engagement via charismatic figures 11
 Personal authenticity and passion are essential
 Adapting the model for fiction

STEP 4: Co-create the show 12
 Co-creation is an iterative process
 How co-creation benefits companies
 Solving mass media‟s Internet challenges: copying and revenue

INNOVATION: THE REAL-TIME FORMAT 16
 How the real-time format is innovative
 Engaging the audience continuously
 Niche audiences – but valuable for sponsors
 How fiction can be a real-time format
 Making the production process into a drama
 Creating fiction as a real-time format
 How the real-time format matches long-term viewing trends

CHALLENGES AND LIMITATIONS FOR THE WEVISION PARADIGM 18
 Measuring viewing for effectiveness
 Can the model work outside large markets?
 Are there international ad budgets to match international audiences?
 Is product integration too time-consuming for agencies and advertisers?
 How much can the model scale?
 Limits to authenticity and limits to contributions

CASE STUDIES 21–38
 Case Study 1: Diggnation – tech / pop culture talk show
 Case Study 2: The Guild – sit-com about online gamers
 Case Study 3: Sofia’s Diary – global teen drama format
 Case Study 4: The Gap Year – backpacking reality travel show
 Case Studies 5 & 6: Orange Unlit and Frankmusik – real-time formats


Discounts are available for buying more than one title at the same time

Please contact sales@futurescape.tv for full details

To order your copies online visit: www.futurescape.tv


Futurescape Web TV and social TV reports – essential insights for digital business development and creative approaches

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