Manchester City Council Item 6 Finance Scrutiny Committee 5 September 2013

Manchester City Council Report for Resolution

Report to: Finance Scrutiny Committee – 5 September 2013

Subject: MTV Evaluation

Report of: Sara Tomkins, Assistant Chief Executive (Communications, Customer and ICT)

Summary

To provide a full evaluation of the MTV Crashes programme following the previous report to the Committee on 12 December 2012

Recommendations

Members are asked to note the contents of this report.

Wards Affected: All

Contact Officers:

Sara Tomkins Mike Parrott Assistant Chief Executive Head of Events 0161 234 3706 0161 234 5242 [email protected] [email protected]

Sir Howard Bernstein Chief Executive 0161 234 3006 [email protected]

Background documents (available for public inspection):

Major Event Commission – MTV Crashes Manchester and the European Music Awards - Finance Scrutiny, 13 December 2012 (http://www.manchester.gov.uk/meetings/meeting/1855/finance_scrutiny_committee)

51 Manchester City Council Item 6 Finance Scrutiny Committee 5 September 2013

1.0 Introduction

1.1 Following consideration of a report on the Major Events Commission – MTV Crashes Manchester and the European Music Awards, the Committee requested a report on the full evaluation of the event and programme when it was available.

1.2 This report summarises the MTV Crashes programme including economic impact, media coverage and broadcast value to provide a return on investment assessment.

2.0 The Music Sector and the economy

2.1 Globally, the International Federation of the Phonographic Industry (IFPI) estimated that the ‘Live Music’ sector generated revenues worth over $21.6 billion in 2010, with the UK Live Music Market accounting for £1.624 billion (according to research published by Performing Rights Society (PRS) in 2012).

2.2 The role of music in the national economy is widely recognised. In July 2013, a cross party group of influential peers called on Government to develop a new strategy to support music-based tourism and help grow the UK economy. The debate’s sponsor Lord Storey said music festivals and concert events have been attracting unprecedented numbers of overseas visitors and have been pouring money into local economies. He argued that the world’s “evident love” of the UK’s musical heritage should now be harnessed and used to support music tourism. He suggested that to attract more overseas music tourists, Government should emphasise and engage with existing tourist bodies and authorities across Britain and help them market themselves as music tourist destinations. Discussions are ongoing with Visit England following the recent House of Lords debates.

3.0 The Music Sector in Manchester

3.1 Music is a key strand of Manchester’s global identity and in a competitive market place, strategic investment is used to promote Manchester as a must- visit tourist destination for music audiences in the UK and around the world. More detail on Manchester as a music destination can be found in appendix 1.

3.2 The City has a wide portfolio of venues and music events that collectively help to position and profile Manchester as a major music destination that can capitalise on the vibrant and growing ‘Live Music’ sector. Alongside football, music serves to position and profile the city on a world stage helping to deliver economic and incremental benefit to the city.

3.3 An analysis by New Economy this year estimated that 2.7m people attended a concert/festival in Greater Manchester in 2012, spending an estimated £253m on tickets, on site expenditure and off site expenditure. The off-site expenditure in bars, restaurants, hotels and local travel etc was estimated at £115m, supporting approx 1500 jobs, the majority of which are clustered

52 Manchester City Council Item 6 Finance Scrutiny Committee 5 September 2013

around the main music venues in Manchester. (For comparison, the 2012 report Analysing the Value of Football to Greater Manchester, estimated that football generates £229m a year in spectator spend to the GM Economy). A further 600 people are estimated to work in music related sectors. New Economy also identifies Greater Manchester as having notably more businesses in music sub-sectors, such as music studios and record labels, than any other city in the UK outside of London (see table at appendix 1).

4.0 MTV Event

4.1 In the context of the above, the City Council entered in to a partnership with MTV Networks Europe (MTVNE) in 2012 to stage and film a live music event in the City under the “MTV Crashes” programme identity. MTVNE would provide a level of programming associated with the event that would include the production and broadcast of a 22 minute surround show, “Manchester a City United in Music” focused on Manchester and music in the City, as well as broadcasting a 44 minute show of the actual event and the artist’s performance as “MTV Crashes….. Manchester”.

4.2 MTVNE would then repackage the programme content and broadcast as part of the international scheduling slot ‘MTV World Stage’.

4.3 On the 24th September 2012, MTV staged and recorded the MTV Crashes Manchester at Manchester Cathedral featuring 14 times Grammy winner, Alicia Keys. This was subsequently broadcast in the UK and Europe as MTV Crashes Manchester on the 28th October via MTV Music and then onto a global platform on December 7th as part of the MTV World Stage international schedule.

4.4 The juxtaposition of a 21st Century R‘n’B global artist in a 600 year old Cathedral reflected the Original : Modern brand essence of the City and the partnership with MTV in order to maximise the media/ broadcast airtime value and extended global reach of the programme to support the profile and positioning of the City which was the driving return sought on the Council’s investment in to the partnership.

Further information on MTV and why it was chosen as a partner can be found in appendix 2.

4.5 MCC Investment The Council’s investment in the project totalled £425k from mainstream regeneration and events budgets, including £125k commercial income and the event generated a combined economic and media value of over £12M, compared to a target return of £10m .

4.6 Importantly, the investment and partnership development with MTV Networks Europe to deliver ‘MTV Crashes … Manchester’ has provided the city with a platform to submit a proposal to host the MTV European Music Awards (EMAs) in future years, with the potential to deliver in excess of £20m of economic impact and over £180m AVE (Advertising Value Equivalent) of

53 Manchester City Council Item 6 Finance Scrutiny Committee 5 September 2013

media coverage from staging the event. The MTV EMAs is one of the biggest events in world music, delivering a global audience and quantified and qualified benefits to the host city. Belfast hosted the event in 2011 and achieved £22m economic impact including PR value, £10m additional tourism revenue, £8m invested by MTV and £132m media value (for more detail see appendix 2).

5.0 Evaluation

5.1 The evaluation of the ‘MTV Crashes … Manchester’ live event and broadcast content was informed by independent research and analysis undertaken by Repucom, an independent global research agency who provide market leading media analytics focused on the impact of sponsorship in various broadcast environments and was supported by MTV. The objective of the independent research was:

- to evaluate the economic and media impact of Manchester City Council entering into partnership with MTV Networks Europe to create the ‘MTV Crashes … Manchester’ programme, and - to set in context the value of promoting the musical heritage and strength of live music offer in the city to support the marketing of Manchester as a music destination on the world stage.

5.2 The independent analysis estimates the combined economic and media value of staging the event and broadcasting the resultant programmes to be £12.072m. This exceeds the targeted return of £10m (estimated at £2m economic value and £8m media value) by 20%. The value returned comprised a much higher media value and a lower economic expenditure impact as outlined in appendix 3.

5.3 In addition, the three programming strands delivered by the partnership - Manchester A City United in Music, MTV Crashes…Manchester and MTV World Stage - are estimated to have reached an audience of over 21.1m people across the globe.

5.4 The estimated additional spending benefits of the outdoor screening element of the live event was not realised as MTV was unable to secure a sponsor, due in part to the late confirmation of the artist. This also impacted on the effective promotion of the event and poor weather also affected turnout.

The full evaluation is detailed in appendix 3.

6.0 Conclusion

6.1 MTV is a globally renowned music platform and collaboration offers clear economic benefits and increased international profile to Manchester as a music destination which supports hundreds of related jobs.

54 Manchester City Council Item 6 Finance Scrutiny Committee 5 September 2013

6.2 The original application for funding to partner with MTV identified a targeted return of £10m prior to confirmation of artist, date or venue and the target was exceeded by over £2m. This demonstrates that the event more than achieved its objectives and that the assessment on which the decision to take part was based, was sound.

6.3 The media value far exceeded the original target and achieved significantly increased promotion and awareness of Manchester and its music sector around the world. A primary value to Manchester from the MTV Crashes programme lay with the level of media exposure that could be generated to meet its destination marketing agenda. Economic spend relating to the Live broadcast was lower than anticipated for the reasons outlined above.

6.4 In addition, the development of the partnership with MTV has positioned the City to provide the option to realise the ambition to bring the MTV European Music Awards and the associated economic and media and benefits to Manchester in future years.

7.0 Next Steps

7.1 The MTV EMA’s would continue to build upon the success of the Manchester International Festival, World of Sport and the City Games that have all delivered against the Council’s ambition to attract other national and international sporting and cultural events to maintain world-class status and provide significant incremental benefit to the City. Manchester must continue to support the cultural economy including the music scene, its musical heritage, new media and creative industries in the City as well as maintain Manchester’s unique overseas positioning and profile to target the next generation of students and visitors, assisting to build a destination relationship with new audiences.

7.2 Manchester is therefore continuing conversations with MTV and reviewing funding models that can leverage support from partners to formulate a bid to host a future MTV EMA. Cities can target a particular year or can position themselves to capitalise on the opportunity that can present itself as MTV plan the staging of the event for future years across their European markets. There is no formal bidding process for a particular year and no standard package that has to be delivered. However, there are a number of fundamental elements that as a city, Manchester is well positioned to deliver that would assist to leverage final agreement from MTV to stage the event e.g. large indoor venue, strong hotel stock, international transport links, venues for sponsor activation, international media facilities etc.

7.3 Members are asked to note the report.

55 Manchester City Council Appendix 1 – Item 6 Finance Scrutiny Committee 5 September 2013

Appendix 1 - Manchester as a Music Destination

Manchester has a portfolio of music venues that range from the 80,000 capacity Heaton Park, 62,000 capacity Etihad Stadium and the 21,000 capacity Phones 4 U Arena, to mid sized venues such as the Academy, the Apollo, and the Warehouse Project and smaller live music venues across the city such as the Ritz and Band on The Wall as well as a wealth of bars and clubs that host live music across the year from the Roadhouse and Night & Day to Gorilla and beyond.

This vibrant live music sector enables Manchester to operate as a music destination in a global marketplace – attracting the world’s biggest music performers to the city and developing direct economic benefit by drawing in visitors from out of the region and from overseas.

In 2012 the Stone Roses comeback concerts in Heaton Park – licensed by Manchester City Council as part of the strategy to attract major music events to the city – were estimated by New Economy to create £23m of economic impact from ticket sales and on site and off site expenditure. The three night concert series was attended by over 220,000 people and received national and international media coverage as the biggest individual UK music event of the year. The profile of the event has been further extended by the release of the documentary ‘Made In Stone’ in June 2013 which features significant footage of the Heaton Park comeback concerts – and will be released on DVD on the 21st October.

The home-grown Parklife Festival has grown over 4 years from a one day event in Platt Fields attracting 20,000 people in 2010 to a major national event attracting 100,000 people to Heaton Park across two days in 2013 – generating over £4.2m off site expenditure and delivering a media value in excess of £5.4m.

The development of these major music events sits alongside the Council’s investment in external partners to develop genre specific music elements across the events programme including the Manchester Jazz Festival and Future Everything as well as the global cultural event that is the Manchester International Festival where in 2013 live music performance from artists such as The xx, and Massive Attack were amongst the 30 new commissions and special events that delivered international profile for the city.

The IFPI (the International Federation of the Phonographic Industry) estimated that the global value of the live music sector was $21.6 billion in 2010. Research into the UK Music Market published in 2012 by PRS identified a UK recorded and live music industry valued at £3.8bn – with the Live Music Sector accounting for 31.624bn of that value. UK Music in their report in 2011 identified that the North West attracted over 965,000 music tourist visits – 12% of all music tourist visits in the UK and second only to London as a destination for music tourism. Music tourists (out of region and from overseas) equate to 41% of the audience at large concerts and 48% of the audience at festivals and generate over £132m spend. In 2013 analysis of Manchester’s Live Music marketplace by New Economy has identified that in 2012 an estimated 2.7m people attended a concert/festival in Greater Manchester, spending an estimated £253m on tickets, on site expenditure and off site expenditure. The off-site expenditure in bars, restaurants, hotels, local

56 Manchester City Council Appendix 1 – Item 6 Finance Scrutiny Committee 5 September 2013 travel etc was estimated at £115m and supports approximately 1,500 jobs in GM economy – the majority in Manchester given the main music venue locations.

To set this in context - the 2012 report Analysing the Value of Football to Greater Manchester estimated that football generates £229m million a year in spectator spend for Greater Manchester's economy.

In addition, New Economy identify that the number of businesses in relevant music sub-sectors - notably music studios and record labels - highlights that Greater Manchester has far more facilities than comparator cities, with the notable exception of London.

Greater Leeds BirminghamGlasgow Edinburgh London Manchester Music 56 28 22 37 23 184 studios Record 15 8 10 17 4 177 labels

Analysis of the 2011 Business Register and Employment Survey suggests there are around 600 people working in music-related sectors. This is direct employment and separate to jobs associated with people working in venues and bars.

The value of the live music sector to Manchester’s economy however goes beyond the immediate economic spend generated and the number of jobs created – it creates ‘a pull’ that attracts businesses and people to the city and delivers a wider positive impact on the local economy.

57 Manchester City Council Appendix 2 – Item 6 Finance Scrutiny Committee 5 September 2013

Appendix 2 - MTV’s Partnership Value

MTV is the world’s most-watched television network and leading multimedia brand for youth. It can be seen and interacted with in 704 million homes, in 161 territories, and on 170 channels and 436 online destinations worldwide. It operates across 6 continental regions – Europe, North America, South America, Middle East and North Africa, Asia Pacific and Central and South Africa.

MTV Networks Europe has adapted to the changing media landscape to become a multi-faceted network and experience, with viewers now interacting with the network in a different way. Linear TV reaches 38.5 million target viewers in 126.6 million households across Europe each month, with online content reaching 7.7 million people each month and live events reaching 700,000 young people every year. 63% of MTV’s audience are aged 15–34 – almost three times the pan-European TV average and double other pan-regional TV with MTV online platforms mirroring this efficiency of reach.

Online, MTV.co.uk has 2.3m unique users, whilst output via Facebook (700k+) and Twitter (350k+ ) reaches over 1 million people. Traffic to MTV websites in Europe has risen by +120% since 2005 with an additional 5.6 million through content syndication on sites like MSN, Daily Motion and Bebo.

MTV reflects and creates pop culture with content built around music across TV, online and mobile. Specialist music programming includes MTV EMAs, Isle of MTV, World Stage and MTV Crashes … all of which showcase live music and promote the cities that host the live events in partnership with the broadcaster.

MTV Crashes

The contracted partnership with MTNE delivered the following elements:

 the production and broadcast of the 22 minute Manchester specific programme,  the production and management of the artist performance at the cathedral,  the recording, production and broadcast of the performance across MTV platforms including the World Stage global broadcast  and the marketing and promotion campaign for the project

Whilst the staging of the live performance was important, the seeding of the look and promotional content, the resulting press coverage and of course the eventual broadcast of the show are the core of the offer - designed to maximise the opportunities for an audience to engage with the event and the city through not only the initial screening but also the repeat screenings over a year long period. MTV World Stage – a global platform for Destination Marketing

MTV World Stage is a global series that bring multi-genre talents with global relevance, telecast to an audience in over 550 million households. Recorded ‘live’ at

58 Manchester City Council Appendix 2 – Item 6 Finance Scrutiny Committee 5 September 2013 the most exclusive gigs, world renowned music festivals and unique concert locations from around the world, the series is the ‘front row seat’ for music lovers to experience the biggest artists on the globe without leaving the comfort of their sofas with a global airing across 62 channels in 154 countries across MTV Networks.

In an interview in 2012 with Bob Bakish, president and CEO of Viacom International Media Networks, he identified the reasoning behind MTV’s partnerships with the city hosts, explaining “Travel and tourism is a great intersection, because the people who go these events and consume them on TV and on our digital platforms are an important demographic for the travel and tourism industry. Our data says that 20 percent of global travellers are between 16 and 29, and they spend $135 billion–plus a year, so it is an attractive demo.”

“World Stage airs every Friday, typically, on our international MTV networks in around 150 territories passing something like 600 million homes. The idea was to showcase great bands in great cities.”

Mark Swift Vice President, Commercial Director, Viacom Brand Solutions UK and Ireland emphasised the value of developing partnerships with key cities ‘As a network, we invest heavily in on-the-ground commercial partnerships, which, in the last two years alone, has seen us taking MTV to Ibiza, Glasgow, Belfast and Manchester. Meeting Bobby Gillespie of Primal Scream in Ibiza and seeing Alicia Keys perform at Manchester Cathedral were definite career highlights.’ – Media Week Jan 2013

Another benefit is that locations used for MTV live outings can be evaluated for potential later use as sites for the EMAs. Bob Bakish, president and CEO of Viacom International Media Networks identified “When you go to new locations, it’s exciting, but a little more stressful to put a production together. Our live events help us create a pipeline of cities for a potential larger event like the EMAs. We can see what it is like to work with the local government and check out the location before committing to something bigger.”

MTV European Music Awards

The MTV European Music Awards (EMA’s) is one of the biggest events in world music. The annual awards event is a major live music and live broadcast event and delivers a global audience and quantified and qualified benefits to the host city.

The event takes place each year during the month of November with the Live event broadcast across the world from the primary venue and secondary live event experiences that take place across the host city. Last year the event was hosted in Frankfurt, this year the host city will be Amsterdam. In 2011, Belfast hosted the event and produced a detailed post event evaluation which highlights the economic and PR benefits to be achieved:

. £22m Total Economic Impact including PR value . £10m additional tourism revenue for the city . £8m invested in event by MTV (£2.13m to local suppliers)

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. 8,000+ Bed Nights booked by MTV for artists crew and guests. - 1,000 external crew staying a minimum of 5 nights - 4,200 visitors stayed a minimum of three nights. . £132m Media Value (AVE on 2,399 media articles) . 669m – number of news media opportunities generated . 130 national and international press attended and 23 film crews - with journalists travelling from Europe, US, China and the UAE.

60 Manchester City Council Appendix 3 – Item 6 Finance Scrutiny Committee 5 September 2013

Appendix 3 – Evaluation

Overview

The evaluation of the ‘MTV Crashes … Manchester’ live event and broadcast content has been split into two phases.

Phase 1: - the pre-show promotion via digital platforms - the pre-show promotion via bespoke TV content - the related economic spend generated by the Live Show and the production of the broadcast content. - the post- live event media coverage across print, TV and online platforms

Phase 2: - the broadcast media value for Manchester A City United In Music - the European broadcast media value for MTV Crashes … Manchester - the broadcast media value for MTV World Stage – Alicia Keys at Manchester Cathedral. - the product placement values across TV and online broadcast content for Manchester, Manchester City Council and Manchester Cathedral.

Phase 1 evaluation has been informed by independent research via MTV (Digital promotion values and post live event online print and broadcast media values) and Repucom (TV promotion value and BBC news and MTV News items). Phase 2 evaluation was informed by analysis undertaken by Repucom a global research agency who provide market leading media analytics focused on the impact of sponsorship in various broadcast environments - measuring, evaluating and auditing sponsorship activations and campaigns across TV, online, radio and social networks, print and mobile devices.

Phase 1 : MTV Crashes Manchester : Promotion and Live Event

Digital Promotion Value: Number of Estimated Estimated Value sites to be Traffic to Traffic developed sites To Existing websites Website 1 15,000 4,000 comp 5,000 Development entries Social Feeds 16 posts reaching 8,000 500,000 people each post Main 8 weeks 1,200,000 0.15% CTR 8,000 Homepage page Promo impressions

61 Manchester City Council Appendix 3 – Item 6 Finance Scrutiny Committee 5 September 2013

Button News Stories 4 news 5,000 page 20,000 stories impressions Competition 8 weeks 20,000 page 4,000 page button impressions Small 8 weeks 1,200,000 4,000 homepage page Promo impressions Button Outdoor 5 digital Manchester 20,000 screens etc City Centre

£69,000

TV Promotion Value:

TV Number of Audience Price Value ratings to (i.e. Adults, be Adults 16- delivered 34) Competition UK 45.6 Ads 16 - 34 £15 100,000 spot advertising IRE 117.5 Ads 15+ £5 20,000 Promotion UK 22.7 Ads 16 -34 £15 63,719.00 spot advertising

£183,719.00

ii) Economic Expenditure – Live Event

60 x MTV staff and external production operatives + 40 corporate guests/media – average 2 night stay. (travel, accommodation, food and drink, shopping etc) £41,600 100 x GM base d staff / production operatives (travel and transport, parking, food and drink etc) £4,000 1100 city based attendees (travel and transport, parking, food and drink etc) £55,000 MTV Live Event Production £75,000 MTV Broadcast and Digital Production £350,000

£525,600

62 Manchester City Council Appendix 3 – Item 6 Finance Scrutiny Committee 5 September 2013 iii) Post Event Media Coverage: The overall recorded PR coverage value for MTV Crashes Manchester, which includes coverage generated from a consumer and a corporate perspective is identified as:

MTV Crashes Vol. SoV % £PRV ks SoV % Online 445 95 372, 000 66 Print 14 3 61, 000 11 Broadcast (radio) 8 2 134, 000 24 Totals 467 - £567, 000 -

In addition to a total of £ 567,000 of PR value, international newswires Reuters Showbiz and APTN Showbiz also ran reports on the event to 700 and 500 broadcasters around the world respectively. MTV Crashes Manchester also appeared on 71 US websites – so provided a good combination of international exposure and UK specific coverage which has not been incorporated in the valuation.

Media reports on the event included a 2minute news item on MTV which received approximately 20 plays in a 24 hour period on MTV, MTV+1, MTV Music, MTV Hits, MTV Base, MTV Rocks, MTV Dance, MTV Live HD and Viva.

An 8 minute 30 second interview piece on BBC breakfast news – with an audience reach of 143,000 http://www.bbc.co.uk/programmes/p00yzjsv aired the following morning.

Phase One: i) Digital and TV Promotion £252,719.00 ii) Economic Expenditure Live Event £525,600.00 iii) Post Event PR and Media Value £567,000.00

Phase 1 Total Value: £1,345,319.00

Phase 2 – Broadcast - TV Airtime Values

Manchester City Council engaged Repucom – a world leading media evaluation agency to independently evaluate the value of the airtime and branded content exposure and commercial advertising value of the programme content across MTV’s global broadcasting platforms. The evaluation not only covered the AVE of the airtime, but also the tracked value of three brand identifiers – Manchester, Manchester City Council and Manchester Cathedral.

Broadcast Airtime on MTV

The three separate elements of broadcast on MTV Platforms were:

i. 22 minute surround show ii. 43 minute MTV Crashes Manchester

63 Manchester City Council Appendix 3 – Item 6 Finance Scrutiny Committee 5 September 2013

iii. 43 minute MTV World Stage – Alicia Keys

Alicia Keys - MTV Crashes Manchester and MTV World Stage Transmissions: i. Between October 2012 and March 2013 the Surround Show – Manchester a City United in Music – premiered on the 21st October and has been broadcast 18 times on MTV Music and MTV Live (SD and HD).. ii. Premiered on the 28th October and between October 2012 and March 2013 MTV Crashes Manchester was broadcast 37 times on MTV Music and MTV Live (SD and HD). iii. World Stage Alicia Keys premiered on the 7th December 2012 has been broadcast 3 times in the Friday night global schedule in the period evaluated.

MTV Channels and Territories: a) MTV Music – MTV Music is a non-stop music entertainment channel operated by Viacom International Media Networks Europe. The channel is also available in the Netherlands, Belgium, Italy and Switzerland. b) MTV Live SD and HD - MTV Live HD is available in a number of countries throughout Europe, South America and Asia including: Europe - Austria, Belgium, Bulgaria, Croatia, Czech Republic, Estonia, Denmark, Finland, France, Germany, Greece, Ireland, Israel, Italy, Latvia, Lithuania, Luxemburg Malta, Netherlands, Norway, Portugal, Poland, Russia, Romania, Slovakia, Spain, Sweden, Switzerland, Turkey, Ukraine and the United Kingdom. North America Mexico South America - Argentina, Chile, Colombia, Ecuador, Peru, Uruguay, and Venezuela. Oceania – Australia. South East Asia - Malaysia, Philippines and Singapore. c) MTV World Stage is a global series that brings multi-genre talents with global relevance to an audience in over 550 million households. Recorded "live" at the most exclusive gigs, world renowned music festivals and unique concert locations from around the world, MTV World Stage is the "front row seat" for music lovers to experience the biggest artists on the globe without leaving the comfort of their sofas. It was projected that MTV World Stage – Alicia Keys at Manchester Cathedral would be available via 62 MTV channels and 154 countries as part of their ‘World Stage’ music series.

MTV Crashes – Commercial Media Value of Airtime:

Measuring the Media Value

64 Manchester City Council Appendix 3 – Item 6 Finance Scrutiny Committee 5 September 2013

In-programme exposure is becoming more important across the advertising industry. In a market where TV is becoming more fragmented and viewers’ TV consumption habits are changing generating awareness from traditional spot advertising is becoming more difficult. Branded content allows brands to connect with a more engaged audience in innovative ways to deliver more perceived value.

What is key to making branded content successful is the ability to subtly integrate the brand into the very fabric of the show, this is where branded content is best received by the viewer and the brand inherits the qualities that the show delivers. In this instance it is aligning Manchester with the gravitas that is associated with TV as a medium, but also and more importantly the quality of the music and performer via MTV, and of course the association with the MTV the brand itself.

Manchester is totally integrated into the MTV programmes so that the viewer is aware from the offset that the content is being performed in Manchester, that sponsorship bumpers confirm that the show is being held in Manchester, and even the artists are making verbal references to Manchester within the very body of the content - and the word Manchester is displayed when the song title is being referenced on screen.

This enables a media value to be placed on the broadcast airtime but alongside the assignment of value to the programme Repucom have been commissioned to value the word “Manchester” being verbally referenced, as well as the word appearing on the screen – creating a media value for the programme content as well as a media value for the product placement – the product being Manchester.

Measuring the Broadcast Territories

Sixteen MTV territories/countries have been measured and analysed with value calculated against viewing levels and advertising equivalent rates for the airtime. The premier show of each programme has been measured at optimum audience levels with all subsequent screenings amended downwards to take into account the non- prime time screening slots across the period of measurement. This provides a credible audience viewing total across the broadcast period.

MTV has a number of different models for different territories – from the licensing of individual programmes to broadcasters or other channels, to joint ventures with existing programmers in a country, or through owned and operated networks. The speed of growth of cable and satellite and multi-channel television in eastern Europe, Asia and Latin America for example has also increased the potential reach within these emerging territories but they do not at present generate the same audience and advertising rate data as the measured countries utilised for this evaluation.

Viacom and Repucom have extrapolated the data from the measured territories to create an informed value against the worldwide broadcast of the content – where due to the stage of maturity of the individual market or complexity of the broadcast environment the same metrics for measurement do not exist.

Measured Countries:

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MTV Crashes: Europe Analysis based on premier broadcast + subsequent repeat broadcast. Market Demographic Audience CPT 30 1 Media (000’s) Second second Value Media media Rate rate UK Adults 418 4.751986 66 170,753 Hungary Adults 11 7.0077 3 6,622 Holland Adults 948 9.008532 284 733,752 Belgium Adults 129 8.001032 34 88,752 Denmark Adults 144 6.00864 29 74,304 Norway Adults 171 7.001197 40 102,942 Sweden Adults 391 6.502542 85 218,569 Finland Adults 146 7.001022 34 87,892 Poland Adults 798 5.003990 133 343,140 a) 9 Countries 3,156,000 £1,826,726

MTV Crashes: World Stage Analysis based on premier broadcast + subsequent repeat broadcast. Market Demographic Audience CPT 30 1 Media (000’s) Second second Value Media media Rate rate Australia Adults 53 18.00954 32 82,044 Mexico Adults 154 12.001848 62 158,928 Brazil Adults 81 11.00891 30 76,626 Argentina Adults 199 15.00 2985 100 256,710 Columbia Adults 189 4.00 756 25 65,016 Singapore Adults 15 13.00 195 7 16,770 Malaysia Adults 10 10.00100 3 8,600

b) 7 Countries 701,000 £664,694 c) All territories Media Value World Stage 16,935,000 4.0 £67,740 £2,258 £5,825,640 - Extended Reach

In the measured territories of Europe, MTV Crashes .. Manchester has in the first 6 months since the live event was staged, delivered an audience of 3.156 million with a media value of £1.826m. In the same period, the World Stage programme has been analysed to have delivered 701,000 viewers in 7 measured territories and a wider reach of 16.935m audience with a media value of £5.825m across the period of transmissions.

Additional Content Content Market Audience CPT 30 1 Media (000’s) Second second Value Media media

66 Manchester City Council Appendix 3 – Item 6 Finance Scrutiny Committee 5 September 2013

Rate rate BBC News UK 143 7.8 1120 37 20,157 MTV.Co.UK UK 130 3.4 102 62 8,160 MTV News Global 10 11 110 5,280 MTV UK 62 4.8 295 30 14,182 Surround d) 345 £47,779 Total Broadcast Media Value: a + b + c + d £8,364,838

Total Audience A + b + c + d 21,137,000

In Programme Product Placement Value – Manchester.

Exposure Duration Average Average % Media (seconds) Duration Size Branded Value Placement MTV 729 2,601 3.6 1.22 46.15 £92,193 Europe x 9 countries MTV World 140 532 3.8 0.58 37 £7,327 Stage

67 Manchester City Council Appendix 3 – Item 6 Finance Scrutiny Committee 5 September 2013 x 7 Countries World Stage £2,262,000 - Extended Additional £1,204 Content Product Placement Value Total £2,362,725

Analysis of the verbal and on-screen reference through the MTV Crashes, World Stage and Surround Show content as well as via image content on various other platforms delivers a total product placement value of £2.362m

Total Media Value:

Analysed Programme Location Media Value MTV Crashes Broadcast £8,364,836 In Programme £2,362,725 Placement

Total £10,727,561

Return On Investment:

The combined economic and media value of the staging of the event and the broadcast of the resultant programmes is thus to date estimated at £12.072m and delivered an audience of over 21.7 million.

a) Economic and Media Value:

Phase 1 Total Value: £ 1,345,319.00 Phase 2 Total Value £10,727,561.00

£12,072,880 b) Audience

MTV Crashes – Europe 3,156,000 MTV World Stage 17,636,000 Additional Content 345,000

21,137,000 It should be noted that the audience numbers and impacts identified are not the full reflection on the reach and value of the programme. The extended broadcast reach of MTV Crashes … Manchester goes beyond the nine measured markets and the identified audience levels and subsequent reach and values will be significantly higher. In addition, the number of transmissions across both the MTV Europe and MTV World Stage platforms is within the identified period for evaluation purposes.

Given the high quality of the programme content and international artist value, MTVNE advise that by the end of 2013 the number of transmissions will be in excess of 50 across the MTV Music and MTV Live channels and the World Stage

68 Manchester City Council Appendix 3 – Item 6 Finance Scrutiny Committee 5 September 2013 programme will have been transmitted at least twice more (and does not include individual country transmissions of the World Stage content outside of the main Friday night worldwide programming schedule).

Allied to this, other platforms such as You Tube – where the MTV Crashes … Manchester content have generated over 400,000 views - alongside other websites where the content is available to download, means that the final audience reach is extended further than that reported.

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