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Digital Africa 2017 ! EnterTechmentTM - Entertainment in the Digital Age Presented at ! Digital Africa 2017 ! Abuja, Nigeria ! by! Armstrong U.A.! Takang Ph.D. 7th June 2017 1 Overview ▪ Background ! ▪ Our Work in the Entertainment Space ! ▪ Evolving Entertainment Ecosytem ! ▪ Current Market Realities ! ▪ Opportunities for Intervention ! ▪ Summary and Conclusion ! Overview ▪ Background ! ▪ Our Work in the Entertainment Space ! ▪ Evolving Entertainment Ecosytem ! ▪ Current Market Realities ! ▪ Opportunities for Intervention ! ▪ Summary and Conclusion ! Background …Technology meets entertainment Overview ▪ Background ! ▪ Our Work in the Entertainment Space ! ▪ Evolving Entertainment Ecosytem ! ▪ Current Market Realities ! ▪ Opportunities for Intervention ! ▪ Summary and Conclusion ! Binary TV Series …Technology to the rescue www.centrilmedia.tv Binary TV Series …Technology to the rescue …The evolving Nigerian Entertainment Ecosystem ! ! ! ▪ Music ▪ Comedy ! ! ! ! ! ! ! ! ▪ TV ▪ Games ! ! ! ! ! ! ! ! ! ▪ Reality TV ▪ Film …YouTube is becoming a major “digital concert ground” for Nigerian musicians. POSITION ARTIST SONG TITLE #VIEWS 1 P Square Personnally 75.0m 2 Yemi Alade Johnny 68.0m 3 Dbanj Oliver Twist 42.1m 4 DavidO Aye 39.9m 5 Tekno Pana 35.6m 6 Don Jazzy Durobucci 24.6m 7 Tiwa Savage Eminado 21.2m 8 WizKid Show You the Money 20.6m 9 Flavor Ada 20.1m 10 Iyanya Kukure 19.8m …Nigerian YouTube Sensations 1. PSquare 6. Don Jazzy 2. Yemi Alade 7. Tiwa Savage 8. WizKid 3. Dbanj 9. Flavour 4. Davido 10. Iyanya 5. Tekno …Nigerian Social Media Sensations (Facebook, Twitter, Instagram) 1. Davido 6. Tiwa Savage (8.65m fans) (6.04m fans) 2. Peter Okoye (PSquare) 7. Don Jazzy (8.07m fans) (5.58 m fans) 8. Omotola 3. WizKid (5.55 m fans) (6.94m fans) 4. Mayor Boss 9. Dbanj (6.19m fans) (4.63 m fans) 10. Rita Dominic 5. Genevieve (4.63 m fans) (6.12m fans) Source: http://innovation-village.com/ 2016 …The technology platforms available to Nigerian entertainers is increasingly growing and are being exploited as opportunities for exposure and monetization. Overview ▪ Background ! ▪ Our Work in the Entertainment Space ! ▪ Evolving Entertainment Ecosytem ! ▪ Current Market Realities ! ▪ Opportunities for Intervention ! ▪ Summary and Conclusion ! …In the past the value chain was very linear with roles and responsibilities of key players clearly defined. Content Programmers Distribution Consumer Creators /Aggregators Systems Devices …the disruptive nature of technology is creating new and evolving business models for the industry but with more uncertainties. Iroko Studios Content Netflix Studios Consumer Creators/ Google Gaming Firms Devices Aggregators Amazon Independents Microsoft Independent TVs/Movies Theatres Smart Devices New Original Content Virtual Reality …despite the uncertainties, there is a framework guiding this evolution. Programmer Content Distribution Consumer s/ Creators Systems Devices Aggregators • Studios • TV Networks • Independents • Online Networks Overview ▪ Background ! ▪ Our Work in the Entertainment Space ! ▪ Evolving Entertainment Ecosytem ! ▪ Current Market Realities ! ▪ Opportunities for Intervention ! ▪ Summary and Conclusion ! …The evolving entertainment is presenting some new realities for the industry as a whole. ▪ “Globacalized" business models - investors are looking for opportunities where the content reflects local culture and language but can be made available across multiple and global platforms in order to reach a wider audience and be scalable. ! ▪ Consumers - demanding more content, where they want, when they want, on the device they want, all of these at the right price (sometimes for free!) and right now! They also need for highly personalized, locally relevant, variety (skits, TV series, films, music, home made videos, reality TV shows, etc. The most expensively made are not necessarily the most watched or appealing. ! ▪ Dominance of Internationally-owned Platforms - the most platforms showing Nigerian contents are multi-nationals who providing a ‘local feel’ for their platforms - e.g. social networks and search engines. Youtube’s dominance and untaxed revenues from Nigeria clearly demonstrate this. …the evolving entertainment is also presenting additional realities for the industry especially with respect to consumer relationships, responsiveness and monetization. ! ▪ Ownership of Consumers Relationship - increasing ‘power’ of the consumer through diversity of technology platforms and need for personalization are reducing the power of traditional networks. Ownership of consumer relationships is key in winning the game. Distributors now produce contents and producers now distribute contents. ! ▪ Responsiveness to Consumers - ability to analyze and quickly respond to consumer feedback, viewing habits, preferences etc. is key in winning in the new era of 4iR. ! ▪ Leveraging Virtual Reality and other Platforms - entertainers, investors and other stakeholders need to quickly develop models to adapt current and future digital assets and contents to leverage consumers’ increasing interest in new platforms such as Virtual Reality and Augmented Reality. ! ▪ Monetization - ability to monetize the digital assets is key in creating investable businesses and justifying the investments being made on artistes. …the consumers for more active and ‘immersive’ experiences while being entertained creates opportunities as well as challenges for the Nigerian EnterTechment industry. Overview ▪ Background ! ▪ Our Work in the Entertainment Space ! ▪ Evolving Entertainment Ecosytem ! ▪ Current Market Realities ! ▪ Opportunities for Intervention ! ▪ Summary and Conclusion ! …technology has come to the rescue of the entertainment industry and will continue to be so for the foreseeable future. A. Digital Assets - Capturing Intellectual Properties, Copyright registrations across jurisdictions, Creative commons, etc. B. Brand Equity - Fan Base, Followership, Marketing Exposure C. Activity Tracking - social media platforms, fan journalism and stats will help tracking D. Monetization of Intellectual Property - extraction of monetary value from media exposures, insertions, YouTube views, i-tunes, online advertisements, caller tunes, etc. E. Cross Border Exposure - entertainment without borders, local dominance and international relevance, diaspora followership, etc. F. Big Data Analytics - numeric tracking and analytics will help artists, advertisers, investors, IP owners, fans, etc. G. Democratization of production and distribution process - iTunes, YouTube, Social Media Platforms revenue shares ! Overview ▪ Background ! ▪ Our Work in the Entertainment Space ! ▪ Evolving Entertainment Ecosytem ! ▪ Current Market Realities ! ▪ Opportunities for Intervention ! ▪ Summary and Conclusion ! Conclusion ▪ Need for a Rethink - 4iR is creating even new realities for the Nigerian entertainment industry thus calling for a rethink by the stakeholders in order not to move stardom to dinosaur status. ! ▪ Innovation Ecosystem - Need for creation of innovation hubs or programs focused on EnterTechment to ensure we are not just imitators but innovators. This must be accompanied with an innovation mindset across the entire value chain. ! ▪ Smart Money - Support to build infrastructure for the industry through more well thought out intervention programs (“smart money” / Money Plus) ! ▪ Regulatory Capacity - Government needs to build capacity to regulate the industry especially cross-border digital transactions ! ▪ Revenue Collection Models - There is need for more innovative models on how government can capture and collect tax revenues from these transactions especially cross-border transactions involving “virtual companies” ! ▪ Create or Customize for Virtual Reality - Industry players need to find ways to adapt, customize and port their current digital assets across to the medias of the future especially Virtual Reality platforms. ! ▪ Uncertainty as the only Certainty - All stakeholders must get used to the fact that the only certainty is that !4iR comes with a lot of uncertainties for the industry! ! ! ! ! ! ! Thank You ! ! ! Contact Armstrong U.A. Takang Ph.D. @aatakang [email protected] www.alteqict.com.
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