Download - Droidcon: Licensing and Open Source
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Who is this guy?
!
Corporate Strategy - Licensing - M&A / Corporate Finance
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Why am I talking about Licensing?
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Here it Comes
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Q: Do brands care for open source?
A: No.
Brands are platform-agnostic.
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Licensing rationale
Developer
License
$$$
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Common Solutions:
2.1.
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The Average Licensing Model(Simplified Version of how it was, is and always has been)
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Licensor puts out RFPOR
Developer approaches licensor directly
Developer manages to get Licensorsattention
OR Developer loses...
The Parties negotiate hard and for weeks(or months) until they reach commonground (which Licensor think is shabby
and leaves Developer wondering how toever repay his debt...
Developer prepares reply to RFPOR Developer prepares offer outlining
creative concept and commercial case.
Developer (or his banker) gets heart attack and pushesback with elaborate explanation on development effortneeded.
If successful, Licensor comes back withhuge royalty (50% minimum!!!) and MGdemands (including sizable up-frontpayments; mid-6 figures).
In the latter case, go back to
Developer gets formaldesign document underway and files forapproval.
Period of negotiations between expensive lawyersover every little term (best efforts vscommercially reasonable efforts, etc, etc, etc, etc)
Deal is signed!
Kick-off meeting betweenLicensor and Developer: willinclude creative teams, approvaldepartments, etc. Look forintroductions to other licenseesas it helps with co-marketing
Developer waits forapproval.
Licensor approvesdesign.
See the green star...
Developer goes ahead.Finalises beta build andfiles for approval.
See green star...
Game is finished andfiled for approval.
Developer looks atroadmap and realises heneeds another license
Developer distributes through his channelsAND/OR Developer finds publishers and/or aggregators
to distribute it through
Go back to
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Result
1. Lucky 2. Not so lucky
I am not saying that this is a bad game.But it IS a poor use of a brand.
This game delivered on brand value,execution and commercial success.
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Not very compelling.
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Show me the money...
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Its in your pocket...
Just ask the right question!
Catchy phrase inspired by Jonathan MacDonald
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BRAND Licensing
Q: What do brands look for?
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A: Users.
Users are also commonly known as customers or consumers
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Sell or Else...
David Ogilvy
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BRANDS...
Sell Services & products. Promote their Image & Message.
Open additional revenue streams...- Licensing!?
Licensing is NOT core!
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Media vs Non-Media Brands
Non-media (e.g. VW, P&G, Carling):extendtheir brand and image.
Media (e.g. FT, Hasbro, Fox):
(also) building additional verticals.
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How can youhelp them?
The right question:
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Heres your Pitch:
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Use Media to Extend Reach!
Digital media advantage vs
analogue media:interactive, i.e. multi-directional.
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Use Mobile to Extend Reach!
Mobile is the most powerfuldigital medium to date.
Why?
1.Its Big (numbers)2.Its Personal (nature)3.Its really personal
(Identification of needs)
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1,500,000,000
4,600,000,000
1,700,000,000
2,250,000,000
Number of Internet users
Number of credit cards
Number of tooth brushes in use
Number of mobile phone subscriptions
480,000,000Daily global circulation of newspapers
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The Nature of Mobile: Its a 1st!
Personal mass media Always carried Always on
Built-in billing system Always present at the point of creativeimpulse
Accurate audience identification
Tomi Ahonen, Mobile the 7th Mass Media, 2008;Alan Moore & Jonathan MacDonald, The Glittering
Allure of the Mobile Society, 2008
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Significance of Mobile to Users...
91% of people have their mobile within arms reach 24/7.
64% of Americans are not willing to share their mobile with
anyone. 60% of married people will not share their mobilewith their spouse!
I takes an average of 26 h for a user to report a lost wallet
but only 68 minutes to report a lost mobile phone.
Morgan Stanley 2007
Unisys Survey
Wired Magazine 2006
8 out of 10 German men would rather lose their wife thantheir mobile phone.
Jonathan MacDonald; Survey of 10German men at 1am in a bar...
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... and how Brands use it...
In 2008, Procter & Gamble spent 0.17% of theiradvertising budget on mobile.
Volkswagen spent 1% of their DIGITAL budget on
mobile (that was 2008...).
Informa/Acision/OgilvyOne
VW CRM Manager cited by Andrew Grill
BUT
Volkswagen also just announced that the ONLYcampaign for the 2010 VW Golf GTI will be aniPhone Game (Real Racing GTI)... Quick learning!*
* This is autumn 2009
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(c) gapingvoid
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Change the Language...
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Engagement!
Engage, dont lecture.
Be Sincere. Mean what you say. Result: users become brand ambassadors.
No Fine Print
+YOU!
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Engagement!
Games & apps are perfect for this!- Interaction.- Less intrusion.- Brand takes centre stage: shine!- Love it, recommend it.74% of all purchases are made because of
recommendations by friends!Bain Consulting
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Old World vs New World: It works now.176x208 J2ME games Current-generation iPhone games
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01100110101101001100100100100
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1010011001001110010101010111010100110010011100101010101110X
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Its here:Well, it COULD be here (if the Open
Handset Alliance executes well).
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Lets ask again:
Q: Do brands care for open source?
A: Yes.
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123,296,966,069,999,387,456
The Law of Big Numbers
This is why:
d d ( )
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How Android apps compare (1)
Distimo, CTIA San Diego, 2009
88,000
12,0002,900
Apple Android BlackBerry
Apple App Store
Google Android Market
BlackBerry App World 76%
36%
77%
24%
64%
23%
Free Paid
Total # of apps Paid vs Free
H d d ( )
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How Android apps compare (2)
Flurry Analytics Blog, 6 Aug. 2009
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Android is set to explode.Eric Schmidt, CEO Google
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Inspiration!
$
t
A d id W
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Androids Weapon
OPEN = Infinite scale!Platforms
Vendors
Th E ti
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The Equation:
Brands want users.+ Users want good stuff (and dont care if it
is open/closed, widget/app, this/that... aslong as it works)
+ Brands want big numbers.+ Android has (OK: will have) big numbers.+ Android can deliver kool-aid.
= Great Opportunity for Brands
(= $$$ for Everyone [incl. Developer]) S i
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Summing up:
Engage, dont lecture. Treat licensing as a brand extension, notas a (presumed) means to sell 0.x% more.
Forget tech-heavy preaching. Just delivercompelling stuff to your users.
Deliver it in big numbers.
Got all that? You have a winner!
BTW: Winner means that the user wins! The rest (incl. $$$) comes then almost on its own...
Image & Video Credits
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Image & Video Creditshttps://reader010.{domain}/reader010/html5/0601/5b10ac35440ab/5b10ac4b8e851.jpghttp://1.bp.blogspot.com/_Vr8Xl0cbUZA/SVJzaekjMQI/AAAAAAAAFWU/gvOyNNzcdis/s400/Image+%3D+clueless+is+no+excuse.jpghttp://www.mtco.com/~rkblack/Open-Door_0032a.jpg
http://filmgordon.files.wordpress.com/2009/03/conneryaston.jpghttps://reader010.{domain}/reader010/html5/0601/5b10ac35440ab/5b10ac4d36b4c.jpghttp://www.iphoneincanada.ca/wp-content/uploads/2008/07/carling_ipint.pnghttp://www.mobileshop.com/blog/wp-content/uploads/2008/10/ipint-virtual-beer-under-fire.bmphttp://farm4.static.flickr.com/3250/3074199062_f434be862a_o.jpghttp://miraloqueveo.files.wordpress.com/2008/09/david-ogilvy.jpghttp://www.nationalserviceexpress.com/mogulus-user-uploads.s3.amazonaws.com/B6A8222A-4B39-2BD5-CF85-179823589EF8.jpghttp://gapingvoidgallery.comhttp://nexus404.com/Blog/2009/10/23/2010-volkswagen-gti-presented-in-iphone-game-play-firement-real-racing-and-win-a-2010-vw-gti-exclusively-on-the-iphone/
http://www.toptenreviews.com/i/rev/misc/articles/old_blog/blog_963_1.jpghttp://www.iphonic.tv/assets_c/2009/07/barclaycard-waterslide-extreme-1-thumb-430x285-92255.pnghttp://www.oneighturbo.com/wp-content/uploads/2009/09/01-oneighturbo-sciroccoR-iphone-091509.jpghttp://media.photobucket.com/image/papa%20roach/crazyOAgirlFERlife/Papa_Roach.pnghttp://www.youtube.com/watch?v=dPYM-XTqcechttp://markhirschfeld.files.wordpress.com/2009/08/open-door1.jpghttp://www.freeverse.com/assets/games/9003/screenshots/456/174114905.jpghttp://www.firemint.com/realracing/screenshots.htmlhttp://i264.photobucket.com/albums/ii187/botvinya/worker_mechanic.jpg
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http://i264.photobucket.com/albums/ii187/botvinya/worker_mechanic.jpghttp://www.firemint.com/realracing/screenshots.htmlhttp://www.freeverse.com/assets/games/9003/screenshots/456/174114905.jpghttp://markhirschfeld.files.wordpress.com/2009/08/open-door1.jpghttp://www.youtube.com/watch?v=dPYM-XTqcechttp://media.photobucket.com/image/papa%20roach/crazyOAgirlFERlife/Papa_Roach.pnghttp://www.oneighturbo.com/wp-content/uploads/2009/09/01-oneighturbo-sciroccoR-iphone-091509.jpghttp://www.iphonic.tv/assets_c/2009/07/barclaycard-waterslide-extreme-1-thumb-430x285-92255.pnghttp://www.toptenreviews.com/i/rev/misc/articles/old_blog/blog_963_1.jpghttp://i264.photobucket.com/albums/ii187/botvinya/worker_mechanic.jpghttp://i264.photobucket.com/albums/ii187/botvinya/worker_mechanic.jpghttp://www.firemint.com/realracing/screenshots.htmlhttp://www.firemint.com/realracing/screenshots.htmlhttp://www.freeverse.com/assets/games/9003/screenshots/456/174114905.jpghttp://www.freeverse.com/assets/games/9003/screenshots/456/174114905.jpghttp://markhirschfeld.files.wordpress.com/2009/08/open-door1.jpghttp://markhirschfeld.files.wordpress.com/2009/08/open-door1.jpghttp://www.youtube.com/watch?v=dPYM-XTqcechttp://www.youtube.com/watch?v=dPYM-XTqcechttp://media.photobucket.com/image/papa%20roach/crazyOAgirlFERlife/Papa_Roach.pnghttp://media.photobucket.com/image/papa%20roach/crazyOAgirlFERlife/Papa_Roach.pnghttp://www.oneighturbo.com/wp-content/uploads/2009/09/01-oneighturbo-sciroccoR-iphone-091509.jpghttp://www.oneighturbo.com/wp-content/uploads/2009/09/01-oneighturbo-sciroccoR-iphone-091509.jpghttp://www.iphonic.tv/assets_c/2009/07/barclaycard-waterslide-extreme-1-thumb-430x285-92255.pnghttp://www.iphonic.tv/assets_c/2009/07/barclaycard-waterslide-extreme-1-thumb-430x285-92255.pnghttp://www.toptenreviews.com/i/rev/misc/articles/old_blog/blog_963_1.jpghttp://www.toptenreviews.com/i/rev/misc/articles/old_blog/blog_963_1.jpghttp://nexus404.com/Blog/2009/10/23/2010-volkswagen-gti-presented-in-iphone-game-play-firement-real-racing-and-win-a-2010-vw-gti-exclusively-on-the-iphone/http://nexus404.com/Blog/2009/10/23/2010-volkswagen-gti-presented-in-iphone-game-play-firement-real-racing-and-win-a-2010-vw-gti-exclusively-on-the-iphone/http://nexus404.com/Blog/2009/10/23/2010-volkswagen-gti-presented-in-iphone-game-play-firement-real-racing-and-win-a-2010-vw-gti-exclusively-on-the-iphone/http://nexus404.com/Blog/2009/10/23/2010-volkswagen-gti-presented-in-iphone-game-play-firement-real-racing-and-win-a-2010-vw-gti-exclusively-on-the-iphone/http://gapingvoid.com/http://gapingvoid.com/http://www.nationalserviceexpress.com/mogulus-user-uploads.s3.amazonaws.com/B6A8222A-4B39-2BD5-CF85-179823589EF8.jpghttp://www.nationalserviceexpress.com/mogulus-user-uploads.s3.amazonaws.com/B6A8222A-4B39-2BD5-CF85-179823589EF8.jpghttp://miraloqueveo.files.wordpress.com/2008/09/david-ogilvy.jpghttp://miraloqueveo.files.wordpress.com/2008/09/david-ogilvy.jpghttp://farm4.static.flickr.com/3250/3074199062_f434be862a_o.jpghttp://farm4.static.flickr.com/3250/3074199062_f434be862a_o.jpghttp://www.mobileshop.com/blog/wp-content/uploads/2008/10/ipint-virtual-beer-under-fire.bmphttp://www.mobileshop.com/blog/wp-content/uploads/2008/10/ipint-virtual-beer-under-fire.bmphttp://www.iphoneincanada.ca/wp-content/uploads/2008/07/carling_ipint.pnghttp://www.iphoneincanada.ca/wp-content/uploads/2008/07/carling_ipint.pnghttp://www.gapingvoidgallery.com/images/talkedjgif002.jpghttp://www.gapingvoidgallery.com/images/talkedjgif002.jpghttp://filmgordon.files.wordpress.com/2009/03/conneryaston.jpghttp://filmgordon.files.wordpress.com/2009/03/conneryaston.jpghttp://www.mtco.com/~rkblack/Open-Door_0032a.jpghttp://www.mtco.com/~rkblack/Open-Door_0032a.jpghttp://1.bp.blogspot.com/_Vr8Xl0cbUZA/SVJzaekjMQI/AAAAAAAAFWU/gvOyNNzcdis/s400/Image+%3D+clueless+is+no+excuse.jpghttp://1.bp.blogspot.com/_Vr8Xl0cbUZA/SVJzaekjMQI/AAAAAAAAFWU/gvOyNNzcdis/s400/Image+%3D+clueless+is+no+excuse.jpghttp://www.explodingdog.com/drawing/ihavenoidea.jpghttp://www.explodingdog.com/drawing/ihavenoidea.jpg -
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Thank you!
@vhirsch
+44 7843 599 678
http://bluebeck.co.uk
http://www.bluebeck.co.uk/http://www.bluebeck.co.uk/mailto:[email protected]:[email protected]://www.bluebeck.co.uk/http://www.bluebeck.co.uk/