DVD 2002 Standards, Applications and Technologies Conference4 June 2002

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DVD 2002 Standards, Applications and Technologies Conference4 June 2002

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Vermont from 1991-1996 at Bennington College ... Showtime. Sony Music. Palm Pictures. WWF. Marketing. GUESS. Kenneth Cole. TIAA-CREF. NASDAQ / Primex ... – PowerPoint PPT presentation

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Title: DVD 2002 Standards, Applications and Technologies Conference4 June 2002

1
Blaine Graboyes

DVDA 2002
Standards, Applications and Technologies
Conference

2
The DVD Services Model

My Experiences at
ZUMA DIGITAL and Beyond

3
Blaine Background

Born 1972 in Abington, Pennsylvania
Vermont from 1991-1996 at Bennington College
Graduated in 1995 with B.A. in Mathematics,
Sculpture and the Philosophy of Science
Founded first company, Ionic Laboratories, in
Vermont with 4 friends from college
Moved Ionic to New York City in 1996
Introduced to DVD by Rob Siedel, then of WAMO
Ionic closed and ZUMA founded in 1996

4
ZUMA Background

Original Motto If its DVD, we do it!
Began with 3 people and 1 Sonic System
Closed in 2001 with 25 people and over 35 DVD
authoring systems, 6 encoders, etc.
Entertainment, Business and Museum clients
Developed software such as ActiveDVD
Yearly revenues of 3,000,000
Monthly expenses of 200,000

5
ZUMA Clients
previous and partial list

Entertainment
Columbia Tri-Star
Criterion
Miramax
MTV
Showtime
Sony Music
Palm Pictures
WWF

Marketing
GUESS
Kenneth Cole
TIAA-CREF
NASDAQ / Primex
TBWA / Chiat / Day
Clinique
Nickelodeon
CNBC

6
ZUMA Clients
previous and partial list

Museum / Fine Art
The Guggenheim
The Whitney
The Groninger
Shirin Neshat
La Monte Young
Yoko Ono
Nam June Paik
Moriko Mori

Business
JWT
BBDO
Grey
Disney
McDonalds
AE
Lifetime
Merrill Lynch

7
What is a Service Model?

Service Being a Vendor Work For Hire
As opposed to Being a Collaborator or Original
Developer or Producer
Focus on problems faced by target clients
Develop products and services to solve them
Basics of DVD Services
Project Management and Client Services
Creative / Technical Direction, Design and Art
Video and Audio Encoding
DVD Authoring, Output and Quality Assurance

8
Advantages of Services Model

Wide range of potential clients
Maximize investments in staff and equipment
Diverse projects diverse opportunities
Including opportunities to break out of the
Services Model into Original Development?!?!
Technical and creative capabilities are
constantly challenged and expanded
Able to quickly adjust to market changes

9
Disadvantages of Services Model

Must stay focused on VENDING SERVICES AND
PRODUCTS TO EXISTING CLIENTS
Calculate lifetime value of client (later slide)
Difficult to focus on two competing areas of
business
Constant need to upgrade staff and gear
Your company will be branded as a service
company, and not an Original Developer
Difficult to establish strong brand in fierce
market
Prices paid for your services tend downward

10
ZUMA Success

Compete on Creative and Quality, not Cost
Strategic creative gets down to business
In business, Creativity Creating Profits
Pick a market through research and focus
Research is both empirical and experiential
Brand yourself / your company and stick to it
ZUMA brand innovative, streamlined, quality
Develop unique services and methodologies
Library Drives for storing/archiving client
assets
Develop proprietary products and services
ActiveDVD, LibraryDVD, Web-connected

11
ZUMA Failures

Co-development / Original Production
Im Your Man was fun and cool, but expensive
Sponsorships and discounts
Must be very carefully managed and EXPLOITED
Expand to new and distant markets
Chicago, Detroit, Los Angeles
Facilitate competitors growth via Services
Replicators, production companies and service
bureaus may become your competitors

12
Blaine Graboyes Today

Independent New Media Producer
Based in Hollywood, CA
Represented by ICM Talent Agency
Relationship with bitMAX for production
Focus on top-tier movie and music projects
Build relationships with above-the-line talent,
as opposed to movie studios and distributors
Pursuing projects using R.LaBarge Model

13
Great Minds DVD

Based on Fast, Cheap and Out of Control
Interview 4-6 leaders in different fields
Persuasion, Perception and Deception
Subjects include Jay Conrad Levinson, Joel Bauer,
and Mike Caro
Being produced for DVD, TV, Web, et cetera

14
Great Minds on the Services Model

Lessons of marketing apply in all areas
What I have learned from Jay, Joel and Mike
Creativity in Business Creating Profits
Clients care about value, not price
You are not your target audience
In the beginning, everything is even money
To overcome the odds, your decisions must matter
Good players beat bad players
You do not get paid to win projects, you get paid
to make the right decisions

15
Lifetime Value of a Client

Calculate the lifetime value of a client
If you continue to provide acceptable products
and services, how long will the customer
patronize your business?
How much will the customer spend in the average
year? Including certain sales increases.
What is the total value of this customer?
Now also add, goodwill, relationships, etc.
Keep this number in your head!

16
Thanks Bibliography

Much of this content and message is from
Guerrilla Creativity by Jay Conrad Levinson
Houghton Mifflin Company
ISBN 0-618-10468-2
Caros Fundamental Secrets of Winning Poker by
Mike Caro
Cardoza Publishing
ISBN0-940685-57-4
Joel Bauer at www.infotainer.com

17
Joining the Inner Circle

The inner circle is the basis of repeat business
You cannot gate crash your way into the inner
circle
If you are not in the inner circle, you can be
sure that your competitors are
Your competitors are people who do not have
stars in their eyes, simply profits on their
minds
Your offering must compare favorably and actually
be better in some way than what the competitor
offers. This refers to quality, service and value.

18
Final Word on Creativity

Creativity should be measured solely by how well
it contributes to your overall profitability. If
it helps you sell at profit, it is creative, and
if it doesnt, its not creative. That makes
creativity easy to measure. Awards and
compliments have nothing to do with creativity.

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