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My Vision for Jamaica’s Creative Economy

Last year, with the announcement of the eMedia Interactive Group’s partnership with the then University College of the Caribbean (now University of the Commonwealth Caribbean) to house our iCreate Institute, I wrote about how the creative economy is a prime area of growth for Jamaica. It’s a song I’ve been singing for the past nine years, and I won’t change my tune any time soon. The long and short of it is that the cultural and creative industries (CCIs) worldwide are generating billions of dollars in revenue per annum—US$2.250b or 3% of global GDP, according to a 2015 Ernst & Young study, and generating millions of jobs—29.5 million, according to the same study. If Jamaica is to truly take advantage of the tremendous value of our cultural products, the powers-that-be must have a sustainable vision for what the industry will look like in the future, and clear steps to get there.

I have my own vision for the local creative industry, especially the film and television production sub-sector. When I look 10 years into the future, here is some of what I would like to see: the industry should be a major overall contributor to economic growth; 10% of all publicly listed companies on the Jamaica Stock Exchange Junior Market should come from the creative economy; there should be sustainable cinema options, allowing filmmakers to earn from their craft; and there should be at least one strong alternative to the traditional tv networks for distribution. In terms of output, I hope we will be up to the task of distributing three movies per year, as well as around 12 television series—streaming or on traditional networks; have one major animation outsourcing contract per year from the likes of Disney, Pixar, and DreamWorks; and finally, 70% of film professionals should have formal training and certification.

I’d actually like to start with training, as this is the first link in the creative economy value chain, and it is vital to the success of our local industry. There aren’t enough training opportunities that are geared specifically towards working in the film and television industry—for example, in production and screenwriting, or with an eye on the future, where the focus is on areas like animation and virtual reality. Over-the-top (OTT—referring to audio, video, and other media transmitted via the Internet without a cable operator or direct-broadcast satellite television systems controlling or distributing the content) services like Netflix and Hulu have completely shifted TV viewing habits from one episode per week over a three-month season to binge-watching entire seasons over a week or a few days. This on-demand appetite means that networks have gone from needing one big show per quarter to at least three. If we’re to have any sort of presence in the global television industry, it’s in our best interest to develop screenwriters, because we’re going to need some Shonda Rhimeses of our own to churn out high-quality scripts and episodes at a fast pace. We’ll also need to invest in training directors, cinematographers, editors, animators, special effects technicians, lighting technicians, sound mixers, gaffers and more behind-the-scenes players to complete the picture.

 I have used the term ‘industry’ quite often, referring to the creative sector as a whole, but would hesitate to use it when talking about film and television production specifically. I recently came across an article by award-winning Jamaican filmmaker, actor and author Donovan Watkis entitled ‘Jamaica does not have a film industry’ that mirrors many of my thoughts. Watkins speaks out against the lack of dedicated training, infrastructure and support for local filmmakers, while lamenting the prohibitive costs of access to the tools of the trade, such as sound and lighting equipment, for example. Those are essential to the development of an industry, which he defines as “an economic activity concerned with the mechanical processing of raw materials, and the goods (or services) manufactured in those factories are made perfect, packaged and offered to specific markets for sale.” Looking closely at this definition and then holding up it against our current local situation, the gaps are evident. We don’t really have dedicated spaces for film and television production that could be considered ‘factories,’ and there is certainly a breakdown when it comes to offering the finished products to the markets for sale. I’d also argue that we don’t even produce enough content to warrant the use of the term ‘industry.’

 Without the proper industry framework, what we have is an overabundance of ideas—essentially unwritten stories—and raw talent, with nowhere to be developed except overseas, which is expensive and inaccessible to the majority of the population. Training is the key to unlocking this latent potential so that the ideas can be developed into content, which is what people both here and abroad will pay to see, thus generating income that will go a long way towards ensuring sustainability. Jamaicans love their own stories. We’ve seen that with Better Mus Come, and even as far back as The Harder They Come. Destiny was also in the local theatres for a long time. With the successful generation of consistent, high-quality content, we will also be ready to go when the OTTs come calling for local shows. According to PricewaterhouseCoopers’ Special Report: Global Entertainment & Media Outlook 2016–2020, content is still king, and this will continue to be evident as OTT platforms “seek to differentiate and expand internationally. In a world in which Netflix can launch its streaming services in 130 new countries in a single day, it’s easy to assume that content is becoming more globally homogeneous. But the reality is that content is being redefined by forces of globalization and localization simultaneously... Netflix, for example, has said that locally produced content is its future.” We cannot afford to miss out on that opportunity. 

I’ve already mentioned that creative industries globally employed upwards of 29 million people in 2014/2015, many of those people in film and television production. I believe this sector is ripe for entrepreneurship, from content creators to production companies to distributors and more in between. Regarding distribution, I think we also need to look at different models and devise ways to make our films more cost-efficient in terms of pricing at different tiers (eg. low budget versus high budget), and encouraging product placement with top local brands, which can help to subsidise production costs. 

In terms of the TV model, we can’t just rely on the two major stations we have right now. That’s not going to grow the creative economy. We have to look at online options, such as Television Jamaica’s 1Spotmedia, and OTT, subscription-driven streaming services like iVu TV, which we’re going to relaunch with a subscription-based model. One of the things we have to do is satisfy the appetite of people in the diaspora, because Jamaica is bigger than the three million people that live here. It extends to the first, second and third generations living overseas, as well as those non-Jamaicans who are just fascinated by our culture. Online TV and streaming services is the only way to tap into this huge market. If we can replicate just a fraction of the international success of our local music, we’d be good to go. People overseas are fascinated by our artistes, from late icons like Bob Marley, Peter Tosh, Dennis Brown, and Gregory Isaacs, to current stars like Alkaline, Popcaan and Vybz Kartel. These people are the ones buying the albums and attending the tours, so it stands to reason that they may be just as willing to spend money on our other cultural products such as films and TV shows. 

When you look at it, what are they fascinated by? What are these artistes singing about in all their songs? Jamaica and Jamaican life. This means that people have an appetite for our culture as much as they do for any other cultures. Jamaica is not the only country that people love. People love the United States, but the difference is that the number of people inside America who love America is 300 million, compared to our 3 million. They can build mega-industries off their culture and stories. But then when you look at the success of films like The Fast and The Furious franchise, you see that for the most recent one, Fast 8, the biggest viewership comes from outside of America, generating more than 5 times the local (US) box office. They’ve done an excellent job of marketing their culture outside of their country and that’s what we need to do.

In order to get to where we need to be, organisations like JAMPRO to be more involved, with more money allocated to developing and promoting our films and stories outside of the country. The Jamaica Tourist Board can also do more as a strategic partner positioning our films. It’s not just about going to a few film festivals overseas, but trying to develop an industry here that people can make a living from, and build careers and businesses.

 eMedia is one company trying to do just that. We’re creating jobs in video production, graphic design, storytelling and more, and with iCreate, we’re training people to take advantage of what’s happening locally, or create their own opportunities. With iVu TV, we’re primarily trying to build a strong distribution platform for Caribbean content. Those are the things we need to be replicated across the board with other businesses.

 Another part of my vision is to get more private investors involved. Sagicor invested in us in 2012. They also invested in a film, Ghett’a Life, around the same time. We need more private investors to take a second look at these types of businesses. Growing this thing is going to take money and time. We need investors who are going to make the effort to understand the nature of the business and understand that in many cases, the ROI won’t be immediate. Investing in one film might take you a few years to get some gains, unless it’s hugely successful immediately. For some films, the earnings from their entire box office take only covers the cost of production; it’s only when they start distributing on DVD/BluRay and OTT sources, and when merchandising comes into play that the investors start recouping significant returns.

 The type of investor has to match the business. It doesn’t make sense to approach people who are looking for returns in one to three years as some films can take that long just to get to production. FirstAngelsJA is also making some inroads in this area. They’ve participated in several related JAMPRO conferences and have a good set of investors who understand entrepreneurship and what it takes to build a business from the ground up. Those are the kind of people we want to invest in films.

 We also need to tap into the public capital markets and the stock exchange with IPOs for film production companies. This is not an alien concept. In the US, Time Warner, Comcast and the Walt Disney Company—the world’s largest entertainment companies in terms of revenue—are all publicly listed. Those are the types of businesses we have to look at and study their playbooks.

 Taking all of what I’ve said into consideration and actually making the necessary steps will help these visions become reality. We can build a Jamaican film industry that not only survives, but thrives. Once we get on stable ground in the local market, we can turn our attention overseas. Too many times, people talk about expansion when we haven’t even begun to exist in our own domestic space. In the US, a film’s success is first gauged by how well it does in their domestic market. The focus on international numbers is secondary. Yes, Jamaica is small, but what that means is that we have to build a business that fits this scale, survive here, then level up.

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The Creative Economy as an area of economic growth for Jamaica

iCreate Institute, a division of eMedia Interactive Group Limited, has found a home at the University College of the Caribbean. With a partnership between eMedia & UCC, iCreate is now a part of UCC and will benefit tremendously from the strong academic infrastructure present at the institution. iCreate had its genesis in 2012 as an internship program, and since then, has been transformed into a full academic institution.��

Students at iCreate will receive the necessary training to take their places and be game changers in the ‘creative economy,’ a field that is expected to be contribute significantly to Jamaica’s fiscal development over the next 10 years. Depending on how they are defined, the creative industries are estimated to represent anywhere from 3% to 12% of global GDP. 

According to the World Economic Forum Global Agenda Council on the Creative Economy, the creative economy is a vital and growing contributor to growth and employment in many countries, particularly in advanced industrial nations. It spans sectors such as advertising, broadcasting, architecture, arts/culture, craft, design, fashion, music, publishing, and technology. In Britain, the creative industries contributed £84.1 billion to the economy in 2014, and grew almost twice as fast as the rest of publicly traded companies in the UK. It also revealed that the number of jobs in the creative industries grew by almost 9% between 2013 and 2014 - almost double the rest of the economy as a whole (4.6%).

It is obvious that this is the way to go in Jamaica. I’ve built a company in the creative economy because of the potential I saw in the sector. Over the last eight years, eMedia has experienced significant growth in the creative field, and we believe this sector will be of value to individuals seeking to build a career, as well as for entrepreneurs looking to build a business. 

Some of the courses and programs we have developed have been tailored to focus on the technical, practical and entrepreneurial components. Students will be able to apply themselves immediately in the real work world. Businesses like iCreate are needed in Jamaica. It is economically imperative. I am proud to join the other prestigious institutions in Jamaica that have been doing great work in preparing students to utilise their potential and take full advantage of the opportunities available in this important sector.For more info on iCreate, visit www.iCreateEDU.com.

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eMedia Interactive Limited & Point Global Marketing Limited Merger

In July 2008, eMedia Interactive Limited opened its doors as Jamaica’s first Digital Media company. We have grown tremendously since, attracting an investment from Sagicor Investments in 2011, in addition to assembling a strong Board of Directors.

In 2012, we started producing branded content for companies and based on the successes, were compelled to launch Jamaica’s first Digital Creative Agency - Branded by eMedia in 2014. Branded by eMedia has grown significantly, producing strong creative output for international clients such as BBC and large companies locally - mainly in the financial industry.

We have reached yet another milestone. I’m pleased to announce that eMedia Interactive Limited has entered into an agreement with Point Global Marketing that involves a merger of both companies. Point Global Marketing is led by Javette Nixon - a passionate, capable and visionary CEO who in just four years has been able to build a strong company - serving clients such as Jamaica Producers Group Ltd., Mavis Bank Coffee, in addition to LifeSpan and other major brands locally and internationally. Together, eMedia and Point Global bring a larger creative team, greater efficiencies and a notable increase in technical capabilities and content production know-how.

The name of the company remains the same (eMedia Interactive Limited) and I will continue to be President & CEO. Javette Nixon will become Chief Operating Officer of eMedia Interactive Limited in addition to being the President of Point Global Marketing - now a division of eMedia Interactive. eMedia will, on November 1, cease to use the name Branded by eMedia as the name for our agency and will be using Point Global Marketing. This is a great move that will definitely support our mandate to become one of Jamaica’s largest content companies.

This merger represents a major landmark in the company’s journey and I am most grateful to our clients who have believed in us over the years and based on you doing more work with us, have urged us to build a larger and more capable team that can bring MORE services to you.

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Antigua-Barbuda launches film financing programme

Film producer Rudy Langlais (The Hurricane, Sugar Hill) and his partners, Caribbean social entrepreneur Valmiki Kempadoo, Toronto-based producer Don Allan and veteran multi-disciplined film executive Neil Sacker, have closed an equity financing agreement with the government of Antigua and Barbuda that will see $125 million committed to an initial slate of five feature films and represents the launch of Antigua’s long-range commitment to film production. The deal comes through the newly created venture, Golden Island Filmworks, an independent feature film finance and production entity run by Rudy Langlais, who was born in the West Indies, and his partners, Sacker, Kempadoo and Allan. The first five feature films, individually budgeted between $20 million and $85 million, against a cumulative budget of $250 million, will be produced through Golden Islands Filmworks in collaboration with the government of Antigua and Barbuda. The arrangement serves as a first-of-its-kind film financing model that uses funds generated by the Antigua citizenship investment programme. Funds collected from the citizenship programme will be invested into the $125 million film slate. Antigua and Barbuda ambassador at large Dr Joseph (Joey) John, who for eight years had been enticing Rudy Langlais to make films in the Caribbean, was instrumental in structuring the Antigua-based venture and will continue to work on all components and phases of development and production associated with the film slate. John is currently special consultant to the prime minister on the citizenship by investment programme and investment. Through this venture, Antigua aims to establish itself as the centre for film production in the Caribbean. A portion of all films on this slate will be shot in Antigua, which will inject tens of millions of dollars back into the local economy and foster employment and growth. The films that will be produced through this arrangement range from Rebels, a story of four unique individuals from tough upbringings in the 70s who come together as friends to discover and contribute to the rise of iconic musician, Bob Marley, to the launch of the Nick Carter: Killmaster espionage franchise, based on the longest-running franchise in US book publishing history, producing 261 books over 30 years and selling more than 30 million copies. Antigua and Barbuda Prime Minister Gaston Browne, in introducing the new venture, said: “Welcome to the start of this new day in the history of my nation, the Caribbean and worldwide cinema – the further transformation of Antigua and Barbuda as the economic powerhouse of the Caribbean through the power and art of film. We are welcoming the leading directors, actors and filmmaking technicians of the world to Antigua and they are coming to create exciting films that capture the beauty, mystery, history and complexity of our country, our history, our people.” Langlais said, “My partners and I had a dream more than ten years ago, that the Caribbean, which has produced brilliant statesmen like Alexander Hamilton, Nobel Prize- winning poets and novelists, Walcott and Naipaul, legendary athletes like Sobers and Richards and Bolt, and perhaps the world’s greatest cultural icon in Bob Marley, should add its ‘voice’ now to filmmaking. We have wanted to join our colleagues around the world to share our stories and join in telling stories together. Now that time is here. Exciting films will come of this collaboration.” Commented John, “Of all the projects that I have had the privilege of bringing to Antigua, this project has the potential to create the biggest impact on both the economy and the social transformation of Antigua. It brings a whole new industry into Antigua that will affect tourism and culture.”

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It’s all about original franchises.

At first glance Netflix, AMC Networks, and Lions Gate Entertainment may appear to be very different companies. One is a streaming service, one a television channel, and one a traditional film studio. But they all have something in common: the same strategy is fueling their fast growth.

These three companies are the only entertainment businesses on our 2015 Fastest Growing Companies list because each one has realized the power of original franchises, whether that be a television or movie series.

Netflix: Big Red

The great success Netflix (No. 46) has had with original programming is no secret. Most people can rattle off the company’s biggest hit dramas: House of Cards, Orange is the New Black, and this year, Bloodline. But the early digital-streaming innovator has pumped out many other original shows, among them: Marco Polo, Daredevil, and Unbreakable Kimmy Schmidt, which was originally planned as an NBC show but was sold to Netflix.

House of Cards was the company’s first original series (adapted from a BBC mini-series), but the first television show Netflix NFLX -7.58% ever streamed was Lilyhammer, a Norwegian show starring Steven Van Zandt (recognizable from The Sopranos and Bruce Springsteen’s E-Street Band). Netflix has also seen success in producing original continuations of preexisting shows, among them the fourth season of Arrested Development (a cancelled Fox comedy) and eight episodes of Wet Hot American Summer: First Day of Camp, a spinoff of the cult-classic 2001 movie.

All of this original programming has established Netflix as the leader in the exploding business of streaming television. It’s a booming business that Amazon AMZN -4.13% has also invested in with original series such as Bosch, Alpha House, and the groundbreaking and award-winning Transparent. The strong interest in made-for-Internet series is apparent: Netflix’s subscriber numbers have risen every quarter since the beginning of 2012, tripling from 22 million to 65.6 million subscribers. The stock price has responded in kind: it’s up more than 800% in the last three years, and up 64% in the last year, part of the reason Netflix has appeared on Fortune’s 100 Fastest Growing Companies list in six non-consecutive years since 2007. The company’s revenues were $5.5 billion last year, helping it climb 89 spots on the Fortune 500 to No. 474.

AMC Networks: An old dog with a new trick

AMC Networks (No. 100), too, has made great hay with original series. Originally conceived as a cable channel that aired old movies, the network has shifted and rebranded itself in the past decade. (It has even de-emphasized its full name, American Movie Classics.) In 2007, AMC debuted Mad Men, its first original series, to instant critical acclaim. The next year came Breaking Bad, and in 2010, The Walking Dead.

The network’s revenue growth can be pinned directly to the peak overlap of these three shows, which was in 2013, when all three were on the air concurrently and Breaking Bad was in its final season. (The series finale was watched by a whopping 10.3 million viewers.) Earlier this year, AMC debuted the Breaking Bad spinoff Better Call Saul, which set a Nielsen record in February as the most-watched cable series premiere ever in the key age demographic of 18—49-year-olds. Wall Street loves those ratings: AMC’s stock AMCX -2.77% is up 58% in the past two years, 28% in the past year.

Lions Gate Entertainment: Banking on hit books

Lions Gate Entertainment (No. 54) has had box office success with two major franchises: The Twilight series (produced by Summit Entertainment, a Lions Gate subsidiary) and Hunger Games, which have much in common as they are both film adaptations of bestselling young adult book series, are fantastical (one is about vampires and the other about a futuristic dystopia), and are anchored by a dynamic young female character (portrayed by Kristen Stewart in Twilight, Jennifer Lawrence in The Hunger Games).

The five Twilight movies have made a combined $1.36 billion at the box office (the third installment, Twilight: Eclipse, did best) while the three Hunger Games movies have accrued $1.17 billion, with one more still to come. The two franchises are often compared, and for Lions Gate to have both is quite a coup. Annual revenue dipped slightly in 2014, but the stock LGF -1.87% is a steady riser, up 14% in the past year.

Fortune’s annual list of the 100 Fastest Growing Companies takes into account revenue growth rate, EPS growth rate, and three-year annualized total return—all for the past three years. That means that Netflix, AMC, and Lions Gate have been on a growth streak—all owing to their big bets on original programming.

Each of these companies has had some losers, but if the winners win big—and House of Cards, Breaking Bad, and The Hunger Games franchise are indisputable winners—big growth follows.

To see the full 100 Fastest-Growing Companies list, visit fortune.com/100-fastest-growing-companies.

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Netflix and HBO - Back in the ring

(Previous Post: The Netflix and HBO Fight)

HBO and Netflix are back at it again. In the last match we had HBO backing its branch HBO GO, but this time HBO has given Netflix a new competitor, HBO NOW. Both opponents are Over The Top (OTT) services and they are on a mission to provide customers with the best online streaming service. HBO NOW promises to provide the entire HBO catalogue, in addition to a plethora of blockbuster movies. HBO NOW is very similar to HBO GO as it offers the same content. Where it differs, however, is that HBO NOW is a standalone service and does not require an active cable subscription.

The service launched in April exclusively to Apple’s platform for three months and the only way to subscribe to the service was via iTunes.  The service costs $14.99 per month, paid through the iTunes Store  and is only available to customers in the United States. As of May 2015, Google has announced that the service will be made available on its platform in the coming months.

What do you get for the asking price? For $14.99 a month you get streaming on up to three devices at once and an unlimited number of activated devices. You get the entire catalogue of HBO TV shows in addition to a slew of recently released and some older movies.

On Netflix’s side, the base price is $7.99 a month and goes up to $11.99 per month which is still cheaper than HBO’s price. For the $7.99 you get streaming to one device in standard definition, for $8.99 you get streaming to two screens at once in high or standard definition and at the most expensive you get streaming to four screens at once and ultra high definition (4K). Netflix is also available across multiple platforms including Apple devices, Android devices and consoles.

HBO NOW comes with some major caveats, it is more expensive than Netflix’s highest priced tier and does not allow streaming to four screens or streaming in 4K like Netflix does. Moreover, Netflix is available in over 75 countries. The wider user base coupled with the low price point makes Netflix more accessible to users worldwide.

HBO NOW is not backing down from the challenge and is fighting back with its content. HBO NOW releases original programmes almost right after their premiere on TV. This allows for their viewers to keep up with their favourite shows weekly. Netflix however, caters to its audience by releasing their original content per season versus per episode like HBO NOW.

Exactly one month after its debut, HBO NOW is proving highly popular having held the number one spot in the U.S. iPad revenue chart and the number two spot on the U.S. iPhone revenue chart. According to bgr.com, revenue chart performance of this level would indicate at least $30 million to $50 million in monthly revenue.

“I predict HBO will do the best creative work of their lives in the next 10 years because they are on war footing...They haven’t really had a challenge for a long time, and now they do. It’s going to spur us both on to incredible work.” said Netflix CEO Reed Hastings. This increased competition will only become increasingly beneficial for the customer as it is likely that we will see either more competitive pricing strategies or an updated and expanded catalogue of content.

Check out our infographic

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Introducing Intelligent Content

As the landscape in which we do business shifts, so must the strategies implemented by companies to capture and keep their audiences. Content can no longer be stagnant in its deliv- ery. It must be able to shift and adjust to the movements, both physical and digital, of its target. With this in mind, eMedia introduces Intelligent Content: smarter than your average.

Intelligent Content, affectionately known as IC, was born in a Kingston coffee shop in March 2014. What is it? The better question would be, what is it not? Intelligent Content can be delivered anywhere and everywhere. It goes where your au- dience is, and where they choose to take it. It can be in your hands, on a billboard, on a news feed, or in an email. It can be accessed from a desktop computer, a tablet, a smartphone, a television.

It is shareable and translatable- elements crucial to success in an increasingly digitized society. Intelligent Content takes on a life of its own and breathes new life into products, messages, services and the like. Because of its ever-shifting nature, its lifespan is never ending—it will grow and evolve right along- side your business.

Join the IC Revolution: it’s only the beginning. Read more at http://issuu.com/ezineslimited/docs/zingg_ezine_issue_3?e=2435558/10207911

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The Netflix & HBO Fight

The television industry has made a tremendous change over the last five years, both from a content and a technological perspective. Two companies that are pushing the boundaries of that change are Home Box Office (HBO) and Netflix. Both companies have similar subscription services in the United States, but HBO has a far bigger audience globally, a content arsenal that dwarfs that of Netflix and more so, profits. These metrics have opened up the door for serious competition for the two companies because Netflix is making progress to dethrone HBO in the subscriber television space. Chief Content Officer Ted Sorandos recently said that it’s Netflix's mission to become HBO quicker than HBO can become Netflix; but it seems as HBO is making larger strides to win that race.

Content

In the book, It’s Not Tv, the research spoke about how HBO created a campaign that permanently differentiated HBO from all of television. It’s Not Tv, It’s HBO was a campaign that showed subscribers and potential subscribers that HBO was different and was worth paying for. We all know that content is king, but with streaming services such as Netflix and Hulu, we are seeing that original content is the real king. This strategy isn’t new, its the same fundamental values that HBO built its empire on. The Sopranos, Sex & the City and Game of Thrones championed the popularity of the network with classic storytelling.  HBO in 2014 for example won 99 Emmy Nominations which included 19 for Game of Thrones - which included 2 nominations for best drama. Netflix on the other hand won 31 nominations but only left the night with 7 awards. This was not bad for Netflix, which also holds the record for the first online Emmys for an online show after receiving that for House of Cards. HBO is far ahead of Netflix in terms of nominations and awards. The company (HBO) used original content such as Sports, Documentaries & Scripted series to differentiate itself from all of tv. Their content was provocative and sometimes controversial - but this led to the growth of their subscriber base. Though Netflix hasn’t announce their subscription numbers per show, they’ve recently announced a $3bn investment in original content for 2014. Investing that amount of money only shows that the initial strategy is working for the company.

Subscriber Growth

Netflix is taking that strategy and they have been extremely successful so far in terms of growing their subscription base. Netflix has surpassed HBO in subscribers in the USA. It is the success of Netflix original programming such as House of Cards and Orange is the New Black, that has led to the massive growth over the last two years. Internationally, Netflix has a lot of work to do to catch up with HBO. HBO has 114 million subscribers across the world compared to Netflix 7.14 million. With that said, Netflix has since launched a massive campaign to grow subscriber base outside of the USA. In September of this year, Netflix targeted Europe by launching in Germany, France, Austria, Switzerland, Belgium and Luxembourg almost simultaneously. These are key markets that have a strong film market and also a strong interest in shows that Netflix currently pays the rights for. For the last year, Netflix's subscriber base has grown 25% each quarter, which is a large number in the industry.  HBO over the last year has grown about 5% per annum. This also represents a steady growth in the US market. The awards and great reviews on shows HBO distributes on it's platform has kept a steady growth for the company. Boxing matches are also an area that sets HBO apart from Netflix. HBO has one of the highest subscription fees in the industry, but their content compels individuals to pay for it nonetheless.

Financial Results

Great content and subscription growth only leads to one thing - good financial results.  CEO of Netflix - Reed Hastings said that Netflix subscriber revenue moved past their second quarter of 2014 with $1.146 billion compared to HBO’s $1.141. However,the companies cost of revenue and their profit models are different. Netflix doesn’t have to share revenue with networks like HBO who gives cable operators a share of their revenue to be on their cable networks. HBO on the other hand has to give cable operators a cut. HBO, though, does not carry the high cost of paying for content as Netflix which pays huge amounts to content providers. HBO benefits from their relationship with parent company Time Warner who is also the owner of Warner Bros and other studios.This gives HBO quick and sometimes exclusive rights to shows which reduce their cost and provides higher profits.

Technology & Platform

Netflix is classified as an Over The Top (OTT) service, which separates it from HBO. Through this model, individuals are able to quickly subscribe to Netflix than they can to HBO. In markets such as Latin America, the cost of HBO can be prohibitive and individuals do not find it as expensive to subscribe to Netflix. As a result, Netflix’s platform and availability has made it far more easier and convenient for subscribers than that of HBO. HBO notices this and they have recently announced that they are going to launch HBO Go (their app) as a stand alone come 2015. This will open up an even bigger market for HBO and also provide more of a threat for Netflix globally.

My next post on this topic will look at HBO NOW.

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Lights, camera, YUTE in action

THE Youth Upliftment Through Employment Programme (YUTE) in partnership with iCreate Institute, under the umbrella of parent company eMedia Interactive Ltd, has continued their mandate of providing employability training to unattached youth through the YUTE Lens Support Programme. The programme, which began on February 9, 2015, is designed to provide practical and technical skills training to inner-city youth, and so far, 30 students are being exposed to non-traditional career paths, which include pre-production, production and post-production of digital videos.

President and CEO of eMedia, Tyrone Wilson, said the training has provided awareness and experience to the students.

"The students of the YUTE programme have, for the past year, been able to gain a general knowledge of the media industry, so much so, that they have become marketable and are able to offer their skills to employers," said Wilson. He added: "This brand new batch of students will be exposed to several areas in the creative industry and will also have the advantage of seeing the industry from individuals who actually do this work every day. I'm positive this will help them to gain a definite edge in this very competitive job market."

The programme, which was funded primarily by the Citi Foundation, evokes the creative energies of the youth and offers them the requisite employability and marketability skills to seek further opportunities within the industry.

Roger Graham, YUTE programme manager, said his aim is that the students will create employment opportunities for themselves from the training they receive. "It is our hope that through this second instalment of YUTE Lens Support, these 30 young people will be able to not only gain the necessary skills to make them marketable in the film industry but will also see them utilising their skills to create self-employment opportunities in their various areas of focus," Graham said.

"Outside of the economic opportunities that can be seized through learning these skills, the programme also provides the participants with a means of self-expression, helps to build their self-confidence, and self-esteem," he said. With regards to programme delivery, it takes a holistic approach to each student to the aspects of production aimed at encouraging specific interests among the participants.

"Rather than steering these youth in the direction of the expected, for example, skills-training, woodwork, cosmetology, we've decided to show them another path. Digital video production remains a non-traditional form of media, but has such great potential to empower and uplift. Arming the youth with this tool of self-expression will not only help to renew the faith in themselves, but kindle their zeal for success. Our creative industry, in turn, can only stand to benefit from the outpouring of talent and ingenuity," said Wilson.

Wilson maintained that eMedia Interactive, also the founders and producers of online television network iVu tv, has employed inner-city youth behind and in front of the camera, and with this new exposure, the students' opportunities will be enlarged and they stand to gain so much more by the end of cohort two of the programme.

See trailer of our documentary here:

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The Crazy World of Branded Content & Content Marketing

eMedia has found itself a part of another globally growing media sub industry. What I’m referring to is the business of branded content and content marketing. Although the industry is young locally, brands have been publishing their own content since 2009. Now brands, and ad agencies that serve them, can’t ignore the power of owning their own media properties. Traditional methods of reaching the mass are proving less effective so content and content marketing have become buzzwords in advertising and marketing circles and many companies are catching up.

In 2012, Contently, a 1 year old content-marketing company announced that it has raised $2m that will help to build out their operations. The company’s business model is to play matchmaker for brands and journalists to develop branded content. Two years later, Contently announced that it has raised $9m more in funding. A few weeks later, content marketing software company NewsCred announced that they’d raised $25m in funding for their content-marketing platform. The company had raised  $15m in funding in 2013. These companies (and others) are racing to be a leaders in content, funnelling loads of cash into the industry to get there.

In 2013, the content-marketing industry became a $44b industry increasing 9.2% over the previous year. Digital is the fastest growing industry segment at 45% annually with new companies entering the industry.

Brands As Publishers

What do these numbers mean? Brands are looking for unique and innovative ways to maintain connection with their customers and tell their own stories. We’ve seen the success of Red Bull. Red Bull Media House was started in 2007 and has since expanded worldwide and according to their LinkedIn profile, employs over 135 individuals. Red Bull publishes magazines that rival Sports Illustrated and push videos on multiple platforms that connect with millions of viewers. The company leverages its media brand and those if its content partners for direct consumer impact through licensing deals.

The newspaper industry is also jumping on the content marketing train. In 2014, The Guardian (yes, the newspaper company in the UK) announced the launch of their new division Guardian Labs - a digital branded content agency. According to The Guardian, they’re leveraging their distribution channels to tell branded stories. The company, in their release, said that over 70% of marketers are increasing their spend on branded content - taking the UK's content marketing spend from £4.3bn to a predicted £5.8bn in 2014.

Guardian Labs (GL) also announced a seven figure deal with Unilever, the owner of brands such as Dove, Axe and Ben & Jerry’s. The deal will see GL creating stories for Unilever that will be featured on the Guardian’s websites. According to the Guardian, the partnership is “centred on the shared values of sustainable living and open storytelling”.

Brands areVideo is also a big among branded content. Ford was successful at this when they launched Escape My Life a web-series that put the Ford Escape front and centre while crafting a funny script. Each episode is 5 minutes and I was able to watch everything in a straight 40 minutes (binge watching according to Netflix).

The Way Forward

eMedia Interactive continues to be a vital part of this eco-system. We have over 15 companies that trust us to produce their branded content. We recently launched in the United States and have signed up the Association of Women's Health, Obstetric and Neonatal Nurses (AWHONN), as a client. We continue to build out the services and has launched Branded by eMedia our digital creative and branded content agency.

We’re excited about the prospects of this industry.

#Forward

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Fear the Red: Why Netflix is Taking Over

Two years ago, Netflix was seen as the the place where old films went to retire and subscribers were attracted to the volume they could get for their $7.99 each month. For some, the monthly subscription was entertainment money, nothing that would stop the world from spinning. But now, people can’t seem to do without their Netflix and competitors can’t ignore the buzz. Today, Netflix is compared to HBO. Chief Content Officer Ted Sorandos recently said that it’s the Netflix mission to become HBO quicker than HBO can become Netflix (think about that for a while).

In the online world - ORIGINAL content is King.

We all know the old adage content is king, but with streaming services such as Netflix, Hulu, Amazon Prime & of course iVu tv - we’ve seen that original content is king. This strategy isn’t new, its the same fundamental values that HBO built its empire on. The Sopranos, Sex & the City and Game of Thrones championed the popularity of the network with classic storytelling.

Netflix became a force to be reckoned with in 2013 because of original content such as House of Cards (which has been swiftly renewed for a 3rd season) and Orange is the New Black. They changed the game by introducing high quality content that you can’t stream any place else. People often associate web content with poor quality or 15 year old content you wouldn’t mind watching again because you can’t remember how it ended. But that has changed, everywhere you turn, there is high quality, new and original content online - its the new tv!

Though Netflix won’t publicly announce their subscription numbers per show, they’ve recently announced a $3bn investment in original content for 2014. If there’s any indication that original content has worked for them, then it would be that decision. Nobody throws money into a black hole, unless you’re Microsoft trying to save a failing product that people stopped using years ago. Go figure.

Being different. Differentiating yourself from what else is out there is also important.

We’re used to waiting up until a certain time to catch our favorite tv show. Everything else stops, no phone call is important and any food that’s on the stove will be burnt. We can’t pause it, we can’t rewind it, and we sure as hell can’t share it.  But that was 1995. Today technology has changed everything and with those drastic changes, how do you stay relevant? How do you stand out? How do you increase subscription? You do so by Binge Watching - a term coined by Netflix’s decision to introduce every single episode of House of Cards at once. And it worked, 15% watched the first episode of House of Cards and that same 15% went on to watch episodes 2 and 3. TV execs said that binge watching is bad for the industry, but that’s what they thought about the internet, tablets and most other technological innovation, until they see the competitors numbers rising, then all of a sudden the next best thing is upon them.

Speaking of numbers.

The New York Times call it Punching Above Its Weight. According to the article, HBO has over 400 more Emmys than Netflix, but still people are comparing both platforms? That’s because numbers don’t lie. Recently, Netflix reached 33.4 million subscribers in the United States, 5m more than HBO. Netflix won an Emmy for House of Cards and also became the first web only tv series to do so. Both companies recently compared their financials. HBO made $4.9bn in revenues and operating profits rose 8% to $1.7bn. Netflix revenues are close to HBO, making $4.4bn, but only a mere 228m in operating profit - nonetheless, not bad for a company that’s just getting started.

The future is looking great for online tv

With growth in technology and a growing appetite for original content, there’s a lot of opportunities for over the top platforms such as Netflix. At eMedia Interactive, our strategy is the same. We believe that original content will propel the growth of our platform globally. Like Netflix, we’re just getting started.

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eMedia Interactive to offer APPS for your eZines

Create content that inspires. Take your eZine to APPS. Add interactivity to your publication with features like embedded streaming videos, slideshows, interactive ads. Create your app for iPad, iPhone, Kindle, and Android devices to gain an even bigger audience. Grow even further by making it easy for subscribers to share content on social media. Have an existing eZine with us? Let's move to mobile and tablet devices Readers want content that gives deep interaction. Use eMedia Interactive to create dynamic, interactive and measurable experiences. Publish digital issues for all leading mobile and tablet devices through tight integration from our eMedia eco-system. No heavy investment in additional staff or resources required. Have a retail business? Stop printing catalogues Create richer, deeper, more enticing shopping experiences, reduce your publishing costs and save on print catalogues. Benefits

Boost retail revenue

Bring catalogs to life

Reduce publishing cost

Connect deeply with customers

Features of our 'Appified' Digital Catalogues

Slide shows

Videos 

360-degree product rotations - all on tablets and smartphones in your customers' hands, wherever they go. 

eMedia gives you comprehensive solutions to revolutionize your catalog - from creation and publication to metrics that tell you what shoppers want so you can drive sales.

Introduction screen for Your Money eZine APP. Our app will be launching in summer 2014

Annual Reports. Its time to really move to the digital age eMedia has the content solution that allows you to get team members and stakeholders involved and engaged. Deliver an interactive experience that expresses your brand and showcases your milestones with more dimension that creates lasting connections - at a fraction of the cost of print. Benefits

Extend your brand's influence

Bring your communications to life

Reduce printing and distribution costs

Connect deeply with shareholders

Features of our 'Appified' Digital Catalogues

Slide shows

Video message from Chairman, CEO and other executives embedded

360-degree product rotations - all on tablets and smartphones in your customers' hands, wherever they go. 

Interactive team member profiles

Say more without paying more

Connect deeply with customers Data is key part of measuring your publication's success. Your eZine application comes with in app analytics to measure how readers interact with your content. You can extract reports that help you determine what content connects with your reader and where you need to adjust. Is this the right decision for you? Let the data speak for itself Total smartphone and tablet subscriptions reached 1.9 billion at the end of 2013 and are expected to grow to 5.6 billion in 2019. According to a research by Google, 89% of users depend on their smartphone or tablets for their primary communication and 58% use it to stay informed - accessing magazines, news content and social media daily. According to the data, users have on average 33 apps installed and uses 12 apps each day on average. At eMedia, we want to ensure that your company is a part of this system and that you stay on pace with the growth of technology. Call us today to get your eZines, Annual Reports, Catalogues and any other publications 'Appified'.

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Learn more about eMedia Interactive - check out our new website!

At eMedia Interactive, we create content that connects. Over the last two years the company has evolved into a more sophisticated digital media business. So we’ve upgraded our online presence to share our milestones and new offerings with you. I’m excited to unveil to you today - our new website.

Broader Horizons In 2013, our team made a mark in the Branded Video production market, introduced our Branded eZine service into North America by launching eMedia Interactive USA, and rolled out a ground-breaking partnership with Flow tv. eMedia Interactive Ltd. has been collaborating with corporations in Jamaica and in the USA to build their brands’ audience through content. Explore the possibilities that arise from working with us at www.joinemedia.com.

We love hearing from you, so please free to drop us a note!

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Watch my feature as writer, creator and director of Jamaican Dramedy - Squaddy

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iVu tv - moving forward

Reggae artiste Protoje’ on a shoot of my wknd - produced by iVu tv

iVu tv came into its own in the fall of 2013 when the team’s dream was realized. Launching 5 shows in a partnership with Columbus Communication’s Flow tv was the beginning of a bright future of eMedia’s youngest business segment. Led by our Assistant Vice President of Original Video, Rachel Osbourne, iVu executed a very ambitious production strategy focused on content.

Content is KING no doubt, at iVu it starts with great ideas, of which we have no shortage. We’re poised to make a meaningful impact as the brand grows, anchored by the mantra “creation through imagination”.  In 2013, iVu’s content was consumed by over 20,000 households across Jamaica with our breakout series Squaddy cracking the top 10 within the ranks of content from several international channels. On iVutv.com, we’ve attracted viewers from multiple territories in the United States, United Kingdom, Canada, The Caribbean, Spain, Italy and countries in Asia and Africa. We wrapped up the year with the signing of a syndication deal with CIN, making Squaddy available to the New York and the tri-state area, giving hundreds of thousands of Jamaicans in the Diaspora the chance to enjoy the stories their friends and family have come to love.

Our Plans for 2014

This is just the beginning. In 2014, our focus on content is coupled with the mandate to secure further distribution and partnerships for iVu’s growing catalogue of series and documentaries. This year’s lineup include new content for our iVu on Flow tv partnership, exclusive content for www.ivutv.com, and our debut feature length film (fiction):

Foodish Love - a dramatic series following a twenty-something foodie who finds herself through her love for food after a tragic loss. Foodish Love will premier in the Spring along with Season 1 favourites Squaddy and my wknd. Season 2 of Squaddy will be extended with an additional 5 episodes. my wknd will feature more celebrities and more fun!

Freedom of the Press - follows young lawyer turned journalist who uses the struggles from her past to build a better future while fighting her inner demons. Freedom of the Press will premiere exclusively on iVu tv in the summer.

DETAINED sheds light on the problems in Jamaica’s justice system where hundreds of citizens are denied trials because of a slow and antiquated legal system and guerilla justice. DETAINED will go into production this summer. It will star Chris Hutchinson with a supporting cast of fresh faces in the local film industry. This film will be available exclusively online at www.ivutv.com.

We’re excited about what the success of our content means for our talent and our partner Flow tv. In a very short time, thousands of Jamaicans have been tuning in to Flow tv and this is a big achievement for us. When we look at the data, it’s impressive what we have achieved in just 3 months. It’s an exciting year for us at eMedia Interactive and iVu as we push ahead to make a difference in the lives of our subscribers by bringing meaningful content that piques your imagination.

#Forward

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CIN acquires rights to distribute Jamaican police comedy series

Assistant Vice President of Original Video - Rachel Osbourne

Caribbean International Network (CIN) has acquired the rights to broadcast Jamaican police drama comedy Squaddy to its viewers in New York and the Tri-state Area.

CIN made the agreement with the producer of the show, eMedia Interactive Ltd, which already distributes the comedy series through its own online platform iVu tv and Columbus Communication's Flow TV.

The comedy series stars Darielle Cummings, Randy McLaren and Chris Hutchinson in half-hour-long episodes. It is based around Hutchinson and McLaren's characters 'Touchie' and 'Scrapings', who are rookie cops. Darielle Cummings plays their superior, the intimidating Superintendent 'Bigga Blacks'.

"CIN looks forward to airing Squaddy. This programme is a continuation of CIN's efforts to present the best Caribbean programmes to the Diaspora in New York City and the Tri-state area," said CIN CEO Stephen Hill in a press release.

The deal represents iVu tv's first international distribution deal. Rachel Osbourne, the online network's assistant vice-president of original content, described it as "another major move" for the young platform.

"It's amazing what we have accomplished in just a few months with iVu tv. Squaddy peaked at number 6 on Flow cable in its time slot during this first run. Cracking the top 10 is something to be proud of. Now we're giving hundreds of thousands of Jamaicans in the Diaspora the chance to share the laughs with us," Osbourne said.

CIN has the distinction of being the most watched television channel in New York among the Caribbean community, which is measured at 550,000 viewers per day in the latest media survey done by Hope Research. Squaddy will run on CIN Sundays at 12PM and 11PM from January 12, 2014 to March 2, 2014.

Squaddy was introduced on Flow TV in October as part of a partnership agreement between Flow and eMedia that will see the latter distributing a slate of original local programmes to the cable provider.

Squaddy is set to return to iVu tv and Flow TV in May with five more episodes than its first season, for a total of 13 episodes.

"We've began the pre- production of season 2 of Squaddy and we're excited about the experience we can give viewers in the upcoming run," said Osbourne.

Source:  http://www.jamaicaobserver.com/business/CIN-acquires-rights-to-distribute-Jamaican-police-comedy-series_15760628

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eMedia announces Flow partnership

eMedia Interactive will soon start to supply television content from its online network to cable giant Flow, the firm has announced.

'We have signed an arrangement with Flow where iVu tv will be supplying Flow with original content exclusively over the weekend,' eMedia president and CEO Tyrone Wilson told Caribbean Business Report yesterday.

"We have about 10 to 15 shows that we will be producing over a year that will compete in the local content market, from entertainment to business to documentaries," Wilson highlighted.

According to the eMedia boss, the company will by October start supplying Flow with content, which will be broadcast on Flow TV and iVu tv, dubbed as the region's first online television network.

"We see Flow as the ideal partner because their advertising packages are more attractive and they give more value across the network. Additionally, they are very friendly towards creativity," Wilson said. "We are excited about it because what we are doing now is producing a lot of content, but we really want to get them out to a mass audience."

Among the eMedia-produced shows to be supplied to Flow is the documentary, 50 Years of Entrepreneurship, featuring appearances by key business people that have shaped Jamaica since independence. The special boasts cameos by the likes of former Prime Minister Edward Seaga and businessmen such as Charles Johnston, Roberty Levy and the late Maurice Facey, in what the media company says is his last detailed interview.

Wilson said production is currently under way on another documentary, Barrel Culture, looking at the remittance industry and its socio-economic impact on the country.

"That one is going to be big," he promised.

50 Years of Entrepreneurship, Barrel Culture and other eMedia-produced shows were previewed recently at the fourth annual Your Money eZine Business Summit held at the University of the West Indies in Mona. The summit, organised by eMedia, attracts a wide range of business players, from SMEs to large corporations.

Wilson said the goal of this year's summit was to create an environment where established businesses can offer mentorship and support to start-ups and include adoption of entrepreneurs into their long-term initiatives. Speakers included American entrepreneur and television personality Michael Michalowicz; management consultant and chartered business valuator, Kathleen Moss; Biz Tactics boss Sandra Glasgow; Development Bank of Jamaica consultant Audrey Richards; Stocks and Securities CEO Mark Croskery; and Wilson.

BY JULIAN RICHARDSON Assistant Business Co-orinator (Jamaica Observer) richardsonj@jamaicaobserver.com