Strategic Rationale / Investment Thesis
Significant TV audience for both shows (~3M each) is eager for return of each series
–No need to create demand for the show brands, characters or format – already there on Day 1
–Recent research confirms potential high TV-to-digital audience conversion rates of 50%+
Traditional core market (women 35+) is highly attractive and underserved with premium content
–Very digital savvy – much more than people think (e.g., 75%+ use Facebook)
–Already moving to VOD/time-shifting when watching soaps on TV
–Advertisers/Sponsors have long history with soaps – and are eager to find more ways to talk to this target market given loss of daytime syndication (e.g., Oprah) and limited premium content on the web
Lack of advertising units due to the loss of daytime rating points
Opportunity to grow audience by making shows more relevant, fresh and “2.0”
–Careful not to alienate existing audience – will be achieved over time
–Offer “shoulder” programming on Facebook and other social networks to grow audience interaction and drive online series viewers
–Utilize social media, e-commerce, location-based services, crowd-sourcing, daily deals, etc.
Unlike other TV content migrating online, these soaps can be delivered in scale at attractive economics
–Can deliver episodes at average of < $65k – which is highly attractive compared to the $300k-$1M levels at which others are doing premium digital content
–Talent and production team ready to get back to work
Digital strategy complements other windowing to be exploited
–Free ad-supported drives demand for premium subscription offering, which drives demand for transactional VOD/iTunes -- which drives demand for TV syndication (with TV Everywhere rights), etc. -- all with specific windows and value-added offerings
Potential development of an online network or scale in other ways beyond these soaps
Highly recognizable and evergreen AMC & OLTL soaps are ideal to bring back to audiences as a digital premium offering with new daily episodes
Summary of Market Research (1)
Soap viewers feel more strongly about soaps than viewers of other genres
–68% of respondents described soaps as one of their favorite genres (Magid)
Soap viewers and ABC soap viewers are heavy online video viewers
–52% of soap viewers and 58% of ABC soap viewers watch TV online during daytime hours (Magid)
Interest in streaming new episodes of AMC and OLTL is very high
–64% of AMC and 70% of OLTL regular viewers would watch new episodes if available (Hulu)
–~50% of regular AMC and OLTL TV viewers would watch new episodes if available only online (Hulu)
Most fans of AMC and OLTL would watch the shows at least weekly on Hulu
–~75% of fans of either show would watch new episodes on Hulu at least once per week (Hulu)
–~45% of fans of either show would watch every day (Hulu)
–AMC fans in particular would watch about as often as they watched when the show was live (Hulu)
Fans of AMC and OLTL would be very interested in paid subscriptions
–~65% of fans of either show would be interested in paid subscriptions (Hulu)
–~80% of fans
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