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Publishing, Flash and the PSP

Publishing, Flash and the PSP. Real World Perspective. Introduction / Overview PlayStation Portable Flash for the PSP Distribution Economics. Hi, my name is Blaine. Media Architect Creative + Technical + Business 13 Yrs of New Media Production Experience President - Silver Platter

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Publishing, Flash and the PSP

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  1. Publishing, Flash and the PSP Real World Perspective • Introduction / Overview • PlayStation Portable • Flash for the PSP • Distribution Economics FITC Hollywood 2006

  2. Hi, my name is Blaine • Media Architect • Creative + Technical + Business • 13 Yrs of New Media Production Experience • President - Silver Platter • The Indie UMD Label • www.umdlab.com • Consultant - Scope Seven • Entertainment, Games, Education • www.scopeseven.com FITC Hollywood 2006

  3. Silver Platter • Silver Platter is the first independent UMD label. Founded in the summer of 2005 by industry professionals, we saw a unique opportunity to acquire, convert and release a diverse range of content selected specifically for handheld viewing. FITC Hollywood 2006

  4. The DC Video wins IGN Award • “...sets a new standard” is what the most respected site in gaming has to say FITC Hollywood 2006

  5. #1 Download @ Sony Connect FITC Hollywood 2006

  6. Scope Seven • Scope Seven is a privately held media production and design company, providing world-class technical and creative services to select companies in the entertainment, games and education industries. • Recent Clients Include: • Warner Bros., Mattel, Lions Gate, New Line, LeapFrog, New Line, BBC, Fox, SBG / bEQUAL • Development Platforms: • DVD, HD-DVD, Blu Ray, DVD Games, DVR & Settop Box Games, PSP, Broadband Games FITC Hollywood 2006

  7. video/games • video-rich games • casual interactive entertainment • DVD Games • DVR Games • Broadband Games • Next-Gen Consoles • Virtual Worlds • Interactive TV FITC Hollywood 2006

  8. Universal Awareness FITC Hollywood 2006

  9. PSP Overview • Designed and built by Sony (SCEI) • 333MHz processor with 32MB RAM • Photo, Music, Video, Games and Online • 480x272 progressive scan display (16x9 ratio) • Playback from UMD Disc or Memory Stick • Built-in WiFi LAN (802.11b) & Web Browser • Ad-hoc and Infrastructure Modes • Stereo Speakers, USB 2.0, Memory Stick, irDA, IR Remote -- GPS, Camera, Keyboard and other capabilities forthcoming FITC Hollywood 2006

  10. The DC Video UMD FITC Hollywood 2006

  11. Sony’s Plans for the PSP • PS1 has sold 100 million units and PS2 is on track to also sell 100 million units • Sony plans to sell 100 million PSPs • 17 million PSPs are in the market as of today • Current pricing is $199 for the Core Pack • Future pricing is expected to be $100 in 2007 FITC Hollywood 2006

  12. Who is the Audience? • We know the audience is not watching feature-length movies and instead is away from home ...on a skateboard, in a car, plane, or with friends • Whether 16 or 30 years old, they are looking for an entertainment experience that is as fun to watch for 5 minutes as an hour and over again • Primary Targets guys 16 years old guys 30+ years old • Secondary Targets families / parents girls 16 to 35 years old FITC Hollywood 2006

  13. PSP Target Owner = 16 Yrs Old Source: Sony DADC FITC Hollywood 2006

  14. Made for our Audience • Silver Platter licenses & produces content specifically for the mobile media market • Designed for “media snacking” and combining innovative, easy-to-navigate menus with professionally optimized audio and premium video encoding – Silver Platter delivers the highest quality UMDs, packed with Bonus Features at the fairest price possible for mobile media consumers. FITC Hollywood 2006

  15. PSP Multimedia Usage Games Video Photos Music Source: Sony DADC FITC Hollywood 2006

  16. PSP Audience Preferences • NDP Report on 55k PSP owner’s intent: • nearly 2/3 own Universal Media Discs (UMD) • more than 2/5 say the ability to watch media on their PSPs was a very important factor in purchasing • media appears to be entrenched, making the right content key to capturing and retaining these consumers • 1/3 of PSP users who don't own UMDs said they are likely to purchase a UMD in the near future • PSP users state the main barrier to purchasing UMDs is price, followed by the available selection • average customers say they don't necessarily care about the format in which content is provided FITC Hollywood 2006

  17. Web 2.0 Pioneers • UMD is web technology on a little disc • MPEG-4 video • JavaScript for menus • XML for playlists • Innovations developed for PSP translate to computers, phones and future devices • Business will evolve to digital distribution • Sony Connect - psp.connect.com FITC Hollywood 2006

  18. Flash for PSP : Overview • Capability as of September 2006 • Engine Options • Native Player • Firmware 2.7 and above • Shipped April 23, 2006 • Supports Flash Player 6 (details…) • Oregan Networks • Custom Render Engine • Available for Current Projects • Supports Flash Player 7 (details…) FITC Hollywood 2006

  19. Native Player : Overview • Enabled within native System Setup • Only supported via Web Browser • Supported Features • Flash Player 6 (6,0,72,27) • Mouse, Keyboard, Data Input, Fonts, Sound • Non-Supported Features • Clipboard, Video Playback, Context Menu, Printing, Live Connect, FCS/FMS, XMLSocket, Transparent Backgrounds FITC Hollywood 2006

  20. Native Player : Issues • Frame rate between 18-24 fps • Large size Flash contents cannot be played • The size of the content should be within 1.5 MB • External file loading different from PCs • Load completion must be confirmed. • PSP has 5 font sizes, same as the Browser • Mouseout Event may not occur as expected • Restrictions deep nesting ActionScript • Speedometer Test • http://www.richardleggett.co.uk/psp/ FITC Hollywood 2006

  21. Oregan Networks : Overview • 3rd Party Flash Render Engine • Developer & Licensing Fees apply • www.oregan.net (Reed Hinkel - contact) • Supported Features • Flash 7.0 content rendering • ActionScript 2.0 support • JavaScript to ActionScript control API • Highly optimised integer-based code for maximum performance on embedded platforms • Small Executable Footprint - 500 KB FITC Hollywood 2006

  22. Some Flash PSP Websites • Newgrounds • http://newgrounds.com/togo/psp/ • ARComics • http://www.arcomics.com • PSP Cave • http://pspcave.com/PSP • PSP 411 • http://www.psp411.com • Fingertime • http://www.ftpsp.com/ FITC Hollywood 2006

  23. Newgrounds PSP Stats • Thanks to Tom Fulp at newgrounds.com • 500,000 visitors per day • Largest and oldest Flash portal • Since launching PSP portal - May’06 • 139,594 Wallpaper downloads for the PSP • 670,585 Video downloads for the PSP • 5,000+ page serves to PSP, each day (1%) • Include Flash streaming portal FITC Hollywood 2006

  24. PSP Flash Possibilities • Instant Messenger • Games (Download & Online) • Education and Training • Andover Prep SAT Course from Silver Platter • GPS Accessory - Available Fall 2006 • PSP Keyboard - Coming Spring 2007 • FITC Contest for Keyboard Development • PSP-Programming.com Contest • http://www.psp-programming.com/contest FITC Hollywood 2006

  25. PSP Video Options • Download • MPEG-4 • MP4 & AVC (w/ or w/o DRM) • Streaming • LocationFree TV from Sony • Neuros PSP Video Streaming Device • Flash Video • Not Supported via Native Player • Playback from UMD / MemStick via Oregan FITC Hollywood 2006

  26. Silver Platter Flash Plans • Andover Prep SAT Course for PSP • http://www.andovercollegeprep.com/ • Developing in Flash for PSP and Phones • Scheduled for Fall 2007 Release • Interactive SAT Training • Video + Q&A, Scored Tests, Flashcards, Vocabulary • Flash UMD Titles • Video, Games, Travel Guides, Comics, etc. • Flash PSP Utilities (tbd) FITC Hollywood 2006

  27. PSP Programming • Tutorial by FLUFF • Flash Audio Player for PSP • Play an external MP3 file from Memory Stick • Original Project - tinyurl.com/eaz9c Code Sample: mySound = new Sound(); mySound.loadSound("file:/PSP/MUSIC/test.mp3",true); total = mySound.getBytesTotal(); loaded = mySound.getBytesLoaded(); trace(total); trace(loaded); trace(mySound.getBytesLoaded()); trace(mySound.duration); mySound.play(); FITC Hollywood 2006

  28. Silver Platter Product Lines • UMD is a standard that can be applied to a wide range of content and genres • UMD Video • UMD Flash Games • UMD Comic Books • UMD Magazines • UMD Audio Books • UMD Travel Guides • PSP Digital Downloads • Future Devices... FITC Hollywood 2006

  29. Worldwide Sales • We sell UMDs wherever there are PSPs: • Online Merchants • North America • UK & European Union • Japan • South Korea (fall) • Australia (summer) • UMDlab.com • UMDlab Retail FITC Hollywood 2006

  30. Distribution Outlets • Silver Platter manufactures at Sony in USA & Austria and provides finished goods to: • Direct clients include; Videogame Stores, Airport Kiosks, Apparel Stores, Cell Phone Stores, Comic Shops, Core Stores, etc. • Image Entertainment - top 30 traditional • Infinity Enterprises - UK & EU exclusive • Ally Video - action sports stores • Shopster.com - Online • Championvisions - Japan FITC Hollywood 2006

  31. Silver Platter Online • www.UMDlab.com • Commerce • www.PSPset.com • Downloads • PSP Formatted • 10k visitors per day • 50% from PSPs • B2B Site Coming • Wholesale Orders FITC Hollywood 2006

  32. Retail Business Structure • Licensing Deal • Licensee provides original master • Distributor handles all aspects of production • Licensee receives a % of sales, minus fees • Distribution Deal • Licensee produces finished goods • Distributor purchases and resells finished goods • Licensee receives an amount per unit FITC Hollywood 2006

  33. Pros and Cons • Licensing Deal • Easy for Licensee • Not always able to control details • Success based on volume in retail • Distribution Deal • Licensee responsible for all aspects • More control = More work • Potential for larger income from direct sales FITC Hollywood 2006

  34. MSRP Distribution Pricing • Silver Platter UMD Video MSRP$15.95 Retail Price $15.95 Wholesale (50%) $7.98 Distributor (25%) $5.98 NET SALE HOLDBACKSAccounting $5.86 (2%) Marketing $5.57 (5%) _______Manufacturing $3.57 ($2.00)____ __NETPROCEEDS PER UNIT $3.57_____________ Licensee Royalty $1.78 Silver Platter Margin $1.78 FITC Hollywood 2006

  35. MSRP UK Licensing • Silver Platter UMD Video MSRP£7.99 Retail Price £7.99 Dealer Price (60%) £3.20 NET SALE Manufacturing £2.20 (£1.00) __GROSSPER UNIT £2.20_____________ CONVERSION RATE $1.75 HOLDBACKSAccounting $3.77 (2%) __NETPROCEEDS PER UNIT $3.77_____________ Licensee Royalty $1.88 Silver Platter Margin $1.88 FITC Hollywood 2006

  36. Self Distribution with PayPal • Silver Platter UMD Video MSRP$15.95 Retail Price $15.95 Shipping & Handling $5.00 Direct Sale $20.95 NET SALE HOLDBACKSPayPal Processing $19.83 ($1.12) Fulfillment $14.83 ($5.00) Shipping $12.83 ($2.00) Accounting $12.57 (2%) Marketing $11.31 (10%) _______ Manufacturing $9.31 ($2.00)____ __NETPROCEEDS PER UNIT $9.31 _______________ Licensee Royalty $4.65 Silver Platter Margin $4.65 FITC Hollywood 2006

  37. MSRP Pricing for iTunes • Silver Platter Video MSRP$1.99 Retail Price $1.99 Wholesale (70%) $1.39 Distributor (25%) $1.04 NET SALE HOLDBACKSAccounting $.02 (2%) Marketing $.05 (5%) __NETPROCEEDS PER UNIT $.98_____________ Licensee Royalty $.49 Silver Platter Margin $.49 FITC Hollywood 2006

  38. MSRP Pricing for DVD-Video • M3DVD Royalty MSRP$19.95 Retail Price $19.95 Wholesale (fixed) $11.20 NET SALE HOLDBACKSManufacturing $9.70 ($1.50) __ NETPROCEEDS PER UNIT $9.70_____________ Licensee Royalty $6.79 based on (70%) - to be split between 3 partners • Distributor reserves the right to withhold up to 25% of royalty payable as a reserve against future returns, to be paid back within six months of the withholding FITC Hollywood 2006

  39. Contact Info • Blaine Graboyes Media Architect www.umdlab.com www.scopeseven.com bg@blaineglobal.com FITC Hollywood 2006

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