64
Definition-business strategy:
“the essence of strategy is [...] choosing to perform activities differently or to perform different activities than rivals.”

98
“Don’t misunderstand me: business plans should include some numbers. But those numbers should appear mainly in the form of a business model that shows the entrepreneurial team has thought through the key drivers of the venture’s success or failure.”
“The model should also address the break-even issue: At what level of sales does the business begin to make a profit? And even more important. When does cash flow turn positive? Without a doubt, these questions deserve a few pages in any business plan. Near the back.”

99
Sahlman’s “framework systematically assesses the four interdependent factors critical to every new venture:

The People. The men and women starting and running the venture, as well as the outside parties providing key services or important resources for it, such as its lawyers, accountants, and suppliers.
The Opportunity. A profile of the business itself- what it will sell and to whom, whether the business can grow and how fast, what its economics are, who and what stand in the way of success.
The Context. The big picture – the regulatory environment, interest rates, demographic trends, inflation, and the like – basically, factors that inevitably change but cannot be controlled by the entrepreneur.
Risk and Reward. An assessment of everything that can go wrong and right, and a discussion of how the entrepreneurial team can respond.

100
“The assumption behind the framework is that great businesses have attributes that are easy to identify but hard to assemble. They have an experienced, energetic managerial team from the top to the bottom. The team’s members have skills and experiences directly relevant to the opportunity they are pursuing. Ideally, they will have worked successfully together in the past. The opportunity has an attractive, sustainable business model; it is possible to create a competitive edge and defend it. Many options exist for expanding the scale and scope of the business, and these options are unique to the enterprise and its team. Value can be extracted from the business in a number of ways either through a positive harvest event-a sale-or by scaling down or liquidating. The context is favorable with respect to both the regulatory and the macro- economic environments. Risk is understood, and the team has considered ways to mitigate the impact of difficult events.”

101
The People: “What do they know? Whom do they know? and How well are they known?”
Arthur Rock (Apple, Intel, Teledyne): “I invest in people, not ideas.” Rock also has said, “If you can find good people, if they’re wrong about the product, they’ll make a switch, so what good is it to under- stand the product that they’re talking about in the first place?”
“Fourteen “Personal” Questions Every Business Plan Should Answer” -> good list.
The opportunity: “Is the total market for the venture’s product or service large, rapidly growing, or both? Is the industry now, or can it become, structurally attractive?”

102
“Nine Questions About the Business Every Business Plan Should Answer” -> good list.

103
“Investors, of course, are looking for businesses in which management can buy low, sell high, collect early, and pay late. The business plan needs to spell out how close to that ideal the new venture is expected to come.”

104
Two graphs every business plan should have.
“The first picture depicts the amount of money needed to launch the new venture, time to positive cash flow, and the expected magnitude of the payoff.”

A reworked diagram by Eric Eikrem (10.08.2010), CC by-nc-sa:

“The second picture complements the first. It shows investors the range of possible returns and the likelihood of achieving them.”

A reworked diagram by Eric Eikrem (10.08.2010), CC by-nc-sa:

104f
The Context: “Opportunities exist in a context. At one level is the macroeconomic environment, including the level of economic activity, inflation, exchange rates, and interest rates. At another level are the wide range of government rules and regulations that affect the opportunity and how resources are marshaled to exploit it. Examples extend from tax policy to the rules about raising capital for a private or public company. And at yet another level are factors like technology that define the limits of what a business or its competitors can accomplish.”

105
Risk and Reward: “I’ve come to think of a good business plan as a snapshot of an event in the future. That’s quite a feat to begin with-taking a picture of the unknown. But the best business plans go beyond that; they are like movies of the future. They show the people, the opportunity, and the context from multiple angles. They offer a plausible, coherent story of what lies ahead. They unfold possibilities of action and reaction.”
“any business plan worth the time it takes to write or read needs to focus attention on the dynamic aspects of the entrepreneurial process.”

106
He provides a list of things you shouldn’t say.
“the plan must unflinchingly confront the risks ahead-in terms of people, opportunity, and context.”
“Those are hard questions for an entrepreneur to pose, especially when seeking capital. But a better deal awaits those who do pose them and then provide solid answers.”

107
“When professionals invest, they particularly like companies with a wide range of exit options.”
“Investors feel a lot better about risk if the venture’s endgame is discussed up front.”

107f
Don’t try to get the best conditions for yourself or regulate every possible aspect. Try to find an investor who is actually experienced and knows how to help.

Gives very PRACTICAL advice: specific numbers, costs, prices, positions, tasks, etc.
Mentions transmedia 3 times.
Quite radical from a filmmaker’s perspective. I specifically mean indies, who always seemed to see themselves as a smaller Hollywood -> Hollywood’s concepts / business models / etc. should also work for them. Which they never did. But now it’s becoming more clear that they don’t and perhaps never will.
Not radical enough from my perspective. It’s a filmmaker sharing his insights from his struggles within the film industry. It’s not a step back to reassess the big picture.

29-36
Define who your film is for (hopefully not for yourself) and how you will reach it.

37
“The new 50/50 is as follows:
50 percent of your time and resources should be devoted to creating the film. 50 percent of your time and resources should be devoted to getting the film out to its audience, aka distribution and marketing.”

45-52
A good “overview of rights, markets and windows”; how they have been and how he reconceptualises them.

53-59
Know what YOU want to achieve and think about how to get there.

61-72
He describes “the bare minimum” of team members you need, and some more recommendable positions if you have the money.

127-131
His “Introduction to Transmedia” is less than 5 (!) pages short.

128
“media consumers don’t consume in one unified pattern anymore.”

129f
Definition “extradiegetic”:
“This material is called “extra-diegetic” and includes all content that is not part of the final released film, especially material that is created but never intended to be part of the final released film. However, as our understanding of film expands, there will not need to be a separate classification between diegetic and extra-diegetic; it will all be part of a seamless whole.”

133-136
Chapter 13: Redefining the Theatrical Experience
His new Definition-theatrical:
“It is time for filmmakers to reclaim the meaning of a theatrical release so that it is inclusive of a multitude of live-screening event scenarios. The theatrical experience needs to be redefined as people watching “films” with other people. Any place. Any time. Any media.”

143
“Unfortunately, due to contract obligations, IFC is currently only set up to do VOD day-and-date with their Festival Direct Program.”

151
“[...] Chris Hyams (the head of B-Side) did the research and found that all films (studio and independent), on average, lose money from theatrical.”

171
“I believe that incorporating aspects of an event into your screenings is the future of independent live event/theatrical releases.” A bit of a nonsensical sentence, but it goes back to stressing experiences.

172-174
“Ways to create a sense of an event:

1. Personal Appearance by the Filmmaker/Cast
2. Personal Appearance by a Celebrity
3. Parties
4. Partner with an Organization
5. Sell Advance Tickets
6. Live Audience Participation Part 1 (?)”

174f
“Transmedia Aspects to Screenings

1. Live Musical Remix
2. Live Film Mixing [Peter Greenaway]
3. Add Live Storytelling Elements to Your Screening [Head Trauma]“

175-177
Other options:

• One-Night Events
• The Film Tour

195
“The alternative theatrical grassroots screening model has shown the way to democratize and return a shared film experience to the control of individuals and groups,. With that newfound power, people will continue to find new ways to exhibit and congregate in order to watch films.”

243
“I think transmedia has tremendous potential for how narrative filmmakers can find new audiences and engage with them. Again, this is not just about marketing, it is about finding and engaging the audience for your film and your oeuvre.”

244
“Audiences don’t consume media as they once did. They have their own preferences, whether it is a movie theater, DVR, their iPhone, Xbox console, etc. Audiences have media and art form preferences. You can’t bend them, you must accommodate them.”

245
“Part of the death of DVDs has been due to people realizing that they didn’t need to watch a film more than once. Transmedia creates a life beyond the one viewing of a film.” -> Not sure about that. Isn’t transmedia even more ephemeral than a traditional movie?

275
“merchandise can be points of entry for films or narrative extensions – so they can be important to a transmedia strategy.”

289
“Television’s core business is repeat viewers.
It is difficult for television to command repeat viewers with individual films. When there was a plethora of fledgling channels such as HBO, Starz, Showtime, AMC, etc., they needed to buy movies to fill their schedules. But as those networks have matured, they have turned to series to bring back repeat viewers. Even indie stalwarts IFC and Sundance are buying fewer films in favor of series programming.”

296
“Ways to monetize your digital rights”:

• “Fees Charged Per Download, Rental, or Viewing”
• “Ad Revenue Share”
• “Subscription Fee”
• “Merchandise Sales”
• “General Promotion/Theatrical Launch”
• “Ad Sales/Banner Ad Sales”
• “Branded Entertainment/Product Placement”
• “Sponsorship”
• “Pay What You Want/Online Tip Jar”

299
“There is an argument I have heard on panels lately: Most filmmakers have a greater problem with anonymity than with piracy. I think this is a false argument.” If nobody wants to pay for it, perhaps nobody wants to see it, so perhaps the film is simply shit or doesn’t have an audience. -> Market it properly!

347
“Dentler observes that if you look at the history of consumer media, you always have different models for different types of publications. Some things are free, some things you pay for. He uses print media as an example, pointing out the difference between the Wall Street Journal and the Free Press.“

2
Definition-BIM
BIM is “The process of creating and using digital models for design, construction and/or operations of projects.”

21
“For decades, aerospace, automotive and shipbuilding companies have designed their complex products virtually, working closely with their suppliers, and used the models to drive their fabrication equipment. In effect they build the product twice, once virtually to ensure optimization, then physically in exact compliance with the model, at a high level of quality and production efficiency, in safe clean conditions with a skilled and well-trained workforce. This has contributed enormously to improved productivity, safety and product quality in those industries.”
“The Key Concepts of BIM
Most of the important benefits of BIM can be tied to three fundamental concepts:

1. Database Instead of Drawings
2. Distributed Model
3. Tools + Process = Value of BIM”

22
I would call it the increasing level of use of BIM. It starts with a simple model, goes on to a model in time (the virtual construction process of a building), adds project management, then links costs to to those project elements, allows photo realistic illustrations, and provides a model the owner can use for maintenance purposes.

• “Design models – architectural, structural, MEP and site/civil
• Construction model – breaking the design models down into construction sequences
• Schedule (4D) model – linking the work breakdown structure to project elements in the model
• Cost (5D) model – linking costs to project elements in the model
• Fabrication model – replacing traditional shop drawings and driving fabrication equipment
• Operations model – for turnover to the owner”

24
“Although it can be said that we are still in the “wonder years” of this industry transformation, one thing is clear, we are not going back.”

Mentions “storyworld” on page 521.
References offer some texts I can quote for:

• Dawson’s Creek
• Babylon 5
• Twin Peak

519
Definition-transmedia:
Definition-transmedia storytelling:
“Taken by itself, the term “transmedia” simply describes the process of content moving or expanding from one medium into another. As such, transmediation can describe practices ranging from adaptation (e.g., turning a novel into a film) to merchandising (e.g., creating action figures in the likeness of film characters). However, the notion of transmedia storytelling is more specific, and is used to describe the process of further developing a coherent narrative (or elaborating a narrative universe) by distributing related story components across multiple media platforms.”

520
“While most major media franchises of the 1980s expanded to include both licensed merchandise (toys, clothing, breakfast cereal) and transmedia components (films, television series, video games, comic books), many of the most popular franchises were actually financed and launched by merchandisers to help sell their products.”

521
“are these transmedia extensions being developed primarily to tell better stories, or to generate higher profits?”
“Meanwhile, each “platform” serves as an advertisement for the others, and hence for the whole, thereby allowing media corporations to make money from their advertisements.”

521f
“The most significant shift toward horizontal integration and media franchising came in the 1930s, when Walt Disney introduced a new business model that he described as total merchandising. Under this model, all Disney products served dual purposes: branded merchandise, television shows, animated movies, and amusement park rides all simultaneously functioned as entertainment and as advertisements for every other Disney product. Disney’s characters were not the first to be featured on merchandise or appear in multiple media, but they were almost certainly the first characters designed to serve as entertainment “brands.””

522
Description of The Lost Experience.

523
“The 1980s, in particular, brought an explosion of youth- focused media franchises. Countless film, television, and comic book characters were introduced (or reintroduced) as transmedia franchises, complete with comic books, multiple cinematic releases, animated television series, and a wide range of toys and branded merchandise. In fact, during the 1980s, many of the most popular entertainment franchises were launched not by media companies, but by merchandisers and toy manufacturers looking to build audiences (and markets) for their properties (see “1980s Media Franchises” sidebar).”
“But while branded bed linens, breakfast cereals, and soft drinks encourage children to consume products, it is important to recognize that toys, games, and many other franchise products can enable children to interact with, and take control of, a franchise’s stories, themes, and characters.”

524
“These [The Matrix'] problems indicate the degree to which transmedia stories must now carefully balance some viewer’s desires to dig deeper into the story world with other viewers’ desire not to feel left out.” -> You could simply ignore the casuals, but then you won’t get their money!

525
“From this framework, we might then understand today’s expansion of storytelling across media as providing greater opportunities for involvement, and as representing development in narrative form and technique, not just an explosion in cross-media promotion.”

526
“One of the clear signs that transmedia storytelling might be developing new ways to tell stories, and not just new platforms from which to reap profits, is that many writers and directors are becoming intimately involved in the transmedia proliferation of their products.” mentions Simpsons, Matrix, Lost as examples.
“as many transmedia tales have also been synergistic goldmines for their corporate parents, often the economics of the media industries have encouraged media corporations to vigorously pursue and solicit projects that can cross various media. Concerns regarding the hidden persuasions of product placement and the monopolistic tendencies of synergy continue to exist, but they are now being accompanied by some writers’ and consumers’ excitement at the prospect of yet more developed story worlds.”

She says: business model = story. Is this the same thing as the “Why? of business” like in that TEDx talk?

86f
“A good business model remains essential to every successful organization, whether it’s a new venture or an established player.”

87
Definition-business model:
“They [business models] are, at heart, stories-stories that explain how enterprises work. A good business model answers Peter Drucker’s age-old questions: Who is the customer? And what does the customer value? It also answers the fundamental questions every manager must ask: How do we make money in this business? What is the underlying economic logic that explains how we can deliver value to customers at an appropriate cost?”

88
“a successful business model represents a better way than the existing alternatives. It may offer more value to a discrete group of customers. Or it may completely replace the old way of doing things and become the standard for the next generation of entrepreneurs to beat.”
“Creating a business model is, then, a lot like writing a new story. At some level, all new stories are variations on old ones, reworkings of the universal themes underlying all human experience. Similarly, all new business models are variations on the generic value chain underlying all businesses.”

89
“This was something new. Before the personal com­puter changed the nature of business planning, most successful business models, like Fargo’s, were created more by accident than by design and forethought. The business model became clear only after the fact. By en­abling companies to tie their marketplace insights much more tightly to the resulting economics-to link their assumptions about how people would behave to the num­bers of a pro forma P&L­ spreadsheets made it possible to model businesses be­fore they were launched.”

90
“Profits are important not only for their own sake but also because they tell you whether your model is working.” -> and which part of it is working.
“Business modeling is, in this sense, the managerial equivalent of the scientific method – you start with a hypothesis, which you then test in action and revise when necessary.”
“When business models don’t work, it’s because they fail either the narrative test (the story doesn’t make sense) or the numbers test (the P&L doesn’t add up).” -> story here means what you do and how.
“Ultimately, models like these fail because they are built on faulty as­sumptions about customer behavior. They are solutions in search of a problem.” -> I think she mentions 1990s interactive TV.

91
“Every viable organization is built on a sound business model, whether or not its founders or its managers con­ceive of what they do in those terms.”
Definition-business strategy:
“Business models describe, as a system, how the pieces of a business fit to­gether. But they don’t factor in one critical dimension of performance: competition. Sooner or later-and it is usu­ally sooner-every enterprise runs into competitors. Deal­ing with that reality is strategy’s job.”
“When you cut away the jargon, that’s what strategy is all about – how you are going to do better by being different.”

92
“When a new model changes the economics of an industry and is difficult to replicate, it can by itself create a strong competitive advantage.”
-> Dell:
copy it -> die (“If Dell’s rivals tried to sell direct, they would disrupt their existing distribution channels and alienate the resellers on whom they relied.”)
don’t copy it -> die (if they didn’t copy Dell, they would have to pay all the middle men and their profit margin would shrink and it would become impossible to ever catch up with Dell)
“It’s true that any attempt to draw sharp bound­aries around abstract terms involves some arbitrary choices. But unless we’re willing to draw the line some­ where, these concepts will remain confusing and difficult to use. Definition brings clarity. And when it comes to concepts that are so fundamental to performance, no or­ganization can afford fuzzy thinking.” -> This is what I’m doing with EA!!!

Gives details about her income from Sita Sings the Blues. She is convinced she’s making more money using Creative Commons than if she had restricted Copyright.

She paid USD50,000 for the music rights. And she has nearly recuperated these costs.

They argue that marketing has to be remodelled entirely:

1. Pull not push: Don’t try to push people into doing something, but encourage/strengthen already existing natural pull mechanisms that spread ideas and behaviour.
2. Understanding the tides: Understand what’s going on and go with the flow, don’t try to work against it.
3. Understanding the landscape: Understand who you’re dealing with, who do you want to address?
4. Lighting lots of fires: You can’t do only one thing and expect it to be the right one, do many things and hope one or more will work out.

Societies and business models get more and more complex until (because of the law of diminishing returns) any added complexity causes pure costs (and no benefits). Such complex models can’t become less complex even if they wanted to. They have to collapse.
Examples: Romans, Mayans, ATT, and now TV executives.

“When I think about these [story/media] outlets, I think about them in terms of like OK if they have the individual arc and then I have the overall arc in the full story, and it becomes about how I pace it, how I get it to an audience, and how I have them interact with it.”

Definition “story architecture”:
“Story architecture to me is kind of the idea of what effectively is a kind of fluidness of creative, technology in terms of how you actually deliver these things, how do you scale them, how do you get them to these various outlets. How do you make it an experience that somebody is going to be engaged by and want to continue to you know hopefully tell somebody else about. And then, you know, business. The last part is kind of entrepreneurial, you know, how do you actually derive your revenue streams from this. How do you actually look at it in a meaningful way, so it is ?impactful? [5:26 min] for yourself.”

“Once you have the data, and it is the future of everything, you know, if we look and we say search was the future, you know, a number of years back, it really is about discovery, it really is about filtering. And a lot of this discussion throughout the day, throughout this whole thing, you know, this conference, is going to be about how do people discover and find you in a world that is swelling with content.”

“What is interesting is, like, normally we started with like a three act structure in a screenplay. In the case of some of the work we have been developing it starts with the build of a universe, bible, game bible, show bible, where we kind of go through and define the world, define the interactions, define the characters, define the rules, and then from there it becomes this amazing kind of depth of information where you know more about the subject than you ever did before.”