Investment Proposal for EbonyLife Business Proposal

Pages: 20 (4200 words)  ·  Bibliography Sources: 19  ·  Level: Master's  ·  Topic: Business

SAMPLE EXCERPT:

[. . .] This is on-the-go access that is unrivaled by other African Networks and that ranks among the most efficient services on the planet (Netflix, Amazon, Hulu).

The development of the products and services begins in the design and production stage, overseen by Stephan Le Roux, Head of Creatives and Strategy, and Mark Sonnnenberg, Head of Channel Consultant (Programming), along with Zac Almeida, Director of Technical Operations, and Howard Bolter, Head of Channel Consultant (Operations). Their teams have designed and developed websites, layouts, apps, data systems, streaming opportunities and libraries for users to access content. The marketing division has created subscription plans to go along with this roll-out, and the plans have been developed to appeal to a variety of customers -- some who will immediately purchase the year-long subscription, others who will take the intermediate option, and others who will purchase a trial-basis month-long subscription.

EbonyLife ON will set itself apart from other online streaming services by its offering of original content which is and will always be EbonyLife's biggest selling point to consumers.

4. Target Market

EbonyLife ON aims to reach target audiences in Nigeria and beyond. This is possible because of the African Diaspora. Thanks to the Diaspora, the target audience is actually quite large for EbonyLife ON. Indeed, just in Africa alone it is not unthinkable to estimate a target audience of 60+ million subscribers. Adding to the African audience is the Diaspora audience. The numbers for African Diaspora can be assessed by region. In North America, the number is 39 million; in Latin America, the number is 112 million; in the Caribbean, the number is 13.56 million, and in Europe the number is 3.5 million (World Bank, 2015). These numbers indicate that for Africans around the world there is some interest in having access to African television. Thus, the target audience worldwide is 100+ million -- a figure comparable to that of Netflix.

Nigerians are also dispersed throughout the world and will be a core target as well. The numbers for Nigerian Diaspora in the U.S. show that 376,000 Nigerian immigrants currently live in the U.S. (Migration Policy Institute, 2015). These Nigerians abroad also have an interest in accessing Nigerian television.

Mobile subscriber numbers in Africa were in 2014 up to 329 million, which is 38% penetration, according to GSMA (2015). By 2020 it is expected that more than one billion mobile subscribers will be in the world (GSMA, 2016). Overall the mobile phone industry contributes over $100 billion to the country's economy (Winsor, 2015). This is a substantial contribution to the economy of several nations in Africa, although the biggest are Nigeria and South Africa. Using apps on a mobile device is a popular trend and EbonyLife ON can easily penetrate this market with its SVoD apps.

Market trends for SVoD throughout Africa are growing as well: this growth is based on the concept of TV content providers authorizing content through pay-for-service outlets like Hulu, Netflix, and Amazon. These providers essentially offer SVoD deals for clients that make regularly scheduled programming a relatively old form of viewing content, utilized mainly by low-income families that cannot afford on Demand access. Thus the trend not only in Africa but all over the world for SVoD is growing. In Africa, the trends show that across Africa, SVoD users also go to Hollywood films, with nearly 50% more Africans going to Hollywood films than to African films (63% vs. 17%), a trend which indicates that with SVoD comes a demand for more Western/Hollywood type of entertainment (Harrison, 2015). This trend is also global, as more Hollywood films are finding more success at the overseas box office and as Video on Demand providers break into non-Western markets (Ovum, 2015; Bond, Garrahan, 2015). In Europe for example, there are over 3000 on-demand services in the EU, with 1000 catch-up TV services and nearly 700 on-demand TV services for the continent (Balancing Act, 2015).

The target audience will be reached the same way that Netflix and Hulu and Amazon appeal to their audiences -- by offering original content. EbonyLife is devoted to producing original content that appeals to Africans and has won worldwide recognition and awards for its productions.

Since, as Bond and Garrahan (2015) have shown, VoD is now drawing more viewers than traditional broadcasters are drawing, EbonyLife can capitalize on this market trend to introduce more viewers to its content through easy access SVoD apps. With younger populations skewing towards on-demand access, broadcasters are seeing less revenue because of their inability to draw from the younger generations, who want more choice which VoD offers. In Africa, the biggest media company is Naspers, and it recently acquired ShowMax, a video-on-demand service, which shows that broadcasters are recognizing the need to shift into this market. Naspers is admitting that it must offer SVoD in order to secure market share in Africa, just like must be done in the rest of the world (Joseph, 2015). In Africa, there is also Trace TV, Buni.tv, DITV, RT, SABC, MultiChoice, which is facing stiff competition from Netflix for SVoD viewers; there is also StarSat, and e.tv sister company Platco Digital; Siyaya is also available for broadcasting, as well as other ventures -- CloseTV, Kagiso TV, Mobile TV and Mindset Media Enterprises (Gedye, 2015). These are located in Africa while throughout the rest of the world, the major players continue to be Netflix and Amazon in the West, with Apple making a play in regions in the East as well.

The growth of the market in Africa has been phenomenal, as more people tune into SVoD services, following the competition from new players and the need to supply original content to attract viewers. As Joseph (2015) points out, there is the potential to have 60 million + subscribers of SVoD in Africa alone, which ShowMax is looking to target for its market share. EbonyLife plans to meet this target number in Africa by using its own original content to draw subscribers.

The marketing plan for EbonyLife ON is to promote the service on its websites, on commercials during its network programming and in web advertising. It will also use outdoor advertising, such as billboards and signs to promote the concept so that all of Africa is made aware of the service. For the Diaspora, a similar approach will be taken, but advertising will be selective, with Big Data used to locate and identify audiences in other regions of the world who would be attracted to this service and email campaigns along with selective, personalized e-banners and e-advertising used to catch their attention.

EbonyLife ON will also sponsor events that draw attention to the creation of the new service, which is in line with EbonyLife's time-tested practice of sponsoring events to bolster its reputation in the African and global community. Indeed, one event that is completely controlled by EbonyLife is Create Nigeria. EbonyLife TV's Create Nigeria is an annual event that promotes the best of Nigeria's creative industries and drives global recognition, appreciation and investment in African Film, Fashion, Food, Music and Art. Create Nigeria will deliver creative and engaging programs that encourage and facilitate learning, partnership, investment and growth for Nigeria's creative industries. This exciting 3-day event provides a platform for engagement, which will consist of exhibitions, conference, demonstrations, entertainment and media briefings.

Create Nigeria has set out the following key objectives: to identify environmental and business constraints to the growth and development of target creative sectors; to develop plans, strategies and opportunities for resolving identified growth constraints; to forge, build and nurture local and international relationships and partnerships across the value chain per target sector for the purposes of resolving growth constraints; to create platform for engagement, knowledge sharing, trade and investment for target creative sectors; and to use and deploy up to date technologies for driving engagement with the entire scope of activities of Create Nigeria. Using events such as these to draw attention to EbonyLife ON will ensure that subscriber growth is achieved. Coupled with the award-winning original content developed by EbonyLife, the success of this venture is positively certain.

5. Financial Data

Historic, current financial data, profit/loss, cash flow, and forecasted financial data is available in the tables below:

The capital requirements are to further develop the website and apps with the initial venture capital investment. Technical costs (i.e. server, live stream, staffing, manage uploads, etc.) are estimated to be $20 million. With the expected revenue streams from subscriber growth, ads, subscriber payments and premiums, the ROI for venture capital investment is anticipated to be 20% per annum.

This return is calculated by numbers available from SVoD services available throughout Africa and public companies' records. With the basic subscription rates set below:

Monthly Basic: $4.99

Monthly Premium: $6/99 (access to live feed)

Yearly: $34.99

Yearly Premium: $36.99 (access to live fee)

It is expected that viewership and subscription rates… [END OF PREVIEW]

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Investment Proposal for EbonyLife.  (2017, May 16).  Retrieved January 19, 2019, from https://www.essaytown.com/subjects/paper/investment-proposal-ebonylife/7119317

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