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Transcript will begin when the panel starts.
Note: ( ) is usually commenting on the panel and was not said.

09:57:23 <bay|AX|CR> Vu Ngyuen vp of business development and strategy for Crunchyroll
09:57:38 <bay|AX|CR> PPT on the screen with
09:57:47 <bay|AX|CR> "Pushing anime forward, opportunities within online media"
09:58:16 <bay|AX|CR> What I want to talk about is how the industry can kinda push things along
09:58:19 <bay|AX|CR> Crunchyroll -
09:58:43 <bay|AX|CR> Launched 2006, Started as hobby project, user uploaded content model (Which we realized was broken)
09:58:57 <bay|AX|CR> so we are trying to transition to a proper revenue sharing model... and we need help from the industry to make that happen..
09:59:25 <bay|AX|CR> Traffic growth: 65% of visitors type url directly
09:59:31 <bay|AX|CR> "We are taking the users message to the industry"
09:59:54 <bay|AX|CR> some of the factors that make it a great platform, we have a very active and passionate community...
09:59:55 <bay|AX|CR> 15.5 min average time
10:00:06 <bay|AX|CR> 5-6 user activities for every video viewed
10:00:17 <bay|AX|CR> it doesn't have corporate branding for a unique experienc
10:00:24 <bay|AX|CR> there is interactive experience around the content
10:00:33 <bay|AX|CR> (he is also going to talk about how companies cna further themselves online)
10:00:40 <bay|AX|CR> anime audience: understanding the consumer mindset
10:00:45 <bay|AX|CR> crunchyroll profile
10:01:09 <bay|AX|CR> *70%
10:01:38 <bay|AX|CR> average profile is a young perso in school who has more time than money and tech savvy
10:01:43 <bay|AX|CR> and socially influenced
10:01:59 <bay|AX|CR> 98% with broadband fro the previous slide
10:02:13 <bay|AX|CR> distribution issue: anime is not easily avaiable from traditional media...
10:02:33 <bay|AX|CR> result of limited tv options and select titles are exporrted...
10:02:36 <bay|AX|CR> and the users first source of entertainment is the internet
10:02:51 <bay|AX|CR> next thing the average user can't wait that long...
10:03:05 <bay|AX|CR> since hs is so peer pressued, he can't wait 6-12 months to see something that was cool.. it isn't cool anymore
10:03:24 <bay|AX|CR> also.. joe can't aford it... he lacks a try before you buy and chooses not to spend much money on media...
10:03:43 <bay|AX|CR> what can we do?
10:04:04 <bay|AX|CR> (chinese proverb on the screen about shelters and windmills)
10:04:06 <bay|AX|CR> our solutions:
10:04:27 <bay|AX|CR> time to market: simulcast
10:04:27 <bay|AX|CR> pricing: advertising support
10:04:32 <bay|AX|CR> localization: leveraging fans and fansub groups
10:04:36 <bay|AX|CR> interactivity: community features
10:04:48 <bay|AX|CR> "online advertising a rapidly increasing market"
10:05:05 <bay|AX|CR> interactivity which is important... there is more to the brand engagment which we think we can offer
10:05:39 <bay|AX|CR> advantages of digital distribution: cheaper than dvd distribution, closer between fans and consumers, easier to reach fragmented markets (how to start tv stations in the middle of nowhere?.. the internet can reach those fans)
10:05:41 <bay|AX|CR> geographic
10:05:43 <bay|AX|CR> us 36
10:05:58 <bay|AX|CR> phillipies 17, sing 14, world 10, japan 2, mala 6 au 3 ,uk 4 canada 8
10:06:11 <bay|AX|CR> "we need to start thinking globally..."
10:06:16 <bay|AX|CR> world = rest of world
10:06:21 <bay|AX|CR> simulcast case study
10:06:37 <bay|AX|CR> they have a window with # of animesuki downloads and mininova downloads
10:06:47 <bay|AX|CR> and comparing 5 sites and blassreister and druaga
10:07:09 <bay|AX|CR> "shorter release gap minimizes window for piracy"
10:07:19 <bay|AX|CR> (we have a picture of it)
10:07:45 <bay|AX|CR> internet video advertising market...
10:08:00 <bay|AX|CR> the challenge for advertisers is there is a lot of ugc out there...
10:08:15 <bay|AX|CR> the advertisers want quality, professional content to associate the brand with
10:08:19 <bay|AX|CR> and they want an engaged audience and a targeted audience
10:08:28 <bay|AX|CR> what we've seen is video advertising will pick up
10:08:47 <bay|AX|CR> video business models...
10:09:01 <bay|AX|CR> ad-supported streaming (lo quality, free supported by ad..)
10:09:03 <bay|AX|CR> we believe it will be the king
10:09:16 <bay|AX|CR> subscription steaming... high quality video, monthly subscription
10:09:26 <bay|AX|CR> download to own - drm fre video file w/ individla pricing
10:09:40 <bay|AX|CR> there is going to be a segment which doesn't want the various issues betwee each of the different models
10:09:43 <bay|AX|CR> we are pushing no DRM on the DTO
10:10:03 <bay|AX|CR> we are similar to itunes in which we put in an electronic fingerprint so that we can trace the file if it got distributed
10:10:55 <bay|AX|CR> (there is a screen now comparing the old and new models .. nbc/abc vs youtube/hulu... hbo/cinemax vs rhapsody/netflix... dvds vs itunes)
10:11:20 <bay|AX|CR> they aren't trying to do anything radical.. the models are pretty well established
10:11:32 <bay|AX|CR> anime monetization: 78% merchandise... 22% media...
10:12:01 <bay|AX|CR> the huge opportunity i think we have with our comunity is we can get people passionate about franchises.. one thing people haven't touched on much is.. virtual merchandise
10:12:09 <bay|AX|CR> if you believe anime is like pokemeon.. a 24 min comercial..
10:12:17 <bay|AX|CR> there is no reason it can't be a 24 min commercial for virtual merchandise
10:12:21 <bay|AX|CR> like gaia online
10:12:34 <bay|AX|CR> crunchyworld launched an avatar world called crunchyland...
10:12:47 <bay|AX|CR> crowd sourcing fansub tool.....
10:12:56 <bay|AX|CR> fans exchange rights to subtitles in exchange for recognition
10:13:00 <bay|AX|CR> rights to content holder
10:13:07 <bay|AX|CR> leverage community to scale translations
10:13:37 <bay|AX|CR> they are trying to have the community to leverage the english version to move it to protuguese subs or french subs..
10:13:38 <bay|AX|CR> they are trying to get licensors to buy in
10:13:51 <bay|AX|CR> the licensors need to own subtitles nad have creative control
10:13:53 <bay|AX|CR> we think its a win win situation
10:14:03 <bay|AX|CR> a huge reason fansubbers subtitle is recognition.. status
10:14:09 <bay|AX|CR> if we can create the same status through our system...
10:14:27 <bay|AX|CR> they want people to credit the original users...
10:14:53 <bay|AX|CR> crunchy roll anti-piracy tool..
10:14:56 <bay|AX|CR> tool to scan for unauthorized content online
10:15:29 <bay|AX|CR> they want to provide a way for other places to scan their media for piracy and be able to control it
10:15:30 <bay|AX|CR> defeating piracy...
10:15:46 <bay|AX|CR> reach worldwide market, distirbute piesodes the same day as japan.. monitize content w/ ads and merchandise
10:15:51 <bay|AX|CR> they want to turn pirate joe into consume joe
10:16:08 <bay|AX|CR> what we are doing now:
10:16:28 <bay|AX|CR> simultaneous broadcast... free ad supported, drm free download, crunchyland virtual world...
10:16:29 <bay|AX|CR> questions?
10:17:28 <bay|AX|CR> (question about getting a broadcast window ...)
10:18:02 <bay|AX|CR> can you explain the justification for fansubs being on crunchyroll while scanlations aren't?
10:18:09 <bay|AX|CR> there is nothing unique about the way user uploaded video has been done..
10:18:28 <bay|AX|CR> we don't believe we're any different...
10:18:40 <bay|AX|CR> do you have a dedicated timeline to remove fansubs on your site so that you can move to a 100% legal model?
10:18:58 <bay|AX|CR> it is something we are definitely trying work toward....
10:19:18 <bay|AX|CR> we would love to do it as soon as... content holders and rights holders.... are given a choice
10:19:38 <bay|AX|CR> q: but manga is immediately removed, why isn't anime?
10:20:05 <bay|AX|CR> "we've already respected the dmca takedown notice... we've always removed content in a timely notion..."
10:20:29 <bay|AX|CR> "we are better than the youtube model that we have volunteer moderators that police the site to make sure it doesn't get re-uploaded..."
10:20:57 <bay|AX|CR> "we are trying very hard to reach out..."
10:21:09 <bay|AX|CR> (if a video goes up.... watch it, this exchange is great and i can't keep up with it)
10:24:26 <bay|AX|CR> q: yes or no question... is the distribution of fansubs legal when you don't have the license?
10:24:44 <bay|AX|CR> a: no
10:24:49 <bay|AX|CR> (after some hesitation)
10:25:23 <bay|AX|CR> q: what kind of system are you putting up to allow review of the user created subtitles?
10:25:45 <bay|AX|CR> a: the system isn't created yet because it is a radical system... they would have to buy into it and they would be able to screen the subtitles first to check the quality
10:26:06 <bay|AX|CR> end
Notes: None