Kevin+Lynam

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TO: Proximity Video Team FROM: Kevin Lynam DATE: September 23, 2009 SUBJECT: Strategy Report

Here is my strategy report which pertains to YouTube’s strategy to become the most profitable video streaming entity on earth. This report will summarize YouTube’s current market standing. As well as; the current competitive landscape, and their strategy to take over the video streaming market.


 * Corporate Profile**

“YouTube was founded in 2005 by Chad Hurley, Steve Chen and Jawed Karim, who were all early employees of PayPal” (Crunch Base, 2009). In November 2006 they were purchased by Google for 1.65 billion dollars. Currently they are a publicly owned company. The Original co-founder Chad Hurley is CEO. “YouTube is the leader in online video, sharing original videos worldwide through a web experience” (Crunch Base, 2009). YouTube has nearly a half a billion site visits every month globally. They are the premier leaders when it comes to streaming video and music over the web. YouTube is a monster in the video streaming industry. Currently YouTube only generates revenue is via the sales of ring tones and shoddy viral marketing adds that pop up on some of the more popular videos on the site. They are in an all out battle to win the video streaming war. Google is desperately trying to turn YouTube into the cash cow it has the potential to be.

The primary force driving the video streaming battle is mass profits and the battle to remain the most technologically savvy site. “YouTube is currently in negotiations with Lions Gate Entertainment Corp., Sony Corp., Metro-Goldwyn-Mayer Inc., and Time Warner” (Wall Street Journal,2009). Such a deal would undoubtedly change Hollywood forever and, at the very least place “YouTube in direct competition with ITunes, Amazon, Hulu, and Netflix” (Appscout, 2009). YouTube’s business strategy is super vital to the success of the company and the future of the video streaming world. Strategy ** YouTube’s strategy is simple; to be the most successful streaming site in the world. YouTube is already one of the most heavily visited sites in the world. “Allowing YouTube users to stream video’s for 3.99$ per view would be a big step towards making YouTube profitable” (Wall Street Journal, 2009). YouTube is entering a market that already has a bunch of big name players like Hulu and Netflix however they don’t have the exposure that YouTube does so as a result to strike a deal would greatly strengthen the organization. As a result I think that Gen Y and the result of the proximity team would be foolish to not further keep an eye on such negotiations and maintain a healthy relationship with YouTube.
 * Competitive Landscape**


 * Gen Y Implications**

Generation Y is one of technological advancement. We are interested in the lasted and greatest and wish to achieve satisfaction through the easiest and most technologically easy methods possible. As a result I think that Generation Y would be very interested in streaming movies on YouTube because it is easy and convenient for any college student or Gen Y user anytime any place. I think that the Proximity Video Team will also benefit by maintaining a relationship with YouTube. Because this will be the future of product marketing and the way that we hear about the newest products and the best brands because let’s face it Gen Y is a Generation that spends lots of it time in front of the computer.


 * References**

Appscout. (2009) //YouTube Plans to Charge for Movies. //Retrieved September 28, 2009, from [] McBride S, Schechner S, and Vascellaro J. (September 3, 2009). Movie Studios Discuss Ways to Rent Films Over YouTube. //The Wall Street Journal.// pp. B1, B6.

Blog proposal
TO: Proximity Video Team FROM: Kevin Lynam SUBJECT: Blog Post Proposal DATE: November 1, 2009

I propose that the Video team does the blog post proposal on the shift from the prehistoric DVD to the new up and coming trend known as video file streaming. This information will be vital not only to our clients considering DVD advertisements but also to Hollywood film makers who are fighting dwindling DVD sales daily. The brick and mortar video unit is starting to trend towards a thing of the past. Rationale ** Due to an increase in DVD pirating and film file sharing Hollywood film makers are in an all out war to find a way to recoup the billions of dollars lost in DVD sales. Currently the majority of the top film makers are in negotiations with YouTube to explore the world of pay per view video streaming. This eliminates the needs to go to a brick and mortar unit. It also eliminates the need to physically return the DVD. Data shows that the general mass of the population is trending towards video streaming. YouTube currently has nearly a billion hits on a daily basis. This could be a great alliance for Hollywood and those whom rely on films and movies a marketing tool. Resources ** Appscout. (2009) //YouTube Plans to Charge for Movies. //Retrieved September 28, 2009, from []

McBride S, Schechner S, and Vascellaro J. (September 3, 2009). Movie Studios Discuss Ways to Rent Films Over YouTube. //The Wall Street Journal.// pp. B1, B6.

Report proposal
TO: Proximity Video Team FROM: Kevin Lynam DATE: November, 22, 2009 SUBJECT: Proposal Report on YouTube

The shift from the prehistoric DVD to video streaming has left many video retailers scratching their heads on how to recover the billions of dollars of lost revenue. YouTube is the big man on campus when it comes to video streaming. As a result, they are in a position to dominate the future of video streaming. I propose to write a report on how YouTube is strategically positioning itself to dominate the video streaming market by appealing to Gen Y in and computer users everywhere. Need **  YouTube is desperate to generate profits. They are currently a free access site. However, they are on the brink of striking a deal of a pay per stream nature any day now with the majority of the biggest organizations in film today. A deal of this nature will undoubtedly put YouTube ahead of the competition. As a result Proximities clients need to get on board or they stand a chance to be left behind just as the modern day DVD will be. Gen Y is the future of viral marketing and the future for most company’s successes and failures. This trend from DVD’s to video streaming is vital to keep up with. All those who do will have a first mover’s advantage all others will just be left behind. There are many things Proximity clients must understand moving forward:  1.  Computer Technology is one of fasting growing industries in the world to keep up viral video and video streaming is a must.  2. If our clients keep up with the world of video streaming they with have the chance to market and sell products in a manner that has never before been achieved. (First mover’s advantage).  3. This will also help people who have lost mass profits via the marketing or sale of DVD’s to remain cutting edge and generate revenues thought to be a lost cause.  4. The world of video streaming will give proximity clients access to vast information and knowledge about the future of Gen Y. If Proximity clients understand the above content, their respected organizations will be able to build and structure their business plans, and marketing mixes, to respond to the rising surge in video streaming and viral marketing. The end result will be mass profits and global success of their companies. Topics **  For this report the following topics will be covered:  · The declining popularity of DVD’s · <span style="font-family: 'Times New Roman','serif';">The rising popularity of video streaming <span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msofareastfontfamily: Symbol; msolist: Ignore;">· <span style="font-family: 'Times New Roman','serif';">YouTube’s pivotal role in video streaming <span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msofareastfontfamily: Symbol; msolist: Ignore;">· <span style="font-family: 'Times New Roman','serif';">YouTube’s impact on Gen Y <span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msofareastfontfamily: Symbol; msolist: Ignore;">·  <span style="font-family: 'Times New Roman','serif';">How this can effect Proximities clients respected organizations.
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<span style="font-family: 'Times New Roman','serif';"> The following articles provide vital facts for this proposed report. Slice of SciFi. (January 15, 2009) //DVD Sales Decline in 2008. //Retrieved on November 23, 2009, from []. This particular article is of great interest because it speaks of how much of a decline DVD sales has experienced over the last several years. As well as how much it has declined in 2008. <span style="color: black; font-family: 'Times New Roman','serif';"> Appscout. (2009) //YouTube Plans to Charge for Movies.// Retrieved September 28, 2009, from []. This particular article outlines the current negotiations that you tube is with some of the top filmmakers as well as what this negotiation could represent to filmmakers and future You Tuber’s. //<span style="color: black; font-family: Calibri; font-style: normal; mso-bidi-font-style: italic; msobidifontstyle: italic;"> Internet Retail. //<span style="color: black; font-family: 'Times New Roman','serif';">(2009) //Online users are increasingly glued to the computer tube, ComScore Reports//. Retrieved Sept. 7, 2009. From <span style="font-family: 'Times New Roman','serif';">[] this articles is pertinent because it talks about the rise in popularity of internet video streaming. <span style="color: black; font-family: 'Times New Roman','serif';"> YouTube Blog. (2009) //<span style="color: black; mso-bidi-font-weight: bold; msobidifontweight: bold; text-decoration: none; textunderline: none;">[|From bacon-infused drinks to saving money what *can't* you learn on YouTube?] // Retrieved November 24, 2009. From __[]__ this is YouTube’s actual blog that shows how much of our lives that YouTube has and the impact it has on Gen Y users.
 * <span style="font-family: 'Times New Roman','serif';">Sources **

Team conference presentation proposal
//paste team conference presentation here//

Sales letter and report prospectus
<span style="font-family: 'Times New Roman','serif'; font-size: 10pt;"> December 8, 2009 Ms. Ashton Myers, Senior Marketing Analyst Geico Insurance INC. 100 Geico Blvd, Atlanta GA, 43501 <span style="font-family: 'Times New Roman','serif'; font-size: 10pt; line-height: 115%;"> Dear Ashton: <span style="color: black; font-family: 'Times New Roman','serif'; font-size: 10pt; line-height: 115%;"> I enjoyed talking with you yesterday at Proximity’s Next Generation Media seminar regarding Geico Insurances need to promote its brand to Gen Y consumers. Enclosed you will find a prospectus for the report I mentioned describing YouTube and its profound impact on the video streaming world.

As you explained yesterday, Geico Insurance feels it must establish brand identity with Gen Y now in order to continue to be successful. With the growing popularity of viral video, and video streaming it is becoming even harder to market to Gen Y. The Proximity team will be able to help Geico devise an aggressive and effective viral marketing campaign that will ensure the success of your brands Identity.

Proximity will be able to provide you with customized surveys and mass data analysis that can help position your brand in the minds of Gen Y for years to come. Our faculty analysts can advise your marketing and sales forces on appealing and effectively selling to Gen Y. In addition the proximity team will be able to assist Gieco Insurance in creating marketing ads that will appeal to Gen Y in new and effective ways such as viral marketing on social networks like; Facebook and Twitter as well as popular sites like YouTube and Netflix.

Ashton, I invite you and your staff to join us at Proximities Towson office for a special brand image consultation. This will provide your organization with the necessary data to be the most formidable insurance company with Gen Y. After that Session you can personally meet with the Proximity team to discuss how they are going to achieve your marketing goals.

<span style="color: black; font-family: 'Times New Roman','serif'; font-size: 10pt;">Sincerely, Kevin Lynam Senior Media Analyst

Enclosure: <span style="color: black; font-family: 'Arial','sans-serif'; font-size: 10pt;"> <span style="color: black; font-family: 'Arial','sans-serif'; font-size: 10pt; line-height: 115%;">
 * About Proximity **<span style="color: black; font-family: 'Times New Roman','serif'; font-size: 10pt; line-height: 115%;">

Proximity is a Gen Y on-demand media strategy group. Its analysts know how to connect with their generation using campaigns designed for the new media landscape. Because it is associated with Towson University, Proximity has immediate access to a large student population and the expertise of faculty who specialize in marketing and media research.

Proximity offers its clients a full range of services for developing and executing customized campaigns that can reach any segment of Gen Y. It regularly conducts on-line surveys and focus group sessions to keep marketers up to date on the social trends and emerging technologies that determine how this cohort communicates and what it purchases. Visit Proximity at www.proximity.edu to sample its research and see examples of successful campaigns.

<span style="color: black; font-family: 'Arial','sans-serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">Kevin Lynam
 * **<span style="color: maroon; font-family: 'Arial','sans-serif'; font-size: 20pt; mso-fareast-font-family: 'Times New Roman';">This is the Death of the DVD **<span style="color: black; font-family: 'Arial','sans-serif'; font-size: 10pt; mso-fareast-font-family: 'Times New Roman';">

//And the Rise of the Video Streaming Empire// <span style="color: black; font-family: 'Arial','sans-serif'; font-size: 10pt; mso-fareast-font-family: 'Times New Roman';"> || <span style="color: black; font-family: 'Arial','sans-serif'; font-size: 10pt; mso-fareast-font-family: 'Times New Roman';">
 * **//__<span style="color: #333300; font-family: 'Arial','sans-serif'; font-size: 18pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: 'Times New Roman';">The problem __//**<span style="color: black; font-family: 'Arial','sans-serif'; font-size: 10pt; mso-fareast-font-family: 'Times New Roman';">

<span style="color: black; font-family: 'Arial','sans-serif'; mso-fareast-font-family: 'Times New Roman';">Gen Y is migrating away from traditional movie watching experiences and looking for new ways to find this form of entertainment. Gen Y is a computer savvy generation that will not continue to purchase DVD’s when they have the opportunity to be entertained by the click of a mouse. Video streaming is surpassing DVD’s sales at an alarming rate it appears that the fate of the DVD is terminal.

<span style="color: black; font-family: 'Arial','sans-serif'; font-size: 10pt; mso-fareast-font-family: 'Times New Roman';"> || <span style="color: black; font-family: 'Arial','sans-serif'; font-size: 10pt; mso-fareast-font-family: 'Times New Roman';">
 * **//__<span style="color: #333300; font-family: 'Arial','sans-serif'; font-size: 18pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: 'Times New Roman';">Proximity’s on-demand media solution __//**<span style="color: black; font-family: 'Arial','sans-serif'; font-size: 10pt; mso-fareast-font-family: 'Times New Roman';">

//<span style="color: black; font-family: 'Arial','sans-serif'; mso-fareast-font-family: 'Times New Roman';">Proximity //<span style="color: black; font-family: 'Arial','sans-serif'; mso-fareast-font-family: 'Times New Roman';">focus group results show that Gen Y viewers still value the social experience of watching movies with their friends. This report will detail how video streaming is growing in popularity with Gen Y. Additionally, it will show statistics about how the fate of the DVD has been sealed and what current Proximity clients must do in order to remain successful. This report will further inform Proximity clients how working directly with the Proximity team to tailor new marketing mixes and business strategies will make their respected organizations popular with Gen Y for years to come. <span style="color: black; font-family: 'Arial','sans-serif'; font-size: 11.5pt; mso-fareast-font-family: 'Times New Roman'; msofareastfontfamily: 'Times New Roman'; msospacerun: yes;"> <span style="color: black; font-family: 'Arial','sans-serif'; font-size: 10pt; mso-fareast-font-family: 'Times New Roman';"> ||
 * <span style="color: maroon; font-family: 'Arial','sans-serif'; font-size: 12pt; line-height: 115%; mso-fareast-font-family: SimSun; mso-fareast-language: ZH-CN;">Available now at www.proximity.edu **

<span style="color: black; font-family: 'Arial','sans-serif'; font-size: 10pt; mso-fareast-font-family: 'Times New Roman';"> <span style="color: black; font-family: 'Arial','sans-serif'; font-size: 10pt; mso-fareast-font-family: 'Times New Roman';">