Operational Improvement & Commercial Negotiation

O&O Performance provides support on value enhancement within media and entertainment companies. Increasingly competitive and complex media and entertainment markets make it essential that revenue “yield” is maximised (whether advertising or consumer spending based), costs are benchmarked, products and brands are optimally positioned and content assets are packaged, windowed and exploited in a value maximising way.

Each of O&O Performance’s nine services is focused on helping clients increase the value of their content rights and market facing brands through the application of focused analysis.

> Maximising the Value of Sports Assets
> Maximising the Value of Content Rights
> Obtaining Cost Effective Delivery to Consumers
> Increasing Advertising Yield and Consumer Revenue per Subscriber
> Repositioning Brand Portfolios and Individual Brands
> Measuring and Improving Content Hit Rates
> Providing Cost Comparisons and Value for Money Reviews
> Conducting Strategy Workshops
> Supporting Business Planning

Maximising the Value of Sports Assets
O&O Perfomance has valued the media and commercial rights of over 100 sporting events and competitions since it was founded in 1995. We have also provided advice on maximising value through exploitation strategies, rights packaging and auction design. We have worked for rights owners, agents, investors and those purchasing and exploiting high value rights.

Our work has covered a range of sports (football, cricket, rugby, ski-ing, athletics, horse racing, motor sports, Gaelic athletics, tennis, golf and wrestling) across the UK, continental Europe, North America and Asia. We have reviewed all types of rights and windows ranging from live pay TV rights, live free to air rights, highlights packages, mobile and video on demand packages as well as sponsorship, hospitality and image/endorsement rights.
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Maximising the Value of Content Rights
O&O Performance has applied the techniques and insights honed while advising on sports rights to the worlds of film, music and TV content. We value entertainment content libraries and current content output in terms of all windows of exploitation. We have helped clients maximise recommission prices for returning TV strands and have valued catalogues of films and TV programming. O&O has helped value secondary and ancillary windows for different TV genres (children’s, drama, factual, comedy, entertainment formats) in support of company valuations and initial commission negotiations.
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Obtaining Cost Effective Delivery to Consumers
Media and entertainment brands and content owners need to secure distribution to consumers in the increasingly multi-platform age. We have helped TV channels and service providers value scarce UHF spectrum and Web 2.0 TV operations to sense test bandwidth charges and quality of service guarantees. As routes to consumers become more complex and start to overlap all content providers and media brand owners will need a better understanding of the delivery mechanisms needed and the objectives and business models of those providing the distribution – especially where vertical integration along the supply chain exists.

O&O has supported a number of distribution and carriage negotiations across free to air TV, pay TV, broadband content delivery and radio distribution as well as frequency auctions/sales.
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Increasing Advertising Yield and Consumer Revenue per Subscriber
An increasingly competitive market demands a more rigorous approach to consumer pricing, advertising inventory management and advertising pricing. O&O Performance work on consumer spending yield maximisation includes both sophisticated economic models of optimal pricing schemes given the pattern of demand and the measurement of sustainable price points through commissioned consumer research. O&O has managed pricing studies covering basic tier pay TV packages, key premium sports TV offerings and video on demand services. Advertising yield maximisation projects have covered inventory management between local and national advertisers, the design of optimal price differentiation algorithms to different advertisers, and the use of on-going user behaviour analysis to optimise ad yield. We have conducted such analysis in the directories, radio and TV markets.
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Repositioning Brand Portfolios and Individual Brands
Several O&O Performance clients across TV, radio and new media have been concerned that their current portfolio of services is not maximising potential value and/or competing effectively against rivals. O&O work in this area involves very detailed market segmentation analysis combined with a thorough review of the strengths and weaknesses of the current output/offering, and financial modelling. We have carried out studies across music television, analogue and digital radio, thematic entertainment and factual television and music, sport, youth and games portals.

Occasionally clients want a more detailed review of one particular channel or portal. This work involves detailed analysis of schedules and programming output against the needs of the target audience and the output of competing offerings to determine the optimal mix of content. We have conducted such analysis for major TV networks (for various day parts within their schedules), thematic TV channels, individual radio services and specific content portals.
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Measuring and Improving Content Hit Rates
Hit rate analysis is an essential tool for judging performance in the TV, film, music, animation and games content creation sectors. Knowing the likely hit rates that apply to different types of content and the full life value of the hits versus those of the failures allows one to judge the past and future projected performance of hit driven businesses. O&O has conducted assignments for investors in film, animation, music and TV formats to help them judge likely returns and assess past performance.

Hit rate maximisation advice involves providing quantitative and qualitative research on specific TV, audio and multi-media content propositions as well as providing input to creative development meetings and away days. O&O has provided research input to development team meetings and conducted market and focus group research on leading UK TV programme strands, new radio services and new sports events.
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Providing Cost Comparisons and Value for Money Reviews
This involves assessing the production and delivery costs of different media providers versus their rivals, as well as assessing comparative value for money by reviewing resource allocations against comparative viewing and purchasing levels. O&O has led extensive benchmarking and value for money exercises covering TV commission prices, radio commission prices and on screen and on air talent fees.
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Conducting Strategy Workshops
As a complement to O&O Advisory’s work on corporate strategy options, O&O Performance also conducts strategy workshops at a corporate and divisional level. We have facilitated workshops for a major US studio group TV channels division, the board of a diversified UK media group, and a major commercial TV broadcaster.
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Supporting Business Planning
O&O Performance also supports divisional business planning through combining analysis of the relevant market with the major cost and revenue drivers of a business. We often work closely with divisional and corporate business planning and finance teams.
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