Digital Media Investment Banker - musings of a digital media investment banker in disguise

Closet Banker finally joins the new media digiterati!

noreply@blogger.com (Closet Banker) — Tue, 08 Jul 2008 23:21:00 PDT

I have finally given in to the forces of the Internet. For the past four years now, I have been a part of the "Web 2.0" revolution sweeping the Internet. The part that I have played has primarily been "behind the scenes" - helping companies that dominate this landscape raise capital or sell themselves to the large traditional media companies that are all, now, scrambling to survive in this new world. During these four years, I have always toyed with the idea of starting my own blog. I have seen many of my friends jump on the blogging bandwagon - the earliest of them using Xanga or other predecessors to the more sophisticated blogging platforms that have emerged (WordPress being one of them). I have certainly come across a number of companies in the blogging space during the job. I have seen Six Apart's traffic metrics explode, I have used Technorati to search blogs, and I have read (and continue to read) TechCrunch despite some of the nonsense Michael Arrington writes on what has become a (too) widely read blog. After four years of seeing the Web 2.0 revolution unfold before my eyes and being an integral participant in this revolution, I have finally started my own blog. Given how easy it has been, I wonder why I had not started years earlier. I suppose that if someone like me, who grew up with the "old" Internet and the "older" bulletin board systems (BBS) that were the subject of many "computer whiz kid" TV shows in the 80s ... if someone like me can now pick up the digital pen and start writing away, it is a testament to how far the Internet has come and how undeniable its impact on everyday life has become. So with this post, I welcome you to my re-entry into the digital world and my first attempt at being a full participant in the Web 2.0 world. - Closet Digital Media Investment BankerRead this and other posts at www.closetbanker.com! If you're looking for investment banking job opportunities, please go to www.dkcadvisors.com.

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Google's "Lively" the beginning of the end of the virtual world craze

noreply@blogger.com (Closet Banker) — Sat, 12 Jul 2008 15:35:00 PDT

So a couple nights ago, Google announced that they were getting into the virtual world space with their new "Lively" offering. My first reaction to seeing this piece of news was "well, that's the end for the gazillion others trying to enter into the space". In many ways, I viewed the news as welcoming. Over the past year, I have seen more virtual world startups trying to raise capital (and get funding) than I have finger and toes and "virtual" appendages to speak of. It is amazing how one or a couple of significant success stories like Club Penguin can bring these companies out of the woodwork and think they can all of a sudden raise money because they're the next new virtual world for kids or war veterans or Nike fans. What's even more amazing are the venture capital investors that have funded all of these ideas. Take a look at the latest update from Virtual Worlds Management on investment activity in the space. Article here: "$345 MILL INVESTED IN 39 VIRTUAL WORLDS-RELATED COMPANIES IN FIRST 1/2 OF 08." On the one hand, Google getting into the space provides the ultimate validation for these businesses. Certainly, Google would not have gotten into the space if it did not believe in virtual worlds as a viable destination for users, particularly its own. On the other hand, it's probably a sign that the market is at its peak for companies in the space. Some will say, well, wait, let's hold on here, Google's Lively offering is not at all as versatile and functional as some of the other players out there, like IMVU, or those that are focused on a niche audience like Stardoll or Cartoon Doll Emporium. In fact, you can make an argument that Lively is not really a virtual world so much as it is an avatar-based chat application, which, quite frankly are what IMVU, Stardoll and Cartoon Doll Emporium are as well. True virtual worlds are represented by the likes of the much ballyhooed Second Life or Habbo Hotel. There are so many players out there now that the boundaries seem blurred to the normal everyday Internet user. The point that I am trying to express here is that with so many players out there - old and new, and especially now with Google - consolidation is imminent and we'll see a shakeout of the weaker players (which are the vast majority here). Some players may be bought, but if anything has been learned from the plethora of virtual world startups that have emerged, it is that the barriers to entry in this business are actually fairly low, and as a result a large media company could probably develop one on their own (or outsource to a third party that can manage the development and back-end for them). Those that do survive will do so because they possess the same ingredients for success that other Internet destinations do - virtual or not. And that is: content. The same sort of differentiation you see happening in social networking now will in due time happen in the virtual world space as well. - Closet Digital Media Investment BankerRead this and other posts at www.closetbanker.com! If you're looking for investment banking job opportunities, please go to www.dkcadvisors.com.

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"How to" Sites Prove Content is, indeed, King!

noreply@blogger.com (Closet Banker) — Wed, 23 Jul 2008 23:51:00 PDT

We've heard it said so many times, but if what we're seeing in digital media is any indication, it is that content is, truly, king. Not just any content, mind you, but good, quality content. What I am referring to primarily is online video content, which once was a novelty on sites but has now become a commodity staple on even the simplest of sites. For a while, YouTube was the clear leader in the distribution of online video content, content which was user generated - comical episodes of life, zany stuff, stuff you would want to share with your high school or college buddies... But not stuff an advertiser would necessarily want to be associated with. These videos were captured in crappy resolution, quality that was even worse than the clips shown on "America's Funniest Home Videos". These days, advertisers who want to use online video as an advertising medium are looking to a variety of online media players with proprietary libraries of high quality, "semi-professional" content that looks just a grade below studio quality. A category of companies with content of this sort is the emerging "how to"vertical of sites. These sites provide content explaining everything from practical day-to-day things like "how to tie your shoelaces" to the more philosophical as in "how to find meaning in your life". These so called "knowledge" sites are quickly becoming the next generation of Wikipedia - informational and instructional content captured in video format. Some of the larger names in the space include VideoJug, Howcast, ExpertVillage, WonderHowTo, and a whole host of others with a similar format. As with Wikipedia, the content provided on these sites is evergreen as opposed to the fleeting nature of user-generated content (UGC). In addition, this content is informative, instructional, and oftentimes the precursor to action in the person viewing the content. After all, the viewer in most cases was seeking a solution to a problem he wanted to solve before visiting the "knowledge" site and is likely to decide upon a course of action soon after watching the content. As a result, consumer product advertisers love advertising on this medium. For some, the content provided by the "knowledge" site is endemic to what they are selling - Hermès sponsoring a clip on tying a Windsor knot on your necktie or IKEA sponsoring a clip on assembling the new SKANDIA bedside table (we all know how confusing those language-neutral illustrations can be sometimes!). For others, the content is less endemic but nonetheless content that CAN have relevance to a broader base of advertisers and audience bases than UGC could ever. As an example, clips on "how to ask a guy out on a date" can be great fodder for sites that are more teen-oriented or with a highly concentrated female fan base. "How to put on the right amount of mascara" might be relevant for any one of the beauty sites that are cropping up these days, targetting the ever self-conscious young adult female crowd. A lot of these sites, too, have put in the money and time to develop a cost-effective production platform that allowed them to create this content in the first place. This isn't movie studio quality production, but production that is a lot more sophisticated than your typical UGC producer and is of a quality acceptable for most advertisers. As more and more advertisers begin to realize that they will have to follow their audience base and begin to advertise in video on the Internet, so they (or their agencies) will need to partner with those that can produce such content quickly and cheaply. Maybe not so much the blue chip advertisers like P&G or the auto makers, but those that are local or regional to the market they're in - where the production cost becomes a greater factor. So where am I going with this? In the future, when you need to find out how to cook seafood risotto, you'll visit a "Videowiki", venture into the "Food and Drink" section, click on "seafood risotto" and watch a 2 minute cooking lesson sponsored by "The Food Network". The actors and actresses in these clips will be normal actors and actresses, perhaps sometimes big-time celebrities endorsing the product, but what it won't be is your next-door neighbor cooking in the kitchen with only his boxers on. - Closet Digital Media Investment BankerRead this and other posts at www.closetbanker.com! If you're looking for investment banking job opportunities, please go to www.dkcadvisors.com.

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Comic-Con in San Diego Attracts Over 125,000

noreply@blogger.com (Closet Banker) — Sun, 27 Jul 2008 02:02:00 PDT

Just saw this news clip on the Comic-Con Convention being held this weekend in San Diego. One quote in particular struck me and has relevance to a post I just wrote. Jay Baage writes: Content is still king and Comic-Con has become the place to be for many new media companies and producers looking to get "buzz" for their new stuff.What did I tell ya! Check out the article and a video covering the event above. http://www.dmwmedia.com/news/2008/07/24/buzz-watch%3A-comic-con-force-be-reckoned - Closet Digital Media Investment BankerRead this and other posts at www.closetbanker.com! If you're looking for investment banking job opportunities, please go to www.dkcadvisors.com.

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Buying YouTube Views and Ratings

noreply@blogger.com (Closet Banker) — Fri, 08 Aug 2008 22:37:00 PDT

We live in an era where viral marketing and world class exposure play a vital role in the day-to-day activities and success. Many are looking for ways to display their talents and ideas to the world in hopes of getting rich and famous. The realms of web video promotion and video marketing have something incredible and powerful to offer. Consistent YouTube video marketing is one of the most popular and easy ways to achieve the massive success you are looking for. You can market by yourself or you can hire a firm to get you tuckloads of YouTube views, ratings and boatloads of exposure on the fly. The latter can be very controversial, as we will see. While browsing through the web pages of YouTube, you must have come across words like ratings and subscribers. Well, they are not just two simple English words. They play a crucial role in popularizing your thoughts and book-marking your efforts. Video marketing in YouTube is the best way in which you can gain what you want from massive exposure to real wealth. Let us have a look in the Bandwagon effect when you increase the number of subscribers for your video and channel. In case you haven't posted a video on "the tube," the more subscribers you have, the more views for your video and the greater your popularity. With increases in the number of subscribers, it is easy to get a higher rating in the world of videos. Your video can quickly erupt into a massive number of hits. This implies a greater degree of exposure and fame. In addition, you can get a featured YouTube Channel to display your videos. With the introduction of Annotation, this section of video marketing has stolen the limelight from previous outdated methods. Whether you are an artist or actor, tons of video hits can give you the exact thrust you need to set your career on the fast-track. Among the numerous features, annotation gives you an option to leave a video comment and enables you to interact with the world in a proper way. Increase your YouTube views with this feature so you can work smarter, not harder. Nonetheless, YouTube video marketing plays an instrumental role in buying some popularity for you. This is possible with the help when you know to massively increase YouTube views. The more YouTube Views, the greater the chances of getting higher rating by an increase in the number of subscribers. IncreaseTubeViews.com provides the service to increase the number of subscribers for your video. The guarantee success in a major way! Building a massive subscriber base, increasing the hit counts for each video that you upload are all included in this video marketing feature of the tube. Especially when it comes to Annotation, the wide range of the good features will remain hidden for long. This, in conjunction with the highly controversial buy youtube views strategy can sky-rocket your success. Create a video and post it in the tube. With Annotation all you need to do is add a comment to the video and there starts you video marketing! Enjoy exploring the world of business! This can boost up your income from your business and in case the business clicks and so does the video marketing, the world is your playground. YouTube video marketing is now quite vital to be exposing yourself to the external world, express your ideas, and display your qualities. It's the perfect idea that you were looking for long. Buy youtube views today and increase your popularity while reaping the massive financial rewards! - Closet Digital Media Investment BankerRead this and other posts at www.closetbanker.com! If you're looking for investment banking job opportunities, please go to www.dkcadvisors.com.

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Putting the brakes on M&As? Not for the long tail...

noreply@blogger.com (Closet Banker) — Sat, 09 Aug 2008 13:08:00 PDT

The ongoing credit crunch and mortgage mess have filtered down into parts of the banking industry that lend directly to media companies or finance media transactions. Despite the challenges, b-to-b media deals will continue to get done in 2008. It's not going to be a fallow period. The media and information M&A market last year saw 838 transactions with a combined value of nearly $110.0 billion, up 32% and 79%, respectively, from 2006, according to a report by Jordan, Edmiston. The online media and marketing services sectors led the charge in 2007 with a combined 555 transactions valued at $43.0 billion. Private equity companies have fueled many of the major b-to-b media transactions, such as Veronis Suhler Stevenson's acquisition last March of Advanstar Communications for $1.2 billion. However, the biggest media deal of 2007 was executed by a strategic player—News Corp.'s $5.6 billion acquisition of Dow Jones & Co. With private equity companies struggling with their exposure to the current banking woes, strategic b-to-b media companies may loom large on the M&A front this year. Reed Business Information made a big splash in the industry in December 2006 when it acquired lead generation company BuyerZone, which links prospective buyers to qualified suppliers in more than 134 business product and service categories. The deal could be a harbinger for business publishers that want to move aggressively online. It brings buyers and sellers together to another level. But let me tell you, there are not a lot of BuyerZones out there. Reed Business continues to be in an acquisitive mode. For strategic companies, the acquisition situation has been improving the past few months, but that's offset by a more worrying economic environment, and there's still some resistance to sensible pricing. Smaller publishers face the same rising costs as large publishers but have fewer financial resources to deal with them. It's a wonderful time to be a small publisher, with a lot of advantages if you can niche smartly. Smaller publishers—those with less than $50 million in annual revenue—comprise about 55% of b-to-b media companies. Smaller publishers' ability to stay nimble is particularly valuable in the current climate. The velocity of clients' needs is accelerating, and it's incumbent upon business publishers to respond in kind. Despite the ongoing weakness in the U.S. dollar, there are ample opportunities for business publishers to try and penetrate overseas markets. The emerging business class in the so-called BRIC countries (Brazil, Russia, India and China) hungers for b-to-b information and the attendant tools that business publishers can provide. You have to be in it for the long-haul if you're investing overseas. Of course, having a legitimate Web site makes you an international publisher by default so you know how important overseas markets can be. - Closet Digital Media Investment BankerRead this and other posts at www.closetbanker.com! If you're looking for investment banking job opportunities, please go to www.dkcadvisors.com.

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noreply@blogger.com (Closet Banker) — Tue, 19 Aug 2008 10:12:00 PDT

Watch this clip! - Closet Digital Media Investment BankerRead this and other posts at www.closetbanker.com! If you're looking for investment banking job opportunities, please go to www.dkcadvisors.com.

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Investment Bankers in India: Rock ‘n Roll

noreply@blogger.com (Closet Banker) — Fri, 22 Aug 2008 01:24:00 PDT

Here’s an idea: Go work for Enam Securities. The US investment bank turmoil is creating opportunities in India. The Economic Times (via WSJ) reports that top Indian grads are now looking more favorably at offers from the hometown team. Grads at IIMB (Indian Institute of Management Bangalore) received fewer offers from banks like Merrill Lynch and Lehman Brothers. The ET reports that Merrill Lynch made 6 offers this year (vs 13 last) while Lehman made 11 versus 13. Meanwhile, hiring from Indian investment banks was strong. Out of 21 investment banks that recruited at IIMB, 8 were Indian and included: Enam Securities, Mape Advisory Group and Edelweiss Capital. Mid-market investment bank Mape hired 4 from IIMB. So how much does an Indian investment banker get paid? According to the ET, to the tune of Rs 20 lakh- Rs 30 lakh, which if my math is right is about a starting salary of $50,000 (USD), or $75,000 (USD) with bonus. Can any Indian readers corroborate these salary figures? I assume it’s for a 1st year? Also on the Indian investment banking front, Deustche Bank investment banker Chetan Bhaga (a Mumbai-based director in Deutsche Bank’s distressed-assets group) has reached “cult status” for penning, all while also being a banker, novels targeting the young, competitive and mobile set in India. One of his books, brilliantly titled “One Night @ the Call Center” is also being made into a Bollywood film called “Hello”: His “One Night @ a Call Center,” … is, beyond its story line about frustrated office romance, a critique of a nation climbing to prosperity by answering phone calls from American consumers. Millions of Indians might have lifted their incomes by doing call center work. But the jobs are dead ends, said Bhagat, and no well-to-do parents want their daughter to marry a call center worker. “Is this the best we can offer to India’s young generation?” he asked. “If call centers are so great and brought riches to the country, like the government says, why aren’t they marrying their daughters off to a call center guy?” - Closet Digital Media Investment BankerRead this and other posts at www.closetbanker.com! If you're looking for investment banking job opportunities, please go to www.dkcadvisors.com.

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Why don't more I-banks finance Hollywood films?

noreply@blogger.com (Closet Banker) — Sat, 23 Aug 2008 00:08:00 PDT

So I was reading this article the other day about how certain Hollywood films are financed by international investors. http://www.slate.com/id/2117309/ And started wondering to myself. Why don't any Wall Street firms have divisions that provide the financing for certain Hollywood films? I mean there have been some rare instance where that has happened (e.g. ML helping finance Iron Man) and ML probably made a ton of money based on how the movie is doing at the box office. Obviously there's a lot of due diligence that would have to be conducted on the film, but considering the investor gets to purchase the film and the studio basically pays the investor a lease and some sort of repurchase agreement if the movie becomes successful, I don't see why more investment banks look to expand into that space. Speaking of which, view the clip below. It details the recent failed financing deal between Paramount and Deutsche Bank. No surprise given how the banks are doing these days. - Closet Digital Media Investment BankerRead this and other posts at www.closetbanker.com! If you're looking for investment banking job opportunities, please go to www.dkcadvisors.com.

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Wii Fit Fun!

noreply@blogger.com (Closet Banker) — Mon, 25 Aug 2008 21:33:00 PDT

Wouldn't playing the Wii Fit with Jo Garcia be fun? - Closet Digital Media Investment BankerRead this and other posts at www.closetbanker.com! If you're looking for investment banking job opportunities, please go to www.dkcadvisors.com.

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Saving Money

noreply@blogger.com (Closet Banker) — Sun, 28 Sep 2008 22:34:00 PDT

With the financial markets going haywire in the past several weeks, consumers may be wise to start thinking about saving money now that investing money, particularly in banks, has become a money losing proposition. There are a lot of sites out there that help the normal everyday consumer think through ways of pinching pennies and saving an extra buck here and there. One such site I would recommend is TheFrugalOne.com. The site provides money saving tips, advice on reducing debt and looking for good credit card deals, features the latest shopping deals from Amazon, and provides ideas on ways consumers can also Make Money. As stated by the site's owner, "There are ways consumers can live well without having to be rich. It's an attitude and a mentality that has to be adopted and practiced in day to day life. Here at TheFrugalOne.com, our motto is: Saving More, Living Better." I am a big fan of the site and the philosophy it espouses and believe the normal American consumer could learn a lot from listening to the folks at TheFrugalOne.com. - Closet Digital Media Investment BankerRead this and other posts at www.closetbanker.com! If you're looking for investment banking job opportunities, please go to www.dkcadvisors.com.

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