Cinegi - Cinema Unlimited

8/10/2019 Cinegi - Cinema Unlimited

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Introduction

Cinegi is a fully digital film distribution and entertainment company that enables virtually any

venue to be a cinema. Launched in the United Kingdom in 2013, the company provides a platform

service which facilitates public screenings of filmed media in High Definition format and seeks to create

sustainable audiences for non-mainstream film and alternative content across Europe. (Cinegi website,

2014) Since Cinegi only recently launched, there is limited information about this innovative start-up

which is a spin-off company of Golant Media Ventures (GMV) - a consulting firm that designs media

products and services. The concept for this new business was developed through an 18-month pilot

project led by Creative England - a services company that supports creative ideas, talent and

businesses in film, TV, games and digital media. The core team for this development phase was Golant

Media Ventures, TwoFour - a producer of media and content and a cultural industries entrepreneur

and consultant named Ivan Sanna. They beta tested the project in 2011 and 2012 under the name of

Omigi, issued a final report in May 2012 and GMV officially launched the business in 2013. (Omigi,

2012)


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negotiating licensing agreements and recruiting its initial sales force. They plan to take the platform

live within a few months. It is a really exciting time for the Cinegi team.

Product Development Phase

This section begins with an overview of the product development process which provides the

framework for understanding the business model canvas and why I believe that Cinegi is a multi-sided

business model patter.

The Pilot Process

The company developed a demonstration platform which was released in September 2011 for

beta testing with stakeholders, consumer groups and partners. The platform designers made

progressive improvements as they received feedback from the users. At that stage, the platform

consisted of a website that had a separate area for rightsholders, venues and home users. The system

features a player and mobile application with multilingual settings in English, Czech, Danish and Italian.

(Omigi, 2012). Venues and rightsholders share the ability to link content marketing together and


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Another feature of the platform is its community building aspects such as calendaring and

social media integration where end users can invite his or her friend to watch with them or join them

at a particular venue. (Michell 2013) The intent is for audiences to use the online and mobile assets to

discover and enjoy media content that they find compelling and to connect to people who share their

passions (Omigi, 2012).

The player which is integrated into the platform delivers High Definition quality content to

venues using standard broadband and IT equipment (a key selling proposition).

To the left is an early look at

the player prototype (Omigi,

2012).

While cinemas represent the

traditional venues for filmed

media content, this new


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The online and mobile platforms allow for marketing intelligence gathering from the consumers

through profiling and social media integration. This helps the company to customize their marketing

approach to the specific interests and needs of the end user. The mobile side of the platform

promotes easy discovery of content on tablets and mobile devices. It includes functionality which

allows users to send packages of content to their home computer in a format that is downloadable and

easy to activate. (Omigi, 2014).

Now that I have provided some background and context around Cinegi and its online platform,

now let us deconstruct the company through the use of the Business Model Canvas.

Business Model Canvas for Cinegi

Alexander Osterwalder and Yves Pigneur, authors ofBusiness Model Generationdeveloped the

business model canvas where they described it as "a shared language for describing, visualizing,

assessing, and changing business models." (Osterwalder, 2010). The canvas consists of nine building

blocks that help focus attention on key aspects of a business. I used the Business Model Canvas (BMC)
http://www.businessmodelgeneration.com/bookhttp://www.businessmodelgeneration.com/bookhttp://www.businessmodelgeneration.com/bookhttp://www.businessmodelgeneration.com/book


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populate the far right column of the BMC. Rightsholders, those who own the filmed media content,

often struggle to find an audience for their work and to make money. These rightsholders can benefit

significantly by having easy access to a content delivery system that is affordable, generates income

and enables them to connect directly their consumers. The platform has the power to expand

distribution and penetration of traditional cinema into non-cinema locations typically used by leisure,

sports, hospitality, community, academic and cultural activities (Omigi, 2012). These venues are

struggling to keep pace with shifting consumption habits and increased competition for peoples

attention and money against games and the Internet, new platforms for accessing audiovisual content

or live events and festivals. (Omigi, 2012). Audience member are able to use to the platform as a tool

to discover content that is relevant to their lives and to socialize with their friends and other kindred

spirits through screening outings.

Value Proposition

Next, I will go to the middle column of the BMC and look at the companys value proposition, what

is the value that is being created? To answer this question I looked at how the company is positioning


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Promoters

o Access to digital cinema circuit

o

Access to audienceso Distribution and logistics

aggregation

o Cinema in many places

Audiences

o Increased access to interesting

stuffo Convenience of more screening

locations

o Connect people with similar

interests

Key Partners

Partnerships refer to the network of supporters, funders, suppliers, co-creators, sponsors needed to

ensure that a business is able to meet its objective. (Burkett, 2013). The pilot project phase was

implemented with the help a number of key partners as mentioned at the beginning of this paper.

Funding partners for the project included MEDEA Program of the European Union and Creative

Industries iNet. Other partners included Guardian News & Media, BAFTA and Czech Association of Film

Clubs. For the current rollout phase, the company has another set of partners. They are the ones

listed in my business model canvas. The Rightsholders are the most important partner for without

them there would be no content to offer. Lean Software Factoryis providing web application


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Service delivery such as distribution, logistics, marketing and reporting

Platform promotions

Audience development

Key Resources

The most important resources for this web-enabled film distribution business are its intellectual

and human resources. Cinegi partners with a number of technology companies that provide

programmers, developers and designers. The platform tools and mobile applications would definitely

be considered key resources. The platform has sourced over 200 items of content including films,

shorts, documentaries, animated features and fiction. The collection now includes the rights to work

originating from France, UK, Belgium, Netherlands, Italy, Germany and Poland. (Cinegi press release

(2014). The company is currently filling its content library with access to intellectual property from a

network of rightsholders, filmmakers and distributors. And, two co-chief executives currently make up

the staff. Below is a photo of the prototype version of the mobile application. (Omigi, 2012)


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Below is an early example of the player

Customer Relationships

The robust platform was designed with customer relations in mind. Features of the platform allow

audiences to drive programming content through customization. (Golant, 2014). The companys

demand aggregation service helps Cinemas and other venues provider better service to their


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Channels

Since Cinegi is a digital solution, the service is being run exclusively through its web-accessed platform

and mobile web application. The company will also rely on traditional print advertising and word-of-

mouth endorsement, especially from its key partners.

Cost Structure

Cinegi is a more cost driven business, but it also offers creates value for its customer segments. As a

web-accessed downloadable platform solution, Cinegi offers greater efficiency through a scalable

solution and aggregation of large numbers of small value transactions from multiple venues. This

platform solution lowers cost and removes the complexity that has been a barrier to wider distribution.

The primary costs structure for Cinegi is as follows:

Maintenance of Platform

computer equipment

wages/salaries utilities

Insurances

Consulting Fees


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Cinegi: A Multi-Sided Platform Pattern

Cinegi enables consumers, rightsholders, promoters and cinemas and non-theatrical venues to

connect to each other through a suite of services which promote, program, monetize and deliver

filmed media content (Omigi, 2012). The company is a good example of a multi-sided platform

business model for it seeks to connect four categories of customers (Rightsholders, Cinemas & Venues,

Promoters and Audiences) as well as offer different solutions for each. The chart below shows the

multi-sided platform pattern which was modified and streamlined from the business model canvas

described earlier. I have also included it as Appendix B at the end of this paper.


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Herein we see the four distinct customer groups and the relationships they have with revenue

streams and the value proposition. The colors assigned to each of the customer groups are intended

to show how value is created and revenue is generated from the connection and interplay of the three

blocks of the pattern. The graph clearly shows that value is created for each customer segment and

revenue is generated from each customer segment. It also shows how the Key Activities and Key

Resources help create value for the customers as well.

This concludes the presentation of the Cinegi, its Business Model Canvas and its Multi-sided

Business Model Pattern.

References

Berry, M (2013) Project: Miracle Theatre Company, Native: Magazine of the Digital R&D Fund for the Arts.

Available athttp://native.artsdigitalrnd.org.uk/projects/miracle-theatre-company/#making-

connections-with-other-organisations-working-in-similar-ways(Accessed on 25/3/2014).

Burkett, I (2013). Using The Business Model Canvas for Social Enterprise Design,

http://www.mbs.edu/facultyresearch/apsilc/Documents/Business%20Model%20for%20SE%20Design-Burkett.pdf (Accessed on 3/4/2014).

Cinegi blog (2013) Available at http://cinegi wordpress com/ (Accessed on 2/4/2014)
http://native.artsdigitalrnd.org.uk/projects/miracle-theatre-company/#making-connections-with-other-organisations-working-in-similar-wayshttp://native.artsdigitalrnd.org.uk/projects/miracle-theatre-company/#making-connections-with-other-organisations-working-in-similar-wayshttp://native.artsdigitalrnd.org.uk/projects/miracle-theatre-company/#making-connections-with-other-organisations-working-in-similar-wayshttp://native.artsdigitalrnd.org.uk/projects/miracle-theatre-company/#making-connections-with-other-organisations-working-in-similar-wayshttp://www.mbs.edu/facultyresearch/apsilc/Documents/Business%20Model%20for%20SE%20Design-Burkett.pdfhttp://www.mbs.edu/facultyresearch/apsilc/Documents/Business%20Model%20for%20SE%20Design-Burkett.pdfhttp://www.mbs.edu/facultyresearch/apsilc/Documents/Business%20Model%20for%20SE%20Design-Burkett.pdfhttp://cinegi.wordpress.com/http://cinegi.wordpress.com/http://cinegi.wordpress.com/http://cinegi.wordpress.com/http://www.mbs.edu/facultyresearch/apsilc/Documents/Business%20Model%20for%20SE%20Design-Burkett.pdfhttp://www.mbs.edu/facultyresearch/apsilc/Documents/Business%20Model%20for%20SE%20Design-Burkett.pdfhttp://native.artsdigitalrnd.org.uk/projects/miracle-theatre-company/#making-connections-with-other-organisations-working-in-similar-wayshttp://native.artsdigitalrnd.org.uk/projects/miracle-theatre-company/#making-connections-with-other-organisations-working-in-similar-ways


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Mitchell, W (2013) Cinegi to launch UK digital distribution service. Screen Daily, 21 June, 2013.

Available athttp://www.screendaily.com/news/digital/cinegi-to-launch-uk-digital-distribution-

service/5057627.article (Accessed on 3/4/2014).

Omigi Final Report (2012)Smart Entertainment / Interesting Stuff. Available at

http://ivansanna3000.files.wordpress.com/2013/05/smart-entertainment-interesting-stuff-final-

report-may-2012.pdf(Accessed on 27/3/2014).

Osterwalder, A & Pigneur, Y. (2010) Business Model Generation,John Wiley & Sons, Inc.
http://www.screendaily.com/news/digital/cinegi-to-launch-uk-digital-distribution-service/5057627.articlehttp://www.screendaily.com/news/digital/cinegi-to-launch-uk-digital-distribution-service/5057627.articlehttp://www.screendaily.com/news/digital/cinegi-to-launch-uk-digital-distribution-service/5057627.articlehttp://www.screendaily.com/news/digital/cinegi-to-launch-uk-digital-distribution-service/5057627.articlehttp://ivansanna3000.files.wordpress.com/2013/05/smart-entertainment-interesting-stuff-final-report-may-2012.pdfhttp://ivansanna3000.files.wordpress.com/2013/05/smart-entertainment-interesting-stuff-final-report-may-2012.pdfhttp://ivansanna3000.files.wordpress.com/2013/05/smart-entertainment-interesting-stuff-final-report-may-2012.pdfhttp://ivansanna3000.files.wordpress.com/2013/05/smart-entertainment-interesting-stuff-final-report-may-2012.pdfhttp://ivansanna3000.files.wordpress.com/2013/05/smart-entertainment-interesting-stuff-final-report-may-2012.pdfhttp://www.screendaily.com/news/digital/cinegi-to-launch-uk-digital-distribution-service/5057627.articlehttp://www.screendaily.com/news/digital/cinegi-to-launch-uk-digital-distribution-service/5057627.article


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13

Revenue StreamsCost Structure

Key partners Key Act iv i t ies Value Proposi t ion Customer Segments

The Business Mod el Canvas

Key Resources

Customer Relat ionships

Channels

www.businessmodelgeneration.com

On:Designed by:Designed for:

I terat ion:

Platform/Mobile Web/Player

Service Deliverydistribution,

logistics, marketing, reporting

Platform Promotions

Audience Development

Rightsholders Reach audiences

Make money

Lower or eliminate costs

Increase programming options

fair share revenue allocation

Increased sells opportunities

Easy logistics

Cinemas, & Venues Digital cinema circuit

Distribution and logistics

aggregation

Lower costs

No special equipment needed

Promoters Access to digital cinema circuit

Access to audiences

Distribution and logistics

aggregation

Cinema in many places

Audiences Increased access to interesting stuff

Convenience of more screening

locations

Connect with people with similar

interests

Platform w/ Player & Mobile web

Digital Film Content

Licensing Rights

Distribution Network

Technology Partners

Co-Chief Executives

Rightsholders Automated, online and easy

Distribution Network

Cinemas, Venues & Promoters Automated, online and easy

Programming assistance

Public screening solutions

Audiences Personalized services and

communications

Intelligent content

Community & Social connectivity

Web-accessed platform

Mobile web application

Word-of-mouth

Print advertising

Licensing fees

Screening ticket sales (Dynamic Pricing)

Advertising

Sponsorships

Cross-selling to related products and

services

Maintenance of Platform

computer equipment

wages/salaries

utilities

Insurances

Consulting Fees

Content Acquisition & Promotions

communication and postage

advertising/marketing

professional fees

(legal, accounting)

licenses

YearMonthDay

No.

This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License.To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/

or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, Cali fornia, 94105, USA.

Rightsholders(Digital film content)

Lean Software Factory

(web application development)

Industry

(branding and communications)

Cinema Arts Network

(strategic network - venues and

content)

Vualto(video application development)

Digit(studio-compliant video encoding)

Music Glue(event marketing and ticketing)

CINEGI Rodney Trapp4 April 2014

First

Rightsholdersowners of filmcontent

Cinemas & Venues - screeninglocations

Promoters- events and relatedservices

Audiencesevent or screeningattendees

Cinegi is a of more cost driven business, but it also creates value

Appendix A


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