Exploiting Options in Digital Media

During periods of rapid technological transformation like the current transition to digital media, firms must make investment decisions in a business environment that is hard to predict and fraught with risk. The new business opportunities that are emerging are essentially options for investment that can be analyzed using cutting-edge insights from finance. This course will develop practical tools for assessing, selecting and valuing these options.

Key Topics

  • Identifying options (investment opportunities) in the entertainment and media industry
  • How options create value: the value of information
  • Assessing risk: when is risk value-enhancing and when is it value-destroying
  • Trial projects: making investments to learn about the market, creating new options
  • How to value an option using market information
  • How to value an option using cash flow forecasts

Practical Application/Exercises

  • Valuing the option to make a movie, television or game sequel
  • Case study of digital channels- valuing unused bandwidth
  • Options in entertainment contracts: valuing exclusivity and right-of-first refusal terms
  • The role of options in choosing a distribution channel
  • Options in digital rights management
  • Understanding the option to cancel an agreement
  • Analyzing the option to distribute content across multiple channels

Learning Objectives/Benefits

  • Identifying options (investment opportunities) in the entertainment and media industry
  • Develop the ability to recognize and create new investment options
  • Choose projects wisely in an uncertain environment by exploiting the value of options
  • Trial projects: making investments to learn about the market, creating new options
  • Acquire practical tools for valuing options
  • Understand the strategic value of options in negotiating with customers and suppliers

RELATED PROGRAMS

Branding in a World of Fragmented Media
A strong brand can act as a beacon – a vital means to re-aggregate eyeballs and to build passionate and responsive user communities. Explore the current reality and future potential of net-based, data driven marketing and delivers strategies for building effective global brands on the web.

 

Change Management: Improvising Creative Solutions
Enhance your skills managing in chaotic, ultra-competitive, and rapidly changing business environments. Discuss topics in change management from the individual, team, and organization levels.

 

Pitching Innovation
As a leader, every conversation counts. Discover how to avoid wasting time with wordy data dumps and master the art of pitching new ideas. Replace tired data dumps with strategic design and invigorating language that motivates.