MEDIAMORPH ROYALTY
STATEMENT PROCESSING
12/9/2013
Executive Summary
Situation:
• Deal Managers, Finance and GBS resources are spending hours
monthly manually processing transaction based customer
royalty statements for invoicing and revenue recognition.
 Each licensee submits a different statement format
 No IDs on titles in statement
Challenges:
• Lengthy processing time for statement standardization and
title matching delays revenue recognition.
• No central system contains all statement data across the world
 No ability to analyze data for forecasting and future sales planning
 No view of title success across media, territory, region, etc.
2
Proposed Solution
1. Utilize Mediamorph Deal Manager tool
1.
Statement Standardization
2.
Title Matching
2. Interface standardized data to SPE repository in RPM
1.
RPM will process data for financial transactions
2.
BI tool will access data for analytics
Scope:
All RVOD, RPPV, IVOD, EST, SVOD and Mobile Games customers (currently 291
customers)
3
Financial Summary
Year One Project Costs
Five-Year Summary and Payback
Internal Labor:
$4,560
External Labor
Misc./Other:
TOTAL
Five-Year Total Cost:
$2,674,828
$101,393
Five-Year Total Benefit:
$3,699,590
$15,000
Five-Year Net Benefit:
$1,024,762
$120,953
Internal Rate of Return:
Net Present Value at 10%:
Payback in Months:
Project Benefits – full year
Hard $ Benefits ( Cost Avoidance)
Soft $ Benefits ( Op Efficiencies)
33%
$470,703
33.01
Funding by Fiscal Year
$384,000
$208,206
TOTAL first full year benefit
$592,206
Ongoing Costs:
$32,087
FY14
$120,953
FY15
$306,880
TOTAL
$427,833
4
Benefits
Category
Cost Avoidance
Cost Efficiencies
$ Benefit
$2,586,618
$1,112,973
Description
•Eliminate the need to hire additional GBS
resources for statement processing (necessary
as the number of transaction based deals are
increasing at a rate of 15-25%)
•3492 hours per year
•Reduction in the number of hours needed for
Deal Managers to spend on statement
processing so they can focus on deal analysis
instead
5
Competitive Analysis
• What are other studios/corporations doing to address this
issue?
• Mediamorph is currently processing 65% of our customers
for other partners
• Sample of current Mediamorph partners:
–
–
–
–
–
–
–
–
–
Warner Bros
Fox
Disney
NBCU
Universal
Paramount
Lionsgate
Starz
BBC
–
–
–
–
–
–
–
–
HBO
Showtime
Viacom
EPIX
Univision
A&E
AMC
National Geographic
6
Timeline
FY14
Jan
Feb
Mar
Apr
May
Jun
Jul
FY15
Aug
Sep
Oct
Feb
Mar
Apr
May
June
Mediamorph Customer Onboarding
Mediamorph Interface
Development
RPM Interface Development
7