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RSG Media: Maximizing Profits is the Name of the Game

Jul 17, 2015

Click HERE for the full interview. 

JULY 16, 2015 · POSTED IN M&E CONNECTIONSM&E DAILY 

By Chris Tribbey

Since 1985, media and entertainment companies (including studios, cable and broadcast companies, MSOs and MVPDs, sports leagues, digital programmers and game companies) have used RSG Media’s expertise and software to maximize revenues from their content and advertising inventories.

Headquartered in New York (with offices in London, Delhi, and Mumbai), RSG is best known for RightsLogic, a media business rights management system that allows clients to more easily manage their content’s lifecycle, covering sales, acquisitions, planning and scheduling, and associated financials, including royalties and participations. The company also offers an advanced suite of yield and revenue optimization tools, dubbed AdVant, which uses advanced mathematics to optimize promos, pricing, proposals, and logs, helping their clients generate new revenues.

Thomas Siegman EVP of innovation, strategy and client relations for RSG, sat down with the Media & Entertainment Services Alliance (MESA) to discuss the monetary advantages RSG brings to its clients, the ways media and entertainment companies could be cutting costs, and what RSG has planned next for Hollywood.

 

MESA: How does RSG help its clients improve their bottom lines?

Siegman: By our estimates, media and entertainment companies are leaving up to 15% of revenues on the table, and they don’t even know it. We have a single algorithm that generates an extra $10 million to $50 million in ad sales every year for our clients without any changes to their programs.

For over 30 years, we’ve been focused on improving ROI for M&E companies. We’re experts in monetizing advertising, promo, and content inventories. We created unique expert systems by building underlying systems for key functions: rights, royalty, scheduling, finance, ad sales, and promos. And then — and this is where the secret sauce is — we bake in advanced yield optimization and data analytics. We tie everything together: revenues, usage; linear, digital, consumer products; advertising, subscription revenues, and downloads.

Once executives get our insights, well, the results are astounding. It’s like finding a winning lottery ticket under the sofa cushion. Only, it’s month after month, every month.

MESA: What are the top ways companies are leaving money on the table?

Siegman: Let me give you some great examples:

  • Promos. We’ve been able to demonstrate an 8% improvement in promo efficacy by going beyond the traditional models and using big data to look at viewer behavior. We build audience size and engagement; they free up millions of dollars of time that they can use very strategically.

  • Content. Companies invest billions of dollars in acquiring content, yet they’re not treating it as the investment portfolios that it is. They let rights expire unused; fail to take proper advantage of all the new digital opportunities; or air content at the totally wrong time to reach the demos they need. For one client a single one of our reports saved them $300,000 each and every month in content costs. We estimate up to 10% improved return on content rights.

  • Ad sales planning and placement. More and more companies are looking to do deals across every platform. Yet the sheer complexity makes it almost impossible to meet the advertisers’ needs in a way that makes the most profitable use of the seller’s ad-inventory across all its shows, networks, and platforms. We are demonstrating massive lifts to revenues just by building better cross-platform plans.

There’s more. A lot more. It’s not surprising. For years companies have focused on making great content. We get that. And we want to make their operations more profitable so that they can go make more great content.

 

MESA: You’re known for your work with major M&E companies and sports leagues. But what are you doing for content creators?

Siegman: Content creators are under more pressure than ever to get full value for their content. This means knowing what to sell, where and when. Our content creation clients use us to evaluate deals, strategically window contents, even license characters and consumer products. They use our big data analytics to program content more effectively and monetize it better. We work with the leading M&E companies worldwide. The more complex the deals and opportunities, the more they are turning to us for help.

 

MESA: RSG’s offerings seem complex. How difficult are they to use?

Siegman: Yes, it is complex, but easy to use. It’s complex because if a studio is looking to distribute a series OTT internationally, and maybe they’re missing clearance on a small music clip, or HD dubbing rights or something tiny, well, you absolutely need the level of detail we bring. Big Data is complex. Yield optimization — we have a dozen PhDs and work with former NSA contractors. It’s complex.

The good news is that we make it simple for the user, because all that complexity is useless unless we give managers immediate actionable insights. The thing is, we know that there are a lot of good people who deserve to get the most out of their media assets. We’re here to help.

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