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VZones Communities by Avaterra

VZones Communities by Avaterra.com. “Changing the Face of the Internet”. www.vzones.com. Agenda. History. Business Model. Revenue Examples. Road Map. 1. History – Virtual Communities. 1870 1968 1973 1976 1984 1985 1994 1998. Telephone (and party line) First nodes of the ARPANET

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VZones Communities by Avaterra

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  1. VZones Communities by Avaterra.com “Changing the Face of the Internet” www.vzones.com

  2. Agenda History Business Model Revenue Examples Road Map

  3. 1 History – Virtual Communities 1870 1968 1973 1976 1984 1985 1994 1998 Telephone (and party line) First nodes of the ARPANET First mail list servers set up CompuServe is established Howard Rheingold writes Virtual Community Lucas Arts conceives Habitat (launched as QuantumLink); evolves into Fujitsu’s WorldsAway Dreamscape The WELL is founded by Stewart Brand Netscape creates first graphical browser GeoCities, Tripod, TheGlobe, Xoom, iVillage, TalkCity, etc… Source: The Emergence of Telecommunities, IFTF, May 1999

  4. 2 History – Fujitsu WorldsAway 1996 1997 1998 1999 Opened first virtual zone (Dreamscape) First of several patents issued Opened second virtual zone (Club Connect) Debuted first commercial “AdObject” on the Internet Opened third virtual zone (New Radio World) Reached 17,000 subscribers in 3 months Reached $10 million run rate in subscription revenue Secured marketing partnerships with Virtual Vineyards, Xoom, CompuServe, Reel.com, Barnes & Noble, Digital River & others Went from 0 to 33,000 visitors within 4 months Average user session reaches 3.1 hours Purchased division from Fujitsu; began trading publicly Changed name from inworlds.com to Avaterra.com

  5. 3 History – Avaterra.com, Inc. Fujitsu sells WorldsAway (inworlds.com) Computer Currents launches virtual newsstand Avaterra.com stage demo at WebAttack! (name changed from inworlds.com) Avaterra.com makes radio history Fujitsu grants exclusive license of patent First Frontiers “Sneak Peak” in Hollywood (Hilary Clinton there) Scottish Telecom (world’s 4th largest Web Host) to introduce VZones/Web Room to U.K. VZsci-fi is launched with UFO event May 5 May 26 June 1 June 3 June 17 July 1 July 6 July 22

  6. What we are: Community building tool • Technology promotes community activities • Token-based economy • Ownership of objects & places • Unique & Permanent identity

  7. Building Communities with Avatars Avatars provide visual “community badge” • Groups form almost instantly • Permanence of identity & sense of belonging • Recognize friends • Token economy stimulates group involvement • Promotes shared exploration

  8. Business Model: Revenue Matrix Sponsorship Content sponsorship have custom areas; integrated sponsorship of branded environments Advertising Sell screen real estate plus user interaction with the branded “AdObjects” E-Commerce Lease space or share in the revenues created Subscription Partners drive traffic and share in the revenue

  9. Market Potential U.S. Internet economy: $45.5 billion in 2002 • Advertising (17%): • $7.7 billion in 2002 E-Commerce (82%): $37.5 billion in 2002 • Subscriptions (0.7%): • $359 million in 2002 Source: Jupiter Communications

  10. CONTENT SPONSORSHIP 1 One of our content sponsors, Astrology.net, has their in-house expert astrologer, Kelly Fox, holding an event in their customized suite. Branded object

  11. 2 INTEGRATED SPONSORSHIP Avatars are immersed in a completely branded environment. Shelves are linked to wine reviews; real-time wine tasting event is being hosted by a top sommelier; avatars “buy” bottles and share comments or purchase information with others.

  12. 3 INCENTIVE ADVERTISING: Jukebox dispenses CDs, which are linked to audio files at Allegro web site. Advertisers can entice avatars to click on branded objects which demonstrate a product, invite them to an event, or give them a coupon

  13. PERPETUAL IMPRESSIONS 4 Companies can sponsor “vendo” dispensers where avatars can get branded objects. The avatars can wear the objects, trade them, or give them to other avatars they meet in-World. The objects remain linked to the company website, and can be rejuvenated automatically to reflect the newest style or flavor. Both the Object (sunglasses) and the Vendo are linked to the company website.

  14. 5 E-COMMERCE: Avatars can visit a merchant, participate in events and promotions, review their products, and link directly to the merchant’s web site to conduct e-commerce when they are ready.

  15. Road Map: Web Room “New Face of the Internet” Have a private chat with your friends inside your Web Room Favorite music linked to URL and .wav files Collectible objects are often sponsored or branded Send instant ESP messages, or leave mail if not available Mood & gesture buttons

  16. Road Map:

  17. END SLIDE

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