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Thatvideomag is a hyperlocal video magazine that compensates users for creating and sharing exclusive original content. We offer revenue sharing opportunities, diverse content, and targeted distribution, providing a platform for video creators and users to earn income.
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Problem Publishers are slow to adopt video which will account for 80% of the world's internet traffic by 2019. Lack of diversity in publishing where minorities account for 38% of the U.S. population. Poor wages for content creators, increasing wage gap, loss of middle-class jobs, and the lack of income opportunities.
Value Proposition Thatvideomag is a hyperlocal video magazine that compensates users for creating and sharing content.
Business model Video creators produce exclusive original content. Video creators are paid $1,500, $2,000, or $2,500 per video. Revenue sharing– Everyone shares content! Video creators AND users who share our content can earn $2 for every person who becomes a paid subscriber. Freemium – Users watch sponsored content for free or premium video content for $5.99 per month.
opportunity “With a current buying power of $1 trillion that is forecasted to reach $1.3 trillion by the year 2017, the importance of connecting with African-American consumers is more important than ever.” - Nielsen • Atlanta – 447,841 • Austin – 885,400 • Chicago – 2.719M • Dallas – 1.258M • D.C. – 658,893 • Houston– 2.2M • L.A. – 18.55M • New York – 8.406M • Philadelphia – 1.553M • South Florida – 6.7M
Market size Source: Epic Slide Deck From Former Yahoo Board Member Lays Out the Future of Tech and Media – Business Insider
Competitors Thatvideomag advantages: 100% video content with great visuals. Diverse content and a deep insight of multicultural audiences. Revenue sharing opportunities. Targeted distribution. Not dependent on advertisers, page views, and syndication to generate revenue.
Competitors (continued) Raised $132.5M – A video subscription service which provides early access to videos from YouTube stars. Raised $2.5M – Helps video creators find an audience and make money by connecting video creators with publishers and marketers. Raised $4M – A city-focused news platform powered by local journalists and storytellers to tackle hyperlocal news discovery.
Traction • Produced and published 53 videos in 2013. • Thatvideomag captured a wider demographic than Houston Press (Voice Media Group). That’s 67% of Houston’s population!
Financial projection • Cost per video = $2,500. • Facebook ad per video = $3,000. • Estimated reach = 300,000 people. • Target conversion rate = .01%. • Cost per customer acquired = $1.83. • Monthly operating expenses = $145,788. • Net profit: • 1 to 3 years = $79,710,140. • 3 to 5 years = $159,849,140.
Go-to-market plan • Facebook – Sponsored posts and 30 second teasers. • Acquisitions of blogs, websites, forums, and Facebook pages in our verticals. • Events. • SEO. • Post-roll advertisements.
Fundraise Thatvideomag is seeking an early stage investment of $350,000. Content creation (14%) – 20 videos. Mobile app development (43%). Marketing and customer acquisition (24%) – 20 Facebook ads and 1 event. Video equipment (4%). 2 months founder salary (11%). Funds raised – $15K from family in 2012. Exit strategy – IPO or acquisition.
Team Founder and CEO: Dexter Bayack. Company: Thatvideomagazine. Email: dexterbayack@gmail.com. Phone: 813-728-2779. Experience (LinkedIn): Videography and photography – 9 years. Web development – 9 years. Digital media and marketing – 9 years. Event planning and management – 7 years.