#idolslife FULL STORY.pdf

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© 2016 - 2018 Hawkmont Solutions Co., Ltd
#idolslife Registered Trademark
Copyright © 2016-2018 Hawkmont Solutions Co., Ltd

“Crowdfunding is potentially the most disruptive of
all the new models of finance.”
Goldman Sachs

“Your Voice.”

#WHAT

idolslife.com
● Micro recurrent crowdfunding
● Social network
● Connect artists and fans
● Target Gen Z, Millennials
● Asia, US

Instagram + Patreon = #idolslife

#WHO

TARGET (Generation Z - Millenials)
● Idols
● Artists
● BJs
● Models
● Influencers
● Cosplayers
● Creators
● Vloggers
● YouTubers

#WHY

“Leader social networks are facing crises.”

Giants are too big
and so too generalist.

We are over-connected.

Result:
Market is fragmenting
https://www.facebook.com/ResonanceScienceFoundation.
Hispana/videos/1005263586304067/

Free services run by ads
are getting old.

Advertisers are Kings.
Not users.

Result:
Advertisers are more
important than users.

#NOW

Got multiple problems:
from advertisers to users.
Result: harder than ever to make money from ads.
#YouTubePartyIsOver Philip DeFranco

Losing users (so creators)
for the first time.
Result: No more efficient as promotion tool for media and creators and not
trustable anymore.
#MediaQuitFacebook The Verge
#DeleteFacebook Twitter - Time

Ad-blockers break the display industry
+overdose from users.
Result: Firefox, Chrome have now built-in ad-blockers.
#AdsOverdose Wired

New type of profiles emerged,
making money
from doing stuff on the Internet.
“My job?
YouTuber.”

Using these platforms to become popular
and monetize their content.

These platforms created those profiles.
But they were not created for them.

In this crisis:
idols, creators, artists,
social celebrities, influencers…
Are looking for new and
better solutions to make money.

#HOW

INSTAGRAM
+ best visual social network to become
popular
- no way to monetize content

PATREON
+ best to monetize from fans
- lack of social approach

Crowdfunding subscription is booming.
Patreon big success of 2017, Kickstarter copy their business model with drip.

Micro payment is getting more and more
popular among fans.
Meaningful: Perceived as a real support for creators, exclusive access rewards.
Creators are even trying Twitch.

Current platforms are not built to satisfy
creators’ demands, but for Advertiser Kings!
So far Patreon, but built on a model dated from 2013...

And no one takes over
on the Asian market.

Yet.

"But crisis won't last forever."

#IDOL?

#idol?
● Created in the 70s in Japan (after the
French movie “Cherchez l'idole” ft. Sylvie
Vartan)
● Referring to young male/female manufactured
stars/starlets marketed by agencies (big push
by Korean entertainment industry in 2010)
● Nowadays, new type of "net idols"
appeared, who uses the Internet to become
famous and produce themselves, with a
success based only by the fact that they are
popular online (term appeared in
South East Asia at 1st)

IDOLS CONCEPT 2018
= Potentially whoever
creating online visual content

“The American Dream
but Asian version.”
The term idol is very powerful in Asia,
it is growing, attracting lot of youngers.
Meaning: popular, success and wealth.

The Idol Dream
Because the internet allows it,
ordinary people can reach success.
“Anyone can be a star!”

#MARKET

#IDOLSKR
● 2012 PSY “Gangnam Style” music video 3.1 billion views on YouTube
● 2016 YOUTUBE K-pop idols been watched 24 billion times (in a year)
80% views from outside Korea
● 2017 ASIA music market is dominated by Korea
BTS (Boys Band):
Liked/retweeted 502 million times (more than Justin Bieber + Donald Trump
combined), World’s most tweeted-about celebrity
Won a Billboard Music Awards @Las Vegas
● 2018 YouTube Red exclusive content
Sources: YouTube, Bloomberg, INA Global, Bloomberg, Billboard, Korea Times
24,000,000,000 views

Sources: Wikipedia, Asia Pacific Arts, Billboard, Billboard, Oricon, Soompi
#IDOLSKR
But less than 5% stays under agencies contract...
+100 band/idol
debut every year
(male/female)

#IDOLSJP
● 2005 AKB48 JAPAN 1st band created concept: “idols you can meet” 130 members
● 2011 AKB48 International franchise created
● 2013 JKT48 launched in Indonesia 52 members
SNH48 launched in China 103 members
● 2017 AKB48 1M copies sold in 1 day
BNK48 launched in Thailand 30 members
● 2018 TPE48 to launch in Taiwan
MNL48 to launch in Philippines
PRODUCE 48 to launch in Korea
● 2019 MUM48… to launch in India
1M copies sold in 1 day

#IDOLSJP
Start to use YouTube for international promotion only since
2016!...
+1,000 idol band
exist on the market today
(male/female)

#IDOLSSALES
● 2012 KOREA & JAPAN IDOLS music sales increases by 10% per year
(at same time U.S. market sales 2015 - 2017: -19.6%)
● 2016 TOTAL REVENUES of K-pop record labels = $1.3B
EXPORTS Top 3: USA, Japan and China with $4.7B
(represents 62.66% of U.S. music industry sales same year)
TOTAL REVENUES Japanese idols market $2.09B
● 2017 AMAZON, AT&T, MCDONALD sponsor idols
music festivals in the U.S.
UNILEVER acquired Carver Korea for $2.27B
including GOLDMAN SACHS Group Inc. shareholders
(brand that based its notoriety on Korean idols marketing)
NETMARBLE acquire 25.71% of Big Hit Entertainment: $190M
AKB48 Sales in Japan $146M (+12.3%)
Sources: Business Week, The Korea Times, Bloomberg, Wikipedia, Bloomberg, Unilever, Statista, RIAA, MBW, Netmarble

#IDOLSSALES
Sources: Business Week, The Korea Times, Bloomberg, Wikipedia, Bloomberg, Unilever, Statista, RIAA
Japan Music Sales
in Units (physical in Japan)
US - SK Market Comparison
in Revenue in USD

#IDOLSGOOGLESEARCH
Sources: Google Trends
Term: korean idol
March 2012 PSY music video “Gangnam Style” beats the record of the number of views on YouTube, taking
the Korean idols concept in his long tail.

#IDOLSGOOGLESEARCH
Sources: Google Trends
December 2017 Trends searches keep growing up
Term: kpop, k-pop

#SUCCESS

#SUCCESS
Meets all the Internet’s codes.
● VISUAL
Visual first, high consumption of visual media, visual culture based (“show-off” culture of social networks)
● PROXIMITY
Real life meetings, virtual proximity, boy/girl next door (attracted by “what looks like real”, DIY culture)
● COMMERCIAL
Easy meaning, fast to consume, stick in mind, (meaning is not important anymore Man’s Not Hot)
● VIRAL
Recurrent short stories, multiplicity of small productions, marketing communication disguised as dramas
events: happiness facts, real life stories… (fast and continuous online presence)

#REALITY

#REALITY
Extremely high barriers-to-entry
Casting, years of training, production…
Slave Contracts
Most idols are not making money and no personal life
Start their career in debt
Unique production concept in the world: not get paid until they
pay off training investment to the company
Most finish in debts
Or don’t get paid after year 3 to 4
#MeToo
Revealed a lot of abuse of power
Sources: Wikipedia, Korea Exposé, Koreaboo, YouTube, The Guardian, Koreaboo Copyright © 2016-2018 Hawkmont Solutions Co., Ltd

#AVERAGECOSTIDOLS
AVERAGE TRAINEE COST = $846K
(3 to 5 years, 1 year training = $282,000)(high profile $3M to $6M)
AVERAGE PRODUCTION COST = $938K
(band with existing fanbase)
PROMOTION = $470,316 MINI-ALBUM (3 songs) = $44,190
$47,031 Choreography $11,280 Record
$94,078 Backup Dancers $14,102 Production
$159,915 Outfits $18,808 Jacket shooting
$9,407 Makeup
$141,069 Marketing MUSIC VIDEO = $423,210
$1,881 Processing, Misc. Costs $141,068 Single MV
AVERAGE COST IDOL BAND DEBUT = $1,505M
AVERAGE RACK UP IN DEBT = $940K

#EXEMPLES
● Idol Lang Lee sold her award live at the ceremony
● Idol Yoo So Young forced to look for physical labor jobs
out of desperation
● Superstar singer Jonghyun suicide one reason mentioned:
bad incomes, hard financial life
● If get paid on events performance average is $10 to $20
$3 to $5 /day = consider as lucky ones
● Multiples lawsuits every year: idol Hyosung claimed in 2017
that she has not been paid at all since 2 years
● MBLAQ’s G.O “most idols are scammed by their own agencies”; Super Junior’s HanGeng “The agency
controlled everything about me: how I look, what I say or what I represent.”
● “You will go through a period where you can’t do anything while your debts continue to
accumulate. You can’t even work a part-time job because you are under contract.” MBLAQ’s G.O
Sources: Wikipedia, Korea Exposé, Koreaboo 1 & 2, YouTube, The Guardian, Koreaboo, Allkpop, Koreaboo Copyright © 2016-2018 Hawkmont Solutions Co., Ltd

Ready for disruption.
Waiting!

● Attractive Concept
● Cultural Term
● Huge Market
● Expanding Market
● Abusive Model
● Online Made Success
● Represent A Dream
● Notion Of Success
● Long Tail Of Creators
● Strong Marketing Term
● Most Profiles Left Out
● Mature For Disruption
#RECAP

#STATS

#ONLINEASIANMARKET
● Thailand in the top 10 worldwide countries on social media usage and consumer adoption,
1st country for time spent online per day 9h38
Bangkok 1st city in the world to use facebook
● South Korea Internet connection penetration rate 92%, highest average internet
connection
speed in the world
● China 772M Internet users (equivalent to entire population of europe), penetration rate
56%
● Japan 118M Internet connection penetration rate 94%
Sources: Inc. Southeast Asia, Kantar TNS, Bangkok Post, Statista, Statista, Caixin, Statista, Internet World Stats, We Are Social
China PR 56% only!

#ASEANINTERNETUSERS
POP. USERS PR Millennial
Generation Z
Brunei 423K 326K 75% 147,144
Cambodia 16M 4M 25% 6,110,000
Indonesia 266M 132M 50% 85,709,588
Laos 6M 1M 22% 2,702,805
Malaysia 32M 24M 77% 11,439,598
Myanmar 53M 14M 25% 18,509,749
Philippines 106M 69M 65% 36,142,003
Singapore 5M 4M 81% 1,502,272
Thailand 69M 57M 82% 18,191,621
Timor Leste 1M 340K 26% 407,328
Vietnam 96M 64M 66% 31,811,791
Total 650M 370M 57% 212,673,899
(USA Pop. 325M)

#EASTASIAINTERNETUSERS
Generation Z
China 1,379B 772M 56% 405,450,838
Japan 127M 118M 93% 25,650,239
Mongolia 3M 1,5M 48% 1,047,161
North Korea 25M 14K 0.05% 7,718,499
South Korea 51M 47M 92% 13,369,603
Taiwan 23M 20M 87% 8,498,500
Hong Kong 7M 6M 87% 1,769,127
Macau 612K 495K 78% 184,682
Total 1,642B 965M 59% 463,688,649
(UE Pop. 738M)

#ASIAINTERNETUSERS
Generation Z
ASEAN 650M 370M 57% 213M
Eastern Asia 1,6B 965M 59% 464M
Southern Asia 1,7B
TAM
Total 3,950B 1,335B 59% 677M
(USA 326M 255M 89% 89M)

#CROWDFUNDINGMARKET

Crowdfunding is going
mainstream.

#MARKET Crowdfunding market
will grow immensely!
● Biggest incremental growth will originate from APAC.
● CAGR (Compound Annual Growth Rate) of 26.87% during the period 2016-2020
● 2015: Global crowdfunding industry reached to $34.4B, would reach $90B by 2020.
Sources: Forbes, CrowdFundBeat, Research And Markets, Techbullion, The Crowd Data Center, The World Bank Copyright © 2016-2018 Hawkmont Solutions Co., Ltd
● The World Bank
Total market potential by 2025 estimated to be up to $96B, big potential lies in
China, followed by the rest of East and Southeast Asia.
● Goldman Sachs
Labelled crowdfunding as "potentially the most disruptive of all the new models
of finance.”

#MARKETFORECAST
Sources: Research And Markets
2016
Market Share
2017-2021
Contribution To Growth

#MODELS

#INSTAGRAMUSERS
ASEAN USERS POP. PR EAST ASIA USERS POP. PR
Indonesia 48M 266M 18% Japan 19M 127M 15%
Thailand 12.6M 69M 18% South Korea 10M 51M 20%
Malaysia 9.9M 32M 31% Hong Kong 4.8M 7.3M 66%
Philippines 9.4M 106M 9% Taiwan 23.5M
Vietnam 5.9M 96M 6% China 1.37B
Singapore 2M 5M 40%
Myanmar 740K 53M 1%
Cambodia 658K 16M 4%
Laos 270K 6M 5%
Brunei 423K
Timor Leste 1M (without China and Taiwan)
TOTAL 89.5M 650M 14% TOTAL 33.8M 185M 18%
ASIA 123M 835M 15% 2016-2017: Instagram
USA 77M users have doubled in APAC
Sources: Jakarta Globe, Napoleoncat, Geeks In Cambodia, Yonhap News, We Are Social Copyright © 2016-2018 Hawkmont Solutions Co., Ltd

#PATREONSUMMARY2017
● 2013 Founded $2.1M
● 2014 Raised serie A $15M
Top Company Investment: 3rd position
● 2016 Serie B $30M
● 2017 Serie C $60M (total: $107.1M)
1M Paying users
50K Creators
$7.5M In revenue
$12 Average funding (/month)
+$150M Reverse to creators (2017 alone)
Compared to run-by-ads display: $.10 to $.0005 per fan (50x to 10,000x
less)(YouTube model)
Sources: Tech Crunch, Crunch Base
PATREON DOUBLES IN 2017!

#BENCHMARKING

#EXECUTION
STEP 1
Analysed our target (creators) problematics.
STEP 3
Benchmarking on existing business models (online and offline)
To found what are the missing solutions.
STEP 2
Studied global market tendencies and evolutions.
STEP 4
Build our model to answer our target problematics
and to follow market evolutions.

We have understood all majors problems.
We synthesized them in 5 areas.

1 MONETIZATION
Creators/Artists Struggles For Solutions
Online services: far to be optimal (old business approach), high friction for
monetization.
Offline businesses (idols industry): maintained by few major companies who
have all power on the market, based on old business models, hard to get
reliable revenue when it is not about debts.

2 OLD
Slow Evolution
Current businesses were not created on new creators’ demands.
They evolved old models that answered old problematics.
Not made for viral and visual consumption.

3 TIME CONSUMING
Crowdfunding: Too High For Creators
According to market analysis (‘World Bank’ and ‘Research & Markets’) the 1st fact
that is slowing down the market dynamics is time consuming: it takes too
much time, too complicated and too difficult to use.
Confirmed by creators themselves: (our own analysis)
“Crowdfunding is a tedious and painstaking task to get it right.”

4 HARD
Offline Models: Access Too Difficult
For idols / artists, barriers to entry are extremely high, hard and numerous.
Accessible to a very small number of profiles only.

5 COST
Offline Models: Too High
Idols / Artist companies in Asia need to allow an enormous budget to find,
select, train and promote selected profiles.
Resulting in a high-risk investment, with artists assuming their break-even
themselves, and once successful in a very poor redistribution of income.

Problem Solvers.

Copyright © 2017-2018 #idolslife
After years of researches, analysis
and tests.
#idolslife is now able to combine
all areas and come with new solutions.

Created to answer 2018 users’ issues
(and not from 5 years ago) for both:
offline / online actual problematics.

Specifically adapted and created
for the Asian market
(not just a simple copy / paste)

1 VERY LOW FRICTION
in monetization and advantageous income
redistribution.

2 OPTIMAL SOCIAL APPROACH
with proactive strategies,
high audience retention and engagement,
fast consumption and visual medias first.

3 HIGH-SPEED PROCESSES
of production and management
with the centralization of most of the
usages (all in one platform).

4 OPEN TO EVERYONE
same opportunities to all and easy user
experience.
+ no abusing contracts and direct
communication with fans.

5 MUCH CHEAPER business model:
no artist productions, all is online and
nearly all processes are automated.

#BENCHMARKINGANALYSIS
To disrupt! To disrupt! To disrupt!

#BENCHMARKINGANALYSIS
To disrupt!
Last steps reversed: only high promoted profiles are releasing products!

#IDOLSLIFE

Old Era?

#CURRENTERA
Advertisers
Company A
Users
Free: Run by Ads
Platform developed for advertisers
and users.

Free: Run by Ads
Advertisers are more important
than users.
#CURRENTERA
Advertisers
Company A
Users

New Era.

Social Crowdfunding
Platform developed for users only!
Users
#IDOLSLIFE
ecosystem
Creators

How to make advertisers spend money?
VS
How to make creators earn money?

OUR MISSION
➔ Help creators to make content for
users
➔ Satisfied users to spend money on
creators

#BETA
Beta version since 3 months
Launched on Lean Startup Concept
No budget, not perfect, not optimal but empowered us:
- Launch fast
- Ensured a presence as soon as possible
- Developed a products based on 'validated learning'
- Quick and often customer feedback
- Start to establish relation with high profile creators
- Pivot strategy
- Made mistakes without wasting money
- Learn from mistakes
- We know what to surely not do
- And precisely what to do
- We know our North Star Metric

#BETAMVP
● Idols / Creators
post photo and video - 24h:
○ Free
○ Exclusive
● Users watch:
○ Free
○ Exclusive content by
subscription

#STATS
Monthly Subscription Gen Z + Millennials 86%
Micro Crowdfunding 18-24 47%
30% Percentage Fee 25-34 39%
APAC - US
Lvl 1 $1 DONATION no rewards
Lvl 2 $3 MVP VIRTUAL REWARD exclusive: weekly vlog, photo, stories
Lvl 3 $5 DEEP VIRTUAL REWARD livestream + community access
Lvl 4 +$10 IRL REWARD special items, real life experience

#STATS
+7K
Registered + Leads
+18K - 2 times/day
Active Users
51.1%
Returning Visitors
+180K
Pageviews
Users
1 USA
2 Indonesia
3 Malaysia
4 South Korea
5 Singapore
Languages
1 English
2 Chinese

Web mobile Beta version since 3 months.
No app.
Stopped communication
after 1st month for pivoting.
0% paid SEO!
$0 Budget!

#TEAM

#TEAM
David
Haddon
25
Com.
Jesse
Lee
36
CEO
Co-Founder
Raphael
Hue
35
Developer
Co-Founder
Katty
Bangternjai
32
Finance
Administrative
Hide
Miura
35
Developer

#PREVISIONS

#PREVISIONSMARKETUSERS2017
Penetration Rate 677M x 5% = 33.85M (SAM)
Paying Users 33.85M x 1% = 338.5K (TM)
Revenue 338.5K x $3 = $1,015,500
TURNOVER 10% + $101550
(percentage fee) Per Month
Worst Case Scenario: PR 1% + TM (Paying Users) 1%
(low PR and TM) = $20310 Turnover per month

#PREVISIONSMARKETVALUE (2015)
APAC MARKET $34.4B x 28% = $9.632B
Penetration Rate $9.632B x 5% = $481.6M (SAM)
Revenue $481.6M x 1% = $4.816M (TM)
TURNOVER 10% + $481600
(percentage fee) Per Month
Worst Case Scenario: PR 1% + TM 1%
(low PR and TM) = $96320 Turnover per month

#NEEDS

Need to evolve to V1.

V1
- Better features for creators’ demands
- Better payment process
- Enhance UI/UX

#EVOLUTION
Features Evolution V1
Live Streaming Video live
Group Page Multiple independent profile reunite in 1 profile
Stories Apester Type
Pro contact feature Make it easier to make promotional content
Gamification Points, reward cards based on meme culture
HF Technologies App version
Stickers Rewards during live
Hashtag Proactive promotion
Contest IRL prizes
Live Guest Invite fans in livestream
Languages Korean and Chinese version

Why do we need investment?

We have pushed the $O budget possibilities
as much as possible.

If we want to satisfy creators better,
and so, drive more users and payments.

We need to execute better and faster.

With a $0 budget “strategie”,
Execution is slow.

Very slow...

Most important part to speed-up
is the development.

We do not believe in Santa.

But we believe in early business
opportunities.

Crowdfunding is coming to Asia.
And it is going to be big.

Idols market has a huge potential.

Online idols / creators are already
waiting for us.

#idolslife is deculping the idols potential.
And answer creators’ needs in Asia.

Monetizing the growth period for these profils:
Creating contents on their way to realizing
their dreams and improve their skills.

This type of entertainment gives the viewers
a feeling similar to a parent watching
their child grow.

These aspects are what maintain the high
level of passion among fans as they continue
to consume content.

By providing contents that follow the story
of idols / creators during their growth period,
their weakness becomes their strength.
Which is one of the main reason online
creators are becoming so successful
nowadays.

If you see what we analysed here.

Join us.

djaysse@gmail.com
Line: jesse_jesse
Twitter: @jesse_leelee

#idolslife FULL STORY.pdf

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