3. Block 3 Overview Here’s What We Thought: We could become a $100MM business by scaling to other verticals or by charging filmmakers for multiple premium services in a 2.2MM market Here’s What We Did: Assessed other vertical opportunities Reassessed film vertical Put out survey to validate hypothesis and understand pricing and willingness to pay Segmented customers Examined competitive differentiation Further built out MVP Here’s What We Learned: Our market is tiny But our pain point and potential solution are real Our competitive positioning is strong Here’s What We’re Doing: Talking to additional customer segments Focusing on MVP launch to start really testing concept with customers Improving revenue model assumptions
4. Assessing Other Verticals We thought we could find similar challenges in other industries. To test this hypothesis, we had one-on-one interviews with several professionals in each of various industries. Our findings are summarized below.
5. Reassessing the Film Vertical Total of these targeted segments is 690,000 professionals.
6. Validating Premium Features & Pricing What our Target Market pays for today: 64% pay for Project Management Tools 71% pay for Legal Services 64% pay for Production Accounting Services 50% pay for Scheduling/Time Management Tools What our Target Market spends today: Project Management - $250 - $1000 Legal Services - $250 - $15,000 Accounting Services - $500 - $5000 Scheduling/Time Management - $75 - $2000
7. Revenue Flows Crew B2B Services Transaction Fee Subscriptionfee Subscription fee 88MirrorsTM Ad payments Ad Network (eg. Google AdSense) Directors/Producers Pay Per Use Fee License fee Licensed Development Tools (eg. AWS) Images of logos used for illustration and educational purposes only. Copyright reserved by original logo creators. VAZZU CONFIDENTIAL.
8. Revenue Opportunity We estimated our revenues by using our market data, our knowledge about the existing services provided, and our best and still-being-validated guesses as to the price range and the amount of the market we can capture. These are shown below as ranges and will be updated as we see how much traction we can get. Based on the size of our revenue projection in this model, we have substantiated that this business model is not sufficient to scale the business to $100MM.
9. Validating the Pain Point 44% of Directors/Producers feel they spend too much time on the crew hiring process 50% of Directors/Producers feel they do not have access to enough potential crew 39% of Crew said they spend too much time finding work 62% of Crew said they wished they had access to more projects
10. Validating the Solution 96% of Directors/Producers hire crew through direct communication 48% of Directors/Producers said the two most important factors in hiring crew are (1) their perception of the crew member’s previous work and (2) the reputation of that crew member among people they know 77% of Directors/Producers said they would review a crew member online
11. Hiring & Production Today Wait to be found Accepted Ask Friends Story Contact Director Create Project Hire Producer Find Funds Rejected Bid No Sound Ask Friends No Investor Pitch IndieGoGo, Kickstartr Title Design Ask Friends LinkedIn Post Processing Scope change Effects Seek Crew LA411/ NY411 Scope Work Color Correction Calendar IMdb Shoot Film Google Docs Seek Supplier LocationBudgets Craft Svc Yelp Production Hub Excel Craigslist Movie Magic Yelp Yellow Pages Craigslist Mandy Google It! Notify crew Refer Other projects Ask Friends Good reputation Ask Friends Good reputation Ask More Friends
12. Where 88Mirrors Fits In A Director/Producer… Joins the site, creates a profile, imports his/her relevant contacts Creates a project Solicits recommendations for crew from trusted contacts Views crew profiles Hires crew [Premium Account] Searches for crew in his/her extended network [Premium Service] Pays crew via payment service [Premium Service] Manages budget and scheduling [Premium Service] Accesses legal services A Crew Member… Joins the site, creates a profile, imports his/her relevant contacts Reviews projects of people in his/her network and/or receives notifications about new projects Applies for positions [Premium Account] Searches for projects in his/her extended network [Premium Account] Sees who has reviewed his/her profile
13. Our Customers: Professional Segment Segment: Professional One Sample Customer: Todd is an independent filmmaker. He’s made a few successful short films and has recently raised $1MM to make his first feature film, which he hopes to submit to the 2013 Sundance Film Festival. He has a good network, and has been able to call in favors from his buddies for his shorts, but he knows he needs to hire the best people he can afford for his feature and will have to pay them.
14. Our Customers: Student Segment Segment: Students One Sample Customer: Mary-John is a student at NYU’s Tisch School of the Arts and her next student film depends heavily on costumes. She wishes she had access to some of those incredible fashion students at Pratt Institute.
15. Our Customers: Aspiring Segment Segment: Aspiring One Sample Customer: Sam is a high school student who’s grown up using cell phones and Flip cameras to make videos. To his surprise, the videos he started posting to YouTube a year ago started getting tens of thousands of views. He’d love to start collaborating with some other people making web content to increase the production value of his videos and grow his audience.
16. Who We Compete With Creative Communities The Idealists Behance.net Social Networks LinkedIn Facebook 88Mirrors Web based production tools Scenechronize Scenios
21. Prioritizing Premium Services to Test Ability to search for and be introduced to potential crew outside of my immediate social network Ability to communicate with cast/crew (or segments of cast/crew) through group text messaging application Ability to access legal documents, share with cast/crew and collect electronic signatures Ability to manage my production/post-production timeline with custom, web-based project management tool Ability to use custom, web-based budget software with payments to cast/crew automatically tracked in budget Ability to pay cast/crew via web-based payment system
22. What We’re Doing Next Talking to additional customer segments (schools, aspiring content creators) Adding critical features to MVP to start testing with customers Refining revenue model assumptions Determining feasibility of premium production services
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24. Broad survey on LinkedIn Groups, FB, Twitter, other Media related sites
29. Functional website, with interim alpha/beta versionsNov 30 88Mirrors limited launch Oct15th MVP feature development commences Oct 6th Survey launched Nov 10 Implementation of MVP complete 23 88Mirrors Launch Schedule (Adv. Entrepreneurship)
Editor's Notes
In order to project the revenue opportunity for 88Mirrors, we tried to get a better understanding of our target’s current behavior and used these figures to make some assumptions about the number of users who would use our premium services and how much they would be willing to pay.
Premium Services: market share of 10-30% with30%-70% of those users using premium services priced at $10-$20/monthAd Revenue: 5.6 page views per user at $5-$10 CPMPremium Production: average of 3 projects per producer at $80-$100 per project
