What is DIVAN.TV? Founded in 2011 and breakeven in 2016

Size: px
Start display at page:

Download "What is DIVAN.TV? Founded in 2011 and breakeven in 2016"

Transcription

1

2 What is DIVAN.TV? Founded in 2011 and breakeven in 2016 Operates in 195 countries, with offices in the EU (Cyprus), California (San-Diego), Hong Kong, Ukraine, and Russia Has 2 million users and targets 12 language groups such as Chinese, Japanese, Spanish, French, German, Polish, Korean, Vietnamese, Hindi, Ukrainian, Russian and English 200+ live streaming TV-channels and over 50,000 movies and TV shows Signed contracts with channels and right holders worldwide: Euronews, France 24, FashionTV, Nickelodeon, IPanda TV, GoldenTV, СTV, NTDTV

3 What is DIVAN.TV? Has partnerships with world-leading Smart TV brands - LG, Samsung, Philips, Sharp, Telstra, Hisense, Haier +15 other vendors Other STB partners - Sony, Roku, Skyworth, TCL, Apple TV, Android TV etc.

4 Key Facts: Global TV/Video Industry Pay-TV market: $410B Video market in 2017: $70B Global Pay-TV subscribers $1B 1.1B Smart TV/Connected TV gadgets on the planet

5 Key Facts: Global Digital Advertising Industry Digital advertising market: $237B By 2022: - will reach $348B - will represent more than 55% of the total advertising market Progrаmmatic* advertising market: $58B By 2019: - will reach $85B TV advertising market: $187B *Programmatic advertising definition: Programmatic advertising uses algorithmic-based ad buying and selling. Buyers set key parameters and are algorithmically matched with ad inventory.

6 Key Market Problems of TV/Video Industry Content owners: - receive a small part of the advertising revenue for sharing their content on existing platforms - are on track to lose $37.4 billion to piracy in 2018 Users: - cannot afford to pay for the content - forced to pay for the content they do not consume in the TV packages and subscriptions Brands: - lose an estimated $19 billion to fraudulent activities annually - for every $1 advertisers spend programmatically up to 70 cents are received by middlemen

7 How blockchain will disrupt TV/Video Industry With introduction, for the first time, of the smart contracts advertising will become transparent and leave no room for fraud in the advertising supply chain Blend of Real Time Bidding* and Blockchain technology provides solutions for: - management of consumer-level data - the automation of bidding - speed of spend reconciliation among all players on the programmatic market The market will understand how to utilize RTB to connect brands and users on 1bn Smart TV/Connected TV gadgets Real-time bidding (RTB) is a means by which advertising inventory is bought and sold on a per-impression basis, via programmatic instantaneous auction, a.k.a. Google Ads for Smart TV

8 Why is Smart TV market so attractive? Target audience of 1.7 billion people No Adblock Low entry price barrier to the TV market for small and medium brands You can offer online marketing tools such as analytics and targeted advertising The price of running an advertising is 10 times higher than that on the web and mobile

9 DIVAN.TV 2.0 will redistribute financial rewards from middlemen, to key players in the ecosystem - viewers, content owners, and brands DIVAN.TV 2.0 builds: A decentralized platform in partnership with one of key blockchain architectures: EOS, Exonum, Hedera Hashgraph. An ecosystem with the first ever Protocol for programmatic RTB for Smart TV/Connected TV that will become the standard for TV/video platforms Platform with a unique token economy that eliminates intermediaries and rewards all players in the ecosystem Viewers will watch content for free, content owners will receive more, brands will pay less

10 DIVAN.TV 2.0 Blockchain Video platform Blockchain Platform directly connects users, content owners and brands Each participant has their own digital wallet Each participant can complete transactions worldwide Every transaction is transparent, traceable, irreversible, and is automatically ensured the fulfillment of all the terms of the contract

11 Viewers advantages access content in a language of their preference access a content of their preference without paying for unwanted shows/movies/channels included in a subscription get monetary rewards for watching commercials that can be exchanged for premium content. Users will be able to earn up to $10 per month make playlists featuring their favorite content donate and participate in crowdfunding of their favorite shows/movies

12 Content owners advantages receive 50% of the total ad revenue stream reduce content piracy distribute their content all over the world with no limitations use earned Tokens to pay to get into the top of DIVAN.TV search ranking (1,2,3 search premium page) receive live broadcast tool that they can use any time have access to the unbiased users and payment statistics via smart contracts

13 Brands advantages appear on TV/Smart TV devices (~1 billion devices) without AdBlock get access to the first ever Protocol for programmatic RTB for Smart TV/Connected TV place targeted advertisement at a lower cost by applying programmatic to advertising on Smart TV: 20% instead of 70% paid today to the intermediaries have a direct contact with users and content owners in real time get reporting on advertising engagement and organic video context without falling victim to fraud or nontransparent reporting

14 DIVAN.TV s competitive advantages International experience & 2M active users Own RTB platform Presence on all Smart TV devices Established relationship with content owners & vendors Multilingual content Content promotion option Crowdfunding TV-TWO

15 Token Economy DIVAN.TV introduces the D1T tokens as the currency for DIVAN.TV 2.0 Blockchain Video Platform Users are rewarded in Tokens Brands use Tokens to pay users and content owners attention Content owners receive Tokens from brands and users, use them to pay for a place in the top of DIVAN.TV search positions (1,2,3 screen) DIVAN.TV platform receives tokens for maintaining the whole ecosystem

16 Token distribution model Brand pays 100% in token for a commercial, which are distributed in the following way: Content Owner is rewarded 50% in token for providing content User gets 30% of the token DIVAN.TV gets 20 % of token as a service fee

17 Funds needed US $100,000,000 Funds allocation 15% operating costs: to maintain and expand servers and buy new equipment; 25% purchase of new content in 9 language groups including Chinese, Japanese, Korean and Vietnamese; 20% business development, including the office in Honk Kong for work with right holders, content providers and users acquisition. 25% marketing: to increase the user base and attract partners, as well as Bounty programs; 15% rewards and client acquisition programs

18 Bounty program DIVAN.TV offers the Bounty program Users will receive bounty for: Sharing information about the DIVAN.TV Platform in social media Bringing to the platform new users using their own link. Bounty program participants can exchange tokens to other currencies. Note: ordinary users who own tokens can only exchange them for premium content.

19 Go-to-Market DIVAN.TV 2.0 has developed the strategy to promote the Platform Content partners Integration with large content aggregators with focus on such language groups such as Chinese, Japanese, Spanish, French, German, Polish, Korean, Vietnamese, Hindi in addition to existing ones (Ukrainian, Russian, English). Recruitment of TV channels, studios, independent filmmakers. Advertising partners Integration with large advertising platforms and their tools for more accessible advertising Recruitment of individual brands working with the audience of ethnic groups and immigrants around the world Audience MLM community and bounty program for our target audience of immigrants and ethnic groups.

20 Financial projections assumptions $'000 Q1 Q2 Q3 Q4 Y 1 Y 2 Y 3 Y 1 Y 1 Y 1 Y 1 total total total Revenue $837 $2,093 $3,767 $5,231 $11,927 $179,680 $3,018,430 Marketing costs $700 $5,750 $9,750 $14,625 $30,825 $127,273 $589,531 Content acquisition costs $2,500 $2,500 $2,500 $2,500 $10,000 $10,000 $10,000 Blockchain transaction costs $675 $1,688 $3,038 $4,219 $9,619 $66,224 $404,873 Mining costs $60 $150 $270 $375 $855 $2,134 $3,534 Equipment acquisition costs $529 $529 $529 $529 $2,115 $2,115 $2,115 SG&A expenses $155 $155 $155 $155 $618 $618 $618 Smart TV vendors costs $68 $169 $304 $422 $962 $14,490 $243,422 Salary cost $405 $675 $748 $910 $2,738 $8,905 $33,556 Total operating costs $5,091 $11,615 $17,292 $23,734 $57,731 $231,759 $1,287,648 Operating profit (loss) $4,254 $9,522 $13,526 $18,503 $45,804 $52,079 $1,730,781

21 Business model Our 3 year financial projections are based on the following conservative assumptions: Our financial model is based on the assumption that we reach a hard cap. Divan.TV Platform is based on a freemium business model with a wide access to unique free content. It will generate a lot of free traffic to the Platform. It is assumed that each viewer will cost $10 during the first stage of a marketing campaign Divan.TV Platform will receive 20% from brands, content owners and users will get 50% and 30% respectively. Commercial roll view price is $0.01 assuming that each viewer will use the Service for 1 hour per day(below average among competitive OTT services) From the start Divan.TV Platform will utilize its current 2 mln user base of Divan.TV. We assume that of them will use the Platform for 1 hour per day Divan.TV Platform users will receive 30% of an advertisement price in a form D1T tokens. This will increase viewership and encourage new users to start using the Platform Divan.TV Platform will stimulate user-driven invitations by paying $5 for every active user invite. In addition to free content uploaded by content owners, Divan.TV Platform will heavily invest in premium content acquisition. Annual investments are set to $10 mln

22 DIVAN.TV wants to achieve Fully decentralized blockchain Video Streaming Open Platform based on smart contracts and Real Time Bidding programmatic advertising 120 million users worldwide Content in 12 language groups such as Chinese, Japanese, Spanish, French, German, Polish, Korean, Vietnamese, Hindi, Ukrainian, Russian and English More than 150B ad views per year. US $20-30B market capitalization

23 DIVAN.TV Team Andrew Kolodyuk Founder and Chairman Of The Board Andrew is a serial entrepreneur and investor. He started his entrepreneurial career in New York in 1992 and eventually has founded and built over 10 companies in IT, telecom, internet and media, some with annual revenue of over $1B. Andrey founded DIVAN.TV in He is a founder and Managing Partner in AVentures as well. Capital and Board Member in Ciklum. Andrey was elected as Young Global Leader of the World Economic Forum in Arkadiy Kanyuka Executive Director Responsible for General Management. Arkadiy has over 20 years of experience in Telecom business and investment. He was previously working as a commercial director of online business at Optima Telecom, also as director of consulting company iks- Consulting (conducting market research for Kyivstar, Data group, MTS, Astelit), director of the investment company Finart Capital Invest, commercial director of P&S Capital. Evgeniy Kutsarsky CPO Head of product development. Eugene has over 12 years of experience in product development. He successfully created, developed and managed online projects from the start. Successful experience in managing a team of 50 people. Under the guidance of Evgeniy DIVAN.TV was launched on platforms such as Apple TV, Android TV and Roku. Also, a mobile Divan.TV application was released in Google and Apple stores. Elena Kohanez Head of Content Department Elena has been working in Divan.TV for more than 5 years. For all this time, she has held over a hundred high-level negotiations, both with local and foreign content partners, which resulted in the signing of more than 200+ contracts. Elena has experience of speaking at conferences and participation in round tables on media topics.

24 DIVAN.TV Team Dmitry Solovyan Head of Software Development Department Experience in software development - more than 20 years. Dmitry took part in the successful development of a large number of Divan.TV projects. Specialties: system architectures, technologies, business processes, project management, product management, web development and design. Andriy Khavryuchenko Advisor BPC Advisor on blockchain architecture and implementation. Expert in AL/ML/NLP, Distributed Agile Team building. Blockchain developer at Dash, Dmarket, DreamTeam. Vladimir Pyrozhenko Member of The Board Vladimir holds an MBA degree from prestigious Kellogg School of Management (IL, USA) and has more than 20 years of experience in strategy and financial advisory at KPMG and World Bank. He advised on strategy and raised investments for many startups, private companies and banks. Vladimir has launched and supported several successful startups. Alex Bornyakov Advisor President at Adtelligent BPC and the found of VertaMedia, a video Supply Side Platform (SSP) for publishers. a regular columnist for a number of respected industry publications including Forbes, Business2Community, and MarTech Today.

25 Thank you! If you want to learn more, please check our deck 21st Floor, CMA Building 64 Connaught Road Central Hong Kong Divantv.io Contact us: 4455 Murphy Canyon Road Suite 100 San Diego, CA This presentation has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, financial, legal or investment advice. You should consult your own financial, legal and investment advisors before using and relying on this materials.