The new fair revenue distribution video platform

Transcription

1 1 TOKEN WHITEPAPER 2018 The new fair revenue distribution video platform

2 Abstract Video-on-demand is a 47 billion USD/year ecosystem. It breeds on video content and the virality provided by user s influencing power. Still, neither creators, nor influencers get their fair share from today s dominant media owners. VIDDO is here to change all that. VIDDO is a pay-per-view (PPV) online video sharing platform, that uses a proprietary business model (VIS* *) and a blockchain-based data management system to secure transparent and predictable income, and easy monetization for all relevant stakeholders who upload, consume or share content - from the very first video view. VIDDO is an existing product with USD 1 million already invested in 2 years of development. A decentralized, blockchain based data management system will provide the transparency of all transactions, making VIDDO the video platform of the people. VIDDO is aiming to raise USD 15.8M of ICO support for its global roll-out. VIDDO Token (VDT) is a utility token with tangible, real world value: it will be used for opening ProAccounts on VIDDO.com. All users can monetize on VIDDO in a very simple way, and they all need a ProAccount to take their money home. VDT will have huge demand, limited supply, and viddotoken.com will provide the space to sell. 1 VIDDO Token = 1 ProAccount 2

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4 Table of Contents Abstract 2 Why VIDDO 3 Table of Contents 4 Executive summary 6 Definitions 9 Challenges 11 Market analysis 13 VIDEO-ON-DEMAND (VOD): THE FUTURE OF MEDIA 13 Target market: Pay-per-view segment of TVoD 14 COMPETITORS 15 ONLINE ADVERTISING TRENDS 18 COPYRIGHT 21 MARKET CHALLENGES = VIDDO OPPORTUNITIES 21 THE SOLUTION 22 7 REASONS TO CHOOSE VIDDO 22 VALUE PROPOSITION FOR STAKEHOLDERS 23 The VIDDO platform 26 BASIC / PROACCOUNT 26 VIDDO FEATURES 27 THE VIDDO POINT SYSTEM 29 MONETIZATION AND SHARING 30 Under the hood of VIDDO 34 THE VIDDO BLOCKCHAIN 34 TECH STACK 35 PROPRIETARY VIS SYSTEM (PATENT PENDING) 35 VIDDO Extensions 37 VIDDOTOKEN.COM (Q4 2018) 37 VIDDO SHOP (Q2 2019) 38 The VIDDO Token (VDT) 39 VDT: A REAL-WORLD UTILITY TOKEN 40 USAGE OF VDT 41 FURTHER POTENTIAL IN VDT 41 THE PROCESS FOR REDEEMING VIDDO TOKENS (VDT): 41 4

5 VIDDO ICO 42 ICO TIMELINE AND DETAILS 42 SOFT CAP / HARD CAP SCENARIOS 44 HARD CAP HIGHLIGHTS 45 VDT CHARITY PROGRAMME 46 The VIDDO Group 47 Roadmap 48 FROM IDEA TO PRODUCT 48 Go-to-market and marketing strategy 50 TARGET GROUPS / STAKEHOLDERS 50 COMMUNICATION CHANNEL STRATEGY 55 Financial background 57 TOKEN SALE FUND ALLOCATION 57 INCOME SOURCES 58 COSTS 59 SCENARIOS 60 The VIDDO Team 63 FOUNDER - INVESTORS 64 TEAM 65 Advisors 68 Contacts 69 Legal disclaimer 70 5

6 Executive summary ONLINE VIDEO PLATFORMS FACE HUGE CHALLENGES Online video sharing platforms have become the main source of news and entertainment especially for young people, making these platforms the most effective and the most popular marketing tool in recent years. Half of Generation Y and Z watches online VoD content daily, fuelling an almost 47 billion USD worldwide ecosystem in With an average YOY growth of 15%, this could reach 83.4 billion USD by Still, content creators won t receive their fair share of the revenue, neither today, nor in 2022, unless a new solution is found to disrupt the burning imbalance in revenue distribution. The barrage of ads inflicted on viewers has led to the installation of ad blocker applications or software on 616 million devices to date. This trend makes it increasingly difficult to reach viewers through traditional marketing channels, demanding the use of new, more customized and customer-centric ads and channels. Today s video sharing platforms are relying heavily on ad revenue (Advertisement VoD) or subscription payments (Subscription VoD). Their business model is unsustainable even in the medium term, because: the platforms ad revenue does not secure adequate or predictable income neither for the media owner, not the content creators. Advertisers face rising costs and deteriorating conversion rates due to ad avoidance, ad blocking, and too much clutter. Consumers have limited budgets and can only subscribe to a limited number of VoD platforms with relevant video content. 6

7 VIDDO IS THE SOLUTION VIDDO is a Pay-Per-View (PPV) online video sharing platform, that uses a proprietary business model (VIS) and a blockchain-based data management system to secure calculable income for all relevant stakeholders that upload, consume and share content from the very first video view/click. Content can be bought with prepaid VIDDO Points and it reaches consumers (viewers) directly from creators or through curators. Users can also earn Points through various activities - e.g. sharing videos, watching ads - which they can use later to purchase content view or to exchange it for cash and transfer it to their bank account. The later cash-out option is tied to owning a ProAccount, which can be opened with VIDDO Token (VDT) issued during our ICO. Multiple revenue sources give financial stability The business model relies on diverse streams of revenue: - a percentage of revenue from views of paid content - a percentage of payment for views of ads - fees for uploading and storing videos - VIDDO Points exchange fees - supplementary income (e.g. VIDDO Shop, etc.) - selling ProAccounts (after 20M opened with Token Sale VDTs) Transparency with blockchain technology VIDDO s blockchain technology ensures a completely transparent data management and payment system for ProAccount users. Daily closing data on the blockchain technology ledger is both decentralized and immutable, securing accurate payment between VIDDO and ProAccount users. Majority of ProAccount users will build their own channels. Stored data will provide users with a credible overview of a given channel s value and success. 7

8 ICO TO FINANCE GO-TO-MARKET Thanks to a 1 million USD investment into the product development from the founders, and the dedicated work of our 20-person team since Q1 2017, the product is currently undergoing testing, and it will be available to the public in Q The primary goal of the VIDDO ICO is to expand product functionality by implementing new features (application development, VIDDO Shop, cryptocurrency payment, etc.), and to shorten the go-to-market / customer acquisition phase of our marketing strategy. Planned growth scenarios are based on million USD (soft cap/hard cap) financing. The allocation is detailed in the Finance section later. 8

9 Definitions AdPoints: VIDDO Points that viewers can receive for opting to watch advertising videos. AdPoints can be spent on watching content. Advertiser: Individual or company, whose ads reach their target audience via VIDDO Basic account: Standard user account that comes with all but two features and functionality Collection: Uploaded, watched or favourited videos are organized into any number of customizable collections within the user s channel. Content can be organized along various themes into collections, which helps content vitality and monetization. Conversion rate: In internet marketing, the conversion rate is the percentage of visitors who have purchased (or performed a desired action) in a given time period. According to international statistics, a 2-3% conversion rate is considered very good. Content creator: an individual or company who uploads video content to the VIDDO platform with the goal of monetization VIDDO point: The platform s transactional instrument Curator: A user who distributes video content uploaded by creators. On VIDDO viewers automatically become curators, as the videos they watched will be shared automatically in their friends or followers content flow, embedded into their own channel, and the views generated through these will yield income for them. VIDDO provides tools (e.g. embedding content outside VIDDO) for everyone (not only influencers or media owners) to become an active curator and monetize their influence. Embedded ads: The system allows embedding of ad content on external platforms, in which case the embedding media owners (media curator) also get a commission after the ad spend realised through their media. Flow: A user s home screen on VIDDO. It shows the videos viewed or uploaded by other users (curators, creators) followed by someone. This is the fastest and most targeted way for content distribution and removes the need to manually search for content. Flow advertising: Flow advertising refers to ads published on the VIDDO platform, whose attribution is driven by users views. GDPR: General data protection regulation, officially the European Parliament and Congress (EU) 2016/679 act addressing data protection and privacy for all individuals and also the export of personal data. It supersedes the 95/46/EC directive with provisions and requirements 9

10 pertaining to the processing of personally identifiable information of individuals inside the European Union. Under certain circumstances, the regulation also applies to organisations based outside of the EU. Influencer: An individual, who can influence their followers (other user s) actions, affecting content consumption or product purchase. Micro-influencer: A subcategory of influencers whose strength isn t a large follower base, but rather the creation of credible content of a certain genre. Media curator: Online media that embeds video content on a third-party platform (synonyms: media owner, 3 rd party) Ott video: synonym of VoD, videos that have reached the consumer outside of television or other intermediaries ProAccount: Provides users with the platform s full functionality, tied to VIDDO Token (VDT) purchase and registration. Its primary advantage is the option to exchange Points for cash. Sharing/embedding: The built-in sharing function allows any user or media owner to earn passive income, simply by sharing content outside of the VIDDO system, on external platforms (e.g. social media pages, news channels, even offline etc.). User: VIDDO registered individuals, who want to watch uploaded video content. Vdt (VIDDO token): the utility token sold during the VIDDO ICO. It embodies the right to register a ProAccount on the VIDDO platform. ProAccount s primary advantage is the option to exchange the VIDDO Points one earned for cash. Viddotoken.com: A dedicated website for VIDDO Token sales Video-on-demand (vod) content: Content that can be purchased or viewed as the users need, independent of programming schedules View: A transaction of acquiring the right to watch a video. (It is not the number of occasions a video is played, as viewers may watch content as many times as they want in the 24-hour window commencing the purchase.) Virality (viral distribution): A model that supports content distribution, which results in exponential reach for content creators, with the active participation of curators and media owners Vis (virtual influencer sales): VIS (patent pending) is an online sales, payment and viral content distribution methodology. VIDDO is built on the VIS system. VIDDO minus: video content that can be watched in exchange for VIDDO Points. VIDDO plus: Content (usually commercials, promotions, etc.) that values the user s attention by paying points (AdPoints) for watching VIDDO shop: is a standalone webshop where users can immediately purchase any product featured and tagged in a video on the VIDDO platform 10

11 Challenges In 2017 over 1 billion hours of video content was viewed daily on YouTube alone. 1 Online video sharing platforms have become the main source of news and entertainment for young people, making ads around online video-on-demand content the most effective and highest converting solution amongst existing marketing tools and channels. Due to outdated business models, revenue from video creation and sharing is not distributed fairly amongst stakeholders. Content creator: o o Low profit: The creators and uploaders of video content receive just a small fraction of the amassed revenue, which often doesn t cover the high costs of creation (production, storage), despite the fact, that in order to generate revenue, viewers need to be consistently engaged with new content. Intransparent pay-out systems: Profits are not calculable, because they are influenced by many other factors besides viewership, and pay-out systems are not transparent. o Copyright is ambiguous: Content is IP, but creators often can t take action against infringement after they ve shared it to a platform, because the content is on an unregulated path, causing the original creator to suffer a loss

12 Advertiser o Decreasing conversion rates and increasing cost: Viewers and consumers are already bombarded with too many ads and marketing campaigns, the noise is too loud, which leads to less effective marketing campaigns and a decrease in conversion rates. Acquiring the same amount of shoppers thus becomes increasingly expensive. User: o o o Too many ads: Users don t want to watch an increasing number of ads, a fact that is proven by the growing popularity of adblocking, which is expected to slash 12 billion USD worth of ads by 2020, in the US alone 2. Attention and use of data is not compensated: Users are increasingly aware (due to the GDPR act as well as recent data scandals), that their data and attention is marketable, but they currently have no control over them and don t receive a share of their sales. Lack of choice: In most models today, users can t choose whether they want to pay for the content or not, and how they want to pay - i.e.. with their attention (by watching ads) or with their money (VoD). If they subscribe to a platform streaming TV series, they get access to numerous series, even if they re only interested in a select few, while at the same time the platform doesn t provide access to sports or cooking shows. Curator o Difficult to monetize influence: Sharing content is hard to monetize, even though most video platforms and social media channels strive on virality provided by users influence. Even influencers with bigger follower base can t directly monetize their distribution power. Platform o Unsustainable business models: Due to ad blocking by users, platforms that run on advertising only are not sustainable. Quality content can t be financed either from ad revenue only. Users can t subscribe to every single paid platform at once to access all of the content they re interested in, so individual platforms themselves are not sustainable

13 Market analysis VIDEO-ON-DEMAND (VOD): THE FUTURE OF MEDIA Digital video consumption outranked television consumption by generation Y 3 years ago. Revenue from OTT video (a synonym of VoD, videos that have reached the consumer outside of television or other intermediaries) consumption in 2017 reached close to 47 billion USD worldwide, and could reach 83.4 billion USD by 2022 with 15% YOY growth. In light of this, an increasing number of businesses are built on OTT video consumption. 3 The draw of VoD services is the fact that users like to watch content at their leisure, and don t want to be tied to fix program scheduling. VoD allows users living in the same household to watch different programs at the same time, on different devices. In a survey by Nielsen, 66% of users reported that the ability to watch multiple TV episodes right after each other was a significant motivation for consuming VoD content. According to Nielsen, in 2016, subscription VoD services market penetration matched the number of Digital Video Recording subscriptions in the US. 4 In terms of demographics, the younger generation is more open to VoD content consumption: 49% of the Z generation, 45% of the Y generation and 21% of viewers 65 years and over watches VoD videos at least daily. 5 Rate of video content consumption amongst VoD users arranged by generation (2015 Q3; globally)

14 VoD types Subscription VOD (SVoD): In the SVOD model, the user pays for unlimited access to the entire content library offered by the service. Advertising VOD (AVoD): In this model, users access the video content library for free and in return they have to watch ad content, as the service s revenue stream is the sale of ad space. Transaction VOD (TVoD): In a transaction based model, consumers pay for, and access, only the content they want to watch. Transaction VODs include Pay-per-view (PPV), and paid downloads (including DTO or download-to-own and EST or electronic-sell-through). The first is the classic business model for paid VOD services. After selecting the content and paying online, users get access to the selected video content for a limited amount of time. Target market: Pay-per-view segment of TVoD In 2018, the average revenue per user (ARPU) on the PPV market was USD. The United States is the biggest revenue generator for PPV services, representing 2.9 billion USD worth of sales in 2018 s 4 billion USD global market. Statistics forecasts the number of PPV users to reach million people by This 23% growth, combined with the same ARPU means that the pay-per-view market could reach 5 billion USD by The estimated growth of the global PPV market ( )

15 COMPETITORS SVoD Netflix Netflix is an American streaming service founded in 1997, that allows users to stream films and tv series online. The platform s business model is built on monthly subscriptions. After a month-long trial period, users can choose between 3 different subscription packages, which vary in content resolution quality and the number of devices that can simultaneously stream content. The service is available in over 190 countries. It currently boasts over 93 million registered users globally. Netflix revenue reached 6.78 billion USD in 2015, with over 10 billion hours of video streaming. 7 Disadvantages: Uploading content is not available to individuals and amateur content creators. Users can only download or view video in the content library (movies, TV series). Specialized: Only movies and TV series are available In the long run, users will not be able to subscribe to every platform that works with the same business model, to access all of the content that they re interested in. HBO GO HBO has had an on-demand subscription service branch since 2001; HBO GO has worked since 2010, becoming HBO Now in Users can watch new TV series and movies in a linear program, starting at the same time as the programs are premiered on TV. In December 2016, 134 million HBO users, including TV subscribers, registered. By 2018, the number of HBO Now users reached 5 million people. 8 Their biggest competitor is Netflix, which does not have its own TV channel, but otherwise parallels the service and business model. Disadvantages: The same disadvantages of Netflix apply to HBO

16 Vimeo Vimeo is an American video distribution website and service established in The site s value proposition prioritises curated, high quality content without ads. Users can consume both free and paid content. Vimeo has 35 million registered users, and 280 million monthly visitors. Paid content can be viewed with a subscription business model. Marketing On-Demand content can only be done with a pro or business account, which has a high financial barrier to entry. Content creators themselves determine the price of uploaded videos and series. Content can be both sold and rented. Revenue from these sales is split, 90% going to the content creator and 10% to Vimeo. Disadvantages: High financial barrier to entry: Vimeo s biggest disadvantage for content creators is the high price of entry, which is the same for anyone who uploads, regardless of the length of uploaded content, and ultimately does not encourage content sharing. Complicated business model: Users aren t aware of the paid options that are available next to the free content. Too many packages and pricing structures complicate the model. AVoD YouTube YouTube (launched in 2005) is the current market leader for online video distribution. Most of the content is provided by individuals but profit oriented content creators also post content. The movie industry is also present on the site: in 2009 the premium section was launched, where users could watch movies and TV series in their entirety. The page s business model is built primarily on ad revenue, content consumption and posting is free, and - in contrast with other services - unlimited storage is provided. Content creators get a part of their income from ads played before, during and after their videos, and the main contributing factors to pay-out are view count and length. YouTube s current business model operates at a significant loss every year, which they are trying to remediate primarily with the increase of ads. Disadvantages: Only content creators with a channel that consistently generates high viewership see longterm predictable revenue. Unique, high-quality content is increasingly scarce, and advertisers are also less likely to use the service due to issues with effectiveness and brand safety. Content creators receive just a fraction of total ad revenue, which is not enough to create high quality content, or operate profitably. Dailymotion 16

17 Based on monthly viewership, the French video distributor Dailymotion is also one of the most visited pages in the category. Established in 2005, the platform sees up to 300 million visitors per month. Users can watch and share professional and amateur content, and can also upload content by creating their own channel. Dailymotion s main source of revenue comes from in-video ads and commercials. The page enables users to earn income in multiple ways. Uploaded video content can receive a percentage of ad revenue, and it can also be rented out. Beyond this, channel producers can charge a monthly subscription fee, and in return users can access all of their uploaded content. Dailymotion provides revenue potential for external website managers as well, in the case that they embed select or proprietary content. In this case, embedders receive a percentage of the generated ad revenue. Disadvantages: Mixed (paid and free) business model, which is not transparent to users The online platform provides a low-quality user experience TVoD VIDDO is best described as a TVoD service, because users can watch videos on it whenever and wherever, without any conditions or fixed fees, and only pay for what they ve watched. itunes itunes is a media player and media library application developed by Apple Inc in 2001, that has since become the biggest electronic-sell-through platform. Users can selectively buy and download media content. Quarterly itunes revenue is approximately 7 billion USD. 9 Disadvantages: Users can only upload and sell high quality movies in a strictly defined style. Lack of virality: Without an incentive to share videos, the content cannot expect to reach a large audience

18 ONLINE ADVERTISING TRENDS Increasing online and digital ad spend The evolution of content consumption has propelled a global change in ad consumption as well. Advertisers are increasingly focused on online advertising channels, and the role of traditional platforms (TV, radio, print media) has consistently decreased. The change in habits is exhibited by forecasts that predict that global online ad spend will almost double between 2015 and The growth of online ad spend ( ; billion USD) 11 Since 2012, online ad spend within the overall marketing budget has doubled approximately every 3 years, as advertisers increasingly follow consumers into the world of digital. Amongst ad channels, budget allocation for digital and mobile channels is equal to that of television commercials and outpaces traditional print media by far. Enterprise marketing leaders surveyed by Accenture reported that the budget allocated for digital ads could grow to up to 60% within a few years BCG Analysis 18

19 Ad spend distribution by channel (2016) 12 Decreasing conversion rates Increased online ad spend is not only a product of how attractive the channel is, but also a result of the decrease in targeting effectiveness and conversion rates. In today s online environment, so many advertisers are trying to reach consumers, that ads often get lost in the noise and don t reach the target audience. Among American ad viewers on Facebook in 2017, an average of 0,9% clicked through, and only a small fraction of those can be expected to actually purchase. 13 On average, 2,35% of those who reach the advertiser s page would end up actually purchasing something (ie. landing page conversion rate). 14 At the same time, internet users are less and less tolerant of the deluge of ads forced on them, protecting themselves in various ways. This drives campaigns costs up and conversion rates down for advertisers. Ad fatigue by users is best illustrated by the 616 million devices that have some sort of ad blocker or software installed. This trend makes it increasingly difficult to reach viewers through today s traditional marketing channels, demanding the use of new, more customized and customer-centric ads and channels Advertising-POV.pdf

20 Micro-influencers: a new marketing trend We developed the platform to support influencers, and global trends also show a general increase in support for influencers, specifically micro-influencers. The market s evolution has validated our own hypotheses. Due to the growing cost of online advertising, social media promotion through microinfluencers with small ( ,000) follower bases has risen as a new, more effective solution. Today over 700 million people use social media pages and channels (Facebook, Instagram, Twitter, YouTube) daily, and influencers with 1 million+ followers can generate up to 50,000 USD / post. Naturally, the credibility and authenticity of influencers is called into question by their audience after a certain number of users has been attained. Users are much more likely to trust those individuals with whom they can have a direct relationship, instead of a distant celebrity, making micro-influencers with smaller follower bases increasingly important in the social media marketing industry. Micro-influencers reach is 60% higher than mega or macro-influencers, and 6.7x more effective when reaching users, making them altogether more cost-effective. Micro-influencers initiate 22,2x more conversations than the average user on social media pages Micro-influencers have become the new, personalized marketing channel, through which advertisers can costeffectively and credibly reach their target audience

21 COPYRIGHT To this day, copyright protection and its correct management on social media remains an unresolved issue. In 2013, YouTube introduced the so-called Content ID method, which automatically monitors every uploaded video to determine originality, and make sure it does not match with a previously uploaded video, channel or user. In many instances the system has deleted entire channels and popular content, despite their complete copyright legitimacy, and despite the necessary royalties having been purchased from the original creators. This has given rise to multiple complaints. The chaotic regulation most often creates problems for film and video critics, as in the case of the animated film Cool Cat Saves the Kids. 17 The so-called fair use regulation was created to address the regulation of critics, parodies and reuse of various content, but the solution is relatively complicated and not explicit. 18 MARKET CHALLENGES = VIDDO OPPORTUNITIES - Unfair distribution of platform revenue - No transparent pay-out - The monetization of video content with low viewership has not been solved - Non-professional and niche content is hard to monetize - Uncertain copyright environment - Lack of virality - Difficulty of leveraging micro-influencers clout - Negative attitudes towards ads - Low ad conversion - Brand Safety issues - Ad spend alone cannot sustain a video platform

22 THE SOLUTION 7 REASONS TO CHOOSE VIDDO 1. Monetization for everybody A solution for the monetization of video content with any kind of viewership Enables the monetization of amateur and niche content The curator system directly supports micro-influencers, because it offers a solution for the monetization of smaller follower bases 2. Transparency: Distributes revenue in a transparent and fair way Blockchain ensures traceable and verifiable payment 3. Dynamic content library The low barrier to entry makes the platform accessible to everyone, This ensures a dynamically growing, diverse and varied content library 4. Copyright compliant VIDDO encourages copyright compliant content consumption, because stealing content becomes worthless in our framework 5. Virality Supports viral reach, by rewarding content shares 6. Ad engagement Supports a positive attitude towards ads, because only relevant messages reach the user, who is rewarded with VIDDO Points for watching ads A positive attitude towards ads grows conversion, which helps fighting the decrease in ad effectiveness Helps Brand Safety, because viewers decide what kind of ads they view, when and where. 7. Financial viability Diversified revenue streams from several sources (transactional and ad revenue) maintain the platform 22

23 VALUE PROPOSITION FOR STAKEHOLDERS VIDDO is a unique Pay-Per-View (PPV) based online video sharing portal, that secures predictable revenue for the consumption and sharing of uploaded content from the first view/click onward, for each stakeholder. It s a perfect choice for content creators, users, advertisers, and all sites that create, show or embed videos. Generally speaking, none of the currently working platforms is capable of promoting virality, without which content will not reach a wide viewership. While it s the primary interest of each social media channel to keep content and users on the platform, VIDDO explicitly rewards content sharing and embedding on 3rd party (off-viddo) sites. This will exponentially increase the potential viewership of any given content. Content creators: Predictable revenue regardless of size! Immediate, predictable revenue: In contrast with the hazy payment systems of ad supported platforms, VIDDO s view-based, self-service pricing secures predictable and calculable earning opportunities for content creators, encouraging them to publish unique paid content exclusively on VIDDO. Payment without limits: Payment for viewership generated traffic is independent of a given channel s number of subscribers, or other partner program stipulations (e.g. consistently high reach), this way everyone - not just massive content creators - can benefit from the traffic generated by their content, from the first view onward. Basically, anyone can earn money even with a spontaneous, mobile phone recorded video. Viral reach: VIDDO complements its own marketing channel by leveraging the strength of social media marketing, and the sharing function directly promotes the content s viral reach (and amongst users, its organic reach). Content creation support: The effective monetization of videos allows content creators to publish increasingly attractive, complex videos, and ultimately realize higher revenue. Ad independent revenue: A content creator s revenue is not dependent on the number of ads (pre-roll, banners, pop-ups, etc.) sold around his work, rather based on the content s power to attract and spread. Copyright protection: Compensation for content creators renders content copying and stealing worthless - the ever-wider distribution of content is the general interest of each stakeholder. 23

24 Users: Only pay for what you actually want! Pay with your attention: Viewing ads earns a user AdPoints, which they can use to pay for other content. No commitment: Users can watch videos without paying a fixed periodical subscription price and only pay in proportion to the number of videos they viewed. Valuable content: Paid content uploads naturally filter less popular, less-viewed content, so VIDDO can offer a widely attractive selection for all end-users. Content curators: Make money through influencing! Profit-earning potential: With our unique business model, users can earn revenue with one click, simply by sharing purchased content. Anyone can be a curator, and immediately earn money from the first view of their shared content. Channel building: Curators can build their own highly viewed channel within VIDDO, without having to create their own content. Curators can turn the willingness of their own follower base to consume content into money. Media owners: New revenue stream! New revenue stream: Beyond the current advertising model revenue streams that are not sustainable in the long run, VIDDO extends an innovative and new revenue stream for media owners. Media owners can publish their own content on VIDDO Media owners can embed other creators video content into their own content, and receive a share of all viewership revenue realized through this Copyright compliance: Anyone, anywhere can create video content, and if it s published online via VIDDO, any media stakeholder can place it on their own platform in a copyright compliant way. 24

25 Advertisers: VIDDO, where they love ads! Structured, profiled users: The advertising system on VIDDO provides advertisers access to users similar to other video sharing platforms. Positive response to ads: Profiling ensures that only relevant ads reach users Higher reach: Thanks to the system s logic, VIDDO s system guarantees significant reach for advertisers, because it motivates users to watch ads. Higher conversion: Published ads promote action, resulting in the potential for higher converting rates than traditional ads. 25

26 The VIDDO platform BASIC / PROACCOUNT There are two kinds of user accounts in the VIDDO ecosystem: Basic and ProAccounts. Basic account is free upon registration, while ProAccounts (with additional functionality) can be purchased during VIDDO s ICO in the form of VIDDO Tokens, or after the launch of VIDDO.com via the secondary token marketplace. 1 ProAccount = 1 VIDDO Token (VDT). The founders limited the number of ProAccounts at 100 million to keep the value of VDT uninflated, but there is no limit to the number of Basic accounts. Access to functions with Basic and ProAccount are as follows: 26

27 VIDDO FEATURES Registration and creating profiles Videos can only be watched with a VIDDO account. Anyone can quickly register on viddo.com by providing their address, a desired password and their birth date. Their content flow will immediately be customized based on their selected areas of interest. The profile picture and each cover photo of an account is customizable, and users can also set their own user name. After registration, the user has a Basic Account. On their profile page users can track their VIDDO Point history (spent, earned and purchased VIDDO Points / AdPoints), purchase new VIDDO Points, and (with ProAccount) initiate monthly cash pay-out to their personal bank account. Uploading content After registering any account on viddo.com, everyone can upload their video, set the cost per view, and start monetizing their content. After each view, the VIDDO Point amount equivalent to the pre-set price (minus VIDDO fee and - in case of indirect view - curator s commission) is transferred from the viewer s to the content creator s account. The content upload process: 1. Selecting the video to be uploaded. 2. The content creator can give the video a title, description and tags, and also assign it to preset fields of interest available in the system. Here they can mark if a video is NSFW (not safe for work). 3. Insofar as the content falls under certain copyright law regulations, this is the place to set which countries the content can be viewed in. 4. The content creator can freely set how many VIDDO Points a viewer must pay to watch the video. The system automatically displays revenue distribution between the content creator, VIDDO and - in the case of views through an intermediary - the curator. 27

28 Viewing content Content uploaded to VIDDO.com can appear to users in different ways: Content flow After signing into VIDDO.com the user arrives at their personalized content flow, where they see content uploaded or viewed (curated) by the channels and users they follow. This automatic recommendation system additionally supports viral reach through VIDDO. After watching a given video, a viewer can like, comment, or place the video in their own channel/collection, or they can indicate that they would not like to share it with their followers, or they can flag it as copyright infringement. Videos can be marked for later viewing as well. Various information appears on VIDDO in connection with the content. This includes: basic information about the video (title, creator, length, tags, views, etc) comments, likes, amount of VIDDO Points to be paid or received for viewing whether the given content has arrived in the content flow via a content creator or a curator Channels / collections Shared or uploaded content by a user can be viewed in the user s channel. All channels are public, their structure and profiles are customizable. An unlimited number of collections can be created within a channel, in which the user can organize their own or curated (recommended content from other users) content along any topic, either for themselves or for their followers. By default, each channel has an Uploaded, Watched, and Favourite videos collection. The content creator can move or delete their videos within their own channel and can also edit their information at any time. Sharing outside of the platform Videos (including ads) are easily shared or embedded on external platforms and websites. In this case, the given video stays within the VIDDO ecosystem: viewing it requires a VIDDO account and the content creator and embedder (as curator) receives VIDDO Points for every view, just as they do within VIDDO.com. Viewed ads on external websites come with the same amount of VIDDO Points as on the VIDDO site. Brand exposure on ad-free VIDDO VIDDO is free of intrusive advertising: no banners, pop-ups, pre-rolls, or interstitials. But brands will still be able to connect with their audience through VIDDO Plus videos. Viewers can choose to watch advertisers videos if and when they want and earn AdPoints for it. AdPoints can be used to watch paid content on VIDDO. 28

29 THE VIDDO POINT SYSTEM Accurate and transparent payment is ensured with a proprietary, internal, point-based system, which eliminates the need for micro-transactions. How the VIDDO Point system works Users can purchase VIDDO Points in packages of different size. Purchased or accumulated VIDDO Points are automatically credited to the user s VIDDO account. The system automatically stores VIDDO Point exchanges, so users can track the balance of their account in real-time. The basic rate of a VIDDO Point is: 1 VIDDO Point = 0,01 USD. Purchased VIDDO Points can be used to pay for content in the content library, while AdPoints from watching ads can only be used to pay for content on VIDDO. 29

30 MONETIZATION AND SHARING The monetization system is largely influenced by the way in which content is discovered, which can happen in the following ways: Direct from the content creator: In the case of direct content consumption, the viewer follows the given content creator s channel, and by subscribing, is immediately notified of a new upload. Via an intermediary curator: In the case of mediated content consumption, the viewer does not follow the given content creator s channel and discovers the video through an intermediary individual s share. 30

31 Via external embedding: A form of mediated content, when the viewer discovers a video through external - outside of VIDDO - embedding. Content monetization (uploads and shares) - Business Model After a preliminary registration, our site enables the publication of content for a minimal (4 cents) uploading fee. VIDDO also charges a moderate (cent/min) monthly storage fee for uploaded videos, which appear in the uploader s channel. From the first view on, VIDDO provides an opportunity to monetize content, with the earned amount varying according to how the given content is accessed. For the sake of clarity, we will use a 100 VIDDO Point (1 USD) priced video to demonstrate the difference between direct and mediated content consumption models. (I.) case: Direct content consumption: In the case of direct viewing, the content creator receives 75 VIDDO Points for each individual view. 31

32 (II.) case: Mediated content consumption: In the case of mediated content consumption, the video gets from the content creator to the final user (viewer) through a curator (e.g. one discovers that a video was watched by a friend and decides to watch it himself). In this case, the curator also has a claim to viewership generated revenue, equal to an amount of 25 VIDDO Points. Advertising system VIDDO s advertising system is unique in that its users also earn AdPoints by watching ads, which they can later use to pay for content. Advertisers pay to purchase consumer attention, which supports the development of a new attitude towards ads from the user. The advertiser determines the amount of AdPoints payable for one view of its ad, which - sticking to the previous example - we demonstrate with 100 VIDDO Points. (I.) case: Flow advertisements Flow ads are those ads which are placed within the VIDDO platform, where it spreads via users views. In this case, the advertisement costs a total of 150 VIDDO Points, from which the viewer receives 100 AdPoints and VIDDO receives 50 VIDDO Points per view. 32

33 (II.) case: Embedded ads The system allows ads from the VIDDO platform to be embedded on external sites, in which case the embedding media owner also receives a part of the ad revenue. If the consumer sees the targeted promotion in an embedded (mediated)form, then the ad spend is complemented with 50 VIDDO Points per view, which is paid to the media owner (making it a total of =200 for the advertiser). 33

34 Under the hood of VIDDO THE VIDDO BLOCKCHAIN VIDDO employs blockchain technology, which ensures a completely transparent payment system for ProAccount users. Daily closing data, logged using blockchain technology, is decentralized and immutable, ensuring accurate payment between VIDDO and ProAccount users. These are the data points that are automatically stored: For videos: Number of Likes/Dislikes Comments Number of views Source of views (country) Viewer s age Viewer s gender Viewer s area of interest Device used to view (mobile/web/application) Daily viewership data Comments For profiles: Viewer s age Tags Total view count Total number of channel followers Source of views (country) For ads: Comments Number of views Viewer s age Viewer s gender Source of views (country) Tags by the owner or others With blockchain technology, anyone can get an unbiased view of a channel s performance and value. 34

35 TECH STACK During the research phase, the team analysed several cloud service providers. Partner demands included, overall trustworthiness, robust technological background, high-quality support, welldocumented and managed services, responsiveness and availability, and scalability. Furthermore, working with a LINUX based system was a priority, to allow for auditable source code and customizable systems. These systems are license-free, which also serves VIDDO s business effectiveness. As VIDDO is a global service, any service provider that we selected had to be able to serve users on any continent. After the research process, VIDDO s management determined that the service that best met these demands is, AMAZON AWS (Amazon Web Services), officially established in 2006 with the goal to provide services for other websites or client-side applications. Most of their services are not marketed directly to end users, but rather to website developers. Services are available via an HTTP protocol with REST and SOAP APIs. Amazon s services are fulfilment based, that is, all services are billed based on use, but usage is measured differently across services. AWS s popularity has grown significantly since its launch. Well-known users include NASA, Pinterest, Netflix, HULU, Disney and the CIA. While Amazon did not qualify the amount of revenue earned from Amazon Web Services, in its annual report (listing it under other ), observers predict that it is around 5 billion USD. AWS regions should not be imagined as a server room or data centre. According to AWS s own definition, one region is a conglomeration of many availability zones, to which CACHE / CDN edge locations are added. Furthermore, availability zones are also not singular data centres, because multiple headquarters together provide the services - this guarantees a truly effective distribution of payload and redundancy and allows for the 99,99% service uptime that AWS guarantees for most of its services. PROPRIETARY VIS SYSTEM (PATENT PENDING) Our Viral Influencer Sales* * (VIS) system is a state of the art sale/resale solution for online businesses. It incorporates a standalone commission clearing method, novel advertising models, and advanced product or service organization model. 35

36 The VIS* * system logic is modelled on two of the most powerful sales tool today: word-ofmouth sales and influencer / micro-influencer endorsements. By translating these tools into a trackable and measurable sales method, the VIS* * system is proved to make any online sale faster and effective than ever before. The VIS* * system enables product or content sale distribution based on recommendations, making virality a natural component of the value chain. The transparency of the VIS* * model is provided by the VIS* * Point-based payment system. The VIS* * system is the only white-label solution today that utilizes the power of online communities through fair revenue distribution for everyone. Patent pending. No

37 VIDDO Extensions VIDDOTOKEN.COM (Q4 2018) In-platform advertising space for VDT sellers Viddotoken.com is a marketplace, which helps VDT owners to sell their VDT tokens to users needing them for registering a ProAccount on VIDDO. Viddotoken.com will go live simultaneously with VIDDO.com and will be available globally from Q Viddotoken.com is simply an advertising space for VDT holders, where increasing demand for ProAccounts will generate traffic of potential buyers. No commissions, no fees, no complicated bidding options: only instant selling of VDT. 37

38 VIDDO SHOP (Q2 2019) VIDDO Shop is a standalone webshop where users can immediately purchase any product featured and tagged in a video on the VIDDO platform. By opening an additional revenue source, content creators are motivated to showcase purchasable products in their videos. Content consumers are offered products in a native environment rather than through intrusive ads resulting in a significant increase of in-content purchases. VIDDO and the VIDDO Shop can be accessed through a single VIDDO account. The VIS system ensures the traffic and revenue generated through products promoted by Content Creators and influencers are measured accurately. 38

39 The VIDDO Token (VDT) 39

40 VDT: A REAL-WORLD UTILITY TOKEN As part of our ICO campaign, VIDDO Limited is going to issue 100 million VIDDO Tokens (VDT) using the Ethereum smart contract system (ERC-20). The utility behind the VIDDO Token (VDT) is the right to open a VIDDO ProAccount. The VIDDO platform itself will be accessible after registration. Any user that s registered on the platform has a Basic Account with full access to the core features of VIDDO. To upgrade to a VIDDO ProAccount and access exclusive monetization options the user needs to purchase a VIDDO Token and buy a ProAccount within the VIDDO platform. VDT is the only way to open or upgrade to a ProAccount. Instant demand for VDT 100 million VDT tokens issued means that the number of ProAccounts available on VIDDO are limited at 100 million. Demand will be huge! Just consider these numbers: 58% of internet users uploaded video recently 19 an est people (of 1.5 B users) uploaded video to YouTube alone 20 despite the fact that 80% of them will never make any money! Youtube requires views before it even considers to put an ad next to your video On VIDDO you get paid from the very first view. And it will cost you next to nothing to upload a video and start monetizing VDT tokens play an integral role in launching a disruptive business environment where every video stakeholder (content creator, content curator, advertiser, media owner, the community itself) has the potential to monetize. During the ICO Token Sale 39,000,000 token will be made available to the public

41 USAGE OF VDT VDT token holders will have access to advanced features in the VIDDO ecosystem if they choose to convert their VDT into a VIDDO ProAccount: By converting their VDT into a VIDDO ProAccount, token holders can own and operate a channel on VIDDO. A number of features are only accessible for ProAccounts on VIDDO: o VIDDO Point conversion to USD and direct deposit to the user s personal bank account. This easy pay-out will make VIDDO popular for video creators of any size or background. o Uploading products to the VIDDO Shop, tagging and marketing them in VIDDO videos. o Uploading advertising content on VIDDO. The maximum number of VIDDO ProAccounts is limited to 100 million, which will create an ever-growing demand for ProAccounts as VIDDO matures in the market. ProAccount price will be set by market demand, therefore VIDDO envisions a steady increase in the value over time. The first 20 million VIDDO ProAccounts are reserved to be opened exclusively by VDT token holders. FURTHER POTENTIAL IN VDT In parallel with VIDDO.com, the company will launch viddotoken.com, a place for token holders who are not interested in converting their token into ProAccounts to sell their VDT. By creating an open advertising space that helps VDT holders to sell their token, VIDDO aims to provide liquidity. THE PROCESS FOR REDEEMING VIDDO TOKENS (VDT): Step 1: users purchase VDT during the token sale Step 2: users open a ProAccount using VDT tokens on viddo.com Step 3: by uploading and sharing video content on the viddo.com platform users collect VIDDO Points, which (with a ProAccount) can be converted into USD and deposited into the user s own bank account on a monthly basis. VDT can also be sold on viddotoken.com. 41

42 VIDDO ICO ICO TIMELINE AND DETAILS VIDDO Public sale starts on 27 th Aug Whitelist opens on 31 st July 2018 Total no of VDT: 100,000,000 Soft Cap: ~ USD Hard Cap: ~ USD Accepted currencies during the ICO: ETH, BTC, USD, EUR Whitelist: Yes KYC: Yes Restricted countries: USA, China 42

43 Token allocation * not sold until first 20 million ProAccounts are opened with VDTs from Token Sale 43

44 SOFT CAP / HARD CAP SCENARIOS The difference in the two roadmaps affects our technological development, as well as the marketing budget allocated towards user acquisition. Soft cap 1.5 million USD In line with our detailed roadmap, after the product s functional (alfa, beta) testing the VIDDO online video sharing platform, as well as the VDT secondary market VIDDOTOKEN.COM website will be globally available in Q In this case, VIDDO will work with full functionality, but the lower amount of funds will significantly decrease the product s go-to-market budget, which may result in a more moderate pace of user acquisition. Hard cap 15.8 million USD Reaching our target investment allows for the development of new, innovative functions in the VIDDO system, the launch of our own production program, support for content creators and simultaneously the ability to reach a wider user base using more effective marketing tools. Target audience and the marketing channels are described in detail under the Go-to-market and marketing strategy heading. 44

45 HARD CAP HIGHLIGHTS Technological developments: VIDDO application: Native application development for android and ios systems. VIDDO Shop: The VIDDO Shop is a functional webshop that works with the VIDDO platform, created to support the frictionless sale of highlighted products in a content creator s videos. It s similar to VIDDO in system complexity and is thus considered an independent project. Amazon Web Services (AWS World): The optimization of Amazon s system integration, and the improvement of the service s technological background. Accelerating video buffer times will directly enhance the user experience. Cryptocurrency payment: VIDDO is a committed supporter of crypto s advancement, so in addition to traditional payment methods, the platform will shortly support payment by the world s leading cryptocurrencies. Market expansion: Regional expansion: Additional funding provides an opportunity to rapidly grow our service offering to Asian target markets including Japan, India, as well as South Korea. The founders will expand their current Malta and Budapest office locations with additional offices, first in New York and followed by Seoul in Q Using channels that ensure targeted reach: Reaching our defined target investment greatly influences the marketing tools that we can use, which directly impacts the amount of time needed for active user acquisition. Greater funding allows us to reach out to content creators, influencers, and industry players with extensive follower bases and purchase power, directly resulting in faster user acquisition. Using IntroPoints: The IntroPoints are the most common and most important tool for making new users understand how VIDDO works. It s a crowd teaser to launch the platform. Supporting content creation: Launching a sponsor program, supporting content creators with high potential. 45

46 VDT CHARITY PROGRAMME VIDDO not only pledges for the fair revenue distribution in the video content industry and the protection of intellectual property, but the company also believes that it s our duty to share our success with those who pledged for the betterment of our society and environment. Therefore, VIDDO runs a charity campaign during the ICO, where the VDT token holders and the community will have the chance to suggest goodwill organization to whom VIDDO will offer overall 1 million VDT VDT: Child, youth and women s right and welfare VDT: Protection of copyright and intellectual property VDT: Environment and animal protection VDT: Education In each category 5 organization will receive VDT each, overall 20 organizations will receive the charity VDT. VDT token holders and the community will have the chance to nominate organizations and vote on them afterward. VIDDO is going to select 2 organizations by category, and the community will select the remaining 3 by public voting. 46

47 The VIDDO Group The VIDDO Group was launched in 2017, with the aim to develop the VIDDO online video sharing platform and introduce it to the global market. The group currently consists of two combined businesses, to which we will soon add offices in New York and Seoul. Malta- parent company: The parent company that controls the organization, whose responsibilities include the launch and coordination of the ICO, as well as the execution of the product s strategic and growth roadmap after its introduction to the market. Malta was chosen as the group s headquarters in order to comply with ICO legal regulations. Budapest- DEVELOPMENT, OPERATIONS: Due to the low cost of development and significant, primarily IT related know-how, the VIDDO platform s development and later its operations tasks will be done in Budapest. New York- USA HEADQUARTERS: The centre for coordinating growth in the US. Our subsidiary, headquartered in New York, is already undergoing registration, and the office is expected to open in Q Seoul: If we reach our target investment, VIDDO can also expand to larger user bases in Asian markets, which the founders plan to initiate by opening an office in Seoul. 47

48 Roadmap FROM IDEA TO PRODUCT 2016 encompassed the project s preparatory phase, which included creating and developing the initial concept, mapping out the legal and business background, and establishing the software systems (servers, payment, analytical software, ERP software). The concept was visualized in a design prototype 1.0, then further iterated and reconceptualized to produce the 2.0 prototype that was used as the foundation for product development. The development team was also recruited and onboarded during the preparation phase, allowing them time to do preliminary technological research and lay the foundations for the development of the MVP 1.0 and the market-ready software in The completion of the VIDDO online video platform in Q is the result of 18 months of development by a 20-person organization. Financed by the founders, the cost of development so far exceeded 1 million USD. The development phase will conclude with beta testing, parallel with the collection of preliminary content, and the website s launch for alfa users. Sales activity, planned for Q4 2018, will concentrate on the US market. 48

49 49

50 Go-to-market and marketing strategy TARGET GROUPS / STAKEHOLDERS Virality is key to VIDDO s growth. Virality, the exponential circulation of the platform s content, will help to get the number of people starting to use the VIDDO services from thousands to millions. The management of VIDDO has developed a go-to-market strategy with this in mind, first targeting content producers and content creators with viral potential, and ultimately reaching end users through them, who will be encouraged to curate. Content creators and advertisers To attract users, a consistent and organized approach is needed towards content uploaders. We identified 3 main groups of VoD content for the first phase of outreach: 50

51 Group 1: High demand Content creators Contains content creators who produce videos with specific value, for which purchase potential is high. In the first round we will reach out to content creators with minimum 1000 active users. Gamers: Gamers reach millions of young people who are addicted to games and game play videos. Today e-sports audience outnumbers that of competitive sports. Youtubers: Youtubers are connected via format, not content. Their goals are both entertainment and follower acquisition. They build loyal follower bases around themselves. How-to videos: These provide solutions for problems that require professional assistance. Besides legal questions, health complaints and financial and tax advice, there are many fields where how-to videos are increasingly popular. Getting fast, online, professional answers to these issues is a growing social demand. Stars and celebrities: Stars, athletes and public figures, who have built a personal brand on their achievements. They have made themselves, their personal brand and their content desirable and marketable. Financial market information: In finance, the bank sector, stocks, and the general financial market, new information as well as its accurate analysis, are content gold. This information can be turned into money, so analysts and experts gladly sell their knowledge. Educational videos: Getting marketable and up-to-date knowledge is an essential skill in the employment market, which makes e-learning increasingly popular. Conferences: Many more are interested in a given conference than the number of attendees. This makes conference speeches and presentations superbly marketable content that enables the comfortable and cost-effective online participation in events. Charity: Foundations, organizations, churches, political goals or even young talent gladly welcomes the support of others. VIDDO allows the option to support causes anonymously. 51

52 Spontaneous content: You can t predict when it will happen, but week after week these videos break the internet. An accident, a heroic act, or a tearful father of the bride may trigger virality. Group 2: Other Content creators These contents have a slightly lower purchase potential, but still able to open the wallets. Sports events: An unbelievable amount of content has been and is being created, from match and competition trailers to live coverage, from training sessions to expert analysis. Music videos: Starting with classical music, where a concert is often one of its kind: one-time-only and unrepeatable. From opera to DJ sets, there is a demand for high-quality, visually complemented music. Hi-fi concert recordings are increasingly popular, allowing distant listeners to enjoy the music in its fullness. TV: Traditional television has produced an unbelievable amount of programming since the launch of the first TV channel. VIDDO content will comprise an organized online library of programs, as well as content created specifically for the media owners VIDDO channel. Movies: Similarly, to TV, movie industry has also amassed a large amount of content, from B-side Hollywood movies to long-lost art movies. Gastronomy: Gastro fanatics out there are hungry for the content from the celebrity chefs of the food revolution. Torrent: The days of torrenting are numbered. Content creators are rightly suing the pages that are sharing their content illegally. VIDDO s goal is to send a message and offer an alternative: legalize your activity and monetize on VIDDO. Informative content: 52

53 In the world of science, the discovery and dissemination of new and validated information in itself is a value. Universities, organizations and doctors often can t avoid purchasing this information. Stand-up comedy: This is comedy s most popular genre, but with so many performers out there it s impossible to go to every show, making purchasable content online increasingly popular, even while finding it is difficult and badly structured. Group 3: VIDDO Plus uploaders The III. group contains those content creators that upload VIDDO Plus videos, advertise, promote, pursue follower acquisition, or build awareness around an important issue. Advertising, media and communication agencies: The VIDDO system is great for specified ad placement and targeted reach. By filtering user profiles to areas of interest or other segments, advertisers can reach out to their real target audience, who are motivated by VIDDO to consume ads. Politics: Different political groups can use VIDDO to target their messages and build their supporters base. Organizations, foundations: Getting their cause, message and information to potentially interested groups with the help of VIDDO Plus videos and building their own VIDDO channel and support base. 53

54 Teasers, trailers: The promotion and introduction of different content (available on VIDDO) to an audience. Building up follower base for new series and new VIDDO channels with the help of the VIDDO advertising system. CURATORS VIDDO s growth, and the viral spread of content is hugely supported by curators, those users, who don t create their own proprietary content, but command a loyal and active follower base. Curators share and embed content they find interesting, growing both the content s viewership and VIDDO s user base. As curators get a portion of the revenue from the viewership, they are motivated to share content, thus providing content virality to videos on VIDDO. Curator categories based on their potential are: Inactive curator: doesn t market, only consumes content Amateur curator: markets content in an ad hoc manner; expected new user acquisition through their activities is between users Semi-professional curator: starts mindfully marketing content and is a known and credible figure in their own circles and social media channels, actively using their reach for promotion. Expected reach through their activities is between new users. Professional curator: works as a mindful influencer, commands a large follower base through strong social media channels. Expected active follower base is new users. Virality from curatorial activity can grow a video s viewership, and thereby the number of active users, by 50-60%. USERS Consistently published new content is the basis of an active and engaged consumer base. We must ensure that users continuously discover new and personally relevant, preferably VIDDO exclusive - or paid platform exclusive - content. This starts by reaching out and onboarding a content creator base that will automatically expand our user base. Go-to-market VIDDO s goal is to go-to-market with minimum 1,000-1,500 videos available on the platform, ensuring that there is enough content for new users to explore. One content creator is expected to upload between 5-30 pieces of content after registering, so the minimum goal before launch is the acquisition and registration of content creators. Expansion New uploaded content and the ongoing registration of content uploaders will guarantee the consistent and rapid growth of VIDDO s content library. The direct effect will be an already 54

55 sizeable, and ever-growing content library for newly registered users from their first moment on the platform. VIDDO s customized recommendation and search functions also encourage users to discover new content. COMMUNICATION CHANNEL STRATEGY CONTENT CREATORS VIDDO uses multiple channels to reach content uploaders. VIDDO s own SSC (Sales Service Center) plays a big part in this. Beyond this, VIDDO will build on agencies, the VIDDO Academy system, VIDDO media ambassadors and paid ads, as well as the support of content creators. Sales Service Center The first task of SSC managers in the go-to-market phase is the active discovery, outreach and onboarding of content uploaders and influencers, with the goal of accumulating content. Agencies VIDDO wants to work directly with talent agencies with significant client lists. The primary task of these companies is to maintain the appearance and activities of the creators, stars and celebrities that they manage, and to manage and market the content that they create. A relationship with a given agency partner could greatly grow VIDDO s creator base. VIDDO Academy VIDDO Academy will be one of VIDDO s marketing channels, available on the viddoacademy.com website and through live presentations. Its goal is to popularize VIDDO through education, and to get as many people as possible to start using the platform. VIDDO Academy is for anyone who wants to learn more about how to use VIDDO and the opportunities the platform affords. There will also be content that concentrates on specific opportunities for a select audience. These groups could be media, music, managers, TV channels, or movie industry players, just to list a few examples. Those media partners interested in VIDDO through the academy could become ambassadors. VIDDO Academy will get educational material to an interested audience in two ways, and users will decide what channels they want to learn from: o o Online educational website: Educational videos about VIDDO s functionality, so-called anchor videos, in which a successful VIDDO user will talk about their success in a given area. Live presentations, courses: Courses will be segmented for various target groups. Anyone that completes the VIDDO instructor course and purchases the instructor license can present. The individual then becomes a VIDDO ambassador and evangelizes VIDDO. There will be two types of instruction: o Free, conference style instruction, where large audiences hear general information about VIDDO. 55

56 o More detailed, user group segmented, paid courses, that will be promoted to the audience during the free events. E.g.: legal courses on copyright laws MEDIA PARTNERS In addition to the listed outreach channels, specialized content creators can also be reached through the media channels that they consume. These are primarily relevant electronic media or editorials in the content creators area of interest. VIDDO plans to use ads on these platforms. Content creators can be attracted to use the platform with the promise of more effective monetization and revenue growth, and if they become VIDDO ambassadors, even more users can discover VIDDO through them. Planned marketing channels and tools: o o o o o o Growth Hacking: Direct connection with content uploaders through the contacts and data gathered by SSC. Social media and chat pages Introductory video: visual introduction of the VIDDO system that highlights its advantages specific to the target group. The goal is the direction and education of target individuals to the landing page (registration page). Anchor video (targeted example): As our content library grows, we will introduce particularly high-achieving videos on the platform using case studies, to further persuade creators producing content on different topics. Landing page: The main goal of the landing page is registration and the facilitation of that process. A publicly available, shareable website link will be used by the SSC2 group through indirect requests (comments, forums, social media, other platforms). PR/Native articles USERS, CURATORS Reaching them does not require substantially different marketing tools. User outreach will primarily happen in two ways: o o A VIDDO content creator or curator reaches them with relevant content. This option largely relies on the user knowing and following the content creator on different channels, and ultimately following them to VIDDO. Paid VIDDO marketing: The business plans to reach a wide audience through the paid social media campaigns described above as well as PR appearances. 56

57 Financial background TOKEN SALE FUND ALLOCATION The pie chart below exhibits the allocation of funds raised from the (VDT) token sale. Funds allocation from the token sale (%) Most of the funds will be allocated towards business development (charting target markets, analysing product development opportunities in a given region, developing outreach strategies) and marketing costs, while a smaller portion will cover development, legal and general operational costs. In order to raise awareness about VIDDO, the founders will reinvest any financial profit earned in the next 5 years partially or completely into the company s retained earnings. The company will allocate approximately 2% to a savings fund to cover any unexpected costs that arise. 57

58 INCOME SOURCES After VIDDO goes to market, the company s revenue will come from a number of simultaneous revenue streams: I. Revenue from content consumption (video purchase) A majority of VIDDO s revenue will be made up of payments for video consumption. This correlates with the number of unique users on the platform, the average monthly video consumption of a user, and the average value of user transactions. II. Ad revenue Ads uploaded to the platform, shown on VIDDO.com or embedded on an external medium yield a commission to VIDDO after each view. VIDDO s revenue - depending on how the ad is accessed - is between 25-33% of the entire advertising budget. III. Video upload fees VIDDO charges a one-time fee for uploads based on length in minutes. The fee varies depending on how many videos are uploaded in the given period of time and how long the videos are. IV. Video storage fee VIDDO charges a fixed fee for video storage, at a rate of 3 VIDDO Points per uploaded video. V. Profit from VIDDO Point exchange VIDDO profits from a small mark-up on VIDDO Points sold. App. 0,00045 USD per VIDDO Point. VI. Supplementary income For example: commissions after VIDDO Shop transactions VII. VIDDO ProAccount sales revenue After the ICO and 20 million ProAccount registrations (benefiting Token Sale VDT holders), VIDDO will start selling its own tokens. These will be purchased by user upgrading to VIDDO ProAccount. 58

59 COSTS Due to the company s service profile, cost structure is dominantly influenced by variable costs. After the product goes to market, these are the most important operating factors: Pay-out: registered ProAccount users can exchange VIDDO Points (earned from views, shares and/or embeds) into cash once per month. Service provider costs: Service costs include expenses related to the encoding, streaming and storage of uploaded content. The amount of these costs directly correlates with platform activity (content uploading/viewing, stored data). Marketing costs: Marketing costs include mapping out target markets, brand awareness campaigns, agency fees, and outreach to creators, influencers and media figures to drive viewership and sales. The biggest part of the marketing budget is allocated to capturing the US market, where the team expects to acquire the most users. IntroPoints: A unique and innovative way to acquire users. Newly registered VIDDO.com users automatically get tokens, which they can use to pay for content. IntroPoints are tied to the consumption of introductory VIDDO content (e.g.: educational videos). Supporting content creation: Our goal is to guarantee relevant, fresh content on the VIDDO platform, so some of the funds from the token sale will go towards supporting content creation. VIDDO will incentivize the creation of VIDDO exclusive content, by partially covering production costs for creators with larger follower bases (Gamers, Influencers, etc.). Team expansion: The product was developed by the business s own team. The first round of team expansion will take place in the months before we go to market, and by the end of in parallel with our international expansion - our team will reach a planned 290 people. 59

60 SCENARIOS I. Likely Scenario The user numbers in the first scenario are conservative estimates compared to what we see on today s global social media and video platforms. The follower bases of services currently available on the global market have between 30 million to 1.2 billion users each. The VIDDO team aims to reach, engage and onboard a fraction of these users to VIDDO. 60

61 II. Small Scenario 61

62 III. Big Scenario 62

63 The VIDDO Team 63

64 FOUNDER - INVESTORS VIDDO is an EU based enterprise with offices in Budapest and Malta. The founders of the company have been working to realize their idea for years. They also put their money where their mouth is: they have invested 1 million US dollars worth of resources (coming from their other ventures) into the project so far. VIDDO s founding team is: László Tamás (Founder, Chief of Strategy): László is a strategist from head to toe. A problem solver, unmatched. He has 20+ years track record of building companies up to 100 employees. Apart from having a stellar business acumen, László is also a trained and experienced stock market and financial specialist. László is currently directing manager of VIDDO, his responsibilities include developing and executing growth strategies, securing investment, partner relations, and supervising operational and financial activities. Gábor Sipos (Co-founder, CEO): Gábor is a seasoned marketer and leader of ventures small and big. His 20+ year track record include leading the country business operations for Nestlé Hungary, being the CEO of Chello Europe, one of the leading broadcast media companies in the CEE region. At VIDDO his responsibilities include daily operations, general coordination of business activity, supervising KPIs, business development, as well as supervising and assisting marketing and go-to-market processes Dr. Gábor Habó (Co-founder, International law): Gábor is a seasoned lawyer, leading his own firm specializing in business law. At VIDDO, he is a legal representative, responsibilities include handling any legal questions that arise about the site, preparing contracts, representing the company, and preparing legal documentation for investments. 64