88 mirrors block 3 updatev5

88Mirrors: Block 3 Update

Spencer Holt, Sara Pollack, Roopesh Nair, Nilesh Savkoor

Business Model Canvas

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

Assessing Other Verticals

Target verticals What we learned from our interviews

Financial Services Every financial service professional we spoke to agreed that a social network was a true need for their industry. However, the needed social network was to connect professionals with potential clients, not with other professionals. The type of network that connects professionals with customers (or viewers in the case of filmmaking) is not the same pain point as identified for filmmaking.

Healthcare We interviewed doctors and other healthcare professionals to find that:

(1) Healthcare professionals in large hospitals or HMOs did not have a need for a social networking tool

(2) Healthcare professionals in smaller organizations relied on PPO/PCP networks to find patients

(3) While patients will benefit from recommendations of those in their network, healthcare professionals had little need for it

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.

Reassessing the Film VerticalWho we contacted What we found out # of

professionals

MPAA Nothing

Professional Guilds We contacted 10 major filmmaking guilds and discovered that many of the professionals we are targeting are not members of guilds.

Bureau of Labor Statistics

Those fully-employed in creative filmmaking positions is about 150,000. Those who are self-employed are about 100,000.

250,000

International Film Commissions

The UK employs about 115,000 professionals. Australia employs about 35,000.

150,000

Film Schools We called 12 of the 65 accredited US film schools and estimated a total of 40,000 students. International film schools hold about 85,000 students. We are only considering US film students at this point in time.

40,000

YouTube Partner Program

Roughly 250,000 people are participants in the YouTube Partner Program. We use this number as a proxy for aspiring filmmakers.

250,000

Total of these targeted segments is 690,000 professionals.

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

Revenue Flows

Directors/Producers

Crew B2B Services

88MirrorsTMSubscription fee

Subscription fee

License fee

Ad payments

Licensed Development Tools (eg. AWS)

Ad Network (eg. Google AdSense)

Images of logos used for illustration and educational purposes only. Copyright reserved by original logo creators. VAZZU CONFIDENTIAL.

Pay Per Use Fee

Transaction Fee

Revenue Opportunity

Total estimated

annual quantity

Estimated price range

per unit

Estimated market share in

five years

Projected revenue

Premium Social Network Services

690,000 customers

$10-$20 monthly

2%-15% $1,656,000 - $24,840,000

Ad Revenue 1,410.36MM $5-$10 CPM 20-30% $1,410,360 - $4,231,080

Premium Production Services

Average of 3 per producer

$80-$100 per project

2%-15% $761,760 - $7,141,500

Total $3,828,120 - $36,212,580

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.

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

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

Hiring & Production Today

Story Contact Director

Create Project

Hire Producer

Find Funds

Investor Pitch

IndieGoGo, Kickstartr

Seek Crew

LinkedIn

LA411/NY411

IMdb

Seek Supplier

LocationBudgets Craft Svc

Yelp

CraigslistMandy

Production Hub

Ask Friends

YelpYellow Pages

Craigslist

Ask Friends

Refer Other

projects

Google It!

Shoot Film

Calendar

Google Docs

Excel

Notify crew

Ask Friends

Wait to be found Accepted

RejectedBid

NoNo

Scope Work

Scope change

Movie Magic

Post Processing

Sound

Title Design

Effects

Color Correction

Ask Friends

Good reputation

Ask More

Friends

Good reputation

Ask Friends

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

Our Customers: Professional SegmentSegment: Professional

Customer Type

Characteristics Usage Premium Services Purchase Decision Maker

Above-the-Line Crew

Directors, producers and other decision makers currently making feature films, short films, commercials, music videos

• Create project profile

• Solicit BTL crew recommendations from existing social network

• Review profiles of recommended crew

• Hire

• Create project profile• Payments to BTL

crew• Automated budget

management• E-signature legal

documents• Crew communication

app• Time management• Extended crew

search

• Self

Below-the-Line Crew

Cinematographers, Assistant Directors, Camera Operators, Grips, Gaffers, etc. currently working on feature films, short films, commercials, music videos

• Create profile• Search for

projects in existing social network

• Receive notifications of crew openings

• Apply for positions

• See who’s looked at my profile

• Extended project search

• Self

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.

Our Customers: Student Segment

Customer Type


Above-the-Line Crew

Students in directing and producing graduate and undergraduate programs




• Hire

• Create project profile• Payments to BTL crew• Automated budget

management• E-signature legal


app• Time management• Extended crew search

• School

Below-the-Line Crew

Students in directing, cinematography, animation, editing graduate and undergraduate programs

• Create profile• Search for projects

in existing social network





• School

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.

Our Customers: Aspiring Segment

Customer Type


Above-the-Line Crew

Aspiring content creators currently producing original programming for web distribution




• Hire

• Create project profile• E-signature legal


app• Extended crew

search

• Self/Parent

Below-the-Line Crew

Aspiring cinematographer, costume designers, etc. and other content creators interested in working on original programming for web distribution

• Create profile• Search for

projects in existing social network





• Self/Parent

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.

Who We Compete With

Top 3 Features The Idealists Behance.net Scenechronize Scenios 88Mirrors

Search crew No Yes No No Yes (Trusted search)

Discover/create projects Yes Yes No No Yes (Trusted referrals)

Production tools No No Yes Yes Yes

Social NetworksLinkedInFacebook

Creative CommunitiesThe IdealistsBehance.net

Web based production toolsScenechronizeScenios

88Mirrors

Minimum Viable Product

Home Page

Register Rate/ReviewActivation/

Confirmation

? Login DashboardExisting

User

?

New User

Login w/ FB or Twitter

Dashboard

Dashboard

SearchMatch Supplier

List?

Match Consumer List

Adv Search

System will figure out if the user is a Supplier or Consumer

Consumer Profile

Supplier Profile

? Reach Out

Premium User

Would be filtered recommendations if logged in

?

Premium Service Selection

Payment Confirmation

Home Page

Share Profilew/ personal msg

Hire ??

Beta Site

Prioritizing Premium Services to Test

1. Ability to search for and be introduced to potential crew outside of my immediate social network

2. Ability to communicate with cast/crew (or segments of cast/crew) through group text messaging application

3. Ability to access legal documents, share with cast/crew and collect electronic signatures

4. Ability to manage my production/post-production timeline with custom, web-based project management tool

5. Ability to use custom, web-based budget software with payments to cast/crew automatically tracked in budget

6. Ability to pay cast/crew via web-based payment system

What We’re Doing Next

1.Talking to additional customer segments (schools, aspiring content creators)

2.Adding critical features to MVP to start testing with customers

3.Refining revenue model assumptions

4.Determining feasibility of premium production services

23

Nov 24

Test & tweak beta version, Early Adopter review completed

Oct15th

MVP feature development commences

Sept 3rd

Dev team kickoff

Sept 15th

Preliminary wireframes

Sept 23th

Low Fidelity website developed

Oct 13th

1st rev of product spec completed, market segment & biz model finalized

Nov 10

Implementation of MVP complete

Oct 6th

Survey launched

Oct 3

Update core search foundation of website

Implementation strategy• Customer interviews with Early

Adopters, Mentor/Teaching team feedback, hypothesis validation

• Broad survey on LinkedIn Groups, FB, Twitter, other Media related sites

• Feedback synthesis, and feature prioritization

• Product development and fine tuningKey Deliverables

• Survey results (prod/mkt fit assessment)

• Business model canvas updates• Product Specification• Functional website, with interim

alpha/beta versions

Nov 30

88Mirrors limited

launch

Oct 31

Early adopters join. Provide UE feedback

Sept 10-30

Customer interviews

88Mirrors Launch Schedule (Adv. Entrepreneurship)

Customer Validation: MVP Launch Schedule

88 mirrors block 3 updatev5

Technology

Transcript of 88 mirrors block 3 updatev5