I’ve finally had a chance to properly look at MTGx‘s investor presentation that Rikard Steiber posted on Twitter a few minutes before my last post went live. I apologise for the delay but my master thesis had to take priority 😉
I will not discuss everything presented in the slides, but on the parts that specifically interest me.
[Edit: Embedded the slides, had forgotten you could do that with Slideshare]
xVentures: MTGx incubator/investor arm. xVentures is very interesting as they can actually offer startups a lot than traditional incubators and investors lack: advertising and sales infrastructure. Both of of these are usually a problem for startups and one thing is for sure, MTG knows their advertising. From the slides (The Pitch):
60 channels in 35 markets
TV operator, Radio, Digital
Media cross promotion
Content cross creation
Local sales force to sell
Local editorial to curate
Ability to advertise in 60 channels across 35 markets? That is an amazing opportunity for most companies and startups in particular. Let’s not forget that MTG(x) are used to selling B2B. I am quite positive they can assist startups with marketing (Sorry, most people (including myself) are just not as good at marketing as we think) and pricing.
Viagame: I could not really understand why MTGx would spend the time and money on Viagame, it is, as I said in my previous post, a deviously hard market to make a decent buck in and they basically had nothing that differentiated them from the competitors. I was wrong. They do have one thing, which is mentioned in the slides: Leverage unsold TV inventory to drive online traffic and sales.
Leveraging the unsold inventory, where they were unable to sell advertisement, to generate (some) revenue. It is quite brilliant. The margins on each sold game are probably around 15-30% (I believe Steam takes ~30% from game sales), which is a healthy margin for relatively small investment on MTG’s part (Shelf-ware distribution tool, basic adverts for Viagame etc). The unsold inventory would otherwise be ‘wasted’, now a profit can be made, albeit smaller than if the inventory had been sold but it helps smoothing out the revenue streams – no/smaller dips in revenue if inventory goes unsold.
xCreations: ‘Youtube style’ production/content (my own interpretation). Rikard Steiber correctly identifies that ‘old media’ have not been very good at embracing Youtube and they, in my opinion, have often failed to create the type of content that the Youtube viewers expect, thus it makes sense to create a small and innovative team to embrace the Youtube-styled content. Perhaps on their own platform, perhaps not.
I would love to see production companies embracing gaming content (my personal favourite among the Youtube content). eSports on Youtube, game play commentaries and Let’s Play are quite big business these days and they could be so much more with proper production companies behind them. Companies like Yogscast have come a long way with their production, they got a really good crew going right now, and they are still growing, but many others are still 1-3 man operations and could use a good production crew. Yes, I know they get support from Maker studios/The Game Station etc. but it just doesn’t have the same finesse as traditional production for the most part.)
The slides make me even more excited to see what MTGx has in store for us. Will the be successful? I don’t know. I hope so, it would mean more jobs in Stockholm, which is never a bad thing – except if you want to buy an apartment. MTGx still have a long way before they can revolutionize digital media but god knows it is sorely needed. ‘Old Media’ seems to have trouble to adopting to Youtube-style content. More innovation is never bad in my opinion. I will continue to keep an eye on MTGx and other potentially innovative companies in Sweden.
P.S. I should say, if you found these things interesting, you probably should apply at MTGxJobs.com, they seem like nice people and currently got 25 jobs up for grabs. (And no, I have no relation to MTG(x))
Now back to writing my thesis. Perspectives on ES/ERP implementation success (in the onward and upward phase). Interesting stuff if you like large scale implementations of IT systems and the factors that leads to successful implementations.
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