Follow-up: MTGx Investor Presentation

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.

-P

Did you find this post interesting, controversial or dumb? Leave a comment below or send the author a tweet (@Chronoo).

Why Acer Why?: Acer Aspire R7 Advertisement

Why Acer Why? read a Reddit post, and included a link to the following picture of an Acer Aspire R7:

Acer Aspire R7, Why Acer Why??!

Acer Aspire R7, Why Acer Why??!

The striking thing about this laptop is the fact that the touch pad is above the keyboard, which is unusual to say the least, usually the touch pad is below the keyboard. It is not entirely obvious why Acer would design it like this, makes moving the cursor around quite awkward I would think.

Luckily Reddit delivers and links to the advert for the R7, and it is pretty damn good. Doesn’t actually justify the touch pad but the advert itself is very nice and almost convinced me to buy one. (Okay, that is a lie). If nothing else I would like a nice cappuccino right now. Check out the ad below, it is really a good advert that conveys a feeling of exclusivity, usability and humour without being cringe-worthy.

 

I think the ad has potential to inspire purchase but it is not really weird enough to go viral. I am not sure who created the ad, I was not able to find it out but it is likely that it was Red Peak Group, who currently handles their brand. If I was a bit cynical, and I am, I would say that the Reddit post I previously linked to was posted by someone associated with Acer, in order to minimize the harm to the brand that a Reddit post like this could cause. It may be astroturfing but in my opinion it was relevant to the discussion and did add value to the users (that is, got to see a good advert) so not much harm done, if any.  Overall, a good campaign that hopefully results in decent sales for Acer – innovative design is always good for the consumers in the long run and if no one took any risks the laptop/tablet space would be boring.

The advert is nowhere close to the brilliant level of marketing that Old Spice managed with their recent campaigns. The Old Spice Guy commercials managed to turn a boring old brand for your grandfather into something cool, exclusive and perfectly targeted, but more on that some other time.

-P

Did you find the post interesting, controversial or dumb? Leave a comment below or send the author a tweet (@Chronoo).

The Economics of Youtube: Earning money on Youtube

Youtube Cashcow

Youtube Cashcow

Today I discuss the topic Economics of Youtube & earning money on Youtube. Also talk about advertisement on Youtube, CPM, Fixed CPM and making money from merchandise. As well as showing an example guesstimate of Youtube revenue from Yogscast. Check out the video below or click here to view it on Youtube.

The video includes the following topics:
CPM – Cost per Mille
Fixed CPM
Only legitimate views count – An ad must have been shown.
Yogscast – 4m+ subscribers, close to 1.9b views on the main channel

How much does Yogscast earn?
We don’t know! However, here is a guesstimate based on views.
1.8b views on the main channel.
Estimated CPM: $2 – On the low end
1.800.000.000 / 1000 * 2 = $3.600.000
Revenue from t-shirts? At least £5 per shirt

Can I make it on Youtube?
Probably not, but neither can I!
To make a close to decent living you need at least 1.000.000 views per month
Legitimate views!
For the love of god, have a backup plan! Don’t quit your job just yet!

Feel free to follow me on Twitter: @Chronoo or subscribe to my Youtube channel: TVChrono