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SaaS Interviews with CEOs, Startups, Founders

1183 Why 200 Enterprise Clients Pay Him $10m+ to Scale Video Production

20 Oct 2018

Transcription

Chapter 1: What is the story behind the founding of Watch It?

0.031 - 12.994 Nathan Latka

He wishes he was maybe less arrogant and listened a little bit more. But look, he's having building a lot of success. How to exit. Then in 2012, jumped into a company called Watch It. Got a good partnership going with Gannett. A little internal competition at Gannett proved that there was definitely opportunity for him to scale this product.

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13.014 - 26.231 Nathan Latka

Since then, he's raised 29 million bucks in helping enterprise brands, over 200 of them. Scale their video content and video production across many of their horizontal teams. Average first year ACV about 50 grand. Lifetime value minimum 300 grand, but many clients paying way more than that.

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Chapter 2: How does Watch It help enterprise clients with video production?

26.291 - 53.967 Nathan Latka

Payback period super healthy at less than six months with our team of 60 based between Israel, New York City, and London. This is the Top Entrepreneurs Podcast where founders share how they started their companies and got filthy rich or crash and burn. Each episode features revenue numbers, customer counts, and other insider information that creates business news headlines.

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54.127 - 76.43 Nathan Latka

We went from a couple hundred thousand dollars to 2.7 million. I had no money when I started the company. It was $160 million, which is the size of many IPOs. We're a bit strapped. We have like 22,000 customers. With over 5 million downloads in a very short amount of time, major outlets like Inc. are calling us the fastest growing business show on iTunes.

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Chapter 3: What is the average revenue model for clients using Watch It?

76.911 - 100.234 Nathan Latka

I'm your host, Nathan Latka, and here's today's episode. Hello, everyone. My guest today is Jor Ginsberg. He's the co-founder and CEO of Watch It. He's also a pioneer in automated video creation, developing the platform to help brands and publishers produce short form video content at the scale and speed needed for today's video first mobile audiences. Jor, are you ready to take us to the top?

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100.254 - 102.838 Nathan Latka

Absolutely. All right. Tell us. Yeah, you bet.

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Chapter 4: How has Watch It scaled its operations since its launch?

102.878 - 106.363 Nathan Latka

Tell us about Watch It. So what's it do? And then what's your revenue model?

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107.272 - 123.38 Jor Ginsberg

So Watchit is a video creation platform in the cloud. It helps anyone who wants to tell a story to make it quick and easy. It's a combination of, I would say, three elements very quickly. It's automation. We automate some of the process. That said, it's not about complete automation because it's about video storytelling.

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124.021 - 128.629 Jor Ginsberg

But there's a lot that you can automate, such as, I don't know, you have a 16 by 9 video and you want to turn it into a square.

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Chapter 5: What challenges did Watch It face in acquiring enterprise clients?

128.669 - 151.605 Jor Ginsberg

That's something that we automatically do. But clearly, lots of stuff on there. Creative tools, which are needed, meant for non-videographers to produce amazing results, but without any prior knowledge. And last but not least is content, raw content. When you want to tell a story, you need to have the raw footage. So we teamed up with the likes of Kitty and AFP and Reuters and AP and Amazon.

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151.872 - 167.462 Jor Ginsberg

And so many others to have basically solved two problems. One, we cleared the licensing on all the content being used on a platform, and then we cleared the redistribution, right? So you can put the assembled video on your... It's like a Shutterstock model. In a way, but we basically get all of our content and makes it accessible to our clients.

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Chapter 6: How does Watch It measure customer success and expansion?

168.103 - 176.511 Jor Ginsberg

You put all these together as automation, creative control content into one platform that basically enables you to turn a story into a video within about 10 minutes.

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176.691 - 182.217 Nathan Latka

And are you working mainly with enterprise brands doing this at scale or like vloggers and lifestyle kind of creators?

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182.977 - 185.9 Jor Ginsberg

Yeah, I would say top down, mostly with the big guys. Okay.

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186.361 - 189.844 Nathan Latka

So, I mean, give me a sense on average and what's an average customer paying you per month for this?

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190.82 - 198.151 Jor Ginsberg

I know it varies. It varies, but I don't want to get into specific pricing because clearly it may differ from one client to another.

198.191 - 203.759 Nathan Latka

Yeah, I'm just talking about an average. I mean, are we talking a grand a month, $100,000 a month, $10,000 a month?

204.76 - 205.942 Jor Ginsberg

It varies.

Chapter 7: What marketing strategies does Watch It employ to attract clients?

206.743 - 218.411 Jor Ginsberg

First of all, it depends eventually on volume. And usually our clients commit to a certain volume of production. So it could be that they pay on an annual basis anywhere from 50 grand, but it can go up to close to a million.

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218.431 - 228.589 Nathan Latka

OK, it's fair to say, though, your minimum, generally speaking, is around 50 grand. More or less. OK, and what does that get? What are people committing to in terms of how much video they're producing for that amount of money?

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229.126 - 234.332 Jor Ginsberg

Very much differs. You know, we work with both publishers and brands. Usually publishers need more volume.

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Chapter 8: What insights does the guest share about the future of video production?

235.774 - 246.346 Jor Ginsberg

Brands or agencies essentially would require less volume. Although, you know, the use cases are completely different. One of them is a little bit more editorial. The other one is a little bit more for content marketing purposes.

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246.687 - 250.171 Nathan Latka

How are you measuring volume, though? Is it like number of minutes or is it size of file or what?

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251.052 - 268.932 Jor Ginsberg

Just based on a per piece basis, so to speak. Usually, again, usually the content being created on a platform is short form. It's anywhere between 30 seconds to three minutes. So we don't get into the, we don't get, you know, nitty gritty on the details on if these are 60 seconds or 65, it's just on a purchase.

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268.952 - 276.262 Nathan Latka

Well, I'm just curious what you measure your utility metric around, right? Is it number of videos created? Is it storage space? What is it, right? Is it number of stock videos used?

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276.302 - 277.363 Jor Ginsberg

Number of videos created.

277.383 - 285.514 Nathan Latka

Okay, number of videos created. Great. And these are typically, again, and are more enterprise folks, top-down approach. Tell me more about the backstory here. When did you launch the company?

286.576 - 290.301 Jor Ginsberg

We launched the company in 2012. Okay, 2012. Oh, we're great.

290.922 - 315.732 Jor Ginsberg

yeah 2012 uh started you know with a with a with an idea originally and we built a product and then we wanted to see so to speak if the dogs eat the dog but we started bootstrapping it creating um content ourselves and syndicating it out there just to see how it works it did pretty much work very well and very soon after we started basically opened up the platform for our clients to use it on a

316.049 - 329.497 Jor Ginsberg

So to speak on a SaaS basis, as I said, we sell it on a volume of production basis, but essentially it's very close to a SaaS business. And then moved on to publishers. And later on, we started marketing the platform or similar platform to agencies and brands.

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