SaaS Interviews with CEOs, Startups, Founders
1197 Sell your video content directly to your audience, $4.5m invested so far
03 Nov 2018
Chapter 1: What is the main topic discussed in this episode?
Take more risks earlier. He is well, deeply embedded in LA and the idea of, again, folks coming up with their own content, putting together a sizzle reel, dropping 50, 60 grand, and then trying to enter a shit show to try and get in front of the right network person and maybe on a lottery ticket, getting a deal done that barely just covers their costs. He says there has to be a better way.
Build Streamy. I don't know if I agree. He's put in four and a half million bucks of his own money. He's more aggressive than I am. I'd want to make money before I put in a dollar, but call me cheap. He's aggressive. He's got a big vision. We'll see what happens. 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. 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. I'm your host, Nathan Latka, and here's today's episode. Hello, everyone. My guest today is JP Fada. He's the founder of a company called Streamy with a mission to leverage technology to create new entertainment experiences.
He's personally funded and operated multiple startups, including a production company, creating non-scripted TV shows. He is talented in the creation and deployment of cross-functional teams to launch concepts to market. JP, are you ready to take us to the top?
I am, brother. Let's do it.
All right. Talk to me about this. So let's just start. Let me let you kind of just whiff for a second. Largest non-scripted TV show you've worked on that most people have probably heard of before is what?
We were involved. Well, actually, we were behind the scenes. So there was a couple of projects that we worked on, which kind of led to the creation of this. One of them was Tobacco Wars, which is probably the largest one. that we, um, we worked on and it was kind of our entry into the actual industry itself. Right.
So when we were doing these non-scripted, it was because a contact was kind of, um, brought to me, we had a small incubation company domiciled in South Florida. And one of the guys, we were more focused, he's focusing on tech. Um, but one of the guys brought somebody who was an ex film producer, an ex actor, sorry, turned film producer. And he was trying to break out in reality based programming.
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Chapter 2: How did JP Fatta start his journey in the entertainment industry?
because they're trying to get the credits, right? The EP credits, the producer credits.
So what would like an HGTV or an NBC, if they're buying an eight episode pilot, right? And really that purchase price is just covering the expenses of production. I mean, how much does it cost to produce a 47 minute episode eight times?
Well, I mean, the budgets are all over the map, right? Depending on the quality, depending, most of it is really gonna be the talent. So at the beginning, you could probably negotiate 200,000 per episode, 100,000 per episode. but it can go up there. It can go up to a million dollars per episode depending on the talent plus, right?
But at the very small level, and that's why non-scripted was so attractive to these networks is that the price point to create that content was very low, right? So they can actually create a lot of, and then it's all ad revenue driven anyway for them.
So where does Streamy come into all this? What's the company doing? How do you make money?
Yeah, so essentially what we did is we realized through this path that we were actually,
trying to um to we realized how tough it was to actually break into the industry on the traditional side during that same process we also realized that there was a heavy migration to digital right so things were moving towards digital um this was around the same time facebook was ipo had its ipo right um so you were getting a lot of of content that was picture driven even on social media video content was probably 30 to 40 percent of the overall content now it's eight
80% plus, right? People aren't even watching as many pictures as they are unless they're Instagram, but most of it is video-based content. So we saw this entire shift happening, but we saw that there were inherent problems with this shift happening, right?
So even present today, a creator or a publisher that's actually trying to develop content, to distribute content digitally, still has to go through certain gatekeepers as they did on the traditional side.
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Chapter 3: What challenges do creators face when pitching content to networks?
So where we're different in a lot of people is the tools that you get, number one, to package your content. The distribution plot that we put together, which is going to be streaming, is one umbrella ecosystem and all of the different monetization and marketing promotional tools that you get.
And in addition to that, supportive services the company will do from branded entertainment, product placement, revenue analysis, and working with our publishing partners to maximize their revenue potential.
You mentioned you're thinking about doing a raise later this year. How do you think about how much you want to raise and what would you use the money on?
We are talking through that. So I don't have specifics on the actual number that we want to raise, but it will be north of $10 million. We're also exploring some creative opportunities right now because part of our technology stack
that we're developing on has elements of data, big data and analytics, which is, again, going to be given to the publishers for free so they can utilize that as insights to create better content. The second is AI or machine learning and elements of AI that's going to be in place into that for a more immersive consumer experience That's more preference driven.
I don't know if it's you, but most people will tell you that they spend more time looking for something to watch than actually watching content on these platforms.
How do you, though, figure it out? I mean, if you're going to raise $10 million, your pre-revenue, I mean, you've got to figure out how to convince people that you're worth 30 or 40 million bucks without any revenue if you don't want to get really diluted. How do you do that?
we, we thought, well, first of all, we think we're worth a lot more than that, but, um, yeah, but JP, I'm just, I'm just talking from my audience.
They're going to be listening and going, he has no revenue. How's he worth anything more than zero?
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Chapter 4: How has technology changed the way content is produced and distributed?
Right.
I agree. But this, this is quantifiable, right? Cause there's enough data out there through what's being done in the, in the ecosystem or in the digital sphere to actually quantify some of this analysis as well. Do it for me.
Like, what are you quantifying? What are you measuring? Is like minutes, watch number of publishers you've projected are going to be using you. I mean, what is it?
Yeah, well, we have a duplication model. So simply put, we have a self-managed system. That's an invite only. Then we have a hierarchical structure within that, that we can power multiple different levels of publishers.
So we can power anyone from a channel, a influencer, all the way up to a broadcaster that owns a broadcast that bundles networks, that bundles channels, that bundles content, right? So within that hierarchical structure, we could power multiple levels of businesses.
Within each level of business, we have some revenue analysis on each type of publisher level and what they mean in terms of a revenue potential return, or sorry, a revenue potential to the company. So we've taken that analysis and built a financial model based on that, and then it becomes purely a duplication model at that point.
So what valuation do you hope to raise at?
We're hoping to raise probably north, but again, the audience is gonna think we're crazy.
No, that's okay. What is it? What's the number?
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