In the financial results for 2014 Stephen mentioned that we’d be releasing a new brand in 2015. At the time it was called Brand Y. It’s time to tell you a little more about our plans.
For the last 15 years the company hasn’t just been about building Forscene, they’ve been about building a platform of technology. Think of our platform as a lego set. We have the choice of selecting parts of the platform, adding new bits and creating entirely new pieces in a fraction of the time other companies would take. This means we can exploit market opportunities and trends relatively quickly. The market that Online Video Editor will operate in is one of those opportunities.
The scope of the market Forbidden Technologies operates in is huge. We tend to visualize it like this:
We operate in the professional black area with Forscene, and we also operate in consumer shoot and share with eva. It’s the purple editing area where we are looking to create more shareholder value with Online Video Editor. People who generate content, have a desire to edit and share that content, but don’t have the desire to spend a few hours learning how to do it. The question is: Is there any money in that part of the market? The answer is a resounding YES!
The Market Size
Market sizing is as much art as it is science. Instead of just giving you a market size, I’d rather you saw some of the market drivers yourself then you’ll get a sense of why this really excites us. To do this just follow these simple steps:
1. Go to Google Adwords and under tools you can see ‘Keyword Planner’. Enter “Online video editor” and you’ll see that there are 33,000 searches a month.
2. You’ll also notice that the total online video editing market is more than 8million searches a month. It’s a big market.
3. It’s growing too (just look at Google Trends)
Our market sizing models take into account many more sources of sales and variables, but suffice to say it’s a very large growing market. More importantly, it’s an existing market, so unlike Forscene where we’ve had to educate the market, with this product we can enter and compete instantly. The flip side of it being an existing market, is that there are competitors we need to compete with. However, the actual number of competitors is relatively low. Do this experiment and you’ll see for yourself:
1. Go to Google and search “Online video editor”. Of the 10 results I see (and everyone’s results page will be slightly different) only 3 of them actually allow you to edit video online.
With all of that said, having a large market, and relatively few competitors by no means guarantees success. So the question is: How do we win in this market?
How to Win
Well, ironically we win in this market by not creating a video editing product. Not one like every other editing product in existence. We have surveyed more than 10,000 people around the world and one thing resonates, people don’t want to edit video because it’s too hard. Every product in existence is a scaled down version of a professional editor, and professional editors are complex because they are designed to solve a complex problem. In our research we were able to estimate an ‘average’ consumer. The average user of the product records video regularly on their phone or tablet. They record in bursts, mostly at an event, and the event has a 70% chance of being with children, family or pets. At the event they will record between 3 and 5 clips, and the total length of these clips will be between 5 and 6 minutes. If they share the content (and most people won’t), they’ll share it on social media (most often Facebook and Whatsapp) within 7 days of recording the content. After the 7 days the likelihood of them ever sharing the content reduces to almost nil. This is our sweet spot, and this is where our product aims to win. We need to build a product that liberates that content from their phones and give them the means to make it beautiful and sharable.
To win here we needed to create a new paradigm in video editing. One that allows people to do the hard work quickly and spend most time on the fun bits like titling, adding music, selecting cool filters and effects. You’d think that given Stephen’s background we’d instantly go to an artificial intelligence editing based solution, and we did, but we learned quickly that it won’t work. AI is amazing, but it cannot yet tell which sunset is more beautiful than another. So we’re left with finding another solution, and we think we have. After months of iteration and testing with low-end internet users, we think we’ve uncovered a way of ‘rough cutting’ in half the time of a standard editor. Leaving more time for playing and having fun with the video. We think it’s a first too, so we’re in the process of applying for a design patent. Therefore we cannot make the designs public knowledge just yet.
Creating a brand is such an enjoyable process. I must admit when we started the research process we got it wrong. Throughout much of our early research we focused on what the editor wants. However after a while it became clear that we were asking the wrong questions. It’s not about the editor, it’s about the viewer. The editor uses our product to generate a reaction in the viewer. Our product is not about storing memories, it’s about creating a reaction. Without the viewer, the editor has no purpose. So we spent some time investigating this. What reaction do people want to generate? We found a clear theme. People want to create engaging video content. All people; mothers, fathers, grandfathers, teenagers, agencies and companies. They want to engage their audience, and hold their attention. They want to captivate. Or as we say: Online Video Editor.
Online Video Editor exists to help people tell stories and excite people with their content. We’re not just your video hub, we are your story telling tool. We will support you through every step of the process. It’s not a technical exercise we want you to embark on, it’s an artistic one. An exercise of cheating time through editing. An exercise of jerking a tear in your audience. An exercise of making the mundane interesting, and the insane viral. We don’t live to edit. We live to Online Video Editor.
Social and Brand
Online Video Editor will exist across a few channels:
1. Website: www.Captevate.com
2. Blog: http://blog.Captevate.com
3. Facebook: www.Facebook.com/Captevateeditor
4. Twitter: @Captevate
The blog is the most interesting area for me. We will use the blog not only to keep you posted on the product and how it’s developing, but also to help people edit video better. We’ll incorporate much of the blog content into the Online Video Editor experience. To create blog content I’d like to invite editors and editing enthusiasts to write blog posts for us. If you’re interested please email email@example.com
Timelines and Expectations
Our expectation is that Online Video Editor will be released at the end of this year, in time for the Christmas holidays. Next year Online Video Editor will generate a proportion of our expected revenue with it becoming a major if not the dominant revenue stream in 2017 and beyond.