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I should say, as a warning, that I've had 3 different clients approach me with roughly this idea, since 2007. There is a lot of interest in this area. There is
by lkrubner 17y ago
I should say, as a warning, that I've had 3 different clients approach me with roughly this idea, since 2007. There is a lot of interest in this area. There is a lot of investment going on. I do not doubt that eventually there will be a big hit in this area, but anyone who wants to get into this area has to be aware that the competition is intense.
Also, attacking this idea from another angle, it should be noted that small-scale content producers are suffering badly in the current environment, and sites pitched to them are pursuing a market where there is, potentially, very little money.
When I was at Bluewallllc.com we started working on iHanuman.com, which sells yoga videos. Although yoga videos represent a very small niche, the goal was to eventually reuse the technology to build other niche focused sites - an infinite range of them.
The ihanuman store offers some basic services to yoga teachers who have videos to sell:
http://www.ihanuman.com/store.php http://www.ihanuman.com/store.php
We worked on iHanuman for roughly 5 months, from April of 2007 to August of 2007. After it launched, the site was written up in Yoga Life magazine. It attracted some traffic and developed a small but steady stream of sales. I stopped working with Bluewall in late 2007. I think they may have had one week where sales got up over $1,000. The site was never well publicized or marketed.
I think the project cost roughly $70,000, but it would be tough to say for sure, since the project was one of many projects that Bluewall was working on, and it would tough to say which expenses belonged to Bluewall and which expenses belonged to iHanuman. At its peak we had 5 people working on the site:
a designer
a PHP programmer (me)
a Flash programmer
an HTML/CSS specialist
a project manager
The site runs on a dedicated server from RackSpace.
The ultimate goal was to build a backend that would allow any yoga teacher to upload their videos and sell them. I think the revenue split, at that time, was 50/50. We got the frontend working nicely, though we never finished the backend.
There was some really cool technology on that project. The Flash programmer was Starrie Williamson and she did an impressive job, utilizing a lot of what was then cutting edge ActionScript 3 techniques. The Flash player could function as a widget on other websites, reading RSS feeds off of the iHanuman site (the RSS feeds were full of data from our database). In other words, it could be embedded, a lot like the YouTube player. Last I heard (early 2008), they were working on adding the ability to sell videos through the player. Very cool stuff. Anyway, if you ever need a really good Flash programmer, Starrie can be reached here:
http://www.linkedin.com/profile?goback=.con&viewProfile=&key=22608405&jsstate= http://www.linkedin.com/profile?goback=.con&viewProfile=...
Some of the yoga teachers sell lectures as MP3s, and we knew we wanted to also use the same software for online music stores, so the Flash player also plays MP3s, and the PHP code handles the sale of both MP3s, FLAC files, and videos.
We also ported the software to the Monkeyclaus.org music store (also owned by Bluewall), and we added in the ability to import hundreds of MP3s at a time, using their embedded meta tags to fill out the info in the database. Out of all the code that I wrote for this software, almost a full year of my life (if you include the time spent on the monkeyclaus music store), this import code is the code that I am most proud of.
The management problems on that project were epic. The owner/designer and the project manager, who were boyfriend/girlfriend, had some strong disagreements with each other about what direction to go, and how much funding was appropriate.
There was, at one point, talk of pursuing a white label strategy, where Bluewall might sell the software to others. However, the code, as I left it, would not sustain a white label strategy. I wrote this code at breakneck speed. There is considerable technical debt. I was told that as soon as the site launched there would be time to clean up the code, but in fact, as soon as the site launched all development on the project ended. Also, Bluewall was very sloppy in its legal affairs - they never sought a copyright agreement with Starrie regarding her Flash player, so she still owns the copyright on it (or at least she did the last time I talked to her, which would have been the spring or summer of 2008).
The PHP code was written using a framework I developed during the period 2003-2007. I have since abandoned that framework and now I use Symfony for all PHP work. If I were going to do a project like that again, I'd probably build it in Symfony (or, if the JVM and Tomcat are acceptable to the project, Groovy/Grails).
Now, this particular project went nowhere, largely due to misjudgements on the part of those in charge. However, my point is that a lot of entrepreneurs have been looking at this space for several years now. There has been a lot of investment. The competition is intense. It might be wise to assume that there is no real profit to be made in this space, since no clear winner has emerged yet. Or you should assume that creating a winner for this space is going to be very, very hard.
I do believe that targeting niches is the correct way to move forward in this field. I do think that targeting indie filmmakers is an interesting and exciting niche. I have a friend who recently finished a documentary about the culture of the workers who worked at a somewhat notorious parking lot, in Charlottesville, Virginia. I'm aware that she is looking for distribution channels. But here is the problem: most indie developers will either be broke, or they will get funding, and if they have funding, they may not need this site.
So I would be wary.
All the same, if someone can go into this field and create a hit company, then they have my admiration.
- chrischen 17y agoThanks for the info. If this wasn't going to be tough, I wouldn't have been interested. > But here is the problem: most indie developers will either be broke, or they will get funding, and if they have funding, they may not need this site. You're right. Most indie filmmakers are extremely strapped for cash. So I was hoping to charge very little (in fact beat out existing services in terms of price), and depend on volume. However one indie filmmaker I know is cash-strapped, but had funding. They still had to find a means for distribution after production, which is where a lot of the money goes to. I'm banking on being open to anyone, and any video content, and having an ultra-low if not completely zero barrier to entry.
- DanielBMarkham 17y agoI'm banking on being open to anyone, and any video content, and having an ultra-low if not completely zero barrier to entry Then you're a video storage service, like YouTube. Video storage services don't care about content, knowing that the more they store the more people will use their service for various long-tail reasons. You can be video storage, or you can be an internet indie distributor. But I don't think you can be both.
- chrischen 17y agoThere's a fine distinction. You have to be a filmmaker or web series. And the mechanism for enforcing this is that most teenagers who made their first crappy short for fun, who have no idea what they are doing, probably won't be willing to pay, even a small fee, to have their video on our site. Same thing for cat videos and star wars kids. The gap between free and 1 cent is long and wide, and this will serve as a natural filter blocking youtube style video content. So I guess I shouldn't have said zero barrier to entry.
- lkrubner 17y agoYes, I agree with this. A service that is open to everyone is probably too generic for 2010. If I were going to try again in this area, I'd want to go niche by niche: yoga cooking travel political protests car races horse races fixing cars (how to) fixing up your house (how to) There is a huge range of niches. To try to do a generic service in 2010, I think you'd $10 million to spend on marketing. But if you take a niche approach, and you do a good job with the code and interface, then you can rely on word-of-mouth among enthusiasts to spread the word. If I was doing this again, I'd actually pursue something of a franchise model. The core team should mostly focus on the technical stuff: code, interface, servers. The marketing team should consist of 1 or 2 people from the niche that is being targeted. I said above that iHanuman had poor marketing. Really, its only marketing came from Tilak Pyle. It was crucial that he was part of our team. And it helped, very much, that he was also a yoga teacher with a video to sell: http://www.ihanuman.com/albums.php?id=48 http://www.ihanuman.com/albums.php?id=48 Since he is basically non-technical, he made a great beta-tester, telling us what would be non-intuitive to a non-technical audience. And since he himself was selling a video, he wanted to see the site succeed, so he went out and tried to spread the word. And because he was a yoga teacher, he brought instant credibility to the site. The site would have gone nowhere without him. What little success it had was largely due to the marketing he did (though note that my info about the site ended in early 2008). So, I would take a niche approach. And I would look for the equivalent of Tilak Pyle in each niche that I decided to go after.