Analysis of ICO Bond Film Platform
BOND is a blockchain-based platform intended for creating films and videos without intermediaries. It offers a decentralized, ad-free, subscription-based economy that not only benefits creators directly but also provides the means for any viewer to invest and obtain a revenue-generating stake in video content.
The founders of the project see the problem of film industry as follows.
The current video streaming industry lacks fair and decentralized models for revenue distribution and financing of new content. Films and video projects are financed by big corporate entities who decide which content to produce, who pays for it and who then receives the majority of revenues.
And BOND platform offers a set of solutions for this problem:
- One platform to raise funds and distribute revenue, produce stream content, connect creators and fans;
- Direct financial feedback between content creators, crowdinvestors and audience;
- Transparent and clear business-model for online content;
- Global crowdinvesting with cryptocurrency.
The product is interesting and maybe prospective. But it should be borne in mind that there are already similar blockchain projects, for example, MoviesСhain, TV-TWO, Ethereum Movie Venture, CryptoFlix. In addition we shouldn't forget about traditional TV channels, YouTube and other analogues.
Alpha version of the platform will appear only in the 4th quarter of 2018. Further development of the platform is planned up to 2020. BFP Token will be used for all payments on the platform:
- Monthly subscription payments;
- Revenue distribution to all stakeholders.
BOND revenue will come from:
- Commission on User Subscriptions: 20%
- Commission on Crowdinvesting: 5%.
The goals for soft cap and hard cap aren't set. There is no information on the distribution of tokens and raised funds. It can be concluded that the business plan is poorly designed and doesn't contain the most important details. A big disadvantage is the fact that MVP has not yet been developed.
The project team assumes Bond Platform will attract authors, viewers and investors via three instruments:
- The idea that liberating the market from corporate decision-making will create buzz among the fans of decentralized models.
- The possibility for audience members to control a project’s destiny through their investments and encourage the projects with the biggest market potential.
- The unique opportunity is presented to users of the Bond platform. They can not only support their favorite projects but also can benefit financially from a project’s success.
But there is no information on how the project will be promoted, what marketing tools will be used, what budget is
planned to be spent on marketing. However marketing is very important for a project entering filled up and highly competitive market.
The project team consists of 5 people. Two founders of the project have strong experience in TV industry. One of the team members is experienced in blockchain investments. However the team includes only one developer and doesn't include marketers. The team looks too small for a project of this scale and clearly lacks developers and marketers.
The Vision of the Market
The founders of the project clearly understand that the video streaming market is filled up with existing players. The team gives the following data on the state of the market.
The current video streaming market is estimated to reach 32,8 billion in 2022.
The number of SVOD (Subscription Video On Demand) homes is forecasted to reach 428 million across 200 countries in 2021.
Netflix is forecasted to account for 27.5% of the global market with 118 million paying subscribers by 2021. The remaining 72.5% will be split among other large players such as Amazon, Hulu, etc.
Despite the fact that the market niche is already filled up by existing major players the founders of the project believe that there are a lot of opportunities for small players. These opportunities will become stronger as more people abstain from paying for traditional TV and cable bundles and look for new opportunities to receive content. But there isn't strong analysis of the opportunities in the existing market behind these assumptions.
Understanding of the Target Audience
We can see the description of the main target audience segments:
Author. When users watch and like some content Author receives a share of the revenue gained by the Bond Platform from user subscription fees. Authors can also publish content proposals to gain funding from сrowdinvestors.
User-Subscriber who watches the content he interested in.
User-Investor/Crowdinvestor. Any user can become an investor by simply buying the ownership stakes in Author’s Content Channel and thus becoming eligible for percentage of future revenues from this Content Channel.
But the socio-demographic profile of each group is not presented and there are no quantitative characteristics of the target audience. There is no way to understand how popular and in demand the product will be.
The project has several advantages over traditional video streaming market players. They are as follows:
- Lack of intermediaries between content authors and viewers. Authors will be able to receive a significant part of revenue.
- The opportunity to invest in promising projects selected by users and receive income.
- Users can support the most interesting projects.
The project is primarily of interest to content authors and investors. But users pay for all and they are too lazy to give up a habit to traditional content sources and take active part in creating and estimating new content.
In addition the project should be compared with other analogues developed on the basis of blockchain. But it is easier for the founders of the project to think that their project is absolutely unique.
The advantages of the project can be attributed to the idea of eliminating intermediaries between content creators and viewers. The rest of the project has significant disadvantages:
- Lack of marketing strategy and poorly developed business plan;
- Small team that lacks developers and marketers;
- The lack of competitors analysis;
- The study of the target audience was not conducted.