Expert Coin

Analysis of ICO CryptoFlix

19.04.2018

Product

CryptoFlix is a blockchain-based film streaming and educational platform where movies of yesterday, today and tomorrow, local and international are available to stream legally on a phone or tablet at low cost – even on slow internet speed and where it is possible to access educational films and TV for free.

The founders of the project intend to make CryptoFlix a closed network film streaming platform which will accept payment for feature films and which will also offer films and TV for educational purposes to private individuals across the planet.

Thus the platform will provide paid and free content of two types:

  • Cinema content - paid movies and TV;
  • Educational Screening content - free films and TV for private individual use.

The featured paid content on the platform will be selected from current and past mainstream movies, ranging from modern-day classics, studio movies. But there will always be a strong local focus on the platform. Access to local movies is a priority in CryptoFlix.

The free content in the form of documentaries, educational films, and TV will be carefully selected within educational guidelines. The content must be free of political, religious and racial influence. The content will be free for private individuals; however, for institutions, private schools, governments and private companies this content will be available by a subscription model.

The idea of the project is not entirely clear. Movies, videos and educational content are already available for free on a variety of resources such as Youtube, Coursera etc. Why would people buy what they can find for free? The founders of the project say they aim to foster users to stream movies legally by making it cheaper than downloading pirated versions.

But did someone ask the users themselves what was more profitable for them? Pirated versions often are free.

Business plan

Alpha version of CryptoFlix platform will appear only in the third quarter of 2018. However MVP is ready. Platform development is planned until mid 2019. CryptoFlix is seeking funding between a soft cap of 2,000 ETH and a hard cap of 22,800 ETH.

Token and fund allocation is as follows:

Token allocation

  • Team & advisors 18%
  • Industry reserve 20%
  • ICO 57%
  • Bounty & Campaign 5%.

Fund allocation

  • Platform development & marketing 62%
  • Admin & operations 19%
  • Technology development 10%
  • Legal 4%
  • Contingency 5%.

It is described in sufficient details what is included in each expense item.

FLIX token is a utility token. Thus token holders will be offered to invest in the projects of top quality producers, sales agents and other industry elite players and suppliers which will provide FLIX Token holder with a unique opportunity to generate returns through FLIX Tokens.

The business plan is not detailed but it is adequate to the project.

Marketing Strategy

The team views CryptoFlix as a potential global platform starting in the underdeveloped countries in Asia, Africa, and South America and eventually spreading to the rest of the world. They intend to compete due to low cost and technical advantage as well as a unique product offering.

CryptoFlix Ecosystem will produce exclusive content for the CryptoFlix Platform.

An essential factor in market growth as well as sourcing local movies and TV for the platform is the establishment of a network of regional partners.

The team is planning to access the free content through agreements with content owners, publishers and public TV stations which have produced and broadcasted tons of documentaries and educational programs.

CryptoFlix intends to be presented on all current social media platforms including YouTube. And the team will use referral campaigns as well as other social media-driven campaign tools.

In general the team has an idea of the marketing strategy. But it lacks specificity.

Team

The team consists of 8 people experienced in film industry, investment in blockchain technologies, producing educational content, IT-engineering, blockchain development, marketing and law. The experience of the team members is described in detail and quite relevant to this project.

The Vision of the Market

The founders of the project estimate the market for paid content in the following way.

The total market size for paid content in underdeveloped countries is currently 2-3 billion users with at least 500 million users falling into the core user profile. Countries in the market have a high percentage of English and French and Spanish speakers, a high percentage of smartphone users, a high percentage of internet and social media users. The market will increase significantly over the coming years.

A fairly detailed analysis of the current market state and vision of market trends are provided.

The following project competitors are mentioned:

  1. Netflix
  2. iTunes
  3. Amazon Prime
  4. Google Play/You Tube.

But there are competitors among ICO startups for example MoviesСhain, TV-TWO, Ethereum Movie Venture.

The forecast for revenue of $ 150,000 000 after 5 years looks unreasonable against this background.

Understanding of the Target Audience

The founders of the project see their audience as follows.

The share of the global population registered as living in a less developed country is 65%. Despite globalization, improved hardware, and faster internet most films are now distributed to only 42% of the world population. This means that 58% - or potentially almost 4.4 billion people do not have full access to the international film market.

An estimated 2 billion working-age adults globally don’t use formal banking services or don’t have a credit card. Being able to pay by cryptocurrency means that this group of consumers will be able to top up their digital wallets and access content legally safely. But people who live in underdeveloped countries and don't have a credit card are concerned with very different issues, not with buying cryptocurrencies for watching movies. The project team has too idealistic and vague idea about its target audience.

Competitive Advantage

The team sees the benefits of the project in the following.

  • It will be possible to access mainstream movies.
  • The total price for streaming a movie including data use costs will be lower than for downloading a high data version from a pirate website.
  • It will be possible to stream content even with lower speed internet connections.
  • The risk of data loss, theft or fishing schemes from downloading pirated movies is gone.
  • Content owners will get access to a whole new market.
  • The revenue share payment to the content owner will be instant because of smart contracts.

Perhaps the most interesting of this list is the ability to stream content even with low speed internet connections. All the rest either already exists or you can get it for free.

Summary

The advantages of the project Cryptoflix:

  • MVP is ready;
  • Adequate business plan;
  • Understanding the market and marketing strategy;
  • Experienced team.

The minuses of the project Cryptoflix:

  • Insufficiently elaborated concept of the project;
  • A vague idea of the target audience;
  • The lack of strong competitive advantages.