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7.5 Million Active Streamers

  • 30 million active Twitch users
  • 130 million Twitch users with subscriptions
  • Users spend 60 sec viewing streams per day

If there are 10000 users active per day... 10000 * 60 seconds = 600000 seconds in views total. For example, we make $0.01 per second, so we would make $0.01 * 600000 = $6000. We can also charge per view (but ad rotates fairly quickly). A typical contract would look like - "Stream 3 hours per day or 100 hours per month?"

A Dynamic Platform Designed to Bridge the Gap Between Content Creators and Advertisers.

Total Market Potential

  • Youtube?
  • Kick.com?
  • Any potential for mobile implementations like TikTok, kik, meetme, other live streaming?
  • Videos?

Twitch Market Potential

  • As of 06 Feb 2024, Twitch has over 7.2 million channels streaming on the platform each month, with an average of 5% viewers watching streams concurrently. Twitch has been watched for 543 billion minutes so far, with an average of 2,445,000 viewers watching streams live concurrently. (Source: https://twitchtracker.com/statistics)
  • The average Twitch streamer has 27.7 views per stream (According to Source: Zippia.com)
  • The average Twitch streamer streams on the platform once per month. (According to source: twitchtracker.com)
  • This source estimates users watch an average of 1.7 billion hours of content every month. (According to source: demandsage.com)

If there are 10000 users active per day... 10000 * 60 seconds = 600000 seconds in views total. For example, we make $0.01 per second, so we would make $0.01 * 600000 = $6000. We can also charge per view (but ad rotates fairly quickly). A typical contract would look like - "Stream 3 hours per day or 100 hours per month?"

Potential Extension Revenue Per User

  • The average Twitch streamer has 27.7 views per stream and streams on the platform once per month.
  • We will incentivize streamers to stream at least 3 times per week for at least 2 hours per stream by offering a greater revenue share with the streamers (qualify for 50/50 revenue share).
  • We will display a logo type advertisement for 20 seconds, 2.5 seconds for transition, 12.5 seconds we advertise ourselves, 2.5 seconds for transition, 20 seconds for a second advertisement (different from the first company), 2.5 seconds for transition.
  • We define a view as each individual time a given advertisement is seen.
  • 27.7 views (which seems low) (supposedly average twitch streamer) x 120 times an ad is viewed per stream= 3324 views
  • 3324 x 12 streamers per month = 39,888 views per month for each ad
  • 39,888 views per month for each ad x 2 advertisements = 79,776 views or impressions

Stream Like Never Before

Stream Like Never Before

Stream Like Never Before

Stream Like Never Before

Stream Like Never Before

Connect Content Creators With Brands

Connect Content Creators With Brands

Connect Content Creators With Brands

Connect Content Creators With Brands

Connect Content Creators With Brands

  • For the lowest level/tier of advertising, we charge $1.00 per thousand views. 79,776 views x 1 dollars / 1000 = $79.776 in revenue per user per month
  • $39.888 per user per month is our cut with a 50/50 revenue split.
  • We periodically put links to the advertisements in the chat, and use statistics to determine the conversion of the advertisements.
  • A way to prove to advertisers we showed their ad the number of views they paid for?
  • The goal is 25,000 users within 6 months of launching the OBS extension. It will take a few months after receiving an investment to get a market ready version of the platform and extension.
  • Our top source of revenue mid-term (9 months – 5 years)

Long Term Data Value

  • Our top source of revenue in the long term (5-10 years)
  • Unlikely to sell any data in the first five years (don’t want to lose trust of the creators)
  • We are saving significant amounts of data from those who sign up on the platform and use the extension including Twitch events, chat messages (who sent them, time stamped, what they contain), live streaming data, revenue data, behavior data.
  • We believe overtime, this data will be worth more than the advertising itself.

Benefits For Advertisers

  • Advertisers who advertise on the extension will not experience adblock because the ads are embedded into the content.
  • We can run a given advertisement until it reaches a specific number of unique views. Potentially in the future we may be able to also run an ad for specific types of content, maybe some geolocation, maybe some demographic targeting when we get more sophisticated. Maybe some research on how long we should show each ad before rotating them.
  • We will be able to cross platform if that becomes an issue in the future.
  • Influencer marketing, which can be much more effective for a business for certain types of marketing campaigns.
  • The ads are noninvasive. For example, Twitch and YouTube ads take over the entire screen and prevent the viewers from watching the stream. This bothers the viewer and the streamer.

Benefits For CC

  • We grab as much data as we can from twitch users and display more data back to the CC than Twitch and other platforms do.
  • High revenue share (for ad revenue)
  • No long term contracts
  • AI Implementation (longer term?)
  • VC Implementation (Longer term?, Vreal?)
  • We actually help the creator grow, reach goals (advice varies from growing to increasing engagement and donations)

Costs & Expenses

Operating our digital ecosystem, much like budgeting for a physical store, requires careful financial planning. Our expenses vary with the number of visitors and the volume of data we handle, emphasizing the importance of efficient cost management.
Note: The costs provided are estimates on the higher end, suggesting opportunities for cost optimization through strategic planning.

 

What This Means:

 

  • Website Operation: Comparable to the rent for a physical storefront, these costs ensure our platform remains accessible to a global audience.
  • Behind-the-Scenes Tech: This aspect covers all the necessary infrastructure and technology that keeps our platform responsive and efficient, capable of managing and processing data in real-time.
  • Data Management: These expenses relate to the secure storage and management of data, a critical component in protecting user information and ensuring the integrity of our platform.

Advantages Over Facebook / Google / Youtube

Actually it depends on the type of marketing campaign. Although we cannot geolocation and target nearly as good as the giants, we can still target, guarantee a number of views, prevent ad block, cross platform, influencer marketing, and at a fraction of the cost of the giants. YouTube/Twitch ads may interrupt and bother the viewer.

Advantages Over Competitors i.e. Instreamly

  • Instreamely sells packages and is not able to guarantee a specific number of views or other metrics.
  • Instreamely doesn’t care about the content creators. We are committed to helping them grow and supporting them, even if they aren’t running our advertisements.
  • We believe our extension is a game changer for the industry, which will allow us to be more effective with advertising, recording data, and providing other features to help the creator.

Proposed Budget With Investment (2 Year Budget)

  • Health Insurance for Employees $170,000
    1. Roughly $8,000.00 per employee (could be more or less depending on employees)
    2. I’m budgeting for ten employees. Five engineers, social media manager, someone with SEO/acquisition experience, someone with business experience, myself, one employee for sales.
  • Office Space  $150,000
    1. The average cost for office space for lease in Boston is about $40.59 per square foot (loopnet). The average size of available rent for office space in Boston is 12,186 square feet (statista). It is recommended to have anywhere from 125 to 400 square feet of office space per person. (loopnet)
    2. The average cost for office space for lease in Cambridge is about $40.00 per square foot. The median size for office space in Cambridge is 6,846 square feet.
    3. 2329 Massachusetts Ave 650 SF, $35/sf/yr $22,750 (smallest I could find)
    4. The average rent in Los Angeles is $51.71 per square foot (according to commercialcafe). Searching online, it looks like there are a lot of acceptable places that may be cheaper. Depends if we were downtown or in a specific neighborhood.
    5. LA office space probably wouldn’t be relevant until the second year of operations anyways, and may be able to be replaced by traveling expenses to meet famous creators/agents. It also depends on the effectiveness of the platform vs. the extension.
  • Server Expenses (broken down further above) 100k
  • Development Expenses and Salaries for engineers 900k
  • Equipment
  • Salaries not including engineers 720k (some or all of these can wait until a further developed version of the product if necessary)
    1. Derek – 75k a year x 2 years = 150k
    2. Social Media Manager – 75k a year x 2 years = 150k
    3. SEO/Acquisition – 90k a year x 2 years = 180k
    4. Sam Dase – 120k a year x 2 years = 240k
  • User Acquisition (To begin only after the launch of the OBS extension) $200,000
    1. The goal is 25,000 users in the first six months of the launch of the OBS extension. The goal is 100,000 users within one year of the launch.
    2. We’ll need a professionally created Twitch Video Advertisement. I would like to budget $10,000-$15,000. We may be able to do it cheaper, but this seems average cost for the creation of a professional commercial/video advertisement.
    3. SEO targeting with Twitch, Twitter, Discord Ads. I don’t think Google/Facebook/YouTube is a good idea to start. Promoting our social media and PR is also going to play a role here. This will be updated but Twitter ads alone, we will want to spend 1-2 grand a month, Twitch will be heaviest spender TBD, graphics will be 500 a month. Discord Ads are fairly cheap if we decide to use them, probably not consistently. Social media manager will need to be active on everything: Facebook Twitter Instagram reddit discord LinkedIn tiktok YouTube etc.
    4. Some influencer marketing might be good here, I think individually reaching out in the start might be a good idea and word of mouth among influencers will spread fast. We can pay some streamers but I think paying large streamers might be a waste in the start.
  • Legal Expenses
    1. Incorporation of Swagstat Inc.
    2. Formation and incorporation of Polar Ace Inc.
    3. Patent/trademark OBS extension
    4. Trademarks for Polar Ace and Logo
    5. A thoroughly reviewed privacy policy and terms of use.
    6. England/European Union applications
  • Miscellaneous Expenses $100,000
    1. Office supplies
    2. Additional softwares and tools
    3. Consultants

Order of Development / Priorities

  • Front End Changes/Mock Implementation
  • Advertising Portion of the Platform
  • Basic process to connect CC to Advertisers and system for us to tax the deal
  • More charts for CC and other features that help CC
  • Security and debugging
  • OBS Extension
  • Method of paying the Content Creators (and more sensitive information that goes along with that)

Support Polar Ace

Unsponsored Content Creators

Small content creators do not actively seek out sponsorship because they feel limited by their audience size.

Brands Missing Millions of Views

Advertisers and their brands are missing out on millions of views. Views that will be cheaper than other forms of advertising.

66% of Gen Z Ad Blocks

50% of Gen Z Consumes over 8 hours of streaming every week, but… 66% of Gen Z utilizes AdBlock which inhibits effective brand reach.