OTTera is at the forefront of a digital trend sweeping the creator landscape. They offer a comprehensive Over-The-Top (OTT) service that reshapes how content is distributed and monetized. In an era where digital media is paramount, OTTera stands out as a leader of innovation, much like Stacker Media in the realm of journalism. For investors, OTTera represents a potential opportunity to tap into the blossoming digital media market.
The platform's unique blend of tools and services empowers users to create, distribute, and monetize content groundbreakingly. If you have ever used Netflix, Apple TV, Disney+, or other streaming services, then you are familiar with the OTT framework. Many can look to the disruption and success of services like Squarespace in providing out-of-the-box customizable website solutions. Ten years ago, some businesses and entrepreneurs still believed they did not need a website. Now, it is inexcusable if a company does not have a website.
"In the evolution from building Toon Goggles to founding OTTera, we harnessed our expertise in business development and deep insights into the AVOD/OTT landscape. OTTera is the culmination, offering a streamlined pathway for anyone venturing into the dynamic realm of streaming media." – Stephen Hodge, Co-Founder & CEO OTTera
In 2023, most creators have never considered owning their content outside significant platforms like TikTok and YouTube. It is OTTera's and Star Strong's belief that the rise of the creator economy is a clear sign that creators, like businesses, will soon need to own their complete online presence. OTTera offers a gateway for creators and brands to harness the full potential of digital streaming, making it an attractive proposition for forward-thinking investors.
Creator Economy: By the Numbers
The creator economy is not just a cultural phenomenon; it's a booming economic powerhouse. Recent statistics illuminate its explosive growth:
The creator economy is valued at over $100 billion, with projections only pointing upwards.
There are an estimated 50 million content creators, a substantial portion comprising full-time professionals.
Platforms like YouTube and Instagram have paid over $30 billion to creators in the past three years alone.
Crowdfunding on platforms like Patreon has seen creators earn more than $2 billion since its inception.
The influencer marketing segment within the creator economy is expected to grow to approximately $15 billion by the end of the year.
We believe these figures underscore the seismic shift in how content is produced and consumed, with individual creators driving a significant portion of the digital media landscape. The creator economy is currently thriving; it's reshaping the very fabric of media and entrepreneurship. With this kind of money moving, we believe there is a clear opportunity for a platform to earn some of that market share, and OTTera is poised to be that company.
It might seem like a tall order for creators to develop and own their streaming platform. Still, we believe holding the platform is necessary and an eventuality based on the experience of some of the most prominent creators like Mr. Beast and Joe Rogan.
Beast's Budget & Impact
Jimmy Donaldson, aka Mr. Beast, is 25 years old and has built the largest YouTube following in the world. His path to stardom started by releasing Minecraft gaming content in 2015. He slowly experimented with different video game streaming videos and started making YouTube videos about YouTube. In 2017, he made a shift by releasing a video counting straight to 10,000 in one sitting. It sounds monotonous, I know, but it changed everything. He sat counting for three and a half hours, and people tuned in. This was a signal that viewers wanted to watch weird channels. That video now has 66 Million views. He followed that with many more challenge-oriented videos that racked up views and subscribers, and his path was set, and he was ready to go all-in on creating bizarre challenge videos.
Fast forward to today, and Mr. Beast videos are getting more viewership than top Netflix releases. During the pandemic, Netflix released "Squid Games," a film about a dystopian game show that had morbid consequences of the player losing. Only months later, Mr. Beast released his own Squid Games on YouTube, challenging 100 players to unique challenges. Compare the viewership of the two releases. According to Business Insider numbers are staggering. Netflix reports that the Squid Games film reached 142 Million households. Compare that to Mr. Beast's Squid Games video, which has gained an astounding 537 million views today. The Netflix film budget was $21.4 Million, whereas Mr. Beast's budget for his Squid Games video was $3.5 Million. Despite the view Mr. Beast is getting, he has been quoted on multiple podcasts that he puts all profits into the following video, often loses money video to video, and can only make money from the products he owns and sells, like his Feastables chocolate bar. Mr. Beast should care about owning the platform to make more money and produce better videos.
YouTube's revenue share model is 55% to 45% of ad revenue in favor of creators. Mr. Beast could own 100% of his ad revenue on his platform. Mr. Beast is struggling to find advertising partners that can pay an amount that is fair market value for his viewership. He is turning towards selling his products, like the Feastables chocolate bar, one of his most significant revenue sources. If he is able to build his platform, he can own all traffic while still publishing on YouTube. Mr. Beast's platform ownership play is due to making more money to produce better videos. Like Joe Rogan, other creators should consider their platforms due to censorship issues.
Joe Rogan Beats Censorship with OTTera
Joe Rogan is the largest and arguably the most influential podcaster on the planet according to Newsweek. His flagship program, The Joe Rogan Experience, attracts an estimated 11 million listeners per episode. Noting that he releases at least three episodes per week, he is pulling in about 1.7 Billion to 2.8 Billion listeners per year. Furthermore, his shows run on average between two and a half to three hours long, with multiple mid-roll ad placements earning him millions. Finally, he signed a 5-year $100 Million contract with Spotify to publish full episodes exclusively on their platform. The finances are staggering for this creator, and this is only one of three of his enterprises. Rogan is also an accomplished comedian and comedy club owner, and he is one of the original members of the UFC organization as their lead commentator. As Rogan has put it many times on his show, he doesn't need more money. He might need freedom of speech, and OTTera could offer him that.
Joe Rogan has come under fire from prominent news outlets like CNN and major social platforms like YouTube for hosting guests on his show that present different and sometimes radically opposing viewpoints surrounding health, politics, and other topics. Before he moved to Spotify, he had multiple YouTube videos demonetized, and some were even taken down for the opinions expressed on his show. Even on Spotify, he has had episodes removed. As a part of his deal, Spotify had selected a few of his past episodes that would not be available on their platform. Rogan's brand equity is strong enough that he does not need a specific platform to help advertise his content; his viewers will go where he goes further, emphasizing that OTTera could be a perfect fit.
Beyond the wildly successful Podcast, Joe Rogan recently opened Austin, Texas' premiere comedy club, The Comedy Mothership, where they host regular stand-up comedian specials that premiere on Net Felix and YouTube. One popular weekly program, "Kill Tony," offers brand new comedians a chance to perform 1-minute stand-up in front of seasoned comedy legends. These comedy programs push the envelope about what is okay to say. According to comedians, speech is sacred, and nothing is off limits, but that is not aligned with the views of the social media platforms. Rogan could include unfiltered comedy on his streaming platform and attract a massive audience. It would be where comedians could say whatever they wanted without concern about being taken down by the platform.
Finally, Rogan's UFC connection could be a sweetener to build a robust content offering on OTTera. Dana White, founder of the UFC, and Joe Rogan have an excellent relationship. Rather than constantly turning to Pay-Per-View (PPV), the UFC could stream on Rogan's platform and gain a cut of the subscriber revenue. For Rogan, this would bring thousands, if not millions, to the platform to view high-ticket UFC fights. The Rogan streaming service is already primed to include long-form educational and entertaining podcasts, many comedy specials, and UFC fights out of the gate. OTTera would be the perfect partner to build this out.
We believe OTTera's platform is well positioned to support these creators. It enables them to leverage their existing popularity while offering unique, exclusive content to their dedicated followers. This enhances their brand and opens up new revenue streams, aligning perfectly with the needs of today's digital entrepreneurs. These are pitches to the most significant creators, but the question arises: has OTTera already succeeded in building a major media brand? We need not look further than Star Strong's portfolio to find evidence of a media creator who launched a streaming service and made millions of dollars serving millions of niche viewers.
OTTera's Competitive Edge
OTTera distinguishes itself with a comprehensive suite of services catering to every aspect of digital content creation. From development to distribution and monetization, OTTera's platform empowers creators and brands, enabling them to forge direct connections with their audiences. This direct engagement is crucial in today's digital landscape, where audience loyalty and interaction are vital to success.
"OTTera has seen consistent growth as the OTT space has exploded and we continue to offer new and innovative products to meet the needs of the creator. With tailwinds in the next 3 - 5 years in both the advertising shift to connect TV and a growing appetite for streaming video, we expect exceptional growth in both the SaaS and monetization verticals of our business." – Steve Rifkin, Co-Founder & COO OTTera
Moreover, OTTera's platform opens new revenue streams for creators and brands. From subscription models to targeted advertising, the potential for monetization is vast. This is particularly important in an era where traditional revenue models are disrupted and new, innovative approaches are required. OTTera's technology and services position it as a leader in this new digital economy, offering a competitive edge to its users.
An Investment Opportunity
For investors, OTTera represents a unique opportunity to be part of the digital media revolution. Its alignment with the growth trajectory of the creator economy, combined with its robust technology platform, positions OTTera for significant returns.
Investing in OTTera is not just about capitalizing on a growing market; it's about being part of a movement reshaping how content is created, distributed, and monetized. OTTera's role in empowering creators and brands to take control of their content and revenue models makes it a strategic and forward-thinking choice for any investment portfolio focused on digital media and technology.
OTTera is Essential When it Comes to Digital Content
We believe OTTera is an essential tool in an emerging digital revolution in which creators are taking their power back. It is a gateway to actual creative ownership in the scaling creator economy by offering innovative streaming tools for creators and brands alike. By providing the infrastructure to own, distribute, and monetize content, OTTera is redefining the rules of digital engagement and opening up a world of possibilities for creators to connect with their audiences in meaningful, profitable ways.
The hypothetical stories of Mr. Beast and Joe Rogan exemplify what can be. They articulate the potential of owning one's platform, where creative freedom meets financial independence. OTTera's role in this transformative era is pivotal, offering a unique combination of technology, reach, and monetization strategies that align with the needs of today's digital entrepreneurs.
For investors, OTTera represents more than just a promising venture; we believe it's a gateway into the future of digital media. Investing in OTTera means investing in a future where content creators are not just participants but leaders in the digital economy. It's an opportunity to be part of a movement that values creativity, innovation, and direct engagement with audiences.
As the digital landscape continues to evolve, we believe OTTera's commitment to empowering creators and reshaping the content distribution paradigm positions it as a key player in the burgeoning creator economy. Its success is not just measured in financial returns but in the flourishing of a new era of digital content where creators are at the helm, steering towards a future that is more connected, more vibrant, and more empowering than ever before.
—
The performance quoted represents past performance. Past performance does not guarantee future results.
Not all investments made by Star Strong Capital LLC should be expected to be profitable.
The information and opinions provided herein should not be taken as specific advice on the merits of any investment decision. Investors should make their own decisions based on such investors’ own review of publicly available information and should not rely on the information contained herein.
References