High Potential Startup #22: Filmhub
Monetization Opportunity for Independent Filmmakers
At the time of publication: Series A | Total funding raised: ~7mn USD
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We are living through what is possibly a golden age of video content. The shift from linear TV to streaming has led to an explosion of demand and supply of quality video content. A whopping 230bn$ will be spent on video content just in 2022. Streaming platforms like Netflix are spending north of 10bn$ a year on video content. Consumers are also hungry for and are open to exploring interesting new content like Squid Game.
This ideally should be a great time for indie filmmakers as well with streaming platforms looking for exclusive interesting new content. Even if their work is moderately successful, it opens up very useful monetization and career opportunities for these filmmakers and it puts them on the map.
But the distribution is quite broken today. Filmmakers have to submit to each streaming platform individually as per guidelines and wait to be reviewed and selected even as many might fall through unnoticed. Typical submission guidelines look like this. Or they will have to go through a sales agent or distributor. Even if a film is selected by a streaming platform then the filmmaker has to negotiate with each platform or they likely will have to accept the terms of the platform.
Filmhub fixes indie film distribution with a very good solution approach.
Filmhub is a film distribution platform. Filmmakers can upload their movies, documentaries, shorts, content etc. on the Filmhub platform and Filmhub recommends these to its 100+ partner streaming channels. Filmhub centrally negotiates terms and payouts with these channels. Filmhub keeps 20% of the payouts while the content owner receives 80% with no hidden terms.
Filmmakers need to upload the videos, subtitles and details and description of their content. A few steps are seen below.
Once the details are filled, the content is quality checked and then cataloged for streaming platforms.
The streaming channels/platforms can search for and discover content using keywords and filters and can order/license content directly from Filmhub. There is also a ranking algorithm that ranks titles basis how they have performed on other streaming platforms.
Filmhub also provides ‘insights’ on projected/estimated earnings for the filmmaker though there may be some difference in the actual payouts.
Filmhub is a very clever business model. By aggregating a number of films, Filmhub will be in a much better position to negotiate with the streaming platforms than when the filmmaker does it herself. By aggregating films, the bargaining power of the platform increases and hence payouts increase too! And the negotiating power increases as more filmmakers join and the quality increases.
The monetization potential for a filmmaker is higher for less effort as Filmhub continues to add more streaming platforms. As more platforms stream your content, the payouts go up. And it is ‘very low cost’ to the filmmaker - you just need to upload your content once.
Another significant tailwind that will benefit Filmhub is when the cost of content creation drops significantly which will mean more filmmakers can produce more high quality content.
I believe there are opportunities for the platform to do more in the coming years. For example,
The filmmakers have to do the hard work of promoting their movies to audiences on social media. Filmhub can potentially offer services or products here. Maybe connect filmmakers with influencers or reviewers (who will register on Filmhub) who can promote films for them for a certain commission of final payout?
Filmhub also can work on adding products or features that will make it easier and less time consuming for platforms to discover the perfect content for their platforms. This in my opinion will be a very big deal. For example, Filmhub can enable outside reviewers to watch and share reviews on new movies added on the catalog - this makes it easier for platforms to shortlist and take a decision licensing movies
Filmhub is a high potential startup. Its customers (Indie filmmakers) are underserved and have a major pain point. They will be highly motivated to adopt the platform since it presents a monetization opportunity with such low friction - you just need to upload your movie and start earning. The platform strength will only increase as more filmmakers join the platform. Being a two-sided marketplace it is defensible via network effects and it has done the hard work of already partnering with 100+ streaming platforms. And there is significant tailwind due to explosion in demand and supply of content and possibly in reduction in cost of producing quality content.