It might be time to stop counting on ad revenue
The world has altered drastically because May 2019 when we last surveyed venture capitalists about the trends they were seeing in media, entertainment and gaming
Since then, COVID-19 and the resulting physical distancing procedures have actually produced plenty of demand for business assisting to notify and amuse us as we’re stuck at house. At the exact same time, there’s a dramatic reduction in ad costs, making it more difficult to monetize that consumer attention.
So we checked in a range of top VCs about the brand-new landscape, where they’re investing and what type of suggestions they’re offering their portfolio business.
Not all of them invest straight in what (paraphrasing Betaworks’ Matt Hartman) we might call media media– the business whose company designs revolve around content development and marketing– however each of these financiers are backing startups looking to alter the method we stay connected and entertained.
Here’s who we surveyed:
- Kevin Zhang (Partner, Upfront Ventures)
- Pär-Jörgen (PJ) Pärson (General Partner, Northzone)
- Vasu Kulkarni (Partner, Courtside Ventures)
- MG Siegler (General Partner, GV)
- Jana Messerschmidt (Partner, Lightspeed Endeavor Partners)
- Matthew Hartman (Partner, Betaworks Ventures)
- Gigi Levy-Weiss (Handling Partner, NFX)
The agreement? You can’t count on the advertisement business to recuperate in the next couple of months, however there are still opportunities for start-ups exploring new formats and new organisation models. And there’s still lots of enjoyment about video gaming and esports.
You can read their full actions, gently modified, listed below.
Kevin Zhang, Upfront Ventures
What (if any) media patterns are still interesting you from an investing perspective?
Live and interactive formats, specifically much shorter type, continue to be very amazing, made more evident in this time of shelter-in-place. What has operated in China and more comprehensive Asia has actually not yet equated into explosive success in the West. As intriguing as celebrity live broadcasts are from their homes, the lack of real interaction and involvement functions obstructs long-lasting engagement and doesn’t make up for the lack of production quality.
Modern content production innovation is required to push both production and live ops cost down while enabling more interactive and interesting formats. Game engines are one example, there’s of course the Travis Scott performance that just took place in Fortnite constructed on the Unreal engine, however that 15- minute, pre-rendered show took months to create, we’re only simply scratching the surface of what’s possible.
One of our investments in this area is Tellie for live-action formats, another is The Wave for rendered, live formats, and we continue to look for excellent mixes of tech and media skill innovating on brand-new formats.
Mentioning gaming, multiplayer games continue to grow and grow tremendously, there is a lot to unpack in popular titles from brand-new preferred Animal Crossing to classics like World of Warcraft to indie hits like For the King. They all have social cooperation as a core part of the video game loop and style. I ‘d enjoy to see more teams dealing with cooperative play and just overall a wider diversity in multiplayer experiences beyond simply competitive ones.