• An authentic television experience can now be had on any device.

    Welcome to the Next Generation of Web TV

    Zenither is an easy to use, channel surfing experience. Our internet platform is designed to empower visual creators and their audiences.
    Our goal is to liberate viewers from the traditional cable TV model by empowering content owners to operate independent networks with a global reach.
    This is the first video streaming platform funded and owned by creators.
     

  • Quick Facts

    #1. Founded by former VP of a Hollywood film studio and ex-YouTube MCN founder.
     
    #2. Development team has created software projects for companies such as Microsoft and AT&T.
     
    #3. Working prototype app; require funding to complete remaining features and launch the service.
     
    #4. Amazing opportunity to invest at a very low seed stage valuation in a company going after a $200 Billion market.
     
    #5. Signed deals with content owners to provide videos for viewers at launch.

  • What is Zenither?

    Watch the video for a detailed explanation of what we're doing.

  • Quality. Speed. Simplicity. Freedom. 

    Use the Zenither platform to deliver video content directly to mobile and smart TV devices worldwide.
     
    We're building the next great streaming video platform that allows creators to run their own television network using nothing more than a laptop and can keep 100% of their ad revenue. We intend to be the first video streaming app funded and owned by creators. We expect to work with filmmakers and content owners of all sizes to help them maximize their revenue opportunity for their content by giving them monetization tools they have never had access to before in a video streaming platform.

    Build A TV Station Without Limits

    From tablets in LA, to a smart TV in China and mobile in Paris. Zenither eliminates regional distribution restrictions. It's easy to operate a television broadcast to any device, anywhere in the world.

    Schedule Your Episodes In Seconds

    Schedule an entire week of hourly or serial programming in minutes. We provide the fastest broadcast automation solution on the market.

    Leanback Watching

    Playback quality is formatted for clear display on all devices.
  • Invest as Little as $200!

    Amazing opportunity to invest at a very low seed stage valuation in a company going after a $200 Billion market. Investors can secure a Station spot at launch!
     
    We seek to raise $200K to $1M for this first round.

  • An Easily Customized Programming Guide Designed To Grow Your Audience

    (Note: This is a software demo of the prototype that showcases features and the underlying architecture. The finished graphical look will be different; see our product mockups below)

     

    Multi-Channel Scheduler Feature

    In traditional broadcasting, network scheduling is a full-time position. The user friendly interface helps you create an episodic programming guide in minutes. Our proprietary algorithm utilizes 15+ data points including ratings, keywords and broadcast time to organize your content into Episode Containers designed to keep your audience engaged. The end result is a simple process with minimal learning curve and low maintenance time.




  • Viewers. Creators. Advertisers.
    Zenither Is A Better Way To Connect

     
    You Call The Shots With 100% Ad Revenue Control.
    YouTube is entitled to half your ad revenue simply for being a video hosting service. It's your content. Shouldn't you decide the value of it? Zenither station owners are entitled to 100% of their ad revenue.
     
    Got Great Content? Grow Your Audience
    Our platform provides a cable-quality channel guide. This allows millions of viewers to easily browse station categories and find your high-quality content. Unlike the YouTube search engine and Vimeo storage models, Zenither makes your content easy to find with station guides--just like broadcast television. Our platform gives viewers access to the highest quality interviews, music programs, filmmakers, comedy sketches and documentaries that they might otherwise miss.
     
    A TV Station Beats Apps and Uploads. (By A Lot)
    Our team believes that internet television is still in its infancy. Part of our mission is creating the future of web content curation and distribution. The channel guide and our focus on hourly programming is what sets us apart.


    Zenither is not an app marketplace (Roku), hosting container (YouTube) or plug-in (AppleTV). We offer a broadcast-ready TV station that loads onto any device, anywhere in the world. We're proud to offer content creators absolute control of value, distribution, hosting and audience size for their work.

  • Zenither Works on Mobile Devices

    Our web app works on mobile! Native apps are planned for release to create an even better watch experience!

  • Easily build and manage new Stations.

    Cable Broadcasting Features

    Whether you create or aggregate your content, Zenither offers seamless and affordable delivery to a global audience.
     
    Utilize our intuitive CRM suite, thorough billing system, analytics tools and over-the-top (OTT) service. We equip you to sell your own advertising inventory and retain complete ownership of ad revenue.
     

    Our core mission is to even the playing field. Zenither empowers you to run all aspects of a TV station with just a laptop and internet connection.

    Optimized for all screen sizes.

    Our user interface integrates with any device to maximize screen space for easy viewing.
    The Search Page

    It's Like Pandora for TV

    Your content is displayed to audiences on pages with relevant viewer interest, watching history and genre preferences. We've optimized our search features for targeted exposure to the fans most likely to subscribe to your Channel.
     
     

    Interactive Station Pages

    With one-click subscriptions, fans can add your Station to their customized hourly programming guide.
     
    Our integrated email system allows you easily update fans from all of your platforms with promotional and status messages.
     
    Zenither also offers visually formatted embed codes to broadcast your station from any website.
    Organize videos from multiple video sources into a standard duration program.

    Schedule Videos With Ease

    Use our proprietary Episode Container system to combine videos into a broadcast stream, just like a TV station would to program their schedule lineup of shows.
  • Compare Our Features

  • ...But Wait, There's More!

    Grow With Us

    Stations and seasonal lineups will be prominently featured in our convention speeches, trade expos gear, social media updates and various promotional activities.

    Reach Local Audiences

    Reaching out to a specific demographic? Our Hometown and City searches allow audiences to easily connect with your content. This provides great incentive for potential local advertisers on your Channel.

    Painless Social Media Integration

    Audiences can share your Station or individual content with the push of a button. 
  • Our Founder

    Carey Martell

    President, Martell Broadcasting Systems, Inc.

    Carey Martell is a serial entrepreneur with a long history in the digital video space.

     

    Carey founded the Power Up TV multi-channel network which sold to Thunder Studios in January 2015. As part of the acquisition he then served as Vice President of Thunder TV. In this role he spearheaded the transformation of Thunder Studios (a very traditional film studio focused on stage rentals) into Thunder Digital Media (a new media company focused on producing video entertainment for Millennial audiences).

     

    As the architect for the conversion of Thunder Studios into Thunder Digital Media Carey took the high level desires of the company and broke them down into lists of actionable items, which included the development of new software products; the formation of new service divisions; the hiring of new employees and training in operational procedures; and supervised the creation of new legal contracts for forming strategic partnerships and recruiting new talent. He directly negotiated strategic alliances and built a YouTube multi-channel network from scratch.

     

    Carey is also the author of several popular books related to growing a business around YouTube channels, including 'How to Start Your Own YouTube Network: An Insider's Guide'.

  • Meet Our Developer

    We've got a top notch team!

    Scio

    Scio was founded in 2003 with the vision of helping others achieve their business objectives by leveraging digital technologies. Over the years we have grown steadily and profitably as a provider of web and app development services to our clients throughout the Americas and Europe. Our success has enabled us to attract a highly skilled team and to operate in an environment with a professional, dynamic culture.

     

    Scio has built the prototype of the Zenither app.

  • Questions & Answers

    Answers to common questions you may have about Zenither.

    What's new about what you're making? How is it different?

     

    There are many video streaming apps but none truly revolutionize the television industry, which is why cable and satellite providers still dominate today.

     

    The problem as we see it is that most of these app makers focus too much on neat features and not enough on creating a platform that truly improves upon the traditional television business model.

     

    The app produced by Martell Broadcasting Systems, the Zenither app, will succeed because it makes the traditional business norms easier and more profitable for content owners of all sizes (YouTube creator, indie studio or major Hollywood studio).

     

    What the market wants desperately is a multichannel video programming distributor that brings the full traditional TV business model to the internet and makes it accessible to indie content creators. That's what we're doing.

    I dislike the look of the site in your software demo. Will it look the same at launch?

     

    Please consider the site in our demo videos is a prototype. This means it was created to demonstrate how the concept works. It's functional -- the backend infrastructure is very good and reliable, but not intended for public launch.

     

    The actual graphical user interface for the Zenither apps will be MUCH more polished and we have images of what the apps will look like at release on our site.

     

    Our development team has decades of experience and has done many software projects, including for Microsoft and AT&T. We're very confident in what we're doing.

    Why is the app called Zenither?

     

    Zenith means "the time at which something is most powerful or successful".

     

    Zenither is intended to become the best video streaming platform that empowers indie creators with all the strategies and tools that a traditional TV station would so they may fully inherent the future of the television industry.

    As an investor will I have a voice in the future direction of the Zenither platform?

     

    Yes.

     

    MBS will solicit the opinions of its shareholders on new developments. When we beta test new features we'll invite our shareholders to test them before releasing the features to the general public. Unlike other video streaming platforms we'll genuinely listen and respond to the feedback we receive from those who invested to make the platform possible.

    What will you use the investment money for?

     

    The back end server architecture and Station creation tools, along with the programmatic video scheduler, already exist. So those parts of the Zenither application are done. We have a working prototype.

     

    We still need to finish the iOS and Android mobile apps to create a polished watch experience for users. This is why we're raising funding.

     

    We also need runway funding -- providing bandwidth for video stations during the launch phase requires some capital we just don't have right now but with your assistance we can do it.

     

    So the money will go toward finishing the native mobile apps and paying for server bandwidth while we build the service out. We'll also spend some money on marketing for user acquisition purposes.

    Can videos only be watched by the "channel guide" feature? Is video on demand available in Zenither?

     

    The channel guide is only one means of content curation and discovery that Station owners have at their disposal.

     

    Viewers can still search for Shows and watch videos on demand from the Station page, similar to the experience of searching for videos and watching them on a YouTube channel. In fact Zenither will have a few search features YouTube does not have such as local results (finding Shows produced by local Stations near the viewer, such as local news programs or even live music shows from the bar down the street). These additional search features are specifically designed to allow niche interest programming to thrive on the platform.

     

    Think of Zenither as combining the best aspects of a traditional TV experience with the on demand benefits of internet video sites like YouTube.

    How will you make money?

     

    The Zenither app will generate revenue primarily through commissions on ads served during commercial breaks on Station streams, as well as through commissions on premium a la carte subscription bundles and content licensing aggregation fees. Please see our presentation for the full details on these revenue streams.

    How big is the market?

     

    At its core the business of television is advertising. The North American television advertising market alone (both traditional and video streaming) is over $200 Billion US annually.

     

    With the Zenither app, third-party Station owners can sell their own ad inventory and keep 100% of that revenue, but they also have the option to sell some of their ad inventory through the display network owned by MBS Inc (which will operate similarly to Adwords for Video). From these latter transactions MBS Inc. will take a 25% commission on ad revenue from any ads served through our ad display system.

     

    Furthermore MBS Inc. will operate several Stations and sell ads against the content on these stations the same way that cable providers like Time Warner and Comcast operate their own TV stations on their services. So there is an enormous opportunity here to tap into the television advertising market as it transitions from traditional broadcasting into digital video.

     

    The Zenither app will also support premium a la carte channel bundles for subscribers at a price similar to Netflix, which generates $1.18 Billion US in revenue annually.

     

    Lastly the Zenither app will also have a built in content licensing library that will make it easy for Station owners to license bundles of video content for streaming on their Stations and MBS Inc. will take a 5% commission on each licensing transaction. Traditionally content bundles can sell for $25,000 to $250,000 but the system will also support small license purchases from content produced by indies such as YouTube creators. There is a great opportunity here fulfilling a need that no other video streaming app is providing.

    Will Station owners be charged a fee for bandwidth / storage costs?

     

    No they will not. That is not our business model.

     

    Nor will users who upload videos into our licensing library be charged for such things either.

    Why build an app with a day-parting schedule as a feature? Isn't on-demand video better?

     

    Video on-demand (VOD) is great for obvious reasons, but there is something special about the broadcast watching experience. There is something different about knowing you are watching the same video that thousands, or even millions of other people are also watching at the same time. It allows for real-time conversations about content, which technology is now supporting so that these dialogues can be had at a global scale.

     

    We know a cable TV broadcasting experience is something people want on the internet. Apps like Aereo, Pluto TV and Sling TV have proven there is a market for this. Before it was taken down by copyright infringement lawsuits Aereo had 77,596 subscribers spread out among 10 cities. Pluto TV claims to have 5 million users who are watching nothing but YouTube videos using the app, and Sling TV has 1 million subscribers paying $20 per month to access a handful of channels. We know the experience is in demand because these apps have been successful in the market. What we are doing different is in our business model.

    Does the Zenither app support time-shift releases of content?

     

    Yes. The prototype's program channel guide already supports time-shift releases of video content based on the time zone of the viewer. So this is already a feature.

    Who are your competitors? How are you different?

     

    Our competitors are the obvious players like YouTube and Vimeo, but also smaller folks like Vidme, Pluto TV, VRV and 9x9.tv

     

    Our competitors are also the traditional cable and satellite TV companies like Comcast, Direct TV and Time Warner Cable.

    The first thing that is different about us is that our app Zenither is designed to incorporate the best features of on-demand video sharing sites like YouTube with the business model of traditional television networks in a way that nobody else is doing, such as with our regional-based ad sales format (geofencing) and licensing library for Station owners to easily acquire content bundles for their Stations.

     

    Furthermore, existing video sites are very software focused businesses primarily founded and ran by engineer-minded folk who largely ignore the traditional TV business norms. This has made it exceptionally difficult for folks like YouTube creators to produce high-quality scripted serial content and get it before audiences because many key components of the way the entertainment business works are ignored by these other companies. We believe our model will change this, as our founder is both a tech entrepreneur and a former Hollywood studio exec. He also has a background as a YouTube creator so he understands the issues they have today. We believe he can stand between these worlds and merge them together.

    Can anyone upload their videos to the Zenither platform?

     

    Yes, anyone will be able to upload videos to the Zenither platform.

     

    However, not everyone will be able to make a Station. We'll require Station owners to have access to 100+ hours of content before we allow a Station to go "live" -- let us explain why.

     

    The Zenither app is designed to emulate the best experience of cable and satellite TV channel guides. This means a big part of the experience is the day-parting channel guide that shows content that can be watched by the hour as a leanback experience. This is very different than YouTube's video blog format that requires viewers to constantly search for new videos every 5 to 15 minutes (depending on video length).

     

    To make it easier for Station owners to schedule 100+ hours of content into their channel lineups we allow anyone to upload videos to the Zenither platform which can be made available for licensing. So whereas not everyone will have their own Zenither Station like they might a YouTube channel, your content can still be watched in the Zenither system when your videos become licensed and scheduled by Station owners. In some ways this is actually a better system because content creators can focus on producing content and licensing it to Station owners who will focus on marketing that content for you. This better resembles the traditional TV business model -- TV show creators like JJ Abrams and Seth MacFarlane don't market their TV shows because that's the role for the networks. In fact having a channel with a day-parting schedule will allow YouTube MCNs and other startup networks to employ marketing techniques that they just don't possess in a platform like YouTube.

     

    Creators who make their videos available for licensing to Station owners can be paid in several ways, such as by taking a cut of ad revenue the content earns or being directly paid a fee by the Station owner that licenses their content. This allows small creators who make good content to earn revenue without having to manage a Station like they would have to manage a YouTube channel. Without needing to focus on building an audience you can instead focus on producing content that Stations with audiences can promote. Having said this, we expect existing YouTube creators who have around 100K+ subscribers to probably have enough hours of content that they can qualify for a Station. If not they can partner with other creators who make similar content, bundling their video libraries together into a single Station and cooperate as co-owners of that Station. The Zenither Station tools allow tracking of ad revenue earned per "show", so it would not be difficult for ensuring individuals creators are paid for the content they produce under such an arrangement.

    Will Zenither be a free app for viewers?

     

    Zenither will be a freemium app -- the vast majority of stations will be free to watch, with revenue supported by advertising (either sold by MBS for the Station owner at their discretion, or sold directly by the Station owner like a TV network does).

     

    In addition to the "free-to-watch" stations there will be premium stations that require a subscription membership to watch. These won't be individual subscriptions -- users will subscribe to a content bundle that the station is a member of. Station bundles will be largely determined by content genre -- the gaming sports package, the kids channel packages, the movie station packages, etc. similar to what cable providers already offer as part of premium packages, but at a much more affordable rate. Each bundle will cost anywhere between $5 to $10 to add to the subscription, and unlocks these premium stations for watching. Stations that are part of these bundles receive carriage fees, just like they would if part of a traditional cable TV subscription service.

     

    Keep in mind some of these stations will be region exclusive, so there might be ( as an example) the Italian movie channel bundle or the Canadian kids station bundle. We place large emphasis on the promotion of local niche interest content and intend to operate our service globally. The platform is designed to accommodate this while ensuring a quality search and watch experience for users no matter what territory of the world they live in.

     

    From a viewer's point of the view the app will seem very similar to YouTube in that they can watch lots of free content and still do a paid subscription to watch premium shows, but for content owners the business model is VERY DIFFERENT and can potentially be much more lucrative for them.

    As a viewer why would I want to watch videos on Zenither instead of YouTube?

     

    Firstly is curation. The station hourly schedule broadcast feed is content curated by the station owner themselves like a traditional TV station does, and all the same strategies (like day-parting) that helps audiences discover content of interest.

     

    Secondly Zenither also has search options to find local stations near your location, which may carry programming of interest to you such as local news programs or local streams of events like sports, music concerts, etc. When you subscribe to a station it appears in your channel guide, which is customizable and allows you to see release of new content horizontally rather than vertically like on YouTube, which maximizes screen space and is why TV channel guides always use this format. It's real peculiar that YouTube doesn't and an indicator that they really don't get the TV experience.

     

    So as compared to YouTube if you follow hundreds of channels you can quickly look through the Zenither channel guide to see what is new as 'new' will be among the tags for those programming blocks in the schedule.

     

    Thirdly searching for content will be much easier because instead of needing to dig through hundreds of individual videos you can search by stations that specialize in certain genres of content or shows that match those content related keywords. You can search through keywords of individual episodes too, but you'll end up with the same problem you get with YouTube where (as an example) if you search "horror" you'll get a bunch of people in their bedroom talking about horror or top lists of horror, and not see shows. YT does have filters you can apply to show just what it regards as "shows" but shows has been depreciated as a tag and so only old stuff is labeled a show, and if you do the filter for movies you actually end up with a lot of possible results never appearing because the uploader didn't go into advanced settings and label it as a movie or use horror related keywords in the title and description. The user experience for labeling content is pretty complex and time consuming on YouTube and ours is a lot simpler so content in Zenither will generally have better meta data than YouTube videos do because people (content owners) will actually fill out the key stuff in Zenither.

     

    We'll actively be monitoring if station owners are filling out their metadata properly and ensure it gets done because they will need to keep quality standards.

    Why would I want to sell my own ads when YouTube sells them for me right now?

     

    Firstly, when Google (not YouTube) sells ads for your YouTube videos they keep 45% of the money and they also don't sell ads specifically for your channel or videos, but rather sell the inventory based on keywords your videos are ranking for. This meta-data is determined by things like your Video Title, Description, Tags and elements of your closed caption script. It's generally not sold based on the buying power of your audience, or other key data (which is how TV networks sell ads using Nielsen report data). This means the ad sales are at wholesale rates.

     

    If you sell your own ads, you can charge a higher rate for them more comparable to the rates actual TV networks charge advertisers. You can also keep 100% of the money with Zenither for these ad sales you do yourself.

     

    Secondly, the easy street world of YouTube is changing. YouTube is now producing original shows with mainstream celebrity talent which advertisers can purchase ad inventory on separate from the regular YouTube ad market. Brands such as Johnson & Johnson, who previously pulled all their advertising from YouTube out of concerns they were funding terrorism videos, are purchasing this exclusive ad inventory on the original shows because they know the content will conform to their views and values. This has been reported on by Tubefilter: http://www.tubefilter.com/2017/06/24/youtube-ad-supported-originals-kevin-hart-ellen-degeneres-tv-ad...

     

    The streaming video industry is changing. It is drifting away from user-generated content supported entirely by AdWords for Video sales and becoming more like how traditional TV works because this is what the advertisers want. Even YouTube is heading in this direction. If you don't keep up with the times you're going to get left behind as the money for user-generated content on YouTube continues to dry up.

     

    If you are concerned about whether you will have the skills to sell your own ads if you run a Zenither Station, don't be. If you can negotiate brand deals with sponsors for your YouTube channel then you can also negotiate advertising deals with those same sponsors for your Zenither Station. The process is very similar and the ad placement tools that Station owners have access to make it super easy to manage your Station's ad inventory.

     

    I could license other video streaming software produced by other companies and sell my own ads. Why use Zenither?

     

    Those other companies primarily make their money by charging high fees for bandwidth and data storage of video data. They do not allow you to operate a channel for free like Zenither does. Furthermore your Station is part of an ecosystem with Zenither -- a channel guide that allows your station to be discoverable from users of the app, the same way cable and satellite subscribers discover TV stations and their programming. With those other companies you must build your own apps and market that app, which is a walled garden approach versus the shared marketplace Zenither has for your videos to be discovered.

     

    The other thing to consider is that Zenither offers a marketplace similar to AdWords for advertisers to be able to search for Stations they want to advertise on. The advertisers can see demographic and viewership data, along with projections for future viewership based on past performance. If you license your own video streaming software you won't have analytics like this, nor be part of a marketplace. You'll have to sell advertising purely through person to person business transactions, whereas Zenither's ad marketplace allows advertisers to purchase ads through a website the same way they can with AdWords. This saves on cost of sales staff while making your Station's ad inventory easier to discover.

    Where are you in the process of building this out?

     

    From 2012 to 2013 our founder Carey Martell hired Scio to develop a prototype of the Zenither app which was constructed under the working title of 'Martell TV'. The app functioned perfectly on web browsers but fundraising for completion of the mobile app versions was unsuccessful.

     

    The project was set aside while Carey built his MCN 'Power Up TV' and then served as a VP at Thunder Studios after the studio acquired PUTV. Carey has since exited Thunder and waited out the duration of his noncompete agreement.

     

    We're now ready to move forward with this project and the time seems right as equity based crowdfunding is now available as a means of fundraising, which gives interested folks like YouTube creators the opportunity to invest into a platform that will better serve their needs.

     

    If this funding round is successful we expect to launch Zenither into the market during the last quarter of 2017 or first quarter of 2018.

    What do you understand about your business that others don't get?

     

    Most video app producers focus on feature lists and the audience user experience, which is really important, but they often do these things at the expense of recognizing the real customer is the content providers. Consequently they don't build a business model that allows the content providers to thrive very well which creates growth problems. Take YouTube for example; the platform was created in 2005 and they still struggle to make scripted serial content thrive on the platform because the revenue model and app features on YouTube do not support the creation, monetization and promotion of that kind of content. This results in even the most popular YouTube creators having to spend the vast majority of their time glued to their cameras, uploading video blogs every day of their lives because the value of their past video libraries are diminished by the nonsensically designed search algorithm that rewards "fresh" content and punishes older video libraries (which is the exact opposite of how the traditional TV industry works where shows and movies made decades ago still produce financial returns for their owners through licensing).

     

    Traditional TV and film stars don't work nearly as hard as YouTube creators do and yet these Hollywood stars obtain greater financial rewards. This is because the revenue model and feature list of a platform like YouTube is actually poorly designed for the needs of the entertainment industry.

     

    The biggest problem with platforms like YouTube is they tend to treat the content owners as generic consumers rather than business partners. The vast majority of YouTube creators don't even get tech support assistance!

     

    At Martell Broadcasting Systems Inc. we're listening to what the content owners need and building a platform to provide those needs. We know the viewers will follow the content of the stars they watch; the real customer for our app is the content owners who desperately need a better business model to scale their businesses in a way no other video streaming app developer is providing.

     

    Why won't Google just emulate what you are doing by making changes to YouTube?

     

    Google would have to change their entire business model in order to compete with us and we believe that is extremely unlikely to happen because it'd be like throwing out the baby with the bathwater.

     

    YouTube's predominant means of ad revenue is through inventory sold via AdWords, which specializes in the wholesaling of programmatic ad inventory at a cost per view / impression / click model. While Zenither does use that model for selling ad inventory against Video-On Demand content, Zenither also has a model more similar to the on-air ad that television networks use to charge premium rates. This model is based on projections of future audience viewership and demographics, not actual measurement of every single viewer. In short, the cost of airing an ad during TV shows is determined long before those TV shows air based on predictions and sold with the knowledge the advertiser is guaranteed exposure to any viewer watching at that time in the territory the ad is purchased. It is a much more lucrative model because it promises guaranteed exposure at a select time to a large and narrowly defined audience.

     

    Google has experimented in the past with trying to do ad sales for video and television using this model, and was ultimately unable to marry the service with the rest of the AdWords system. It's hard to charge a premium rate when advertisers can wholesale purchase ads and still air their commercials on the same video content that you are trying to charge a higher rate for. For the uninitiated, what we mean is this: look at how AdWords and Google Preferred are contradictory services. Sure, an advertiser could guarantee placement on a top YouTube channel by purchasing Google Preferred ads on that channel, but they could also just purchase wholesale priced AdWords campaigns with keywords designed to ensure the ads are seen by the same viewers who watch these top channels. You do not have to specifically advertise on Michelle Phan and Good Mythical Morning channels to get your ad seen by their audiences, because their audiences also watch other YouTube channels who play normal AdWords videos. This is the biggest problem with YouTube's ad model.

     

    Yet even with these so-called "Google Preferred" ad sales, these media buys are still chump change compared to what traditional television networks charge advertisers for commercial spots on their TV stations. This is because the traditional networks make the size of their ad inventory more scarce. You simply cannot demand a high rate for ads if you sell it by individual view (like on YouTube) rather than by coveted time slot (which is what TV networks do). Selling per view is fine for Google because they have billions of hours of content on YouTube right now to sell ad inventory against, but because the ad sales are small the individual content owners really do not maximize the amount of money they could be making if they could make their ad inventory more scarce as with the traditional broadcast model.

     

    Even if YouTube ceases to be a place to watch premium video content, Google will still be the world's largest advertising company. They were that way before they bought YouTube and they will be that way after YouTube depreciates in value. We believe it is unlikely that Google will change their entire business model just to compete with a smaller player even if that smaller player overtakes one of their platforms. What we think they will try to do is acquire MBS Inc. the same way they tried to acquire Twitch because they could not compete with their livestream offering. This will only drive up the value of MBS Inc. -- remember, it was because Google tried to acquire Twitch that caused Amazon to rush in and buy it for almost a billion dollars in cash. After Google failed to purchase Twitch they launched the YouTube Gaming service which has really not worked out very well at all because the model is very different than the video blog, VOD format the rest of YouTube uses. We expect a similar attempt to replicate Zenither within the YouTube platform to be just as ineffective in the market as YouTube Gaming is.

     

    the tl:dr version is this: IF Google changed YouTube to function like Zenither, they would be removing billions of potential ad inventory from ' AdWords for Video' listings in order to support the way Zenither sells ads. Google won't thrive that way because AdWords depends greatly on YouTube for serving video advertising.

     

    So in conclusion, in order to truly compete with us YouTube as a platform would have to fundamentally change so that ad inventory is now made more scarce like with cable TV networks, instead of abundantly plentiful as YouTube is now. This means it would need to cease being a place where anyone can register a free account and upload hours and hours of video blog content. YouTube would need to transform into a more exclusive platform like what Zenither will be. That is extremely unlikely to happen because that model will never work for the way AdWords inventory is sold and Google is heavily reliant on AdWords for placing ads on YouTube videos.

     

    I don't understand what you mean by scarcity in regards to ad inventory. Can you explain?

     

    Let's look at an example with cooking shows.

     

    On cable TV there is a station called the Food Network, which has wide distribution through all major cable and satellite TV providers. If you want to purchase ad inventory on Food Network shows you have to pay the rate the channel owner (Television Food Network, G.P) demands. Secondly, for every half hour of television programming on the Food Network there are 18 commercial spots. That means every day there is 864 commercial spots available for purchase as a national campaign. As the viewership of the Food Network is broadcast and not on demand, the network has the most viewers in the evening so of those 864 commercial spots per day, 108 of these spots are "premium", or "prime time" ad inventory. This category commands the highest rates because it is scarce -- there are only so many hours of peak viewership -- and reaches the largest number of Food Network audience viewers at once. There might be tens of thousands of companies that want to advertise every day on the Food Network and they will bid against each other for those coveted 108 slots, which increases the price.

     

    Now let's look at YouTube, where there is hundreds and hundreds of cooking related shows from creators big and small. Epic Meal Time, Nerdy Nummies and My Drunk Kitchen might command the largest number of eyeballs but they do not possess any control whatsoever over the ad inventory of their shows. The creators of the channels don't even get to decide how many ad inventory spots are available on their shows per half hour of programming, nor do they get to decide how much it costs to advertise on their channels. YouTube sells ads on the videos uploaded to their ENTIRE platform based largely on keywords a video ranks for, and although Google Preferred does allow advertisers to ensure their ads only show on certain channels, advertisers who pay far less money can reach the same audiences using the regular ol' wholesale AdWords system. Worse, YouTube sells ads per viewer and not per time slot, so instead of having 864 commercial slots per day there are instead billions and billions of ad inventory spots every day on YouTube, which drives down the price of ad inventory to rock bottom prices even if there are millions of companies buying ads. There is simply too much ad inventory available every day. Worse this model is anti-competitive for channel owners; it would be like if you could buy ads on the Food Network and BBC Food at the same time for the same price even though both companies are competitors to one another. Doesn't seem good for business, does it? That's because it isn't!

     

    Worse, with YouTube the creators only get paid view by view, which might be a good deal for advertisers and encourage them to give YouTube more money to advertise on many thousands of channels but it doesn't help the creators maximize their own revenue opportunity. You can't go to Time Warner or Comcast and buy TV advertising on stations they don't own. You have to go directly to the owners of the TV stations and pay the rate they ask for in order to advertise to their audiences. This creates an advertising market of TV station owners which allows for competition in the market.

     

    YouTube isn't a market. It's just a monopoly owned by Google. Monopolies are bad because they drive down the price of goods for the manufacturers (in this case, YouTube creators who manufacture content) and make it difficult for them to be profitable enterprises.

     

    Profitable enterprises are necessary for a market to thrive and mature, because it leads to new, higher quality products as the manufacturers compete with each other. This means *drum roll* if YouTube creators make more money from their content they will then make MORE content and at much HIGHER production values than they do right now. This is good for audiences, as they will have more shows to watch!

     

    Zenither's model allows for a market to be created. It allows for channel owners to create scarcity of their inventory, which drives up the price of their advertising inventory and leads to happier, more productive creators who won't have to video blog all day anymore just to stay financially viable and relevant in YouTube's bizzaro world monopoly. And it means better quality shows for audiences to watch.

    How will video creators make money on Zenither?

     

    There's three main revenue streams for video creators on Zenither.

     

    The first is by operating a Station. This allows the Station owner to monetize their videos with inserted advertising into the streams as well as having pre-rolls, mid-rolls and end-rolls like you see on YouTube, Hulu and other video streaming platforms.

     

    The second revenue stream is for Premium Stations, who will also receive carriage fees from the paid subscription bundle their Stations are listed under.

     

    The third revenue stream is by uploading your video content to the Zenither video library which allows Station owners to license your videos for streaming on their Stations. There will be very flexible licensing agreement structure which can support single video licensing or bundle licensing, as well as charging an upfront payment for the license. Creators can also choose to receive a % of the ad revenue their videos earn from the Station licensee. This is how traditional TV works; content owners license their shows to networks as first, second or third runs, and can license these shows to multiple Stations in different territories at the same time thus maximizing their revenue opportunity. You can do absolutely none of this on YouTube because it was designed as a video blog platform instead of as a television delivery system. We at Zenither realize we need to bring the model of TV to the indie digital content creators and make it super easy for them to operate their businesses the same way the major studios and networks do. That's what Zenither is all about.

     

    How can you be sure people will watch videos in your app?

     

    We're confident people will use the app because they already watch content on other similar apps.

     

    As many channels in Zenither will be free to watch (such as those operated by MBS, Inc. ourselves) we don't think it'll be a hard sell to get people to sign up as users to the app.

     

    Some folks might not be convinced of this though and that's fine. It's actually unnecessary for you to be convinced people will download our app. This is because all Station owners can embed their Station streams into their own websites. If the Station owner already has an audience they can simply share their own website as a destination for people to watch their stream. Even playing on a website external to our app, ads will still play and any necessary paid subscriptions will still be required but this gives content owners more control over the way their content is displayed and allows them to continue to focus on promoting their own websites.

     

    How much could my investment be worth in a few years?

     

    That's a forward looking statement for a product not yet released to the market so we honestly cannot tell you what your investment into MBS Inc. could be worth in the future. But we can tell you this.

     

    Our valuation for this opening round is $5M, which is the same valuation that Uber had during its 2010 private round.

     

    What happened with Uber?

     

    A $100 investment into Uber during that 2010 round became worth over $1M by 2015 (source).

     

    This article by Dynasty Wealth breaks down the Uber valuation numbers in detail. By 2014 the stock had grown to a $41B valuation. Today Uber has a valuation of $70B according to Equidate.

     

    Martell Broadcasting Systems, Inc, is going after the same market as video streaming platforms like Netflix (current valuation $54B ) and YouTube (speculated at $90B) . If we are successful at becoming a competitor to these services, we believe MBS Inc. will someday have a valuation comparable to these companies.

     

    But I stress again; our valuation is starting at $5M pre-money, the same as Uber did during its initial 2010 round.

     

    This means a $100 investment into MBS, Inc. today could potentially be worth over $1M in the not so distant future if we experience similar kinds of growth. And our aim is to become a major company that can possess this kind of valuation growth for our shares.

    What's your biggest risk? What keeps you up at night?

     

    We're a small company so we are facing a lot of risk. There is a risk of running out of money, of doing something novel and new, and so on. However our founder is experienced at building video networks and knows the ins and outs of the digital video industry.

     

    Currently our business will not be regulated by the broadcasting acts under the supervision of the FCC but this can change in the future. We've watched companies like Aereo crash and burn under lawsuits because they ignored regulations. It is important for us to be aware of the changing market.

     

    How do you acquire customers?

     

    The Zenither app's primary customer is not viewers, but the content owners who themselves have substantial audience followings and will watch the content wherever it is hosted. We believe because our platform offers vastly superior monetization opportunities for content owners they will remove the bulk of their content from platforms like YouTube and upload them to Zenither where they can consolidate and control their ad inventory. The audiences will consequently follow the content to Zenither in order to watch it.

     

    So, we are building a platform that will appeal to content owners and allow them to obtain far greater profits than by using any existing service. This is key to our growth.

     

    We know this strategy can work because we've seen Vine stars port their audiences over to YouTube channels after Vine shut down. Audiences will follow the content they want to watch from one platform to another. This has been demonstrated to be true and one need only look at stars such as Logan and Jake Paul for proof of this. These ex-Vine stars ported their massive audiences over to YouTube when Vine shut down. While we may or may not get the largest YouTube stars to immediately create Zenither Stations we will still get many large midsize channels who will -- and they will bring their audiences with them.

     

    Through B2B marketing outreach we will grow our list of third party Station providers to have hundreds, potentially thousands of Stations who are broadcasting content in every language for every region of the world. This will be a global company.

     

    Of course, as a video streaming app we need viewers, too and we intend to help bring viewers to the platform. Through paid advertising via sites like Facebook we will grow our viewerbase, targeting a profile of early adopters we have identified in select regions. Every viewer who signs up to the Zenither app will be incentivized to invite their friends to also register accounts. The userbase will grow very quickly using these tried and true techniques, the same techniques that Carey used to quickly grow the Power Up TV network.

    How can you accomplish this with just $200K?

     

    This is just the first phase of this startup. Once the Android and iOS apps are complete the company will start generating revenue immediately through pre-sales of ad inventory on Stations operated by MBS, Inc. sold at a sweetheart rate to entice the advertisers until viewership grows. Furthermore content owners who create stations will bring their own relationships with advertisers to the platform.


    From these successes we'll be able to do additional rounds of funding that will allow us to expand globally and further improve user experience / performance.

     

    We expect this ball to roll extremely fast and have no doubts major content owners will be reaching out to us begging to get a station long before we even launch.

     

    Having said that, we hope to raise at least $500K during this round which will greatly accelerate our growth. If we raise the $1 million maximum allowed by the SEC for a Regulation Crowdfunding campaign that will be even better as we won't need to do a 2nd round for awhile and can focus purely on growth.

     

    How will small YouTube creators best create a Station in Zenither?

     

    Stations in the Zenither app will be just like TV stations you see on cable and satellite services. Although the Station owners will have the ability to offer video-on demand libraries, the Stations will require 24/7 scheduling of content into their feed at all times or we won't show their feeds in the channel guides in order to ensure a quality experience for the viewers. I mean, could you imagine if MTV just stopped airing content? That would obviously make for a poor experience for the viewers, wouldn't it? This is the kind of thing we must avoid occurring in Zenither.

     

    So, Station creators will need to have access to at least 100 hours of video content before we'll allow their Stations to be watchable by the public. This is basic quality assurance. Although this is a digital platform, the BUSINESS of television still applies. This service is not meant for just anyone to make a Station; it is specifically meant for serious business minded folks who want to run a TV station using the internet for distribution.

     

    So having said this, it is important that small YouTube creators understand that a Station full of their own 5 minute video blogs would be a tough sell to audiences and advertisers. The smart thing to do if you are a small YouTube creator is to band together with a bunch of other creators with content to form a company, and then use that company to start a Station. You can then broadcast all of your content 24/7 and stream shows from several creators on the Station, not just your own. The tools of a Zenither Station make this process very easy to do.

     

     

    Who do you expect to create Stations in Zenither?

     

    We expect multi-channel networks and popular YouTube creators to be some of the first customers, as they have a huge library of content and problems with optimizing revenue for it. One of the toughest things about YouTube is it's impossible to utilize traditional broadcast strategies for promoting content since everything is on demand. These strategies might be old but they work extremely well, which is why YouTube and Netflix have never fully replaced traditional broadcast television. We believe once we give digital creators the ability to use the same techniques as TV networks and possess full control over the value of their ad inventory, then we'll see a dramatic shift in the situation.

     

    The second type of Station creator is likely to be a company with access to tons of old TV shows and movies, who will create Stations so they can schedule this content and generate additional revenue from it. These can be anywhere from major Hollywood studios to indie film-makers who have found it difficult to thrive in today's market due to the shriveling of the home video market (DVD / Blu-Ray sales aren't what they used to be). Their content can find a second life in the Zenither app.

     

    The third type of Station creator is probably going to be local public access and college stations who want to reach wider audiences on the internet with the content they already have and continue to produce.

     

    Why do you think MCNs will want to run Stations in Zenither?

     

    The YouTube multi-channel network model is dependent upon the way YouTube's platform works. Currently, the only way MCNs can be profitable is by getting a cut of ad revenue from thousands upon thousands of channels.

     

    So, what do you think is going to happen when the biggest YouTubers abandon Google's platform for Zenither, where they get to keep 100% of their revenue, charge significantly higher rates for ads, can get paid carriage fees and have the ability to effortlessly license their content out for easy money? The current MCN model will obviously not survive this paradigm shift. MCNs will need to become more like traditional TV networks in order to carry on.

     

    To be blunt, we aim to disrupt the market to such an extent that the MCNs will simply not be able to operate if they don't join Zenither because all the biggest YouTube creators will be removing their content from YouTube and choosing to make it exclusively available on Zenither, which will be the absolute best place for them to make money with their content.

     

    The other thing to consider is that several MCNs have tried and failed to build their own independent video streaming platforms. These efforts have failed primarily because the size of the audiences these MCNs attract are not larger enough to support the operation of a video streaming platform and justify the cost of paid subscriptions or even support advertising revenue. We think the MCNs should instead operate as part of a package bundle deal like cable stations do. This is why we're using the cable TV carriage fee model for Zenither premium subscriptions. We believe this model has demonstrated itself to work in the traditional TV industry and there is no reason it cannot work if a platform is developed specifically to bring this kind of model to the internet. As services like Sling TV and YouTube TV have demonstrated, the model can work but the majority of MCNs are locked out of operating stations on these services because they are deals meant to attract traditional media companies and their audiences. They are not aimed at servicing the needs of indie content creators like YouTube stars and the MCNs that work with them.

     

    Why should I care if YouTube creators can make more money in Zenither?

     

    We realize the average person is unfamiliar with the operations of the entertainment industry but you should try to be more open minded. Helping any large group of business owner has a positive impact on the economy.

     

    It is possible that the way you think the TV industry works is not accurate. We've met people who think actors and directors get all the money, when in fact this simply isn't true. According to the MPAA the American motion picture and TV industry contributes approximately $40 billion per year in payments to more than 330,000 local businesses across the country. In fact, a major motion picture shooting on location contributes $225,000 every day to the local economy. The traditional TV industry is based predominantly out of New York where it supports nearly 95,000 jobs and pays over $9.8 billion in wages.

     

    But when folks like YouTube creators don't generate fair earnings for their content they cannot add their own contributions to this equation very well, as with fewer profits they have difficulty funding the production of high quality content. The core reason many YouTube creators primarily make video blogs in their bedrooms and don't make serial scripted content despite having hundreds of thousands of subscribers is because they just don't make enough money to do so using AdWords monetization. Consequently they cannot regularly hire production crews, catering services, rent hotel rooms, costume designers, prop makers, make up artists and so on which are essential for producing scripted serial content. The production of movies and TV shows is a manufacturing process involving a lot of different occupational specialties, which is why the creation of these shows is so expensive. When YouTube creators do not produce much revenue they simply cannot hire these people to help them manufacture content.

     

    We believe Zenither's model will make it easier for the next generation of content creators to produce serial scripted content and consequently contribute to their local economies.

     

    So the best way to think of Martell Broadcasting Systems Inc. is that we're helping a special class of business owner who has needs not being met by anyone else and that the large amounts of ad revenue the Station owners make aren't going to flow into a big swimming pool of coins, but instead flow back into the economy by creating jobs and purchasing services needed for Station owners to produce tons of new TV shows and movies for their Stations. It will be a very great thing!

     

    What is the submission process for people who want to make a Station?

     

    Users interested in making a Station will be able to apply through a form on our website. Approval will be based on which applicants can demonstrate they have a library of 100+ hours of content. This proof can be a catalog list or a link to their existing YouTube channel.

     

    Although it's a manual review process, don't think we're going to be trying to make a super exclusive platform. We're not. We expect there to be tens of thousands of Stations within the first year of launch. The barrier of entry is slightly higher than on YouTube for running a channel but that's only because our business model is different. As we said before, ANYONE can upload their videos to our platform for Station owners to license and then stream on their Stations. We believe this will be a more effective model for most content creators than asking them to produce videos AND manage the marketing of those videos. That isn't what traditional content production companies usually do; they make content and license the content out.

     

    We also think many creators will make more money this way, too. And Creators who are very successful with licensing their shows can always apply to run their own Stations.

    What is Martell Broadcasting Systems, Inc. ?

     

    MBS Inc. is a company founded by Carey Martell in November 2013 for the purpose of developing a video streaming app, which was originally called 'Martell TV' and is now the Zenither app. The company had difficulties raising funding from traditional investor groups and will now use Regulation Crowdfunding to accomplish its goals by directly reaching out to the people who can see its potential -- online video creators and their audiences.

     

    The company also owns various Intellectual Property such as Carey's former YouTube show, 'The RPG Fanatic' and other films produced by his former company, Martell Brothers Studios. These assets will be repurposed after the Zenither app has launched and used to help populate stations owned by MBS Inc. with watchable content.

     

    You should know that when you invest into MBS Inc. you are not just investing into the Zenither app, but rather into a media company that aims to become a major player on the scale of Time Warner. It is our intentions to produce original content after the Zenither app has proven profitable in the market and by becoming a shareholder in MBS Inc. you will reap the rewards of an early investment into what we believe will become a major entertainment conglomerate; the first owned by creators of digital video content.

     

    Tell me about the founder Carey Martell. Who is he?

     

    Carey Martell is a serial entrepreneur with a long history in the digital video space.

     

    Carey first registered a YouTube channel in 2005 shortly after the site launched. He operated several channels but his most popular was The RPG Fanatic, a videogame review show. He grew his channel to millions of views and 14,000+ subscribers but found growth difficult due to the low ad revenue that YouTube videos generate which left little resources for marketing the channel. He also came to the belief that he was better suited for the business side of entertainment, and lacked the necessary talent to be an onscreen actor. He began thinking of ways to make streaming video more profitable.

     

    Carey founded the Power Up TV multi-channel network in March 2014, which he then sold to Thunder Studios in January 2015. As part of the acquisition he then served as Vice President of Thunder TV. In this role he spearheaded the transformation of Thunder Studios (a very traditional film studio focused on stage rentals) into Thunder Digital Media (a new media company focused on producing video entertainment for Millennial audiences).

     

    As the architect for the conversion of Thunder Studios into Thunder Digital Media Carey took the high level desires of the company and broke them down into lists of actionable items, which included the development of new software products; the formation of new service divisions; the hiring of new employees and training in operational procedures; and supervised the creation of new legal contracts for forming strategic partnerships and recruiting new talent. He directly negotiated strategic alliances and built a YouTube multi-channel network from scratch.

     

    Since exiting Thunder, Carey has worked as a entertainment consultant for companies wanting to start their own MCNs. See his consultancy page at http://www.startyourownmcn.com/ for more details.

     

    Carey is also the author of several popular books related to growing a business around YouTube channels such as 'How to Start Your Own YouTube Network: An Insider's Guide' and 'The Lean Channel: YouTube for Entrepreneurs'.

     

    Carey is a graduate of the Tech Ranch Austin Venture Forth accelerator program. He possesses extensive, practical real world experience with applying Lean Startup methodology to growing a business.

    Why is there only one founder in the team? Why have you chosen to outsource app development?

     

    Our founder Carey Martell is a growth hacker by trade. His true north is growth and consequently all of his decisions are focused on maximizing growth for the company. He has a clear vision for what MBS Inc. should be and is able to guide the company toward achieving that vision.

     

    Having a growth hacker as the President and sole officer is advantageous for a company like MBS Inc. An effective growth hacker disciplines himself to follow a growth hacking process of prioritizing ideas and testing the ideas to ensure they result in growth. He must be analytical enough to know which tested growth drivers to keep and which ones to cut, and make quick decisions to ensure resources are not wasted on frivolous things that do not create growth. The faster this process can be repeated, the more likely the growth hacker is to find scalable, repeatable ways to grow the business. Without any other officers during the launch phase of Zenither, Carey can focus 100% of his efforts on tried and true growth tactics that he knows works and not need to debate with other team members who may have different priorities than the greasy lighting speed of growth that Carey has in mind.

     

    And Carey has proven his ability to obtain this kind of growth in his past venture Power Up TV, where he single-handily grew his YouTube network to obtain crazy metrics. Within 7 months of launching PUTV the network had 190 million+ video views, 1.3 million subscribers and recruited 1,400+ creator channels. This success allowed Carey to sell PUTV to a Los Angeles based film studio two years ago, where he became Vice President of its digital division until he exited the company. Carey's tactics are tried and true. He knows what he is doing.

     

    Now, you might be used to seeing unicorn companies with a huge list of co-founders with many diverse backgrounds and skill-sets, but not every startup needs to have a full team of execs and internal rockstar engineers in order to launch into the market. There are many startups with small founder teams who used outsourced software developers to quickly launch into the market (notable examples: Uber, Skype, Slack, Fab, Klout, AppSumo, and Github).

     

    What is important for a company is if the officers have the skills to make the company succeed. Carey is an experienced manager and marketer, and he has worked with the developer Scio on several successful past projects.

     

    The advantage of having a single officer of a startup is that it allows for tight control over the innovation and product pipeline while protecting the investors from dilution. Not every startup has a founder that has the skills to grow a company while acting as the sole officer but Carey Martell does and has demonstrated this in his past ventures.

     

    Of course no company can grow single-highhandedly which is why Carey is working with Scio to develop the Zenither app. With Scio there is a full team of engineers Carey will be working with to craft the prototype into a product that is market ready and has all of the features described in our documentation. Upon successful funding Carey will also hire several employees for MBS, Inc. who will be tasked with jobs in marketing, advertising sales, content scheduling, station training and customer service.

     

    MBS Inc. currently has one officer but it will have many employees during its launch phase who will work directly under Carey until the departments grow large enough to require more senior management to be brought on board.

     

    One of the key advantages of outsourced software development is cost. Working with a nearshore developer such as Scio will keep software development costs down by 70% as compared to the more common method of hiring domestic rockstar engineers who require $100K+ salaries and sizable equity participation, which will dilute value for shareholders. So rather than divest a sizable portion of shares to the initial programmers of the app the employee equity pool can now instead be reserved for attracting senior executive talent who will be able to assist MBS Inc. with scaling the business during later phases of growth. This is good business sense and indicative of a long-term vision for the company.

     

    So as MBS Inc. matures in the market, additional officers will be brought on to help scale the business but for the launch phase Carey is sufficient to lead the company.

     

    Will software development eventually be brought internal to MBS, Inc.?

     

    Yes, when the economics make sense.

     

    It is more economical and faster to hire a third party development team to build the first version of the Zenither app than to go through the process of building a new team from scratch. You have to not only find qualified engineers, but also engineers who can work well with each other. A third party developer like Scio already has a team proven to work well together and produce results.

    It would be troublesome if MBS, Inc. had to bring together a new team which has not worked together before and discovered personalities clashed, causing delays in development as employees need to be counseled and/or replaced.

     

    Furthermore MBS, Inc. will be in a better financial position to negotiate compensation with internally hired software engineers once the app is launched into the market and the company is producing revenue, as well as more likely to attract high quality talent who want the opportunity to work for the company on this exciting venture.

     

    What Stations will be available in the Zenither app at launch?

     

    MBS, Inc. intends to operate several stations to ensure there is quality content available at launch. We will achieve this by utilizing the existing library of content owned by MBS, Inc. and licensing of other content, primarily from YouTube creators who may not have enough content on their own to operate a station.

     

    There will be a channel featuring high-quality Gaming content and a channel that features independent music videos similar to the old-school MTV of the 1980s and 90s. We will also license content from creators who produce children's shows.

     

    Having said this, we do want third party Station owners to bring their own content and we do not want our personally owned Stations to ruin the opportunity for our Station owners to build themselves a large following and sustainable business within the Zenither app. Depending on who joins the launch lineup we may decide to not operate a Station in the gaming, music or children's niche and instead defer to the third party creators and encourage users to watch their content instead.

     

    Our goal is to have a successful launch and quickly grow the userbase so that the revenue opportunity for our Station owners is maximized.

     

    What kind of data will you monitor about users?

     

    The business of television is primarily advertising. This means the better your data about the audience, the better the monetization opportunity for your content as advertisers want to laser-target onto audiences that match their customer profiles. We understand this.

     

    At launch our analytical tools will allow Station owners to have detailed information about the audiences watching their content. For all users that subscribe to their Station, the Station owner will gain the email address of the user so that the Station owners can generate mailing lists of their followers. This is something no other video streaming platform offers to content owners because those developers want to trap content owners to their platforms, but we at MBS, Inc. understand the business of television demands direct interaction with your audience and that this information will result in better tailored ads for the audiences which ultimately will result in a better overall user experience.

     

    If we raise the full $1 million this round we will build an exceptionally detailed analytical system that is on par with Facebook Audience Insights, matching user information to consumer agencies so that station owners can provide high quality audience data to advertisers. We believe this will make it much easier for our Station owners to earn the same amounts of ad revenue that traditional broadcast TV stations earn from Nielsen reports (which are not nearly as accurate as our system will be).

     

    Can a Station owner bring a livestream feed into their Station, such as from Twitch?

     

    Yes. You will be able to schedule livestream feeds with the Zenither app to stream in timeslots on a Station.

     

    Best of all using our ad system you can take a commercial break and insert an ad container that allows you to show a different ad based on the location of the viewer. This means that, as an example, using the same 30 second ad unit you can sell an ad for the North American market, and then a different one for Russian, Europe, Asia, and so on. This allows greater monetization opportunities for livestreamed content.

     

    Can the technology of the Zenither app be used to do geofenced advertising?

     

    Yes, we will be able to do geofenced advertising with the Zenither app. This can be done for both Stations and advertisements.

    We can also setup a Station so that app users within range of a certain GPS location will be recommended to watch a certain station. This can be useful for many kinds of companies, especially retailers or shopping malls. If you are interested in this kind of thing, please reach out to discuss this service with us.

     

    Finally we can also geofence to ensure only people within certain countries are able to watch a Station if the Station owner is concerned about licensing restrictions for the content they air. This can help ensure they do not breach their contract agreements.

     

    How does Zenither compare to YouTube TV, Sling TV, etc. ?

     

    Sling TV and YouTube TV work similarly to the defunct Aereo app. These services allow subscribers to view live and time-shifted streams of over-the-air television on Internet-connected devices. So in order for someone to operate a station feed for these services you need to at the bare minimum have your own ability to schedule and broadcast content 24/7 -- which usually requires equipment worth hundreds of thousands of dollars.

     

    The Zenither app has built in software and allows Station owners to use its servers to schedule and broadcast video content 24/7. Unlike Sling TV, YouTube TV and any of these other Aereo copy-cats, a Station owner in Zenither can make their station using nothing more than a laptop running Windows, Mac, or Chrome. It doesn't matter because the Stations are managed in a website browser window. So long as you have a laptop that can open a web browser and access the internet, you can manage a Station in Zenither and build a cable-TV style station. We handle ALL of the heavy lifting and significantly reduce the upfront investment cost of having to purchase expensive broadcast / streaming equipment as you would need to use with these other services, as they do little more than re-broadcast a feed originating from somewhere else.

     

    Bear in mind, live content feeds can still be inserted into any Zenither Station feed so if you have your own equipment you can do this but it's not necessary.

     

    How will the Zenither app help small niche Stations grow audiences?

     

    The Zenither search feature will be vastly better than what you see on YouTube, which is based entirely around keyword search queries.

     

    Firstly, for Stations that make locally focused content such as news or public access, Zenither will be able to detect the GPS location of a user and recommend to them Stations whose owners are based within 200 miles of them. If the app cannot locate Stations based within 200 miles, it will search for Stations based within 500 miles, and so on, up to 1,000 miles. We believe this will greatly help small niche Stations grow huge audiences in a way a platform like YouTube never can. Users can still search for all the Stations in the app, but we will recommend Stations close to them which have locally focused programming.

     

    Secondly for Stations that make scripted serial content, the search feature will allow users to easily find your shows and films, whereas on YouTube this is not easy at all. For example if you search "fantasy" or "horror" on YouTube you will find thousands of video blogs that often just discuss these things, and it is very difficult to find fantasy or horror TV shows and films. High quality scripted serial content on YouTube is nearly always buried under a sea of talking head video blogs made by teens in their bedrooms, making it nigh-impossible to find.

     

    By making Zenither a more exclusive platform that only allows serious business minded folk with high quality content to own Stations, you will not find our search results flooded with low quality video blogs of people in their apartments chatting about random things. That content is better watched and monetized in the video blog format that YouTube uses. Quality serial scripted content is best watched and monetized in a programmatic channel guide experience like Zenither uses.

     

    Much like Netflix, our search page will list Shows and Movies, rather than individual videos like on YouTube. This will make it easier for Stations to be discovered that are playing these Shows and Movies in their lineup, or in their on-demand libraries.

     

     

    Will your ad display system allow third party auditors check the numbers?

     

    We understand it is a major concern for advertisers to ensure the metrics provided to them are accurate. We intend to cooperate with third party auditors so that advertisers can be confident in the data we provide.

     

    What is your plan for growth?

     

    We have an excellent growth strategy, but requires some inside knowledge about the current state of the industry to understand.

     

    Firstly, you must understand that the traditional home video market is collapsing. Blu-Ray and DVD sales have fallen by 10% every year since 2014 while digital sales increase. But the biggest issue with digital stores is selection; unlike a brick and mortar store there is infinite amount of "shelf space" in online stores and as many of these digital stores use algorithms to display popular titles first it tends to be a very difficult market for indie film distributors to get their films discovered. This is because major blockbusters occupy the first page results for any genre category. This has resulted in a number of B-movie independent studios closing their doors as they find themselves unable to compete in this new environment. It's our belief that providing these indie studios the ability to create advertising supported movie channels will help give new outlets for them to reach audiences and consequently a new revenue stream for their business. This isn't possible on video sites like YouTube, because the ad inventory is sold by Google at such ridiculously low rates it is impractical for them to upload their libraries there.

     

    Secondly you must understand that many YouTube creators -- even the most popular ones -- are often not making enough revenue from advertising or subscriptions due to the model YouTube uses for paying channel owners for their content. It's our belief that if we provide these channel owners the tools to create a genuine digital television station where they control the price of their ad inventory and can receive carriage fees like a cable network would pay to station owners, these creators will move from YouTube to our Zenither platform because it makes financial sense to do so.

     

    Thirdly we believe the quality of the vast majority of video streaming apps leaves much to be desired. The user experience tends to be awful and the apps are not very reliable. Users will always prefer a stable application to an unstable one and the Zenither app prototype is very stable and user friendly. The finished mobile app will be even better. Part of the reason our app is more reliable is due to the unique way the app handles advertising. We don't pause videos at intervals and load other video ads over the player, but rather present ads in a way that is more similar to broadcast TV interstitial. This is a more reliable experience.

     

    So our growth strategy is built on providing an undeserved market (indie content creators) the means to increase the revenue their content earns while delivering a better user experience to those who enjoy watching streaming video content. We believe the market is starving for a platform like Zenither.

     

    This doesn't mean we don't feel major content producers can also have a home in Zenither. While we'd love to partner with major content providers, we feel the largest growth will be in helping indies maximize their returns and allow them to build more sustainable businesses. This is something our competitors simply are not doing very well; in fact in the case of YouTube they are doing the opposite by de-monetizing many videos for not being "advertiser friendly", which is a vague and generally arbitrary decision being made without concern for what the de-monetization of popular videos means for the business the creator has invested into creating using YouTube's platform. YouTube originally grew by embracing indie creators and providing them a means to generate revenue they didn't have before, but even after a decade YouTube has failed to build a business model that allows indie creators to generate the kind of revenue that traditional media companies do. We believe we can do what YouTube has not and consequently grow the company by providing this valuable service.

     

    Why do you hate YouTube so much?

     

    We don't hate YouTube. In fact our founder frequently attends YouTube events and meets with folks at YouTube as part of his consulting business.

     

    We just think the model they have is bad for content owners and ultimately will never improve because YouTube has no reason to improve it because they have no worthy competitors. YouTube needs a new challenger to rise up and upset the market to motivate them to improve their relationships with creators and we aim to be that challenger.

     

    If you want to read up on why the current MCN model on YouTube needs dramatic improvement there is a fantastic article at Digiday by Sahil Patel that really digs into the nuts and bolts of what went wrong with Maker Studios after it was acquired by Disney. http://digiday.com/media/disney-maker-studios/

     

    Both content owners and MCNs are in desperate need of a better business model. We here at MBS Inc. believe we can build one.

     

    How will you be able to pay for all the bandwidth your platform uses if you don't take a cut of all ad revenue on all stations?

     

    Because nearly all video platforms want to take a cut of all ad revenue from channels, it's easy to assume a video platform -needs- to take a cut of all ad revenue in order to sustain operations, but we don't believe this has to be the case if the business model of the platform is designed well.

     

    You must remember that traditional TV networks like Time Warner, Comcast, DISH, etc. do not take any of the ad revenue from third party Station owners who are carried on their service. In fact they pay those station owners to be in their service! So why then "must" a Station give up half of its ad revenue for carriage in a video streaming platform? We don't believe it's a necessity.

     

    Analysts estimate that YouTube pays only $94 million dollars annually on bandwidth and server storage for all videos hosted and watched on the site while generating $3.6 billion in revenue from selling ad inventory at wholesale rates. While we expect Zenither to be much more profitable than YouTube, we don't expect to spend more on bandwidth and server storage than YouTube does.

     

    As explained in our attachments, MBS believes it could generate $20 billion annually per owned & operated stations MBS operates by selling ad inventory on these O & W stations at rates more similar to what traditional TV networks sell their ad inventory at. This is the same thing that cable and satellite TV networks do. They operate their own TV stations on their services, too.

     

    Furthermore if Zenither obtains a million paid subscribers (a fraction of what companies like Netflix have) then MBS will generate $59M in revenue from these subscriptions. MBS could also generate an additional $70M in annual commissions from licensing deals, and finally, MBS expects it could generate $40B in commissions from Stations that elect to let MBS sell their non-premium ad inventory.

     

    The strength of the Zenither business model for MBS is the diversified revenue streams which are modeled on how the traditional TV industry operates. This means taking almost half of all ad revenue is simply not necessary to provide service.

     

    So you might wonder then why Zenither would want to host stations that generate no direct revenue for MBS? The answer is simple; while some users will watch "free" stations operated by third parties, many users will also pay for premium subscriptions to watch premium content. The "free" users will invite their friends to check out the app and watch content, and we can always convert a free user into a paid user if we create a premium subscription bundle of stations they are interested in paying to watch.

     

    So, if hosting niche programming stations for free in our platform leads to consistent user growth, it will also lead to new paid subscriptions and viewers who will watch content on some of the Stations MBS is receiving a cut of ad revenue on.

     

    You must also consider that once third party Station owners have the ability to keep 100% of their ad revenue, the quality of their productions will dramatically increase as they now have more money to invest into the product ( tv shows) they produce. This means a free Station that attracts a large audience could elect to become a premium station or launch a second station of premium content. This could happen to hundreds -- maybe even thousands of third party stations, and which will lead to an increase in paid users to the Zenither service and consequently increase the revenue the app earns for MBS. Viewed this way our business model is designed to help creators of great content become even more successful.

     

    We believe the important thing here isn't to dip our hands into everyone's cookie jar like YouTube does, but rather become the predominant video streaming platform that both viewers and content owners want to use because the experience serves the needs of both types of customers. As long as we do that, we'll be financially stable because we have multiple revenue streams at work which we believe will more than cover the technical costs of providing service.

     

    Will MBS Inc. someday produce original shows for Stations?

     

    Sure, maybe. Why not? Owning a library of content is a great way to produce additional revenue streams due to the licensing potential. The same way that shows like Big Bang Theory and X-Files get a second life in the market through licensing the episodes out for re-runs on TV stations, the same kind of thing can be done with any original content using the licensing library the Zenither app will have.

     

    However, at the present time there is so much scripted serial content out there floating around produced by indie film-makers -- many of whom are YouTube creators -- that we don't need to produce any original content in order to populate Stations during our launch. All we need to do is reach out and create revenue share agreements with these content owners who are currently undeserved by the market. MBS Inc. can acquire content at no cost and content owners can get paid a fair price for their content that otherwise will generate no revenue. It's a win-win situation for everybody.

     

    And there is historical precedence for this. If you study the early days of cable TV history and how things really took off, you'll know all about Ted Turner and how his first TV station WTCG aired only second and third-run programming -- very old black and white sitcoms and cartoons -- which he licensed cheaply. This is how Ted Turner grew his cable empire in the '70s and '80s, and this is how MBS Inc. will do it in 2017. Even if the content has been on YouTube for years, the vast majority of quality scripted serial content on YouTube has been buried under a mountain of video blog garbage that makes it hard for people to discover it. There are diamonds in the rough we can pickup and now re-package using the Zenither app, getting the content in front of huge audiences that want to watch it.

     

     

    Video blog garbage?

     

    Video blogging can be a quality watch experience. Some of the best shows on YouTube are video blog news programs. But lets be honest here; the overwhelming majority of video blogs on YouTube are not of interest to anyone except their creators.

     

    As an example of what we mean by "garbage", the other day we came across a channel that produces videos where the creator stabs himself with knives and sustains very serious injuries (yes, really).

     

    There is a lot of stuff on YouTube that appears in search results that turns off viewers and buries higher quality content and prevents them from becoming discoverable. Since our model is based on Stations having a lot of good content we don't think these kinds of videos of interest to no one will ever be flooding the search results and hiding the good stuff.

     

    Will I be able to watch Stations that broadcast content in other regions?

     

    Yes, you will be able to watch Stations that broadcast from different regions but this access will need to comply with licensing restrictions as determined by the Station owners and their licensing deals. For example, Netflix recently got into some trouble by refusing to allow people who are registered in one territory to watch content while traveling in different territories (ex. if you live in the USA and were traveling in Europe you had difficulty watching programs on Netflix).

     

    We do not wish to make this same mistake and will develop our system to ensure a quality watch experience for the audiences while still satisfying the licensing restrictions that apply to content in the business of television. We know that "region locking" can be tough for viewers who are traveling in different countries, and will be keeping this in mind as we develop the licensing system.

     

    Aren't you afraid that an outsourced developer will steal all your ideas / source code?

     

    No. That is what contracts like NDAs are for. It's no different than hiring employees internal to a company, except using outsourced developers are much cheaper. This is simply a financial consideration. We live in a global market. Just because an engineer lives in another country where the cost of living is different doesn't mean the quality of their code is inferior to that of North American engineers. Some of the best software projects Carey has supervised were produced by off-shore developers. Scio, the developer we are using for Zenither, did a few of these projects.

     

    Why should I invest into your company?

     

    If you like the idea of owning part of a next-generation digital television carrier that is going after a $200 Billion market, then you should invest into us. We're swinging for the fences but all great rewards come with some amount of risk. The great thing about this campaign is you only need to invest hundreds of dollars into us to obtain a good number of shares that will appreciate over time and may be worth a substantial amount of money based on the future success of our product in the market.

     

    Also consider this. You can't go back in time to invest into Google, Time Warner or Disney when they first started out but YOU CAN invest into Martell Broadcasting Systems, Inc. which seeks to become a company of the same size and scale as these ones and possesses a sound business model for accomplishing this feat.

     

    A lot of people have many different ideas about how wealth can be acquired. Our founder Carey believes wealth is best obtained through early access to private companies with promising business models. Such an opportunity sits before you on this page. The question you must ask yourself is this; will you take a chance on this opportunity? Carey has invested his own money into this venture and now you can invest your own alongside him.

     

    What will Zenither's censorship policies be?

     

    MBS Inc. believes in the value of free speech and distribution of ideas. We know there are many news programs on YouTube currently being censored and demonetized because the hosts share ideologies that YouTube's admins do not agree with. So we know our censorship policies will be something many current YouTubers are interested in hearing abut.

     

    (for those unfamiliar with this topic, please read http://www.tubefilter.com/2017/06/06/philip-defranco-next-show-off-youtube/ and the resulting user comments to the article)

     

    Historically television has been a public utility and broadcasting protected as free speech. The Supreme Court has repeatedly stated that the public expression of ideas should not be prohibited merely because the ideas themselves may be offensive to some of the hearers. However with internet television becoming something that is operated entirely by private companies like YouTube, they are free to enact whatever content policies they like. This means the corporations can and frequently do reject the principles of free speech. Therefore the only way that free speech can exist for television in the future is if a company operating a video streaming platform allows free speech to thrive. MBS Inc. seeks to be one of these companies and fulfill this social contract with the public.

     

    Unlike YouTube, MBS does not intend to monetize every user's Station in our app with ads we place ourselves, so we won't be as heavy handed in our acceptable content policies as YouTube is. YouTube de-monetizes videos under the guise of saying they are not "advertiser friendly" and because Zenither's business model is not focused on MBS selling ads on all third party owned videos we don't have the same need to censor content like YouTube does. It is one of the key differences in our business model. Unlike YouTube our entire revenue model is not based in acting as a middle man between advertisers and content owners. Instead we provide the tools for content owners to easily sell their own ads at the price they specify and with the advertisers they wish to work with.

     

    Also unlike YouTube our app will have significantly better parental controls options for parents to employ on accounts for their kids to use, and these parental controls will be similar to what you find on cable TV services. Furthermore because advertisers can directly make deals with Station owners the "ad market" within the Zenither eco-system becomes self-policing the same way it is for traditional media buys. The biggest flaw with YouTube is advertisers generally can't control what specific videos their ads appear on and with Zenither they can.

     

    So compared to YouTube we think you'll find we're not as interested in censoring videos and Stations for having content our employees might personally disagree with nor will be removing content because it is deemed "advertiser unfriendly". As a business we don't think it will be all that necessary for us to intervene in content such as political news programs, because with our business model the users will determine what is acceptable and not acceptable for them to watch, and advertisers will determine what content they want to place their ads on. Furthermore we won't need to concern ourselves with FCC broadcast regulations either; we won't be pulling Stations just because someone uses language we might disagree with, for example.

     

    A station owner would need to do something that is undoubtedly morally reprehensible in order to be contacted by us about their content. This means they would need to be violating a law in a country their content is available in. MBS Inc does not make laws but do abide by them. So for example if someone had a Station where they broadcast videos that encourage people to commit crimes, depending on the laws of the country we would be forced to contact the Station owner and have a discussion with them about these laws they are breaking (probably unintentionally) and how this can be avoided in the future.

     

    We expect Station owners will want to sell their own advertising in order to sustain Station operations and if they can find advertisers and audiences for their content then who are we to interfere with this? By providing a platform that allows the free exchange of ideas we feel viewers can decide for themselves who they want to watch and this will create a better medium of creative expression for content owners and audiences than is currently available.

     

    Can affiliate stations be created in Zenither using geofencing?

     

    Yes we will support that feature.

     

    We understand that some entertainment company broadcasting models might want to utilize affiliate stations which have exclusive broadcasting rights in specific territories. The Zenither app will support this; station owners can determine the territories the station can be watched in, and anyone who is outside of the specified range will not be able to watch content on that station. This, again, is a feature not supported by platforms like YouTube which only allows blocking by country location and ignores that territories within a country can actually be licensed out (an example being the United States affiliate broadcasting station model).

     

    I want to invest. How can I?

     

    We're currently awaiting approval from the SEC to conduct our public offering. As a result we cannot yet openly solicit the public on the terms of the deal offering to non-accredited investors.

     

    If you are this category of investor please send us a message on the contact form on this page with a message about yourself and why you'd like to be involved with us.

     

    If you are not an accredited investor you can still reach out and join our mailing list to be alerted when we kickoff our public fundraising. Non-accredited investors will be able to invest as little as $200 to acquire shares in our company through Regulation Crowdfunding rules.

     

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