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What Is Zenither? - Duration: 7:49.
Video creators, I want to paint you a picture of something, a future I think you're really
going to like.
What if YouTube didn't take any of your ad revenue?
What if YouTube let creators like you decide how much it costs to run an ad against your
videos?
What if YouTube allowed you to have the email addresses of anybody who subscribed to your
channel so you can easily build a mailing list to engage with your subscribers?
And what if YouTube allowed you to take your entire video library and combine it with other
creator's videos to generate a cable TV style channel guide and broadcast your feed so it
was easier for people to channel surf and discover your content?
I want you to sit for a moment and just imagine how different, and how much better, really
-- how much more financially successful you could be if YouTube made changes like this
for you?
Now, YouTube won't give you any of this, but there is a company that can.
Martell Broadcasting Systems.
Let me talk to you about their video streaming platform, Zenither.
I think you're really going to like this.
If you are unhappy with the direction YouTube has been going this is an opportunity for
your voice to be heard and to create the kind of change this industry needs.
Zenither is a new day in television.
It provides an easy to use channel surfing experience.
Our platform is designed to empower content owners to operate independent networks with
global reach utilizing the full business of television; advertising, licensing and premium
subscriptions, or rather cable TV style carriage fees.
Platforms like YouTube really do not adhere to the business of television; they instead
focus on a video blog kind of business model designed to give YouTube all of the control
over the finances of the channel owners.
You don't even get to decide how much your ad inventory is worth because YouTube sells
your ad inventory at wholesale prices based on keywords your videos rank for, and not
based on the value of your audience as a television station normally would.
Let me give you an example.
Let's say you have a channel about hang gliding.
You might only get a few hundred thousand monthly viewers to watch your videos because
hang gliding is a pretty niche interest but it's also a very expensive hobby.
It costs a lot of money to buy the gear.
So advertisers might be willing to spend tens of thousands of dollars to buy just one ad
on your channel to promote expensive hang gliding equipment, but because YouTube wholesales
the ad inventory on your channel you probably won't even earn $1,000 a month in ad revenue
operating a hang gliding channel on YouTube.
That's where the disconnect in this business is.
You can't control the destiny of your business if you don't control how much you charge advertisers
to show their ads alongside your content.
You will never get a fair rate for your ad inventory if you allow YouTube to determine
the price because YouTube is only interested in maximizing their revenue, not the revenue
of your channel.
Zenither is changing this.
Everyone who operates a Station in our app gets to decide how much their ad inventory
is worth based on margins that make actual business sense for the cost of producing their
content and not based on some algorithm running on YouTube and AdWords designed to maximize
the bottom line of Google rather than the content owners.
Furthermore we allow Station owners to keep 100% of any ad revenue they earn through their
own internal sales team, and we only charge 25% of the revenue of any ads we happen to
sell for the Station owner at their discretion.
Keep in mind YouTube takes 45% of all ad revenue sold on any video on their platform, no matter
what.
Our deal is so much better than what YouTube is doing, it's not even funny.
This will make a galaxy -- no, a universe of difference for millions and millions of
people who have massive audiences on YouTube but make chump change compared to what they
should be making if they could actually sell their own ad inventory at scale.
And we're not talking "sponsorships" and "promotions here".
We are talking about the ability to sell a pre-roll, mid-roll and end-roll ad on your
own videos.
Heck, we are even talking about being able to decide how many ads are shown on your content.
Did you know a typical half hour program on broadcast television has 18 30-second ad spots
that usually sell for over thousands of times more than what YouTube sells ads on your channel
for?
Let me give you a great example of how wide the gap is between YouTube scripted content
ad revenue and that earned by major TV networks.
A TV show like Big Bang Theory gets about 12 million viewers and has 18 commercial breaks
per episode, and each of these ad spots cost about $326,000 each.
It costs about a quarter to broadcast the stream to people's homes so CBS generates
about $2.8 million dollars in ad revenue profit every time they show a new episode.
Now let's compare this to premium scripted content on YouTube.
For example, Halo: Forward Unto Dawn produced by Machinima also generated 12 million views
per episode when it first aired on YouTube but it only got two commercial breaks per
episode; a pre-roll and an end-roll.
The CPM was through the Google Preferred network, so it was about a $20 CPM, so that was $480K
of ad revenue.
Then YouTube swooped in and took 45% of that money, leaving Machinima with $264K of revenue
per episode.
So, network television vs YouTube, the best stuff on network TV gets $2.8 million dollars
and the best stuff on YouTube earns $264K even if both episodes get the same number
of viewers.
Sounds rather unfair, doesn't it?
Well, that's because it is unfair.
It's extremely unfair and our company is going to make things fair from now on.
That's the difference here.
We're not just building another app for people to upload their videos to; what we're really
doing is building a better business model for content owners so they can operate like
a legitimate TV network instead of the current so-called "multi-channel networks" which are
just a terrible business model where the MCNs are at the total and complete mercy of YouTube,
whose only goal is to undercut TV broadcasters by selling advertising at wholesale rights.
YouTube and Google only care about making as much money as they can by racing to the
bottom and they don't actually care if the content owners make any money or not.
That's the blunt truth of it.
YouTube doesn't care because they don't really see channel partners as partners, they see
them as just a bunch of numbers as part of their algorithm and every time you upload
a video to their website you are feeding a machine of greed that doesn't care about your
success at all.
If you are interested in finding a new and better way to monetize your video content
go to our website www.zenither.com to learn more details about how you can get involved
with what we're doing and how you can profit from it.
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