Let’s start with a story.
Andre and Brenda Smith.
Walt Whitman HS,Bethesda, MD
Go Vikings!
Claire: class of 2013, basketball.
Dante: class of 2012, football.
One of 155 families in the Walt Whitman booster
club.
The Smiths want to follow Vikings games
and their kids.
The Smiths are not alone.
The Post can be the indispensable guide to
local high school sports.
We already have the data.
So, what are we going to build?
A reusable platform for inputting, storing and showcasing high
school sports data.
What will we do with our
sports data service?
Power mobile, tablet
and Web applications in HTML5.
Please recycle (templates).
Wanna see it?Of course you do.
Live scores for football and boys
and girls basketball.
Leaders by school, by league, by
county and overall.
Infographics for game, team and
player stats.
A slick admin for scorekeepers to
send us scores and stats.
Haven’t we tried this before?
What went wrong?
1. No outreach to boosters.
2. One platform only.
3. One revenue stream.
So how will thismake money?
Two complementary revenue streams.
Go deep.Go wide.
Go deep: Revenue-share app
subscriptions with booster clubs.
Boosters are the key.
They do revenue shares all the time.
Each of the three schools we
surveyed were interested.
Initial focus on MoCo, Fairfax, and
private schools.
Competitors: MaxPreps, Rivals,
DC sports fan.
We’re better.
1. Longer history. 2. Easier score entry. 3. More platforms.
Estimated 18k buyers.
150 schools x 120 average members
Estimated $405k revenue.
$30 app ($15 shared) x 75% conversion; 2 years
Pessimistic?
$25 app cost?$337k.
60% conversion?$270k.
We can do better if we add a spring
season.
Go wide: Sell our hosted platform.
“Local doesn’t scale.”Everyone, ever.
Selling our software as a service can make local scale.
It leverages our engineering culture
and existing subscription model.
Competitors charge $35k to
$60k per site per year.
Initial estimate: 240 eligible properties.
Cox Media Group: >100 properties Halifax Media Group: 14 properties Media General: >60 properties MediaNews Group: 56 properties Tribune Company: 8 properties
Competitors:Ganett,
NewsEngin.
Yup, we’re better.
1. Lower cost. 2. Full-service. 3. Better tech platform.
Estimated $840k revenue.
240 properties x 10% conversion at $35k per site
Pessimistic?
$25k per site?$600k
240 properties x 10% conversion at $25k per site
5% conversion rate?$420k
240 properties x 5% conversion at $35k per site
What’s the build plan?
Estimated $78k dev costs.
240h for data platform160h for first mobile app
240h for three others80h design for templates
720h x 1.2 (skepticism) x $90 = $97.2k
Specs by late May.Launch by mid-
August.
Committing to 2 years.
Estimated $233k biz dev costs.
1 FTE booster outreach x .66 years x $80k1 FTE biz dev x 2 years x $90k
Assumptions.
1. App is free to download. 2. Pay to unlock most features. 3. Web site stays free, for now.
Profit.
Pessimistic? $503kRevenues: $303k (app) + $510k (service)
Costs: $311k
Optimistic? $934kRevenues: $406k (app) + $840k (service)
Costs: $311k
In-between? $718k$684k (average hi/lo) x 90% (skepticism)
http://j.mp/disrupt-sports-pdf
http://j.mp/disrupt-sports-ppt
Questions!
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