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Bulgarian startup Flipps has just closed a deal with Earlybird Digital East Fund and its existing investor Tim Draper, having raised $2.4 million to further expand its 10m-strong user base and its premium content.
I have covered Flipps a few times. I love it. Since I have survived one-year test without a terrestrial TV (my news and movies are delivered via a Smart TV), I am all for the disruption of terrible entertainment that TV has become (at least here in Germany).
Founded by Kosta Jordanov, Flipps is a mobile app that beams its curated collection of video channels to the smart TV. No need for Apple TV, or cables. It works with over 250 million TVs worldwide (10 million of those TV owners have installed the app), provided that those TVs are connected to the WiFi network. So far there are over 100 channels on Flipps, including CNN, BBC, Euronews, National Geographic and New York Times.
I asked Jordanov a few questions about the business model and the content strategy. He says that Flipps currently uses the revenue-sharing model with the content providers, and offers attractive monetization platform for them. This is an interesting comment, that is backed by a trend of increasing price mobile app developers are prepared to pay to promote their apps, compared to web advertisers. According to CPI-based mobile ad exchange CPIEra.com*, the price difference between mobile and web traffic is about 10 times (mobile being, of course, more attractive). Considering that over 50 percent of Facebook ads come from mobile app install ads, it is not hard to believe that Flipps enables its content owners increase the ad revenues by promoting mobile apps.
Flipps targets US market as its first priority of the content strategy, and will also work with popular video podcast producers that deserve viewing on the big screen (finally creating the right format to consume video podcasts).
eMarketeer has recently published media consumption figures, stating that the time spent on mobile devices (excluding calls) constitutes 18 percent of the total media time consumption in the US. TV still holds 36 percent, but mobile is the key growing segment, whilst the total time spent on media (online, mobile, print, TV) has not changed.
*Disclaimer: CPIEra.com is GoalEurope’s client.
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