TV-TWO ICO details
Start Date: 2018-5-24
End date: 2018-7-24
- Site: TV-TWO site
- Twitter: https://twitter.com/tvtwocom
- Facebook: https://www.facebook.com/tvtwocom
- Github: https://github.com/tvtwocom
- Reddit: https://www.reddit.com/r/tvtwocom/
- Bitcointalk: https://bitcointalk.org/index.php?topic=2632547.0
- Medium: https://medium.com/tvtwocom
- Telegram: https://t.me/tvtwocom
TV-TWO – THE DECENTRALIZED TV ECOSYSTEM
The current Television Ecosystem is broken. TV networks around the world are abusing their market power as gatekeepers to increase prices for advertisers, lower payouts to content creators and drive up subscription costs for consumers. They actively hinder innovation in content delivery and advertising technology in order to sustain their oligopolistic position and benefits. Many consumers are rightfully frustrated with the state of broadcast television. They enjoy the lean-back nature of a fixed program schedule, but would like to see more premium content personalized to their viewing patterns and interests. At the same time, tech giants like Google, Facebook, Amazon and Netflix are looking to build their walled garden around the television ecosystem, eager to acquire more power through data and access to consumers. TV-TWO offers the community a solution in form of an Open Platform for those who are curious cutting the cord. This includes:
First, an application for Connected TVs that blends traditional television with a personalized video stream offering premium content at no subscription costs. The video stream can always be opened with just one click of a button. Second, the Token for Television (TTV), an ERC20 token that administers the exchanged value between consumers, content providers and advertisers. We propose a new ecosystem, where the trustless nature of the Ethereum blockchain makes it possible for market participants to interact directly without having to rely on middlemen. Consumers get to watch curated videos while receiving TTV for choosing to see sponsored messages from advertisers. Content creators are rewarded by users with TTV for their quality productions. The Token for Television will be offered to the community in a crowdsale. We will employ the new and improved standard of the Interactive Coin Offering as proposed by Jason Teutsch and Vitalik Buterin in order to guarantee a fairer and more transparent assignment process. The TTV crowdsale is especially relevant for advertisers that are looking for sponsored reach on the Big Screen. At the same time, investors can profit from the Network Utility Expansion Mechanism inherent to our model. Since no additional coins will be issued after the Interactive Coin Offering and each token has the reserved right to show ads to a fixed portion of the TV-TWO user base, each consumer that comes to the platform boosts the value of the token.
TV-TWO will bring the digital age to millions of living rooms around the world. We o↵er the community:
- An application for Connected TVs that blends broadcast television with a personalized and ad-supported video stream o↵ering premium content on the Big Screen. While watching linear television through TV-TWO, the video stream can be accessed anytime by pressing Enter on the remote control. The application establishes a new standard for TV advertising. Consumers are empowered to share data with advertisers on their terms. Advertisers can utilize user data and usage insights to reach consumers with more personalized and relevant messages that result in higher user satisfaction and return on ad spend.
- The Token for Television (TTV), a token that administers the exchanged value between consumers, content providers and advertisers. Advertisers give tokens to users for watching sponsored videos and sharing anonymous user data. Content Providers get tokens and insights from users for o↵ering premium video content. Consumers accumulate tokens that they can store in their wallet and o↵er on exchanges.
We aim to establish a direct relationship between consumers, content providers and advertisers (see Figure 1). The individual players are empowered to pursue direct interactions on the blockchain, decentralizing the ecosystem as well as disarming oligopolistic TV networks, broadcast providers and tech giants, as they are actively hindering open innovation. In section A.1, we validate our claim that TV networks are organized as oligopolies. Based on learnings from the programmatic advertising space that is plagued with fraud, limited viewability and brand safety issues, we will leapfrog TV ahead by building transparency right into the core of the model.
- Get to use a platform that blends linear TV with a personalized video stream curated by a supervised learning algorithm, enabling more organic content variety and relevance without having to pay a monthly subscription fee
- Experience the freedom to skip videos and ads as well as the chance to select ad frequency
- Receive rewards for watching relevant sponsored messages as well as sharing anonymous data with advertisers through the TTV
- Receive the chance to generate reach on television sets without having to sign a contract with a TV network, giving small creators that focus on quality videos an equal share of voice as determined by watch statistics instead of clicks
- Get full transparency on watch statistics for their videos without having to trust a single centralized platform
- Can refinance their content more easily by profiting from high media spends that go towards TV
- Receive targeting and attribution features as well as the automated media booking on TV that they know from digital advertising
- Get per user reporting on ad engagement and organic video context without falling victim to fraud or non-transparent KPI reporting
- Can address users on the basis of their first-party data without having to hand over data to TV-TWO or a third-party
Interaction between Market Participants
Before the first implementation of the blockchain, an ideal TV ecosystem would have consisted of four parties (see Figure 2).
Content providers and advertisers deliver organic and commercial content that is curated by TV networks and transmitted to consumers by broadcast providers that typically belong to the same parent company. However, TV networks are exploiting their gatekeeper status:
- Advertisers: TV networks possess direct consumer access, which allows them to set prices and generate high profits
- Content Providers: The direct consumer access, allows TV networks to discriminate against individual content providers. Networks produce most of the content in-house, which further hurts independent creators
- Users: TV networks select the content that makes it on air. User have no choice but to watch the delivered content. Neither organic nor sponsored clips are personalized
Given the status quo, TV networks act as middlemen between three parties that should have direct relationships among each other for a fair and transparent exchange of value. The trustless nature of the blockchain makes it possible for market participants to disintermediate the oligopolistic TV broadcasting industry.
The Center of the Living Room
Overall, television consumption has remained steady in the recent years. While the use of Netflix and other streaming services has exploded – with 50% of US households subscribing to at least one streaming service – they usually act as add-ons to broadcast, not substitutes. Users are still addicted to broadcast television. The consultancy Accenture explains that “most broadcasters have been at the heart of their national cultural life for decades, and audiences have grown up with them in their lives.“
Nielsen’s “Cross-Platform Report“ from 2014 illustrates how the time spent in front of the television increases proportionally with the age of the user. Taking the demographic shift in the western world into account, this will cement the importance of the TV. Especially consumers with a high disposable income are glued to their television sets. The baby boomer generation, meaning users born between 1946 and 1964, control 70% of the disposable income in the US. For this generation, Netflix and YouTube are no alternative. Baby boomers are used to enjoying the lean-back nature of broadcast television, in which they do not actively have to choose the program. A personalized and automatically curated video stream on the Big Screen is the way to go.
On mobile devices, Facebook has perfected the system of an infinite video stream. Nowadays, more and more consumers are watching videos on their smartphones. However, a Yahoo survey finds two major disadvantages, which hinder a seamless video experience on mobile: screen size and battery time were criticized by more than half of the respondents (see Figure 3). Especially, the screen size is an inevitable downside. We as TV-TWO are certain that the television will remain a centerpiece of our living rooms for years to come. This is the place where people gather and look for entertainment. Despite centralized markets, an undemocratic distribution of power, non-transparent reporting and inecient targeting methods, television can currently sustain its position. If the extensive ineciencies are tackled with the right set of new technologies, television will retain its position as the central entertainment hub in the living room and remain the most important marketing channel.