Global media and marketing company, Crowd Media Holdings Limited (ASX: CM8) is well positioned to use its amazing tech (and know-how) in the Q&A, telco payments, and Subscriptions space to completely change the way products and services are bought and sold in the digital space.
In order to chart itself on the path to profitability, Crowd has made a number of realignments in the past one year. This includes shifting its focus from the declining legacy mobile revenue streams (Q&A, Subscriptions) to generating new revenue streams in the lucrative digital marketing space which involves developing digital content and campaigns, influencer advertising, performance marketing and sale of products.
New Phase with IIC
Crowd recently entered into a new phase with the Invincible Investment Consortium (IIC) who took a strategic stake in Crowd Media by investing $3.7 million into the Company across two tranches. Following this strategic investment, the Company unveiled its new 3-year plan, which drives substantial growth by continuing to leverage its strengths.
Source: Company’s Report
Let us now discuss the Company’s three-year plan in detail.
Horizon One: 0-12 months
In order to capture a larger slice of the retail spend, the Company is shifting focus to Direct to Consumer (D2C). Further, the Company will start with London Labs (LL), the Invincible Brands GmbH trial, and potentially three other trials that is anticipated to be at exclusivity stage by the end of December:
- Equity participation: T2 Convertible Note participants will invest up to $2 million into Crowd. A part of these funds will be used by the Company to acquire a strategic stake in LL; LL, in turn, will use this growth capital to launch in the USA.
- Web sales: Crowd intends to take over the LL website internationally and will operate the website, lead the digital marketing effort to drive customers to the website, and work towards supporting the customer with Q&A on a WhatsApp or Live Chat platform.
Horizon 2: 12-24 months
From early 2021, or sooner, Crowd will shift its focus to the more scalable sale of services via collaborations, partnerships, or strategic alliances modeled on the LL arrangement. Crowd believes that by partnering with an existing disruptor, it can rapidly scale the business in the EU.
Horizon 3: 24-36 months
From the year 2022, the Company will start expanding the way it interacts with its favorite influencers - creating authentic and real time experiences that stimulate.
Example: Imagine an F1 enthusiast who follows Lewis Hamilton on Instagram. Hamilton makes a post, follower leaves a comment, and unquestionably never gets a response. What a heartless exchange, isn’t it?
Crowd sees this as an opportunity to take this to the next level with a two-stage process.
- Augment this exchange with a verbal plugin, NLP. This heartless exchange now becomes a “conversation with benefits” - it will be quicker, easier, and more engaging and can even include the (simulated) voice of Lewis Hamilton. Technically, it’s as substantial as moving from the telegram to the telephone.
- Crowd will then further improve this conversation with a dynamic visual platform using holographic tech. Now, the influencer (think Lewis Hamilton again) is replicated virtually on-screen. The user is in an immersed reality, engaged in a seemingly authentic conversation and a seemingly authentic visual response. As a result of this, the influencer is now capable of holding thousands of different conversations at the same time. This takes the “user generated content” and bounces it straight back for maximum effect.
Going forward, Crowd Media will continue to focus on leveraging the technology platforms and reach of its Q&A and Subscription divisions and its proven ability to continue growing the Crowd Media division, as well as the growth prospects that come with the investment and partnership of the Invincible Investment Consortium.
At market close on 18 December 2019, CM8 stock was trading at a price of $0.023 up 9.524% as compared to its previous closing price.
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