Datenfreunde has been working for well-known media brands at the intersection of journalism and digital technology since 2010. With xMinutes, our new offering and the result of our SpeedUp Europe Project Sensorhome, we are proposing our own take on the digital revolution of business models currently disrupting the media industry.
To compensate for the free-for-all-mentality that characterizes much of the Internet, media brands typically resort to advertising. Many content offerings compete for the attention of readers. But up to now, attempts have failed to provide the readers with better-targeted journalistic content, and deliver the accompanying advertising without wastage.
Here’s where our portfolio of offerings comes into play. Based on our products mAPI, me:tagger and the context-API the reader or viewer can be targeted with a bespoke set of media content, fitted to his location, time budget, personal and contextual interest. In this situation, he or she will also have a welcoming attitude towards advertising content.
Our business model rests on the insight that media companies gain competitive advantage by better targeting their customers with a tailored offering of their content. This offering translates into a higher customer loyalty, a value that media companies are prepared to pay for, as the number of LOIs we have been able to agree on with our customers attest. Our pricing plan is a monthly fixed fee based on reach of the media company and the number of content items that our systems will handle.This scales favourably for us, as production cost only increases marginally with every new customer.
Our extensive network among national and international media companies and the marketing of our offering through conferences, trainings and keynotes will provide the traction needed to fuel the sales cycle. Our work outside the xMinutes brand, working on open data and visualizations, has been met with interest both by the public at large and media and visualization specialists. Numerous awards, such as Grimme-Preis, Prix Europa and the Lead Awards, have been the result of our successful work in data driven journalism. This data journalism based business is profitable and an ideal base for starting our new offering under the xMinutes brand. We are comfortable with the prospects for organic growth, but we are open to external investors for a more aggressive approach.
Datenfreunde is a match for strategic as well as financial investors. The combination of technology and intellectual property is hard to copy, and we have a first mover advantage that is instrumental in this industry. We are preparing to apply for international patents, a process that will proceed in sync with additional financing (i.e. US business process patents). Scaling the business will yield above-average returns, but if the projections can be met the possibility of an exit through a private or public offering is clearly an interesting option.