Archive for January 13, 2011

As new artists continue to join our FargoTube video/entertainment service, F3 Technologies is developing a range of service offerings and a pricing structure that we believe will maximize FargoTube’s value for the artists, for the end users and for F3’s bottom line. We believe it’s especially important to standardize these levels of service in light of the growing influx of users we expect from a range of sources including the content-sharing agreement we recently signed with Ditto Music.

We realize that artists’ needs from FargoTube vary quite a bit, so we’re making the service flexible and accommodating for them. For now, four levels of service are shaping up:

1) As we’ve discussed all along, a content owner is able to upload one or more individual videos or music tracks, which users find through browsing, keyword searches, or suggestions from the system. The content owner pays nothing and receives 70 percent of the revenue generated through downloads and streaming.

2) Tools on the system have allowed and will continue to allow content owners to create their own “tubes” — fan sites — branded with personalized graphics and photos, and including biographical and contact information and social-networking features. These content owners also pay nothing and receive 70 percent of the revenue generated through downloads and streaming and 90 percent of the revenue from sales of any physical goods, such as DVDs or t-shirts, that the tube owner sells (owners themselves are responsible for fulfilling orders).

3) For an additional monthly fee, F3 creates and manages a branded, semi-custom tube for the content owner on the FargoTube platform. Singer-songwriter Anthony Snape’s tube is a good example of this.

The content owner receives 70 percent of the revenue generated through downloads and streaming and 90 percent of the revenue from sale of physical goods. F3 expects to charge $25 a month over the first year for this level of customization.

4) F3 also custom-designs websites for content owners who desire them, leveraging its design and development capabilities in combination with the FargoTube platform. You may have noticed the clean, colorful and dynamic sites that we designed for singer-songwriter Coles Whalen and author/television personality C.J. Miller and the site we’re developing for the Severe Records label and its 30 acts. They’re powered by F3’s Ascend Global Business System of content management, which allows content owners to add, alter and manage the videos and music on their own tubes and websites easily. It may not be immediately apparent that one of these sites runs on FargoTube; the two do, however, run on the same “back end” programming, and they can be hyperlinked so that a user on one of the sites can easily click to and from FargoTube’s “general tube,” its aggregated pool of content.

As with other levels of service, we will share 70 percent of revenue with content owners and 90 percent of the revenue from sale of physical goods. F3 expects to charge $250 to $400 a month over the first year for this super-premium level of customization and service, a total price of $3,000 to $4,800 that is highly competitive in the web-design market and spread over a full year to accomodate the independent artists who constitute a key market for FargoTube.

This post has been updated to include information on physical goods sold via FargoTube and the relationship between FargoTube and the web sites of top-level clients.

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