Levels of service for FargoTube

Posted: January 13, 2011 by chrisbagley in Ascend Global Business Systems, F3 Technologies, FargoTube, Uncategorized
Tags: , ,

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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Comments
  1. Joe says:

    It’s good to hear that Fargo Tube is progressing well. It has exceeded my expectations even though I just did not know what to expect from this product. My question deals with ICS. It seems that F3 is putting the largest part of its resources on Fargo Tube. How does ICS now fit now in the picture? How much effort is F3 going to put in improving and marketing ICS going forward?

    • chrisbagley says:

      Hi Joe,

      Thanks for the question.

      You’re correct. While we continue to update and refine all three platforms periodically, we have been putting somewhat less time into Interaction Community Systems than either FargoTube or the Interactive Defense System because the latter two are new platforms and we’ve made a point of getting them up to speed.

      Furthermore, we believe these two are cutting-edge platforms. The markets for them are brand-new, with significant upsides, so it has been important to move quickly.

      In contrast, Interaction Community Systems is one of several online management platforms for homeowners associations and other membership groups, and the relatively saturated state of that market moderates ICS’s potential for growth.

      Nonetheless, we believe ICS has significant advantages over its competitors, including the integrated nature of its accounting, paymenting, communications and management functions; and lower price points. These strengths make ICS an especially useful platform for property managers who want to manage and interact with their various communities efficiently. For this reason and because property managers have lower acquisition costs per dollar of revenue, we have been focusing more heavily on selling to property managers than to individual communities.

      I hope this answers your questions. Please feel free to contact me (chris@f3technologies.com), COO Paul Campbell (paul@f3technologies.com) or CEO Frank Connor (frank@f3technologies.com) with any further questions.

      Chris

  2. Joe says:

    What about the upgrade to ICS that was to come out in January? Is that still on schedule?

  3. chrisbagley says:

    Hi Joe,

    Can you refresh my memory? The last major set of ICS updates was underway in September and October (https://f3technologies.wordpress.com/2010/09/21/updates-on-updates-to-fargotube-and-interaction-community-systems/). We may have given the system one or two smaller tweaks since then, too.

    Chris
    chris@f3technologies.com

    • Joe says:

      The tools allowing the automation of website creation and configuration for Property Management types was supposed to be due during January according to a couple earlier PRs.

      • chrisbagley says:

        Last I checked, we were still on track to complete it this month or in early February at the latest. I’m double-checking and will get back to you.

      • chrisbagley says:

        As I told Brian just now, we’re on track to complete the automation and have it active by early February. Several processes will become automated, including individual community creation and profile creation for management companies, which in turn can automatically create multiple communities. I will let you all know via a blog post when everything goes live. Stay tuned!

  4. Bryan says:

    Chris, has the automated sign-up of ICS been added to ICS? I forgot when that was supposed to be added.

    • chrisbagley says:

      I don’t think it’s been added yet. Last I checked, we were still on track to complete it this month, as we initially estimated, or in early February at the latest. I’m double-checking and will get back to you.

      I’m also getting you an answer about the number of communities using ICS. I believe we’ve had a continued modest increase in the last couple of months. The blog entry “Focusing on F3’s three platforms” may also shed a little bit of light on your question, although it doesn’t include any numbers.

      • chrisbagley says:

        We’re on track to complete the automation and have it active by early February. Several processes will become automated, including individual community creation and profile creation for management companies, which in turn can automatically create multiple communities. I will let you all know via a blog post when everything goes live.