What’s up, guys? This is Tai Zen and I am broadcasting here from the headquarters of YouNow office in Times Square in New York. And with me today, we have the honorable grandmaster legendary rolled me down, Leon Fu. Hi guys. The great Oracle of Crypto, okay, and then with me also is, we have Ben.
He is the head of product development here at YouNow. Would you say a little bit? Hey guys. All right, so we’re here in the headquarters and we have up here on the screen with us the current YouNow software.
But before we get into it guys and before we look at what it’s gonna transition into and evolve into, can you share with our audience real quick because you know, our audience who is watching this and they are gonna wonder who you are and what your background is.
Why you are talking about, so keep a little background about yourself first? Sure, so I’ve been here at YouNow for about 2 years and prior to that, I was out in San Francisco at Zynga so managing the virtual economies in gaming for number different titles poker. And some other similar titles. And for the audience it’s not familiar with the virtual economy and can you talk about what that is?
Got it. So, you know in gaming economies generally you have users paying Fiat money through the app store or through Google Play, buying in-game currencies which they then used to purchase virtual goods within the games.
I’m such as a new house or crops in Farmville or more chips in Zynga, weapons guns upgradable you know exactly, you know, defenses, right? And so all these things are you are kind of building digital goods and selling them for real money ‘cause they provide real utility and in these games, right?
They give added experiences and more fun to the players. How come you never talk about stuff like this in college, man? Like you roll with your manager, man. It was something they believe world. I mean, how did you fall into that?
I mean, I just love games and kind of fell into it, back in high school, I was like create like games with my TI-83 calculator and stuff little simple programming games. And you know, I was just, it’s you just even getting into that business, have a business background and an analysis background which is important for these types of things.
So I was able to make, you know, pop into the gaming industry through Zynga, who was looking for kind of business analytical minded folks, and so it was kind of like my way of getting in there and so yeah, it was a lot of fun. So, you went to business school to learn how to sell my cute little products and then that’s none of this stuff that in the virtual world.
Yeah, essentially, it’s kind of a similar approach, though, it’s like what are these guys looking to do. And I don’t know what are they gonna be willing to pay for, how can you make them love the product and retaining the product and can continue to engage with it.
So, you guys going to be shocked at some of the stuff that he’s gonna share about that virtual economy because this really blew my mind yeah that’s why we have my video guys.
So as part of a research mission right for our channel, we want to share with our viewers how we research our project, so that’s why we’re here at the office of YouNow in Times Square in New York. Okay so let’s go through this really quick, right?
We had this young teenager on the current YouNow.com. The majority of your viewers and your audience uses the mobile app demonstration. Right. But for this demonstration or this exploit or purpose, we have up the website. So, walk us through just real quick in case someone’s audience is new.
Kind of step over here, yeah, right there a little bit. And kind of walk us through what we’re looking at here’s my nose. So, a lot of folk creators and you know, social media influencers love coming on YouNow to broadcast live to their audience and to their fans.
And so we’re watching here is MUL is currently live right now. This is her name and a little profile, and this is her broadcast, and here is kind of the chat room you can all her fans typing, chatting, interacting with her. And she’s kind of responding to them and entertaining them, right? And so what’s kind of different and cool about this kind of this business model though is that she’s actually earning money right now through the virtual economy that similar to a gaming economy.
So, currently, she has about 83 people watching her life right now. So, these are all the fans? There are actually other broadcasters in that we do have options to in that kind of her channel.
And she’s number 4 in her channel which means she’s trending in a number 4 spot. So, like the more likes and viewers she gets, the higher up and trending she goes which is great for her if she wants more fans, more money, more viewerships, etc.
This is right here, this is the training section, so you can kind of see the top people on the site. And it’s really valuable to be up in that training section for our broadcasters. That is the entire site? That is for the entire site. But you’re saying we are rod cam recording before lunch, in the morning.
So you said that this is like the slowest time to slow it down that our peak traffic times are generally in the late afternoon and get off work at the school and they come in here, but you could still, you know, there’s still plenty of activity happening. What are these tabs here?
Okay, so these tabs up here, you can see that this is a Top Fan section and so what do we mean by Top Fans and so the Top Fans are someone who has spent the most amount of virtual currency in the broadcasts. This go-to the crux of the business model, so similar to YouTube where creators get a split of the ad money that plays during their broadcasts.
Here on YouNow, creators are in 70% or so of dollars actually spent by users in the broadcasts, so spending other virtual currency in the broadcast which has real Dollar implications. So a user can say, you know, I’m going to take $10 USD, gonna buy 1000 bars of YouNow bars are a virtual currency. They can then use those bars to send GIFs to the creators and the creators then earn a percentage of that spent.
So, for example, if I’m a fan of EY and I want to give her a gift, so I go purchase the YouNow bars, are these golds might act, and I can go buy 1 of these gift items and give it to her.
And it shows up on the screen and she might give me a shout out which is exciting if I’m a big fan of her and it helps for trends because I’m giving her lights, so it supports her business and how she’s doing and it gives me status as well. I can be like a Top Fan and it’d be known as a big supporter for her.
Okay, that’s what this shows that this fan Johnny Cab spent 750 Bars and he had to buy with real money. Now, this is to someone that’s watching this right? Because the first time that we saw this, now we know that people buy stuff and radio game world, yeah but in social media to buy stuff just to show that you like someone.
Okay, talk about this later. Because you’re offline, you share with us many reasons why someone would want to do that because that sounds crazy, just someone and when we may many of us.
Talk about 3 reasons why a fan or a viewer would spend real working money, their job or their money and spend it on a random stranger that they like. Great question. So, as you mentioned there are a number of reasons. The first is it simply patronage where someone is trying to become a star, trying to become very popular musician, and they just need to support a career, they just want to help them get to the next level, support that maybe help some buy an instrument or a new microphone for their shows, right?
So, for the audience members that watch this outside the US, this is their second language, so you say the word patronage, they want to force a price? Just support, just give them money that allows that broadcasters career growth trajectory to take off, right? They almost feel like these personalities become a fam they often talk about, like my fam here. And because of this kind of relationship and they want to support them.
The other reason is, you know is really status and so what does that mean? So, are people contribute money? There are leaderboards for them. They earn badges and other things that signify that they are Big Supporters of the platform and since they are paying a lot of money and supporting a lot of broadcasters.
They kind of get this status, so if they come into a room people notice them, broadcasters notice them and give them a shout out, and they get to say that, you know the Top Supporter and they feel good about that it gives them status and these like little badges and things they earn are very important to them. They care deeply about them.
So, little assistance because when somebody that is new to the virtual economy here that might sound like crazy but let’s look at a few examples in the real world where people actually do that.
So, like there are people like I, come from the city of Dallas, you come from the city of Austin, Texas and there are people like we have people in different cities where they’ll donate money just to have a street named after them.
They’ll pay to have a library built or a public facility built or a park built. Just name and after them. So, we know what happens in the real world, but this is just a smaller scale in the virtual world.
And it’s happening and in real-time, you get that real-time feedback, so if you don’t have money to get a street people might realize, I kind of I know that name but you’re not allowed there for that thought process.
Here are you come in the room and you have your red crowns everyone’s gonna: “Oh, well”, like our top guys, you know, I kind of get that. I talked about the bars, somebody donated the Halloween things and everyone like I was going crazy. And this blends in with kind of the last leg of why people really like to contribute which is attention.
If I imagine, I am a much younger teenage girl and I’m watching you, my idol who have a crush on, or I know there’s a really famous person broadcasting I just really want to get his attention because getting a shout-out for my idols is really important, or just make me feel great.
I can just send you something that cost as little as 50 cents on the screen or something that really gets his attention that’s exploding everywhere that cost maybe like $50 or $100 USD.
When the rock star is on stage and you’re waving… Yeah, I know. Can you just pop up the gear list so I think the audience can see what we’re doing here? I think it’s really cool when you showed us that demo and I can write for something that you gotta react. So I think we can probably test it. Before we do, let’s the audience know where to get these gifts. This is mind-blowing, right?
Okay, this gift box essentially is just virtual goods that you can use your bars, so I have a very high balance of virtual bars I work here.
And so I can use those bars and send them on to the screen so I can send the small ones that are cheap that kind of come on the screen that might get her attention but are you know as cheap as 15.25 Cents.
I can also spend ones that are you know is expensive up to $100 USD that are exploding everywhere, that’s really going to grab her at attention and really make sure that I’m supporting her and getting that call out also the more the price of the gifts, the more they can deliver, so the more that helps the broadcasters to receive his trend, so it’s important for them to get more viewers.
So, to show that I like her channel, I can instead of saying I like, I could show it with those? Yeah, you can actually support it and help her trend. This is real Dollars that you bought the virtual currencies then you spend it on those gifts. So you gotta buy the virtual currencies to the gold bars, then the gold bars by this gear then you can take those gifts and give them to her. Okay now, can you give an example of what’s the lowest cost of gear?
So the simplest gift is you can send 50 likes, right? This is signifying 15 bars, it’s like $0.12 USD something like that. Before you send this to her as a demo, I want to make sure the audience knows it’s okay. We don’t know why or who she is or anybody, so when Ben said he was gonna demo this to us, he asked us just to pick a random person and we happened to saw this. We don’t know who she is, never seen or even heard of before.
Can we turn the volume and just because the audience encounter get a glimpse of what she’s even talking about before we test the gift thing? Okay, so she’s leaving in 2 minutes. Okay, so she’s talking about a stupid doctor. So, that’s right news up a bit. Should we drop a big one on earth? Okay, let’s drop a small one first. So this one I might send 50 likes.
Now she’s thanked me for this. This is such a small little thank you for 50 likes but now I send her a large one. I think we should expect a different reaction. Here’s a Halloween gift, we just put this one out. Here we go. So now the audience is going crazy, they love me for sending this, hashtagging my username.
Pay for a doctor’s visit probably. Unless she’s still talking about me, the whole chat. Now she’s is number 2 on girls, she jumped up a couple of slots you just noticed that everyone is hashtagging my username, I feel great about myself, she feels great, everyone wins. It’s a beautiful system.
She’s still in shock. She has no idea what’s happening. What this does is actually you see when someone spends against that reaction, it actually encourages spend. They also want that reaction. She is like how did this just happen, someone just spent $100 USD, but it’s not that rare, I mean we have millions of dollars a month being spent on this on this virtual currency. It is the real US Dollar.
Yeah, this is a real to real business, it’s a real industry. People just joined right here because they just saw her trending up. So, when she trends, she’s gonna attract more viewers who most of our viewers are on the mobile app, so it’s a little in the US, but like shall we going up that trending area and attract more viewers.
She might be talking about right now which is on mute. Maybe this increases broadcast time, she said she was gonna get off 3 minutes ago and in 2 minutes she’s still on. That’s kind of a demo, roughly how our economy works, why people pay, why it is exciting and how the business model is already really established. Okay so now that cost you $100 USD of real US Dollars after that Halloween.
Okay so let’s just review real quick the three reasons why someone would spend real US Dollars, real money to buy these gifts and to give it to their favorite broadcasters. You said one is the patronage where I show support for it. And then number 2, they want to get attention on the broadcast where that shout out and you can see the audience hashtagging my name.
And 3, statuses like these symbols that are on the platform tell everyone on kind of a ball or I’m a big supporter. You know, I’ll get more call-outs and recognition for these statuses leaderboards, etc. Now talk about that. That’s the current currency economy or the money revenue-making model right now with YouNow.
So now you guys are transitioning from this into a much better platform. And you guys are building a new platform called Pops. And YouNow.com app is going to become a new app. On top of that platform called rise. Okay well, this is a good time to pause the video, you can pull up and then we will come back.
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