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Zenither Streaming Platform

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$1,046.17 Funded
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$249,999 Target
$249,999.68 Max. Raise
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About


Zenither Streaming Platform

Invest into Zenither a video streaming platform that allows you to watch digital television channels and movies on your phone, computer, smart TV and other connected devices!

Our Track Record So Far...

  1. Founded by former VP of a Hollywood based film studio and ex-YouTube MCN founder.
  2. A library of 2,000+ titles to watch.
  3. Over 40,000 user installs of our mobile apps, with smart TV apps soon to launch.
  4. 10 Patents awarded with additional applications pending.
  5. Trademarks granted on 'Zenither' and our slogan, 'Watch it all'.

Why Fans Want to Support Us 

Zenither is utilizing disruptive new securities laws to create a next-generation media company with patented technology (10 patents!) that produces new content, supports your favorite television shows, and allows independent publishers the ability to set ad prices and determine content licensing fees without needing to own the entire platform.

In contrast to platforms like Netflix, Hulu and Disney+ investors in Zenither can drive content development and programming decisions. Investors can pitch ideas for movies and TV shows to be produced or licensed for the platform. This is your opportunity to invest pre-IPO into what could be the next great video streaming service AND see the content you already love -- like videogames, books, webcomics and such -- adapted into television shows and films.

Our investors will also gain perks such as VIP invititations to red carpet premieres of new programming (TV shows and films). 

This is YOUR opportunity to get involved and come behind the scenes of the digital television industry.

Read more to learn how this works!

 

Welcome to the Next Generation of Web TV

We are developers of Zenither a TV Anywhere platform that allows you to watch digital television channels and movies on your phone and other connected devices!

Zenither is cable TV without the cable; like if Hulu combined with Comcast Cable, yet our system can be used by both major media companies and indie digital first content creators to operate global TV networks. It takes the best aspects of the traditional TV business model and combines it with the best aspects of digital video on demand service.

Zenither is the ONLY platform we know of that allows publishers absolute control over their content from programming, scheduling to true monetization. Our ultimate goal is to level the playing field so that indie content publishers have the same business tools and opportunity for success as major media conglomerates do. Everything about the technology we have created is designed to achieve this dream.

You can find our apps for iOS, Android and web browser for download at www.zenither.com

Watch the web browser app directly here https://zenither.tv/

How Do Investors Drive Content on Zenither?

To ensure we produce the right kind of content when adapting media, we're going to solicit fan opinions when adapting such media as original programming on Zenither owned channels.


Investors into Zenither actually get to pitch ideas on what kind of shows to make, or even what programming to license and schedule onto stations in Zenither. This will be done through special investor-exclusive website dashboard that allows direct interaction with our executive team. 

Currently we have built stations that will specialize in children's programming, horror movies, documentary films, video games and plan to license more TV shows and films to schedule onto these channels. If there is a certain TV show you'd like us to chase down the rights to so you can watch it on Zenither, as an investor you'll have a direct line to the executive board to make a request for us to license the programming. If we can get the rights to what you want to see, we'll license it and put it on a free to watch channel on Zenither!  

Learn more about our plans for channels we own at our blog post, https://medium.com/@zenither/plans-for-future-zenither-owned-channels-5f6de910dec8

Zenither is the Most Indie Friendly Video Streaming Platform

Zenither has been designed to be able to support hundreds of thousands of channels from content owners big and small.  We recognize talent when we see it and work with creators to bring them onto our service either as owners of their own channels or featuring their shows on branded channels we operate ourselves. 


As platforms like YouTube tighten the screws on indies someone has to be able to host high-quality programming made by independent voices. While Zenither can build stations using videos from platforms such as YouTube we have no control over other platforms and if they decide to remove content from it. It would be better for us to host content internally to ourselves. With your investment we'll be able to support these indie creators and provide them with powerful tools and features they just don't get anywhere else.

 

Some of the digital first content publishers streaming shows and channels on Zenither. 

The Zenither app allows all of the management functions of a television network to be handled using nothing more than a laptop and internet connection. The platform brings all of the features of a conventional TV broadcaster such as CRM, billing, CDN, user analytics etc.. to an over-the-top (OTT) service. We are a complete solution for content creators and aggregators to create their own channels and sell their own advertisement spots, while also having the opportunity to receive carriage fees and easily license their content to other channels for second-runs showings.

Zenither allows a state of the art digital TV network to be managed with just a laptop! In traditional broadcasting, network scheduling is a full-time position. Our user friendly interface helps publishers create an episodic programming guide in minutes using our 'Episode Container' system. Our proprietary algorithm utilizes 15+ data points including ratings, keywords and broadcast time to organize your content into Episode Containers designed to keep your audience engaged. The end result is a simple process with minimal learning curve and low maintenance time. Now anyone can utilize TV block programming strategies to curate video content for discoverability.

Exclusive Investor Perks For Contributing to This Campaign

Zenither is dedicated to fans helping shape the future of TV. A big part of that is giving the fans a voice in the conversation. Which is why we are giving all investors  the power to vote on or against, concepts on Zenither original programming! You will have the power to shape the production of original TV shows and movies we make for the platform.

Plus in addition to getting real shares in our company that make you an owner, get the following additional perks priviledges depending on how much money you invest.

 

  • Invest the minimum of $251.64 and get a Zenither branded t-shirt. You will also get a free premium subscription plan for two years when we roll the paid channels plans out. This plan will be comparable to basic cable and will normally cost subscribers $9.99 per month.

 

  • Invest $350 and get a Zenither branded baseball cap in addition to the t-shirt. Your free premium subscription plan will now last four years.

 

  • Invest $500 and in addition to the previous rewards, we'll also look at your screenplay pitch and consider adapting it into a TV series or film. Alternatively you can suggest an existing property for us to license and/or adapt, and we'll see if we can do it. Additionally your premium subscription plan will now last six years.

 

  • Invest $1,000 and in addition to the previous rewards you are guaranteed to have your very own channel on Zenither where you can stream whatever content you legally have the rights to. Additionally, our sales team will assist with the sale of ads in your channel. We'll also offer a personalized training session for your team in the operation of your channel. Lastly even if we sell ad inventory for your channel we will take a 0% commission on these ad sales for the first two years after you launch your channel, and afterward we'll take a 25% commission. This is an exclusive perk just for those who assist us with funding our company.

 

  • Invest $10,000  and in addition to the previous rewards you will receive a Reserved Premium channel slot for the premium paid subscription service when we roll it out. Your station will be listed among the premium stations, meaning you will earn carriage fees based on the number of subscribers to the premium service bundle your station participates in. Bundles are based in content categories. This perk is first come, first serve! There are 20 slots available during this round to the first investors who put ten-grand into our company!

All investors get VIP invites and access to exclusive Zenither events, screenings, premieres, etc. Celebrate with us as we become a revolutionary company with guaranteed access to EVERY event we ever put on, forever! Your name will always be on the guest list, allowing you the ability to network with other investors and parties involved with Zenither.

You'll also get membership in our community of investors via a website page with discussion forums, giving opportunity to discuss Zenither and other projects we do, as well as submit your own ideas for programming to appear on the service.  

Lastly all investors into Zenither will gain access to an investor-only channel on Zenither with exclusive content, such as announcements of upcoming projects, livestreams with cast and crew from the sets of our original productions and events we put on and other special features. 

Why We're Crowdfunding Our Raise

We've invested roughly $1.6M into building Zenither so far and most of this money has gone into building the technology and licensing a small amount of content. We need more money to scale by licensing more content, finishing our smart TV apps and marketing the service to attract new users.

This campaign is being launched with an initial cap of $249,999.68 but we will increase the maximum that can be raised to $1,070,000 in a few weeks after seeing the interest here.

We have a very scalable business model that can support indie creators and huge multi-media giants. We can work with everyone, and all we need to do is raise another round to demonstrate that.

Help us get the money we need to license new content and advertise our service to build a userbase. We'll show you what we can do!
 

Invest into the Future of Digital Television Broadcasting

This isn't a Kickstarter project. When you invest into Zenither you're buying stock in a digital television broadcasting company.

  • OTT market is expected to be worth $117B by 2025. (Source: Grand View Research)
  • More than two-thirds of U.S. homes have devices that are able to stream video. (Source: Nielsen)
  • Americans are now streaming nearly 8 billion hours per month on connected TV devices like Roku, Apple TV and Amazon Fire TV. (Source: Nielsen)
  • 73% of adults 18+ who typically watch streaming OTT video say they watch ad-supported OTT video. (Source: IAB)

 

Launched Stage

After successfully raising money through a Reg CF raise conducted in 2017 on StartEngine and receiving an additional $1.3M from an accredited angel investor in 2018, we turned our prototype into a professional platform with applications for web browser, Android and iOS mobile devices. We launched a small marketing campaign in October 2018 and gained over 25,000 installs of our mobile apps and 9,000+ registered users, and we've continued to receive regular installs now reaching 40,000+. We have also secured rights to a library of over 2,000 titles from both digital first publishers and major studio films. We've also signed distribution deals with companies such as Gravitas Ventures, PopcornFlix, and the European Television Guild.

If this funding round is successful we expect to launch smart TV apps for Zenither into the market by the second quarter of 2021. Around 60% of a Roku TV app is already completed!

We also expect to acquire several hundred more channels throughout 2021 and intend to make available tens of thousands of on demand films and TV shows for viewers to watch. Your funding will help us achieve this.

Currently we have over 80 channels under license agreement, although not all of them are publicly available at the moment on the live Zenither app. Some of these channels will be bundled into paid subscription plans when we release that service next year. That said, Zenither will always operate channels that are free to watch and supported only by advertising giving a mixture of paid and free to watch programming. 

You can download our live apps in the iOS App Store and Google Play Store

Our Business Model (How We Expect to Make Money)

Zenither is projected to generate revenue from three sources; linear commercial ad revenue, video on demand ad revenue and premium subscription channel revenue. Some channels on Zenither will be free to watch supported by ads, while other channels will require a paid subscription to watch.

Our financial projections for each revenue source are determined as follows.

Linear Ad Commercial Revenue:

Linear ad commercial revenue is defined as ad inventory played against content viewed from the Zenither application channel guide and behaves similarly to ad inventory sold by terrestrial television channels. 

There are 210 Nielsen Designated market areas (DMA) in the United States which the Zenither system can allow an advertiser to purchase ads in. The average TV channel has 18 thirty-second commercial spots per half hour of air time.

This means every day there are around 864 commercial spots available for purchase as a national campaign, per TV channel. 108 of these spots appear during ‘prime time’ hours and are considered premium ad inventory.  

Our research has indicated that on average a national ad campaign during non-prime hours costs a minimum of $35,000. This means in each of the 210 markets, the price for 30 second ad spot is at least $166.66

A national ad campaign during ‘prime time’ hours can sell for $326K (this has been calculated based on ‘Big Bang Theory’ timeslots).

Zenither’s financial projections are considered to be conservative, with the belief that a portion of ads served will be direct response ads, whose revenue can be difficult to quantify. Therefore we have based our projections around a conservative figure for ad revenue, with only 54 of the 108 ‘prime time’ ad spots selling a national campaign at a price of $35,000 per national campaign. 

O & O stations on Zenither utilize content which is licensed under an agreement to pay 45% of ad revenue to the content owner. This will result in MBS keeping an average of $742,500 of ad revenue per daily broadcast.

It should be further noted that third parties running stations on Zenither share 25% to 45% of their ad revenue with MBS when they sell ads using our ad system so as we add new channels we increase our revenue potential.

We also project that we can add at least 10 new channels per month to Zenither. 

Video on Demand Ad Revenue:

When viewers watch content from Search or from Station pages, they watch the episodes ‘on demand’ and see programmatically served ads.

We have used an extremely conservative projection starting at 100,000 ad impressions per day at a $1 CPM for month 1, and for the daily views to grow by 20% per month. We believe this is obtainable.

Premium Subscription Channel Revenue: 

Zenither’s content offering is intended to be a mixture of free to watch channels monetized entirely by ads, with paid channel offerings for premium content channels like ESPN and HBO. It is intended that Zenither offer these channels to consumers in channel bundles, similar to offerings made by Sling TV, but with the additional possibility of adding channels Sling TV cannot carry as the Dynamic TV broadcasting system allows for publishers who would not normally be able to afford to operate a linear TV channel using HLS can do so using the Zenither system.

The company intends to sell Silver packages at a starting point of $9.99 a month, which will have a channel offering comparable to a basic cable package. We expect to have at least 90,000 active monthly recurring subscriptions to our Silver package by January 2022, with MBS receiving $5 per subscriber. Gold (premium movie channels) will cost another $9.99

We’ll ramp up channel offerings and marketing after receiving our Series A to scale the subscriber growth and consequently the revenue.

 

What is 'Dynamic Television Broadcasting'?

The Company’s primary product is a virtual multichannel video programming distributor (vMVPD) called ‘Zenither’. Advertised to customers with the tagline ‘Watch it all’, the platform can support simultaneous distribution of tens of thousands of channels and a library of over 500,000 video on demand titles to a single app client with no diminished experience for the viewer due to pagination methods used by the channel guide and search pages graphical user interfaces.


Unlike competitor applications in the OTT space which operate as isolated services unable to communicate with third party apps, Zenither is designed to create a new digital broadcasting standard with potential for its API to be syndicated to other vMVPD services similar to how these apps currently carry other digital signals to provide content. Zenither uses the proprietary and patented ‘Dynamic Television Broadcasting’ system which poses several advantages over current standard formats such as HTTP Live Streaming (“HLS”), Real-Time Messaging Protocol (“RTMPS”).


 

With our Zenither TV Anywhere platform we have built “cable TV without the cable“. We believe our PATENTED technology can allow us to be the #1 TV carrier in the world. This is a boastful statement but it is one based upon the strength of the technology which we have imagined and engineered. It’s not a hypothetical; to our knowledge, we are doing TV broadcasting in a way that nobody else is doing it and which we believe is the future way all TV broadcasters will operate.

Learn more about Dynamic TV Broadcasting at our blog post, https://medium.com/@zenither/an-introduction-to-dynamic-television-broadcasting-system-used-by-zenither-382b00b68531

To date MBS, Inc. has 10 patents awarded and 2 patent applications pending that cover our innovative technologies.

 

List of Our Awarded Patents

(Patent No. 10,555,018) Systems and Methods of Programmatic Video Content Distribution

(Patent No. 10,244,279) Systems and Methods of Time Zone Specific Scheduling of Streaming Content

(Patent No. 10,701,424) Systems and Methods of Managing Video and Ad Segments in a Live Stream

(Patent No. 10,440,414) Systems and Methods of Delivering Episodic Content

(Patent No. D873,844) Transition from Comments Frame to Merchandise Frame

(Patent No. D880,518) Episode Watch Page User Interface

(Patent No. D874,507) Channel Guide User Interface

(Patent No. D874,493) Channel Page User Interface

(Patent No. D873,842) Interface Transition to Search Results

(Patent No. D874,494) Interface Transition to a Channel Page

 

It is our intention to completely control this new method of digital TV broadcasting and video streaming distribution with our innotivative features and technologies. Zenither is FAR MORE than simply "yet another video streaming app"; we're an entirely new technology platform for the distribution of TV programming to audiences. This means our technology has potentially lucrative value to ALL CONTENT PUBLISHERS, even competitors such as Disney, Viacom and Netflix. For this reason we expect to work with many of the content publishers who are currently operating competitor apps and eventually bring them into our ecosystem.


Ultimately Zenither's end game is to replace traditional TV distributors like Comcast, DISH and DirecTV to be the next great TV carrier service: Cable TV without the cable!

 

Why should I invest into your company?

If you like the idea of owning part of a next-generation digital television carrier that is going after a $200 Billion market (source), then you should invest into us. We're swinging for the fences but all great rewards come with some amount of risk.

Also consider this; you can't go back in time to invest into pre-IPO Google, Time Warner or Disney when they first started out but YOU CAN invest into Zenither which seeks to become a company of the same size and scale as these aforementioned companies and we believe possesses a sound business plan for accomplishing this feat considering our our goal is to replace their entire TV distribution systems with our Dynamic TV Broadcasting systems which renders the existing technology powering their TV networks obsolete. Furthermore we've built a proprietary ad system that has all of the features of Google's AdWords but is optimized specifically for the needs of television advertisers.

A lot of people have many different ideas about how wealth can be acquired. Our founder Carey Martell believes wealth is best obtained through early access to private companies with promising business models. We believe such an opportunity sits before you on this page. The question you must ask yourself is this; will you take a chance on this opportunity? Carey has invested his own money into this venture and now you can invest your own alongside him.

How is your valuation determined?

Our research indicates all of our competitors who built original platforms raised $10M-$30M during initial rounds prior to having built and launched their platforms. This is because this space we operate in, the OTT industry, is a $200B+ market and the technology for digital TV distribution is challenging to create. The high value of the market is due to specifics unique to the television industry.

Our goal with Zenither is to build the technology that is designed to replace the existing distribution networks pipeline while taking a 25% distribution fee on the advertising sold through our system, giving us the revenue potential of a broadcast or cable network once we reach scale and market penetration. We have used Equidam.com , an online valuation tool for startups, to generate projections of valuations for our company.

Equidam's report generated an average valuation of $460M for our company. However we have decided to go with a more conservative projection of $15M for this round, selling at $2.33 per share. The reason we have selected a valuation of $15M is because, although we believe Zenither is a revolutionary and innovative technology that has tremendous value, we also recognize our company is at an early stage.

For this round we are valuing our company at $15M pre-revenue. This is because Zenither is more than just another OTT app. Our patented Dynamic TV Broadcasting technology can be licensed to other carriers for potentially lucrative fees. OTT related patents are considered particularly desirable in portfolios with major companies such as Disney focused on acquiring them. Having been granted 10 patents surrounding its technology Zenither is well positioned for a future acquisition. As an example of this potential value, Akamai paid $107M for the OTT patent portfolio owned by Octoshape. (Source)

One of the key strengths of Zenither is our unique platform features which other competitors do not possess. It is well accepted by analysts that the majority of OTT apps possess near identical features when compared to one another. Even T-Mobile recently announced they were postponing their plans for a new streaming TV service because they did not want to produce a garden variety streaming service and had no original ideas on how to differentiate from existing competitors from a technology standpoint. (Source)

Many OTT apps use a technology stack that is primarily licensed from third parties, with the source code not directly owned by the company running the streaming service. Wholly original OTT platforms with unique source code are therefore very lucrative. As an example, Verizon’s go90 platform was originally formed using assets and talent acquired from Intel's OnCue streaming service, which Verizon acquired for around $200 million in January 2014. OnCue had never left the prototype stages; the platform was never released by Intel into the market. It acquired no customers nor generated any revenue; the value was purely in its technology. This transaction showcases the extraordinary value that original OTT platforms possess in the market. (Source)

Our research has indicated that other early stage companies who are conducting Reg CF campaigns have an average valuation set at $18M and median raise of $5M. Therefore we believe our raise is more likely to succeed if we value ourselves comparably. We do believe that our valuation will increase over time as we acquire more users and generate revenue. During Q1 2019 there has been approximately $400M in startup acquisitions in the OTT space, with each company exiting within less than 5 years from their founding. These deals include Cinedigm acquiring Future Today, an ad supported video platform company for $60M (Source) and Viacom acquiring Pluto TV for $340M (Source ). Fox also purchased Tubi for $440M (Source).

One of Zenither’s key strengths is the robustness of the feature set in our unique platform which other competitors do not possess. It is well accepted by analysts that the majority of OTT apps possess near identical features when compared to one another. Even T-Mobile announced last year they were postponing their plans for a new streaming TV service because they did not want to produce a garden variety streaming service and had no original ideas on how to differentiate from existing competitors from a technology standpoint. And this was after acquiring Level3 for $325M in 2017. (Source)

We believe that because Zenither is a wholly unique code base not dependent on a stack of licensed software from third parties, that this makes Zenither on face value more valuable than other OTT app competitors which do not own their technology, and whose only value is in their collected user’s data and paid subscriptions plans. Included in our unique technology is a robust proprietary ad display system that is capable of programmatically serving ads into live linear feeds in such a way that ad blocking software cannot be used to skip the ads, which is a unique and patented technology.

Additionally, Zenither is more than just another OTT video streaming app. Our patented Dynamic TV Broadcasting technology could be licensed to other carriers for potentially lucrative licensing fees. OTT related patents are considered particularly desirable in portfolios with major companies such as Disney focused on acquiring them. Having been awarded 10 patents on our technology it is our belief that Zenither is well positioned for a future acquisition of its portfolio and technology alone. As an example of what this value might be, the company Akamai paid $107M for the OTT patent portfolio owned by Octoshape. (Source)

As another example in 2016 AT&T acquired a company called QuickPlay, which owned an OTT platform that ultimately has been used to build the DirecTV Now platform. (Source )While we are not aware of precisely how much AT&T paid for QuickPlay, in a previous transaction QuickPlay had been purchased by Madison Dearborn Partners in 2012 for $100M. (Source)

Our OTT technology is complicated and the television industry is a huge market. We've spent almost two years in constant development of our platform and believe that the Zenither platform technology is of comparable market value at these prior OTT platforms developed by Intel and QuickPlay. For these reasons stated above, we believe our valuation for this round at $15M is reasonable and realistic, and that our valuation may grow higher in coming years as the company acquires new customers.

Lastly we have financial projections showing that by year 5 we expect to reach $355M in revenue. These projections are conservative as they project we will have 600,000 subscribers to our basic premium service package, with at least 480,000 of these customers subscribed to at least one add-on tier package for additional channel offerings (such as ethnic based programming). We also project that by year 5 to be serving at least 3,194, 797 ads per day which equates to around 480K viewers watching at least one hour of content per day. As our competitors in this space currently have anywhere from 2.3M (Sling TV) to 58M (Netflix) domestic paid customers subscribed to their services we believe our userbase goals and projections are realistic and obtainable, especially as many of Zenither's channels are free to watch channels monetized via advertising which helps bolster our revenue numbers beyond subscription revenue alone. Technology acquisitions are common in the OTT space.

How much could my investment be worth in a few years? 

That's a forward looking statement for a product not yet generating revenue so we honestly cannot tell you what your investment into MBS Inc. could be worth in the future. But we can tell you this. Our valuation in 2017 during our opening Reg CF was $5M at $1 a share. This year we are valuing the company at $15M, at $2.33 per share. So our valuation has already increased.

Again, that being said, we are not Uber or Netflix.  While we believe we have a great opportunity, no one can project the future performance of the company with any degree of certainty, and we make no guarantees about future returns or performance.

The fact that Zenither is a wholly unique code base not dependent on a stack of licensed software from third parties makes Zenither on face value more valuable than other OTT app competitors which do not own their technology, and whose only value is in userbase data and paid subscriptions. Furthermore Zenither possess a robust proprietary ad display system that is capable of programmatically serving ads into live linear feeds in such a way that ad blocking software cannot be used to skip the ads, which is very unique.

Lastly we have financial projections showing that by year 5 we expect to reach $355M in revenue. These projections are conservative as they project we will have 600,000 subscribers to our basic premium service package, with at least 480,000 of these customers subscribed to at least one add-on tier package for additional channel offerings (such as ethnic based programming). We also project at least 3,194,797 ads to be delivered per day by year 5 which equates to around 480K viewers watching at least one hour of content per day. As our competitors in this space have anywhere from 2.3M (Sling TV) to 58M (Netflix) domestic customers we believe our userbase goals and projections are realistic and obtainable. (Sources 12)

Investor Q&A

What does your company do? 

We are developers of Zenither a TV Anywhere platform that allows you to watch digital television channels and movies on your phone and other connected devices! 

Where will your company be in 5 years? 

We want this to become the predominant digital television content service in the world. We believe we have a very disruptive model that will greatly improve the profitability of video content while still giving audiences a high quality watch experience.

Why did you choose this idea? 

We're passionate about building a better system for content publishers, viewers and advertisers that addresses many of the problems in digital TV today.

What's new about what you're making? How is it different? 

There are many video streaming apps but none truly revolutionize the television industry, which is why cable and satellite providers still dominate today. The market is so over-saturated with OTT apps that T-Mobile US, Inc. scrapped their plans to offer an OTT service this last year because they did not want to offer yet another "garden-variety streaming platform".

The problem as we see it is that most of these app makers focus too much on neat features and not enough on creating a platform that truly improves upon the traditional television business model. We believe the app produced by Martell Broadcasting Systems, the Zenither app, will succeed because it makes the traditional business norms easier and more profitable for content owners of all sizes (YouTube creator, indie studio or major Hollywood studio).

What we believe the market wants desperately is a multichannel video programming distributor that brings the full traditional TV business model to the internet and makes it accessible to indie content creators. That's what we're doing. We're also putting total control of monetization into the hands of the content owners. While YouTube is currently the predominant video streaming platform, over the past year they have implemented new policies which have seen millions of channels become de-monetized -- even channels which promote charities or feature news media content. We believe in order for video creators to continue to thrive they need a new business model where someone else no longer has total control over their revenue stream anymore.  

What do you understand about your business that others don't get? 

Most video app producers focus on feature lists and the audience viewer experience, which is really important, but they often do these things at the expense of recognizing the real customer for video apps is the video creators. Consequently they don't build a business model that allows the content providers to thrive very well which creates growth problems when business minded folk try to use the platforms. 

Take YouTube for example; the platform was created in 2005 and seemingly still struggle to make scripted serial content thrive on the platform because the revenue model and app features on YouTube do not support the creation, monetization and promotion of high quality television video programming. This is why the majority of content on YouTube is cheaply produced video blogs.

Television quality video production requires having a production budget and the blunt truth is YouTube's revenue model doesn't allow for these budgets to be large enough to produce half hour scripted serial content.  This results in even the most popular YouTube creators having to spend the vast majority of their time glued to their cameras, uploading video blogs every day of their lives because the value of their past video libraries are diminished by the nonsensically designed search algorithm that rewards "fresh" content and punishes older video libraries (which is the exact opposite of how the traditional TV industry works where shows and movies made decades ago still produce financial returns for their owners through licensing).

Traditional TV and film stars don't work nearly as hard as YouTube creators do and yet these Hollywood stars obtain greater financial rewards. This is because the revenue model and feature list of a platform like YouTube is actually poorly designed for the needs of the entertainment industry. The biggest problem with platforms like YouTube is they tend to treat the content owners as generic consumers rather than business partners. The vast majority of YouTube creators don't even get tech support assistance! At Martell Broadcasting Systems Inc. we're listening to what the content owners need and building a platform to provide those needs.

We know the viewers will follow the content of the stars they watch; the real customer for our app is the content owners who desperately need a better business model to scale their businesses in a way no other video streaming app developer is providing.

How big is the market? 

At its core the business of television is advertising. The North American television advertising market alone (both traditional and video streaming) is over $200 Billion US annually. With the Zenither app, third-party Station owners can sell their own ad inventory, but they also have the option to sell some of their ad inventory through the display network owned by MBS Inc. From these transactions MBS Inc. will take a 25% commission on ad revenue from any ads served through our ad display system. Furthermore MBS Inc. will operate several Stations and sell ads against the content on these stations the same way that cable providers like Time Warner and Comcast operate their own TV stations on their services. So there is an enormous opportunity here to tap into the television advertising market as it transitions from traditional broadcasting into digital video. The Zenither app will also support premium a la carte channel bundles for subscribers at a price similar to Netflix, which generates $1.18 Billion US in revenue annually.

Who are your competitors? How are you different? 

Our competitors are the obvious players like YouTube TV, Sling TV and Hulu, but also companies such as Pluto TV and VRV. Our competitors are also the traditional cable and satellite TV companies like Comcast, Direct TV and Time Warner Cable.

The first thing that is different about us is that our app Zenither is designed to incorporate the best features of on-demand video sharing sites like YouTube with the business model of traditional television networks in a way that nobody else is doing, such as with our regional-based ad sales format (geofencing) and licensing library for Station owners to easily acquire content bundles for their Stations.

Furthermore, existing video sites are very software focused businesses primarily founded and ran by engineer-minded folk who largely ignore the traditional TV business norms. This has made it exceptionally difficult for folks like YouTube creators to produce high-quality scripted serial content and get it before audiences because many key components of the way the entertainment business works are ignored by these other companies. We believe our model will change this, as our founder is both a tech entrepreneur and a former Hollywood studio exec. He also has a background as a YouTube creator so he understands the issues they have today. We believe he can stand between these worlds and merge them together.

What is Martell Broadcasting Systems, Inc. ? 

MBS Inc. dba Zenither is a company founded by Carey Martell in November 2013 for the purpose of developing a video streaming app, which was originally called 'Martell TV' and is now the Zenither app. The company had difficulties raising funding from traditional investor groups and will now use Regulation Crowdfunding to accomplish its goals by directly reaching out to the people who can see its potential -- online video creators and their audiences. The company also owns various Intellectual Property such as Carey's former YouTube show, 'The RPG Fanatic' and other films produced by his former company, Martell Brothers Studios. These assets will be repurposed after the Zenither app has launched and used to help populate stations owned by MBS Inc. with watchable content. You should know that when you invest into MBS Inc., it is our intentions to produce original content after the Zenither app has proven profitable in the market and by becoming a shareholder in MBS Inc. you will reap the rewards of an early investment into what we believe will become a major entertainment conglomerate; the first owned by creators of digital video content.

Tell me about the founder Carey Martell. Who is he? 

Carey Martell is a serial entrepreneur with a long history in the digital video space. Carey first registered a YouTube channel in 2005 shortly after the site launched. He operated several channels but his most popular was The RPG Fanatic, a videogame review show. He grew his channel to millions of views and 14,000+ subscribers but found growth difficult due to the low ad revenue that YouTube videos generate which left little resources for marketing the channel.

He also came to the belief that he was better suited for the business side of entertainment, and lacked the necessary talent to be an onscreen actor. He began thinking of ways to make streaming video more profitable for the content creators. Carey founded the Power Up TV multi-channel network in March 2014, which he then sold to Thunder Studios in January 2015. As part of the acquisition he then served as Vice President of Thunder TV. In this role he spearheaded the transformation of Thunder Studios (a very traditional film studio focused on stage rentals) into Thunder Digital Media (a new media company focused on producing video entertainment for Millennial audiences). As the architect for the conversion of Thunder Studios into Thunder Digital Media Carey took the high level desires of the company and broke them down into lists of actionable items, which included the development of new software products; the formation of new service divisions; the hiring of new employees and training in operational procedures; and supervised the creation of new legal contracts for forming strategic partnerships and recruiting new talent. He directly negotiated strategic alliances and built a YouTube multi-channel network from scratch.

Since exiting Thunder, Carey has worked as an entertainment consultant for companies wanting to start their own MCNs. See his consultancy page at http://www.startyourownmcn.com/ for more details. Carey is also the author of several popular books related to growing a business around YouTube channels such as 'How to Start Your Own YouTube Network: An Insider's Guide' and 'The Lean Channel: YouTube for Entrepreneurs'.

Carey is a graduate of the Tech Ranch Austin Venture Forth accelerator program. He possesses extensive, practical real world experience with applying Lean Startup methodology to growing a business.

Why have you chosen to outsource app development? 

One of the key advantages of outsourced software development is cost. Working with a nearshore developer such as Scio has kept our software development costs down by 70% .


 

 

 

 

Use of Proceeds

Our fundraising campaign is designed for several stages. The first stage is to raise around $249,999.68 and then file to extend the maximium raise of our campaign up to $1.07M. 

Should we raise the maximium and meet this goal, the funds will primarily allow us to further enhance the existing mobile apps with new features and complete the Smart TV apps for Roku, Android TV & Amazon Fire TV.

We will also spend $100,000 on advertising to acquire new users for the service, which will enable us to increase monthly viewership to channels which will correlate to increase of advertising revenue generated. 

Finally we will be using $150,000 of the raised money to launch a Reg A+ offering in 2021 seeking to raise $4,000,0000 and from which we will use to develop original programming for Zenither, in addition to increasing our advertising budget and licensing of TV and film programming to stream on our channels.

How Do We Intend to Use Funds From Your Investment? 

Should we meet the goal of raising $249,999.68 and then extend the maximium raise to $1.07M, this is how we intend to use that $1.07M raised.

$200,000 -- We will complete the Roku and Android TV apps. We will also finish the remaining features in the mobile apps, such as enabling the subscription feeds, commenting & merchandise purchase functions for the mobile apps (these features are accessible only from the web browser of Zenither currently).

$500,000 -- We'll also be able to license additional TV and movies from film and TV distributors -- we have deals actively pending but lack the funds to complete these transactions.

$1,000,000 -- Reaching $1M will allow us to super-charge our marketing efforts for rapid user growth, scaling up the social media campaigns using Facebook ads for web conversions (new user signups to the Zenither app) and Google AdWords.  We may also help fund some original programming pitched to us by our Station partners similar to how Netflix and Amazon are developing original content. Our fund will be smaller but more prioritized on working with indie content creators. 

 

Ownership Structure & Rights of Securities

A majority of the Company is owned by a few people. Those people are Carey Martell and Akim Anastopoulo. There are additional owners possessing a small number of common shares, who purchased these shares as part of our Title III Offering conducted through Start Engine in 2017. These individuals are William R. Owens, Lyle Notice, James Pace, Jonathan Jefferson, Gary Martin, Kerry Ott, Chris Myers, Reginald Allred, Jeff Hodges Jr, Catherine Martell, Marc R. Kassouf, Dale Patch, David Lanfair, James Mondoux, Johnny Johnson, Karin Stephanofsky,Tulio Benitez, David Lanfair, Doug Simms, Edward Lee, Joseph Gilbertie, Kathryn and Gavin Keefer, Michael DeLaMater, Derrick Towers, Brian Lang, Linda G Zeinalgol, Danny Miller, Patrick Lloyd and Eric Perez. We have also issued small numbers of shares to our software development partner Scio Consulting International, Inc for payment of software development work. We have also issued small numbers of shares to our legal partners Cliffledge Investments, LP and Lynch LLP for some of the legal work they have done. Lastly prior employees Eric Perez, Christopher Yan and Max Pekcan were given options on shares as compensation for some of the work they did for the company.

Purchasers of Common Stock during this current Title III Reg CF campaign conducted in 2020 will receive voting rights. Each shareholder will be entitled to one vote for each share held of record on all matters submitted to a vote of the shareholders.

Risks & Disclosures

What's our biggest risk? What keeps us up at night? 

We're a small company so we are facing a lot of risk. However our founder is experienced at building video networks and knows the ins and outs of the digital video industry. He is also an accomplished growth hacker. That said, the market can experience rapid change and the founder cannot control the entire market and all its factors.

1. There is a risk of running out of money by having expenses due to unforeseeable problems such as new regulations, patent trolls, and so on which increase the monthly burn rate to unexpected amounts.

2. There is a risk that our business model, while not new for traditional media companies, may be considered too novel for indies to embrace making market adoption more challenging than expected.

3. While the development team has been chosen based on their demonstrated skills and haven previously worked with Carey to design software products, there is a risk that they may experience unexpected challenges in designing new software features which increases the development time and delays the intended launch date of these features and smart TV apps we seek to develop.

4. While we believe our startup will be successful, it is true that most new business ventures often fail. It is possible investors may not see a return on their money.

5. Equity crowdfunding is new. There is no current market for Martell Broadcasting Systems, Inc. dba Zenither shares.

6. While the exit strategy for a company like MBS, Inc. is clear to us at this time it is possible market changes and competitors could make it difficult to obtain a high valuation during any potential future acquisition negotiation and impact the details of the deals. At this time user-generated content such as that made by YouTube creators is not viewed as a hot commodity among VCs due to many prior failed investments into MCNs and digital studios. While MBS, Inc. is creating a new platform and not developing original video content, the value of the content streamed on the platform can impact its value in the eyes of future investors. This is subject to market changes and opinions.

7. The Company may never receive any future equity financing. In addition, the Company may never undergo a liquidity event such as a sale of the Company. If neither the conversion of the Securities nor a liquidity event occurs, the Purchasers could be left holding the Securities in perpetuity. The Securities have numerous transfer restrictions and will likely be highly liquid, with no secondary market on which to sell them.Because the Zenither application has not yet produced revenue we do not have any historical trends to make precise predictions about future revenue earnings. It is possible we could underestimate or over-estimate the amount of revenue earned through ad sales.

8. Because the Zenither application has not yet produced revenue we do not have any historical trends to make precise predictions about future premium channel subscription earnings. It is possible we could underestimate or over-estimate the amount of revenue earned through paid subscriptions.

Previous Funding

During 2017 the company concluded a Reg CF raise, bringing in $27,375. The Company also held two private offerings with an accredited investor, Akim Anastopolou, which raised $900,000 during the first offering and $450,000 during the second offering. The money from these raises has been spent toward developing the Zenither software platform, as well as licensing television and film programming for it, operating servers, and various legal expenses such as filing for trademarks and patents.

View our
Offering Documents

This investment is now closed. Deal Room access is no longer allowed unless you are an existing investor.

Meet the Zenither Streaming Platform team

President, Secretary & Chairman of the Board
Carey Martell

Carey Martell is a serial entrepreneur with a long history in the digital video space. He has been President, Secretary & Director of Martell Broadcasting Systems from January 2014 to present. Carey also founded the Power Up TV multi-channel network which sold to Thunder Studios on January 1st, 2015. As part of the acquisition, he then served as Vice President of Thunder TV until September 17th, 2015. In this role, he spearheaded the transformation of Thunder Studios (a very traditional film studio focused on stage rentals) into Thunder Digital Media (a new media company focused on producing video entertainment for Millennial audiences). As the architect for the conversion of Thunder Studios into Thunder Digital Media Carey took the high level desires of the company and broke them down into lists of actionable items, which included the development of new software products; the formation of new service divisions; the hiring of new employees and training in operational procedures; and supervised the creation of new legal contracts for forming strategic partnerships and recruiting new talent. He directly negotiated strategic alliances and built a YouTube multi-channel network from scratch. Carey is also the author of several popular books related to growing a business around YouTube channels, including 'How to Start Your Own YouTube Network: An Insider's Guide'. Prior to his role at MBS, Carey served in the US Army for 5 years, including one tour of duty during Operation Iraqi Freedom. Carey is a member of the Veterans of Foreign Wars.

Board Director
Akim Anastopoulo

Akim A. Anastopoulo became a Board Director in MBS, Inc. on March 20th 2018. Akim's primary occupation is as a partner in Anastopoulo Law Firm, LLC, based in Charleston, a position he has held since 2013. He specializes in personal injury, automobile accidents and injuries, premises liability, and products liability. He has litigation experience in civil, criminal, class action and state and federal appeals cases. Anastopoulo has been practicing law in the Charleston, South Carolina area for 20 years. Akim also played the starring role of judge on National Lampoon’s syndicated court show, Eye for an Eye, from 2003 through 2009.

Press Mentions

Appolicious,  "...a mobile TV without any of the hassles."

Zenither - TV Streaming Made Easy 

 

KillerStartups, "With Zenither consumers can watch digital TV channels & movies on their terms from a variety of devices. 

Zenither: The Next Generation of Web TV 

Key Customers & Partners

We currently have content licensing deals with Gravitas Ventures, Screen Media, Cinematic Divisions, Capitol Wrestling and The European Television Guild.

We also numerous popular digital first creators such as JayKarl, The Game Chasers, Epic Level Entertainment, Tea Time with Tayla and many others.

We are also able to utilize and schedule content hosted by YouTube via our agreements through the Google Developer Program which grants us certain publishing rights to content published on YouTube.

 

Testimonials

"Carey is an excellent founder. He has pioneered and is in the process of revolutionizing the television industry as we know it. He now owns patents on technology that is way ahead of the curve of every single multi-billion dollar media organization. There is no doubt that Carey's vision, expertise, and leadership will lead to Zenither being a very profitable company."

Tremain Hayhoe, Hayhoe Studios

"Carey has a vision for his company and he understands the landscape he is working in very well. He has put a tremendous amount of work into this platform."

Linda Blackmon, ExtendMyStaff

"I've known Carey for about 10 years and thru that time he has shown a degree of persistance and focus that is very rare. As an entrepeneur he has faced many challenges and setbacks, but always seems to come back stronger and more determined. He knows very well his target market and has a clear vision of a much needed alternative for video content creators around the world that want to have more autonomy than what YouTube offers. His product is ready and tested, now he just needs to scale it."

Luis Aburto, Scio

"Carey is a visionary, one who is resilient and continues to improve his vision over the years. I have worked along Carey and I can assure anyone about Carey's professionalism and drive."

Rod Aburto, Scio

"Carey has had a vision of this since Netflix was in its infancy, he bided his time and waited for the technology to get to the point he could develop this platform at. I run a video production company that is often forced not to create the things I want because financially the internet is a minefield of pot luck. Carey has always believed and had the statistical know-how to match and grow a platform like this. He knows the demands on a creator's side because, like me, he once was one and probably still would be. He's not a programmer, he's an artist with the brain of a mathematician and that's a deadly combo."

Petros L. Ioannou, Leon Unity

"Carey understands how to continue using the foundation of the industry is built on while also pioneering new methodologies. Because of how Zenither is built, it may evolve in the future to fit within existing and future communications technologies while still having almost no learning curve for new end users. This is truly impressive and I'm very excited to watch how the platform evolves."

Dale Patch, Investor

"He keeps investors informed on what's going on with the company. Has personally responded to emails and phone calls."

Derrick Towers, Investor

 

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