Adam Adelman (Mighty Cast) New Business Models for Wearables

transcript

@TheNexBand www.thenexband.com

New Business Models for Wearables

Background

BUSINESS MODEL

Traditional Physical Goods

Mobile Applications

Virtual Goods

NET MARGINS

<10% Net Margins

30-35% Net Margins

High margins but <10% recover investment

THE HOLY GRAIL - HIGH MARGIN, RECURRING REVENUE

What we looked for in terms of business models

The beauty of Razor Blade and Subscription Models

What were some of the innovative business models?

PAY PER DOWNLOAD

IN-APPADVERTISING

SUBSCRIPTION MODELS FREEMIUM

Gaming

$3 BILLION AND HUNDREDS OF MILLIONS TOYS SOLD

Jewelry

REVENUES OF $2.4 BILLION IN 2015

Collectibility — The one consistent mechanic throughout time

But how does this translate in the wearable world?

Wearables have high abandonment rates after just a few months of use

No recurring revenues

Locked into single function

Most engaged demo is ignoredGen Z is largely ignored and represents 26% (67M) of the populationLow Margins.

The Problem

Underserved Hyper Social Market

Gen-Z Underserved

Modular, hackable, socially designed for Gen Z

Five touch-sensitive programmable buttons called Mods™

High margin, recurring revenue

The Opportunity — Nex

Nex is Engaging

Mods are a living piece of hardware that can be shared and associated with content and permissions

Videos, games, photos, music — The “mix tape” for the new generation

Customize the appearance of your Nex

Share content and hacks

Full control over privacy

PLAY MUSIC

CHATGAMING

CONTROL IOT

SHARE CONTENT

Nex is Hackable

Create an infinite amount of “Hacks” in seconds

Mods act as five shortcut buttons on your wrist

Partnered with IFTTT

You don’t need to be a developer

You don’t need to rely on 3rd party apps

Nex is Gaming

CHARACTER WEAPON POWER-UP

Like Skylanders on your wrist — but alive

in the cloud

The “Razor blade” Business Model

Recurring High Margins

Highly Licensable

Flexible API/SDK

Naturally Viral and Collectible

Nex - $129

Mods - $12.99

Avoid the race to the bottom…

The Nex Bandthenexband.com The world’s first modular smart band

Adam Adelman Founder adam@mightycast.com

$10 OFF WITH COUPON CODE

AWE2016

Adam Adelman (Mighty Cast) New Business Models for Wearables

Technology