Revenue Beyond the SlingBox
I’m a big Slingbox fan but have been puzzled about the company’s business model beyond selling $200 hardware to consumers. So, I figured I’d address this issue while meeting with Greg Wilkes, Sling Media’s VP of sales, earlier today in Toronto. But before I could dive into the business model question, Wilkes spent 15 minutes talking about the new Slingboxes in the market or about to launched. Depending on your needs and budget, Sling plans to have a Slingbox to meet your needs, which is pretty impressive. (If you aren’t familiar with a Slingbox, it’s a device that you attach to your TV and/or satellite-cable box that lets you watch your TV using a computer while in another room or away from home. If you spend $100 on cable or satellite service, buying a $200 Slingbox to get more from that package is a no-brainer.)
So what about the business model? How does a company, which has received $53-million in venture capital, drive sales beyond hardware? The answer is syndication, licensing and advertising deals with content makers - a strategic initiative led by the company’s Clip and Sling service (it’s in beta) that lets people easily capture video clips using their Slingbox, and then share them with friends/family, or the Web community. While the financial details have yet to be worked out, Sling figures it can make money by providing content makers with ways to market and sell their programs, while Sling gets to generate some advertising revenue. Sling Catcher is also a sales and marketing tool because, in theory, people who are sent Sling Catcher video clips could be inspired to buy a Slingbox. Wilkes said Sling is also looking to generate revenue from software sales by putting the Sling player in a variety of devices such as laptops.
I also got a chance to meet Dave Zatz, who writes the Zatz Not Funny blog, which focuses on connected home and digital lifestyle. Zatz started a new gig as Sling’s manager of online communications - proving you never know where blogging will take you. Zatz said Sling plans to launch a corporate blog fairly soon that will feature Sling products, as well as tips, tools and news about digital media. It will be interesting to see how Zatz balances Sling’s blog with his own blog.
Technorati Tags: Sling Media, TV
February 22nd, 2007 at 4:16 pm
I like the idea of a Slingbox a lot. But being the kind of guy who gets most of his TV on the net (because I don’t have a PVR) I wonder if I can send stuff from my PC to my television. That would make it a worthwhile investment. Can a Slingbox do that, Mark? I’m interested in grabbing one anyway, though.
February 22nd, 2007 at 5:11 pm
I think you should be able to do that with the SlingCatcher but I’m not completely sure. At CES, the excitement about the SlingCatcher was about bringing the Internet to the TV.
February 22nd, 2007 at 7:26 pm
Zatz is a cool guy.
February 22nd, 2007 at 9:52 pm
Yes, the SlingCatcher has basically two functions: (i) direct your TV signal to another TV “in the house” and (ii) send your PC display to your TV. You would need a separate SlingCatcher at each recieving TV.
February 23rd, 2007 at 2:00 pm
Thanks for the suggestion, Mark. And thanks for confirming Mark’s suspicion, Jim. Now all I need is for the SlingCatcher to hit the market!
February 24th, 2007 at 6:36 pm
The Slingbox makes sense only to low techies. There are other services that don’t require special hardware such as Orb and WebGuide4 for Media Center. Given the fact that pretty soon most people will have Media Center once they have Vista Home Premium then they are more likely to try these other products, especially if they add TV tuner cards to their PCs. And a TV tuner card, such as a Hauppauge PVR-150 at $85, is cheaper than a Slingbox.
February 25th, 2007 at 4:43 pm
[...] While I was preoccupied in Canada, TiVo released a public beta of TiVo Desktop 2.4. The notable new features include the ability to broadcast “HD” photographs (up to 1280×720) from computer to Series3 TiVo and the ability to transcode several video formats (other than DivX) for transfer to and playback on Series2 units. A less glamorous, but useful feature allows the software to map beyond beyond the default TiVo folder. [...]
February 26th, 2007 at 1:16 pm
Mark - don’t forget that the mere fact that, unlike an Xbox or set-top box for example, every sale of a Slingbox generates cash for the company. Of course with the money they’ve raised they need to go well above-and-beyond the typical boxmakers’ route, but I wouldn’t diminish the company’s ability to generate revenue via each different business it engages in. Also, FYI, it is Clip+Sling that has the ability to refer additional HW sales, not really SlingCatcher as much…
Wayne - “low techies” means the masses. Generally considered the appealing market to go after if you want to sell a lot of unit…
Jim - hi! long time no talk!
February 20th, 2008 at 1:25 pm
I am doing a school project on this product - the slingbox. I need to have an idea what estimated revenue have been generated in 2007. Have revenue increased since 2006?
February 20th, 2008 at 1:29 pm
Michelle,
I’m not sure but I would suspect that sales have increased. You may want to touch base with Sling’s media person - Dave Zatz - davezatz@slingmedia.com - to see if he can help you.