I’d like to share some of the insights which motivated me to deliberately, willfully and consciously choose to spend a considerable number of years of my life enduring the hardships of building a startup business from scratch. What motivated me to found Kaplak? What motivates me to work on Kaplak, each and every day?
There are a number of avenues to take to answer these questions. One of these is Dreams of a Diva (org. Danish title Diva Drømme), a documentary film I produced/directed in 2005. This trailer for the film gives you an idea of what kind of film this is :
The film was produced under the FilmTrain program, and therefore, to a certain extent, sponsored as part of my participation in this program. FilmTrain was financed as an Interreg IIIA project, which basically means it was funded by the EU. It was a cross-border Danish-German project of which one particular objective was to try and develop and keep young and independent media professionals in the regions of Odense/Funen and Kiel/Schleswig, rather than “lose them” to the big cities of Copenhagen and Hamburg.
I’ve never been very good at thinking about how to market any film I produced. In short, because I never cared. Every current project interested me, and older ones were soon shelved, after airings on local or national television, or screenings at festivals. None of my films have attracted or tried to attract a mainstream audience. I made films about subjects I liked and which interested me, despite the fact I never earned more than a little on any of them. In 2004 I met Sofie Krog, which is a world-class puppeteer, and she hired me to do a promotional video for her. I knew already then, that it would be great to eventually do a longer film about her and her show, and decided to make the film the following year.
Much hard work later, the film had a blast of a premiere in a local movie theatre in Odense in January 2006, with an invited audience of about 100 people. The following week, when the film stood it’s ground in the theatre on it’s own merits, it attracted as many as two paying moviegoers, of which one was my aunt. And this was after what I’d say was decent local press coverage, on television, in radio and in the printed press.
Needless to say, I was a bit disappointed. Some rational analysis later, this was hardly surprising, even though we’d hoped for more. The film had a niche subject, puppeteering, which was little known about locally, featured an up-and-coming star in this field, which were little known outside theatrical circles – and to top it, it was a documentary film. Apparently, documentaries never do very well in theatres (with the rare exception).
This was what I call an eye-opener to me. What may have been latent knowledge before then, was then crystal. It was clear to me, that I couldn’t rely on any traditional distribution channel, such as movie theatres, for my work – and nor for financing my work, if I wanted to continue to do the kind of non-mainstream creative works I wanted to do.
At the same time I released the film on the bittorrent-indexsite The Pirate Bay, from where the torrent spread to other torrent-indexsites. Also the official FilmTrain DVD (which was free) was later leaked to the bittorrent network. While none of these files were ever big hits on the torrent networks, the traffic they brought from as far away as Greece and Japan revealed new avenues of distribution. Gargantuan amounts of data were transported to far away places – not with the speed of light – but comparatively hazzle-free, for such a young technology. It was in fact possible to distribute large amounts of data to the other end of the world with comparative ease and very little cost. It was clear, there were problems. Lots of problems. At one point I managed to send 13 GB or so across the Atlantic. It took 14 days or so to do it, though. With just two people connected, this was not the economical method of doing this, but it still amazed me. Shipping this amount of data from a home computer to another through the internet was unthinkable just 5-10 years ago. Eventually I got tired of seeding myself, which basically made the torrents unavailable (and they are so now, not just this film, but most of the stuff I put up there). But the possibility existed. We “just” needed some method to pay for the bandwidth and hosting. We needed to make it even easier.
I can’t possibly go back to directing and producing a film, before I get to a point where I can rely on the architectures of it’s distribution to actually bring the film to those interested in it, and give me a decent living from it, which helps finance my work. Sending a film in 100 physical copies to 100 different film festivals around the world can’t do this for me, it’s only further expenses. Now, we have a global, open architecture of distribution at our feet. We “just” need to tweak and improve the tools at our hands to enable us to create new business models.
I can’t publish my work online without a method of making a living from what I do. I found back then, that there were a ton of videosites and p2p networks which enabled internet users to distribute their stuff. Yet, amazingly none took seriously aim to crack what I increasingly saw as “the niche producer’s problem”; financing, and what’s going to get a niche production financing : increased and targeted visibility towards it’s niche market. I also found that there were lots of methods to put advertising on one’s website – and earn a dime doing so. But what if you don’t have a website? What if you don’t want to become entangled in online advertising, but would rather go about your business doing what you do well? Or what if you can attract so little traffic, that it isn’t really worth your while? I found none which were interested in appealing to niche markets, on what I refer to as “the slim end” of the long tail. This was the situation Kaplak was founded to remedy. Not just for myself, but for anyone for whom this resonates.
Kogt i Roen is a Danish comedy band based in Skive, a town situated in northwestern Jutland in Denmark. The band name is difficult to translate directly. It is Danish slang which could imply that the band members have stayed out too long in the sun… So far the band have made three CD’s of songs and acts, of which all tracks are available from their website.
Mikkel Christensen, who incidentally also run the hosting company which hosts Kaplak.com, is a member of the band, and we caught him between two jobs to get his take on what kind of project Kogt i Roen is.
Kaplak : Can you tell us a little about yourself, your niche community and/or business?
Mikkel Christensen (MC) : Our music is solely for fun. We basically want to have some fun and want to share our joy with others. If we can get people to “donate” a few Danish kroner each time they download our music, it only makes us happy. We don’t expect to get rich from it. We call our genre for Standup Rock. I think we spend no more than a few weeks every year on our hobby.
My company is the complete opposite. We are professionals and among the best. We don’t compromise with quality, and when we engage in something, we do it wholeheartedly, or not at all.
Kaplak : How did you get involved with your community/business?
MC : I really don’t remember. I have been in this business since my early teen-days.
Kaplak : What kind of digital product do you produce (if any)?
MC : We produce digital entertainment :)
Kaplak : What constitute the greatest opportunity for your business on the internet? What is the greatest challenge?
MC : Nothing really, we don’t expect to earn any profit from our music but if the opportinuity emerges we will certainly take advantage of it.
The first thing that strikes me from Mikkel’s answers is that Kogt i Roen is a completely different type of niche producer, in comparison with DigDoc Film Production, which we met last week. Where DigDoc is a professional “expert-driven” company working hard to create documentaries which do sell, Kogt i Roen is a completely hobby-based project, which do not critically need to earn money on their music and acts.
We’ve seen, that DigDoc’s end products were directly and entirely digital in their nature, i.e. films, videos, audio and photography. Kogt i Roen’s digital product (the music and acts) may perhaps be said to be almost a biproduct of the band getting together for a lot of fun. The “real product” is the gig. The music files are also used on the band’s website to “sell” the gigs. As both a biproduct and something used to promote the band, the band apparently can afford to give the music away for free. Or perhaps more simply, because it doesn’t cost the band anything extra to put up the songs anyway.
It’s difficult to estimate the global appeal of something as “local” as Kogt i Roen. However, there are Danes everywhere in the world, and the band’s humour may find appeal anywhere, especially if the word is spread by likeminded, exiled Danes from northern Jutland via networks of interlinked personal websites, forum posts and social networks such as MySpace or Facebook. The website is in Danish only, however, as well as most of the band’s lyrics and acts, which supposedly limits it’s audience to Danes and Danish-speaking almost exclusively, although some songs such as the English-worded, Iraq War-critical Mr. George Bush may find broader appeal.
What’s more important however, is that there’s a lot of likeminded bands globally. A lot of people simply play and enjoy music (and standup) as their hobby. It just so happens, that the internet makes it very easy to make your music publicly available while you’re at it. While the band do not necessarily need to make a million on their music (those days of the “hit economy” seems counted anyway), their product (and many, many other products, which are similar to it in “localness”) may help contribute value to other products, so much so, that it may turn in some extra income. Even though Mikkel understates any need for this, even an amateur band has costs to pay, including the website and gear for the band, so a little extra may not be what drives the band, but may come in handy, while they’re at it.
To create a surplus of value, which goes beyond the “cost per song” economy of the industrial model, the trick is to reach the creative audience who need to tap into this wealth of material. And then to give them access and allow them to rip, mix and burn what they like. In some cases this creative audience are hobby producers such as Kogt i Roen themselves, but it could also be more professionally oriented producers, who are able to ask a higher price for their product, and therefore to pay a higher price for their “material” in return. We’ll have to see if this analysis holds up, when we put it further to the test.
Kogt i Roen is not an ideal first customer for Kaplak. The band doesn’t feel the “pain” too hard – there’s no imminent need for greater visibility or financing. However, the band is a shining example of the creativity being unfolded all over the internet, simply because it can be made accessible very cheaply. They, however, and the many, many other hobby producers of the web could be slightly better off, if they were able to tap into the surplus of value they create by giving away their music for free.
Kaplak need not motivate a hobby producer customer like this band so much (it won’t work anyway, as they don’t do it for money or fame) but rather simply demonstrate, that it is possible to earn a little extra just as easily, as it is to make their product publicly accessible.
The first potential customer to test our assumptions about what niche businesses look like is Hilke Elisabeth Saggau of DigDoc Film Production, which (among other things) have specialized in documentaries on archaelogical digs. In 2006 she produced the remarkable documentary So süüt dat ut – Ausgrabungen in Hüsby (English title That’s the way it is – The excavation at Hüsby), which follows the dig of a bronze age burial mound through more than a year.
Elisabeth agreed to answer a few questions, and I’ve decided to quote her at length, because her answers give great insights into the life, work and challenges of an expert documentary producer.
Kaplak: Can you tell us a little about yourself, your niche community and your business?
Hilke Elisabeth Saggau (HES) : As a media producer I see myself not sitting in a niche but walking barefoot on a rocky yet scenic path. My various current clients have one thing in common: they can pay me only little or no money at all. Among others my topics are history, archaeology, ethnology, arts, religion and politics.
Kaplak: How did you get involved with your business?
HES : Growing up in the 50′es on a remote estate in Holstein, TV was my only window to the world. I always wanted to climb through that window and become a filmmaker myself. But I was born too early – film cameras were still expensive and unwieldy, and filmmaking was men´s business anyway. At least plan B worked out and I became an archaeologist. When video equipment eventually became affordable I bought a camera and an editing programme and started filmmaking in the late 90′es. In 2004 I got a chance to take part in FilmTrain, a two year’s German-Danish Interreg project for media start ups. In 2005 I founded DigDoc Film Production as an independent filmmaker.
Kaplak : What kind of digital product do you produce?
HES : I produce mainly video documentaries, but also music clips, image films and experimentals. Recently I started producing audio files for a digital tourist guide.
With co-producer Moses Merkle I just finished a 1h documentary “From Kiel to east of Warsaw” on the Australian musician Phil Conyngham. Also with Moses Merkle I am editing footage which we shot in Kosova. With editor Imke Scholvin-Watts I am working on a 1h documentary on the revival of a historic ferryboat on the Eider river. With Ahmed Rashid Mohamed I am working on Arabic subtitles and an additional Arabic booklet for my documentary “That’s the way it is” (2006). Moreover I am doing a very time and energy consuming research for a new documentary on the history of Buddhism in Schleswig-Holstein.
Kaplak : What, in your opinion constitute the greatest opportunities for your business on the internet?
HES : The distribution of my products will be easier. No need for burning DVDs, buying envelopes printing covers und bills, buying stamps… I could probably save time, sell my products for less money and still have a better profit. Probably much more people will come across my products and have an easier, direct access.
Kaplak : What is in your opinion the greatest problem for your business on the internet?
HES : Right now there still seem to be technical problems in launching my films. The access via mobile phone has to be improved, especially with regard to my audio tourist guide. People who are interested in the topic of my products tend to be very old fashioned when it comes to digital equipment and are reluctant to buy or to use it.
Elisabeth is an example of a niche producer who fits our customer profile near perfectly. She is an expert in her field. She has a recognizable problem, and one we’d like to help out with (earning enough money). She produces high-quality films. She has a website and seeks to promote her productions online, yet it is difficult to find information about her film and subject matter (visibility problems). She has interested markets globally (there are archaeologists, film festivals (of which So süüt dat ut has participated in a handful) and historically interested audiences all over the world), and therefore potentially could connect to and open new markets.
In addition to these things, there are a few other important insights to note. The first is the old-fashionedness and resistance of her market, which could be a problem. Are her customers currently using the internet to obtain films like this? No. Will they?
It’s also obvious that she is involved with a lot of different projects, so there’s something which will or could appeal to different kinds of markets, which means there’s a greater chance at least some productions will fly. It’s also interesting to note the conception of the internet as a means to save time, and the technical infancy of some product solutions, which reflects the insecurities of a new media landscape : what technologies will fly, and how? What formats should be used, so that customers will be able to receive and get the picture in the other end? This is also related to the need for subtitling, for translating a local language to languages spoken and understood at the receiving end (in this case, audiences in Arabic-speaking countries).
Lastly but not least, Elisabeth bears witness to the media revolution which has made digital cameras and other means of production so inexpensive and accessible, that it is even possible to create the films she produce.
At Kaplak we’ve adopted the use of the term ‘niche’ in order to describe an aspect of the industrial economy, even though it is quite insufficient to describe the changes and challenges we mean to describe. We’ve already gotten a clear definition of ‘niche’ from Chris Anderson, which is that ‘niche is something which interests few people passionately’, in contrast to mainstream, which is what many people are moderately interested in.
However, this is looking at things from the viewpoint of an industrial economy, not from the perspective of the people and businesses who live and experience a particular field of expertise, meeting and selling to particular customers.
Inevitably, to begin with we’ll have to use the vocabulary of the industrial economy to describe what’s happening in the new economy of a digitally connected world. Along the way we’ll find if the meaning of the terms we use change to mean something else, or if we need to invent completely new concepts to describe what’s happening.
If we want to understand how niches work, we need to get in touch with you, who may be our future user and customer. What do your online activities entail? What do you produce? How do you sell it? What are your greatest opportunities and challenges? To paraphrase Steve Blank, “opinion is inside the building, data is outside the building”. This is what we need our mailing list for. We hope to obtain your help to give us a refreshing reality check on “what life is about on the slim end of the long tail”. If you’d like to help out, you can do this, by signing up on our mailing list here. We’ll get in touch.
This blog will keep on investigating the challenges we face, not just theoretically. With your help, we’ll seek to unfold more examples of online niche communities and businesses which shed more light on the day-to-day methods, practices and challenges in what we (so far) refer to as branches of a global “niche” economy.
I have been looking around for a way to start Kaplak’s looking into the workings of online niche communities. We have some great examples in our own local backyard, but I wanted something, which showed how the internet has come along and changed things.
Looking around I stumbled upon this video by Jake McKee on what we may simply term the “LEGO community”. Everybody knows LEGO, but few know that LEGO is not just a children’s toy. LEGO has a large following of playful adults around the world. See the video and judge for yourself.
One of the interesting points of the video is that all these scattered individuals passionate about LEGO have been connected with the internet. Where many of these people were isolated before, the internet has made them aware of each other’s existance, globally. One gets the impression that this has helped spur a new vitalization and outburst of their creativity. New possibilities to show off creative endeavours (like this video, shared with YouTube, is an example of) and get inputs back, has caused something we may term an “awakening”, with an expression borrowed from Lawrence Lessig.
Personally, I’ve recently refound a lot of joy myself in my old LEGO’s and have been surfing around on sites such as Brickset, which offers an online database on most of the LEGO models ever produced. I’ve also played around with LEGO’s official Digital Designer. This program engages LEGO fans to help design new models, which can also be “uploaded” and sold via an online marketplace. The LEGO Digital Designer and marketplace is one of Chris Anderson’s examples of how a company can utilize the long tail of interests in different LEGO models. If, that is, the program was not artificially limited to a specific range of bricks, which it is, for industrial reasons… In order for LEGO to be able to sell the models you build with the Digital Designer, you have to use bricks currently in production. You can’t use ‘outdated’ bricks. It seems odd to me, that one should re-experience that old problem one always had building things with LEGO, that you always missed a particular piece, in a 100% digital product.
What’s more interesting to Kaplak, though, is the exchanges taking place between LEGO fans themselves, and the eventual capabilities of fans to share and eventually sell their creative endeavours to other LEGO fans. There’s nothing more than trademark issues (i.e. the protectionism of a traditional business model scared of copying, which we’ve touched upon before) to prevent users from creating their own models, trade in bricks on eBay, and share or sell their construction instructions, in spite of anything LEGO has to say. And maybe even issues like these won’t stand in the way. The awakening of this niche community is in many ways also an empowering of individual fans and entrepreneurs, who is so far perfectly capable of building their own databases and wikis.
