Ones to watch
Why next-generation media brands, and why now?
A number of factors have driven the rise of next-generation media startups in the UK.
Firstly, the growth of the overall startup economy where more than half a million new businesses[1] are started every year, and over 2% of the UK population has gone out on their own. Of course, growth requires capital so the incentives offered for those who invest in startup businesses have helped too. These include changes in 2018 to the qualifying criteria for SEIS and EIS which has seen angels who previously invested in TV and film projects seeking alternative creative projects to back – including next-generation, startup media brands. To date, much of the energy and investment in early investment has focused on tech and software-led businesses; the unicorns which, if not fantasy, are at least very, very rare. But the past few years in particular have seen a shift towards a more common animal - RABBITS – or rather Real Actual Businesses Building Interesting Things.
These include the Direct to Consumer (DTC) brands disrupting the Consumer Packaged Goods (CGP) category with products developed to be better and often cheaper than established brands, based on deep understanding of an audience and marketed via content to communities of like-minded buyers that are easy to identify and reach on social media, On this basis, DTC’s have genuinely disrupted established brands built on big ad budgets and volume retail distribution deals.
Next-generation media brands share many of these characteristics – they are built on passion, have social purpose baked-in, are largely built in digital and social media by sharing the motivations and values of a community of like-minded souls. In a world where influencers are everywhere, where digital channels and formats lower the barriers to entry and make it ever easier for creators to create - and where experienced media and creative talent can take a leap, find a new outlet and make a living outside of ‘the industry – Next Generation Media businesses (or, NGMs) are thriving.
If you’re an entrepreneur, investor, corporate venture builder or potential partner and want to discuss next-generation media in more detail, please drop us a line - hello@vidamedia.co.uk
[1] Source: Department for Business, Energy and Industrial Strategy