Circle One VR: A Business Plan for VR Adult Content Production and Paid Content Subscription Platform

• Main Authors: Li-Yuan Hsu, 許瓈元
• Other Authors: Bing-Yu Chen
• Format: Others
• Language: zh-TW
• Published: 2019
• Online Access: http://ndltd.ncl.edu.tw/handle/evxj74

碩士 === 國立臺灣大學 === 創業創新管理碩士在職專班 === 107 === In 2012, Oculus VR released the virtual reality headset Oculus Rift DK1. It had a successful crowd funding campaign on Kickstarter, as virtual reality became the hottest subject in the tech industry, thanks to the heads of venture capital industries such as Google, HTC, Samsung and SONY. With Google, who put a lot of effort on virtual reality, and Mark Zuckerberg, the founder of Facebook, who spent 2 billion to acquired Oculus, which is legendary in the startup history, it’s easy to see why virtual reality is the star in the tech industry. 2016 is the year when all kinds of virtual reality products came out. This year is also called “the first year of VR”, since the market really came to life around it. Just like any other emerging industries, virtual reality is under a lot of scrutiny and expectation, meanwhile correcting its technical flaws and contradictions that come with growing up. From this business plan point of view, the reason for customers’ bad experience comes from an unbalance between supply and demand, or more precisely between hardware and software in the VR industry: the early adopters had the equipment but not the content. In other words, virtual reality should have been a chance to go mainstreaming, but a lack of content threatens to hold it back. Not to mention they didn’t have fun the way they were expecting to. The orders of virtual reality headset in 2017 really show how this business suffered a temporary failure. But the quick investors and businessmen realized the problem in no time. They put more effort and money in developing content and software. All the headset brands and the platform were investing more on content to revive the consumers’ interest for virtual reality. It’s obvious that content is the most important part of VR industry, but what kind of content is considered attractive? What kind of content would motivate the customers to want to know more, or desire to use it, or actually purchase? From a business standpoint, what kind of content would be strong enough to keep the business going, or thrive, and eventually evolve to the next technological milestone? According to our team’s expertise, our contacts in the industry, and the results of market study, we believe that adult oriented VR content through a subscription platform is the solution. To be more precise, the startup in this business plan, Circle One VR, is both content producer and provider, and our product is original adult VR content. We aim to produce this original adult content with distinctive Chinese culture and characteristics. We would also acquire authorized contents from Japan and Europe. Our goal is to create an adult service with unique and high quality content for a very competitive and affordable price. In our first phase, the first target markets for Circle One VR are Taiwan and Japan, where we run and own the platform locally. The second target markets in that phase are other Asian countries where we will only provide our service through a cross-border model. The second phase will start on the third year after our original product release. The target markets will then be North America, meaning USA and Canada. The business model will consist in having our platform there, but also collaborate with local adult content producers. The following plan is to thoroughly describe to you the opportunities in this particular market. We will share with you our market analysis, product plan, marketing program, team members, and the financial projections. Because Circle One VR has the experience in the subscription platform business, plus we’ve been producing adult content for the last two years, our product prototype is complete and the time needed to release it online is drastically shortened. Therefore, if all the crowd funding campaigns reach their goal on schedule, we will be able to hit the market as planned. We aim to attain a balance and make a profit of NT$ 5.85 Million in the first year. In the third year, the actual profit after tax will be over NT$ 33 Million.