Light Studio Social Network

Table of Contents

Executive Summary

Business Description

Industry and Market Analysis

Competitive Analysis

Marketing Strategy

Operations

Human Resource Requirements

Financials

Sources

Executive Summary

Air Light Studio is a U.S.-based social media platform that will connect users’ ideas and experiences. Social media is a tool for millions of people around the world. With a mission to create a product that empowers customers to share and express their ideas through video and content creation. Air Light studio will be formed as a limited liability corporation (LLC) Under one owner. An LLC will provide the company liability protection and easy transfer of ownership. The target market for social media is extensive. According to the Census Bureau, 92% of American households own a computing device. Furthermore, Air Light will face competitors to gain a share. Companies like TikTok, Facebook, and YouTube have a large market share. Air Light’s plan is to offer a unique video-sharing platform that can curate fans and creators to come together. Air Light generates revenue from in-app purchases and subscription services. Currently, the application is free to download. This sales approach is to provide a platform that is accessible to millions of users. In addition, businesses can promote their brand on the app through shared revenue. The company will hire two senior-level software engineers. The calculated monthly expense of the company will be $18,850. The company is projected to reach 50,000 monthly users. Assuming only 5000 users pay for premium services for $4.95 Air light is expected to reach $24,750/month in sales. Subtracting operating expenses at $18,850 for advertisements and wages Air Light will profit $5,900 monthly. Air Light will be a successful application for its user-driven focus. Air light will establish an experience for users to find entertainment and trending videos throughout America.

Business Description

Social Media is critical for businesses and individuals alike. The market for content creators and customers looking for entertainment is at a historical high. Today Social Media is used to promote an individual’s personal brand. Air Light is a social network that aims to engage, entertain, and express through video. Air light will be available to download for the United States region. Air light will improve how individuals connect and share ideas for generations to come.

Mission Statement - Air Light’s mission is to create a product that empowers customers to share and express their ideas through video and content creation.

Vision Statement - Air Light’s vision is to improve the user experience every step of the way and serve users a platform.

Legal Form - The legal setup of this business is to be formed through a Limited Liability Company. There will be an owner and members. An LLC will offer Air Light liability protection and tax benefits. As the business expands, there are plans to merge into a C-Corp.

Industry Analysis

Industry History - This industry analysis will aid in research In the social media sector. This is a mobile application in the technology industry that aims to create a social media platform.

Social networking first began as a way to connect with others. In the early 2000s, before it went mainstream the first social media platforms were Friendsters, Myspace, and Facebook. Each platform expanded on its ideas and fueled the growth for future networking sites.

Growth rate of industry/Industry Size

In 2005 less than 5% of Americans used social media platforms. Today, social media users in America have risen to 72% in 2021. Technology is a growing industry, and more people have access to computing devices. For many users, social media is an opportunity to expand their brand or connect with others. Recently, Congress introduced The Social Media Privacy Protection and Consumer Rights Act of 2021 which gives users the right to keep their information private on platforms. This will protect user privacy and increase personal rights to share what is on social media. There is an increase in businesses using social media to grow sales and brand loyalty to customers.

Source: (Social Media Fact Sheet http://www.pewresearch.org, 7 April 2021).

Competitive Analysis

In the United States, there are dozens of social media applications. To name a few: Snapchat, TikTok, Instagram, Facebook share video content to users. These companies are well-received on the App Store/Google Play. For instance, YouTube is the largest video hosting site. YouTube offers a premium subscription to users at $11.99. YouTube’s Ad system uses a CPM to take a share from creators and promotional ads.

These companies are succeeding because of their market size. A large user pool promotes appeal and revenue. The more original content is shared, the greater the audience. The one thing that these companies have an advantage in is their scale. These companies have established a foundation and have amassed millions of users and bring in more profit.

Marketing Strategies

It is imperative to have a social media presence to reach customers in 2021. Some marketing strategies used to reach users include viral trends, consumer engagement, search engine optimization, influencer marketing, and building communities. Brand promotions are on the rise with personalized ads reaching users. Social media allows companies to create a community with consumers. According to Pew Research Center, 81% of Americans say they ever use the video-sharing site, up 73% in 2019. The current economic climate for media is rapidly growing around the world. Social media will provide businesses and individuals to expand their presence for years to come.

Source: (Social Media Use in 2021, http://www.pewresearchcenter.org, April 2021).

Products/Services

Air Light will be free to download. Air Light offers several types of paid services, including premium subscriptions, promotional ads, Air Light+, and support a creator. Additional services are expected to come in software updates as the company expands.

Pricing

Air Light will be a free product available to download in the App Store and Google Play. Air Light is only available to download on mobile phones and will soon be open to the web.

Advertisements will have a shared revenue. Advertisements will be sold at $10 per CPM (cost per 1000 views). In addition At $4.95 Air Light + offers ad-free service and membership benefits. Air Light+ will include exclusive features tailored to enhance user experience.

Product/Service

Price

Air Light Application

$0.00

Air Light+

$4.95 a month