5 Questions with Wattpad Head of Business Candice Faktor -- Exclusive Q&A

Wattpad is a free app that lets people discover and share stories about the things they love.  Wattpad stories are serialized -- and the entire community participates in the storytelling process through comments, messages, and multimedia. The app offers stories in over 50 languages and works on mobile and web. I recently spent time with Head of Business Candice Faktor of this Canadian-based company who tells me that more than 40 million people have used it. Compelling. And, makes it a digital media company you should know -- including you, major marketers. Here are my 5 questions for Candice -- and her unedited answers.

(1) What is the reason your company exists (and what problem(s) are you looking to solve)?
Wattpad was originally created so people could read stories on their phones. One of the key features of the platform seven years ago was that anybody could create stories. Fast forward to today, thanks to that decision, 150 million original story uploads have been shared on the platform.  

Wattpad solves a few key problems:
1) Mobile first entertainment - It is a reading and entertainment experience designed for mobile devices and social engagement. Many stories are serialized, with short chapters perfect for mobile interaction and long addictive serialized narratives that notify people when the next chapter is ready to discover. Most story platforms that exist were not designed for mobile first experiences.
2) Democratizes publishing - Wattpad gives voice to many people in many markets whose stories would otherwise never been told and Wattpad gives free access to stories in over 50 languages.  Our library of 150 million stories have been written by young people for young people making them highly relevant and engaging for the millennial and gen z generations.
3) Finding a fan base - One of the hardest aspects of being a creator is the challenge of finding an audience. On Wattpad, we have 40 million readers every month that crave new stories.  Our writers love being able to build an audience, nurture fans and interact with them in real time.

(2) How are you different from your competitors?
Wattpad is a very unique product, and as such we view our competition as the other 27 spots on the homescreen of your mobile device. We are different, in that in a world of 7 second attention spans on mobile/social, our users spend an average of 30 minutes per session highly engaged in this form of entertainment.
(3) Why will you succeed (and what is your single most important ingredient for success)?
We will succeed because we let our community create stories that matter to them and we let the community access and vote for the stories they want to rise to fame. We don’t try prescribing what the best content should be, rather we act as an enabler and democratizer. The single most important ingredient is our community so creating an amazing platform and keeping them happy is our most important ingredient for success.

(4) What makes your company unique (and what do you enjoy most outside of building your business)?
It truly is a unique form of entertainment – mobile, social, serial and multimedia. Our 150 million original stories can’t be found anywhere else and our community is highly invested in interaction, feedback and co-creation.  


Outside of building Wattpad, I enjoy being curious and experiencing and learning new things. I have 2 boys (3 and 6), and unbridled curiosity lives in these little human beings. Discovering, inventing and experiencing new things with them is one of my greatest joys.

(5) What digital media trend is most interesting to you (and what is the least)?
I am excited to see how next generation media experiences such as virtual reality (Oculus), digital live experiences (Periscope) and rich messaging (Messenger, Snapchat) will shape new narratives and entertainment formats. We see these trends as exciting new ways to tell stories.
Least interesting to me is adtech for display ads.  

Instagram + Oculus = Facebook's New Compelling Math

Instagram made headlines in our digital media world late last week when CTO Mike Krieger marveled at the possibilities of bringing its users visual content into the VR world of Oculus to, among other things, transport them immersively all around the world.

That's smart.  Rather obvious.  And will happen sooner than you think.


Think about it.  While Facebook -- owner of both Instagram and Oculus of course -- is primarily a communications medium, Instagram is first and foremost a visual medium.  Both complement each other (and more kids use Facebook -- and vice versa -- than you think).  And, Facebook's natural progression always has been its evolution first from text, then to still images, then to video, then to 360 video (just this past year), and then ultimately deeply immersive into VR.  While Facebook publicly keeps our expectations low -- saying that the mass marketing of Oculus VR will take 10 years -- don't believe it.  Consumer Oculuses (Oculi?) soon hit the market at a price point familiar to gamers and their consoles.  They will be snatched up.  And, all the other major players hit the market with millions of premium headsets soon, very soon (I just saw another Samsung Gear VR commercial last night).  Make no mistake, those VR buyers too are Instagram users.


VR's "travel around the world" possibilities (and soon-to-be realities) are a natural immersive fit for Instagram.  And, they will connect us and immerse our kids (and us too) into other cultures -- which could be a very good thing.


Amidst all the divisive hatred and tragedies around the world, VR's "empathy machine" capabilities (about which I wrote previously) may be exactly what we need.


Oculus -- in the hands (and on the faces) of Instagram users -- has that kind of power and potential.  


Facebook ... unleash it!

MDM's November Newsletter - VR/AR, Siemer Summit, Slush

Manatt Digital Media – November Newsletter

This month's newsletter features highlights from the Siemer Summit in Beverly Hills, the SLUSH conference in Helsinki and conversations with the founders of emerging tech start-ups in sensor data technology and virtual reality.

MDM Supports the Start-up Community in LA; Siemer Summit Round up

The 5th annual Siemer Summit, MDM's biggest sponsored event, was held in Beverly Hills last month. During this invite-only event, over a thousand digital media and technology leaders gathered to network and to hear from 114 start-ups who are driving the innovation around us. Day one of the summit concluded with the 2015 Wavemaker Awards, which featured 11 awards across industry and overall achievement categories. Read more

Exclusive Q&A with Sense360 CEO Eli Portnoy

Sense360, a sensor intelligence start-up that launched in October 2014, empowers app developers to create more personalized and relevant experiences for consumers based on the vast amount of data (mostly untapped) generated by smartphones and other smart devices. In the latest of our Q&A series, Sense360 CEO Eli Portnoy shares his insights into sensor technologies and their applications in everyday life. Read more

VR to Reach Mass-Market Status in 2016: MDM's VR/AR Panel at the Siemer Summit

At this year's Siemer Summit, MDM's Peter Csathy moderated a VR/AR panel with industry experts (including senior execs from Jaunt, Rothenberg's River Accelerator/Studios, CryWorks, New Deal Studios, and VNTANA—all of whom are pictured here after the panel, except for Ashley Crowder of VNTANA). Read more

Increasing Momentum in VR Content Distribution

The VR movement continues to gain momentum, particularly in the media and entertainment realm, as we approach the release of more premium headsets in the coming months. Recent months have been particularly exciting as a number of the major video and social platforms have either debuted new features or indicated expansion into the VR sphere. Facebook recently enabled 360-degree video viewing on its newsfeed. YouTube unveiled a new brand of videos called "VR Videos" and enabled Cardboard viewing for all existing YouTube content. Hulu plans to launch a VR app this month, while the Netflix VR app is already available on Samsung Gear VR. Apple released a 360-degree U2 music video on the VRSE app as part of a larger experiential partnership with the band. These developments have provided us with a captivating glimpse into what the future holds in relation to the distribution of virtual content. Read more

MDM Supports the European Digital Media/Tech Community at SLUSH

SLUSH—which has emerged as one of Europe's leading tech/digital media conferences—took place earlier this month in Helsinki, Finland. MDM attended for its second year amidst the Helsinki November slush and was featured. CEO Peter Csathy moderated an MCN/MPN/OTT video panel that featured Urs Cete (of leading video-focused investor Bertelsmann Digital Media) and Christian Meinberger (who leads ProSieben-backed MCN Studio71 which recently merged with U.S.-based Collective Digital Studio). Csathy also hosted a "transformation of media" roundtable with seven entrepreneurs who signed up to learn more about how technology and mobile have forever changed the media and entertainment landscape. Read more

SLUSH 2015 - My Review & Highlights (& Why You Should Attend)


Just wrapping up my second SLUSH tech/digital media conference in Helsinki, Finland -- and, because of the continuing unusual (the new usual?) warm weather, there was no slush in sight (something that the very intrepid Slush organizers noted themselves as you entered the doors on day 1 - see picture to the left).  Rather, good old-fashioned rain was sprinkled amidst the November Helsinki sunshine (yes, even the sun revealed itself to me this time).

Amidst the cacophony of digital media/tech conferences that increasingly populate the globe, SLUSH stands out and rises above the din.  That's what makes it an event definitely worth attending -- even from the distant shores of the U.S. (for reasons I laid out length last year after my first SLUSH experience).  Organizers do it right.  Everything is quality.  Deep attention to detail.  Focus on making SLUSH a true "experience" with a rich sense of style (real style ... euro style ... and that's a great thing that U.S. conferences should heed).  And, the SLUSH support team -- which is comprised of literally every college student in the city of Helsinki -- is amazingly gracious, helpful, and friendly.  They picked me up when I landed from my flight.  They picked me up at my hotel for events.  They said "yes" -- and those efforts matter.  They matter a lot.  The full weight of this beautiful city -- and the country itself -- is behind this one.  And, you can both see and "feel" that.  What other conference can say that?


This year's SLUSH -- its 8th -- was even bigger than last.  15,000 attendees (it was sold out).  1,700 startups.  Over 800 investors representing 250 VCs.  And, well over 50% of the world's nations represented.  And you could feel it (physically).  Much rubbing of shoulders took place as one walked the halls.  Let's hope Slush organizers don't expand that number further ....

I spoke this year -- briefly laying out the fundamental transformation of the media and entertainment business before an audience of 1000+ (as a result of digital, mobile, social, and new millennial behavior) (that was my stage in the picture to the right) and moderating a related panel that featured Urs Cete, Managing Director of Bertelsmann Digital Media Investments and Malte Andraessen, CEO of leading Nordic-focused MCN United Screens.  The feedback was excellent -- the panel's messages resonated.  Earlier, I was honored to serve as a VC "jury" member to judge the startup pitch-fest competition.  I also led a small informal Roundtable that dug deeper into new opportunities amidst digital's transformation of media.

HIGHLIGHTS?

(1) BEST PRODUCT EXPERIENCE -- demo-ing HTC's Vive VR headset (that's the 5-component Vive set-up to the right, minus the two stand-up room sensors).  One word -- Epic!  I have tried many VR headsets, but this one is the leader so long as HTC stays committed to it and eradicates its bugs.  Even before I tried the Vive, its buzz in VR circles -- even amongst the competition -- was hot.  Now I know why.  You are immersed of course.  But, you aren't forced to just stand there in your immersion -- you can actually move around the room  ... safely! ... with a rather ingenious guiding system HTC calls its "Chaperon System."  What else?  Unlike the other guys, you get two hand controllers when you buy your system (which you will) -- hand controllers that enable you to pick up and control virtual objects, something it calls "job simulation."  I used this intriguing "click and pick" feature to pick up food in my virtual kitchen, which was one of the 4 demos I "experienced."  Yes, this early stage "hand control" experience was fairly rudimentary, but it reveals future possibilities.  But, my single most compelling experience was "The Blue" -- where I was fully immersed underwater and literally looked a whale in the eye (and, remember, I was free to move about as I did it).  A close second experience is called "Tilt Brush" -- in which you as the artist select your virtual palette and paint tools to, among other things, create amazing immersive 3D graffiti art in which you find yourself within the picture (something you must experience to fully grasp, because my explanation doesn't do it justice).  I am told the Vive will be available Q1 2016 -- but no price point has yet been revealed.  Nonetheless, many of you will buy it.  And, I understand why.  It is mind-blowing.

(2) BEST AUTHENTIC FINNISH "EXPERIENCE" -- this one's easy -- being an honorary member of the Finnish Sauna Society for a second straight year (at least for one day) and trying out 6 of its saunas before jumping and swimming into the frigid Baltic Sea three separate times (okay, we Americans must applaud ourselves -- as I do on the right -- when we believe 40-45 degrees qualifies as frigid; but our Finnish hosts take us down a peg or two when they mock that notion and consider those temperatures to be downright balmy). I proudly used all mental powers I could muster to hit the one minute mark (okay, maybe closer to 30-45 seconds) on each submersion (and that qualifies as being more than a dip).  Our generous hosts also submersed us in the authentic history of Finnish saunas -- and sauna etiquette (i.e., act as you would in church, meaning no business talk!).  Music consultant -- and overall great person, Andie Simon, BDMI's Urs Cete, Slush's own Petri Vilen, and PTTOW!'s Ryan Brenner, among others, joined me for this authentic experience.  All of us agreed that this was the personal highlight of the trip.  (Taking a distant second place -- but still very much worth mentioning -- is experiencing Finland's award-winning Gin called "Napue" -- pictured below -- that is not yet available in the States.  That is downright criminal).


(3) COMPANIES TO WATCH -- so many to mention, so little time.  But, here goes -- here is my list of "must know" companies featured at this year's SLUSH:

(i) Kiosked -- a company I have known for quite some time -- and for good reason.  I spent considerable time with uber-connected CEO/Founder and Finn entrepreneur Micke Paqvalen and learned much that you should know (and now do) (the picture below the Gin shows their Helsinki offices).  This ad-tech company, with Rovio roots, merges marketing and advertising together on a global scale and on a single 100% programmatic advertising platform.  Publishers and advertisers unite indeed!  The company now has an eye-opening $50 million revenue run rate and will hit $100 million in revenues in 2016.  Micke tells me that its only true competitor is Facebook -- but, remember, Facebook is a walled garden and only takes care of its own.  THAT -- ladies and gentlemen -- is a fundamental difference.

(ii) Candela -- Micke is associated with this one as well (as an investor), but that's not the only reason I like it.  Candela is "Tesla for boats"-- a beautiful fully electric motorboat that upends the boating industry just like Tesla continues to disrupt the automobile market.  Candela's team is comprised of a "who's who" of engineering and design.  I am a believer.  Silicon Valley, you should invest in this one.  Certainly not as massive as the automobile market -- but massive all the same.  You'll be happy with the inevitable return.  The first fully functional prototype hits the water early next year -- but full first year production already is sold out.  Get your ticket now if you like the high seas.

(iii) Velmenni -- I learned about this one from the Slush 100 pitch-fest (it was one of the companies I judged -- and voted for).  If the CEO's claims are true -- and the technology from this Indian company works as advertised -- then all of us soon may have a new option for high speed wi-fi in crowded venues (concerts, conventions), airplanes and other notoriously challenging wi-fi zones.  Velemnni uses light to accomplish this -- call it "Li-Fi" (they do).  Don't ask "how."  Just hope that it's all true -- that now you can transfer your data at the speed of light (their slogan) -- which I have no reason to doubt.  Exciting.

(iv) Pop Dash -- not a separate company, but rather a cool new game launched at SLUSH by MaxPlay (and from the minds of Andie Simon and CEO Sinjin Bain).  Just check it out.

SLUSH 2015 -- in the books -- in the mind.  Another unforgettable experience that, once again, underscores that Americans MUST travel outside their borders (and comfort zones) to see and "feel" what the rest of the world is doing ... how they are innovating ... and what they are using to innovate.  (Case in point, as I left the venue on this last day, I first learned about "Slack", a new more efficient communication platform that apparently is the new "WhatsApp" -- worth checking out itself).

(Final pictures -- to the right, that's VR innovator and thought leader Mike Rothenberg of Rothenberg Ventures, who hosted a cocktail/dinner reception for others like me who are focused on the immersive space (as all of us should be); and below that picture is Nokia's new "Ozo" 360 degree camera that was proudly displayed on its home turf as either a work of art or a museum piece -- consumers will make that decision.)

Introducing A New (THE) KIND of Cannabis-Focused Lifestyle Media Company

Cannabis.  No matter how you feel about it, no one can deny that it is deeply ingrained in the daily lives of a significant portion of the population ... and in our overall culture (perhaps even more so than alcohol).  For many, it is simply part of their lifestyle.  And, the times, as we know, are a changing' as more and more states are recognizing that reality, changing their laws, and enabling new forms of related business (and benefiting from the revenues generated by those businesses).

Amidst this reality -- and amidst the fundamental transformation of the media world in which we all sit (and about which I regularly write) -- it is no surprise that new lifestyle multi-platform media companies (MPNs) have formed to address this "vertical" market (much in the same way that leading MPN Tastemade hits the food/travel vertical, Whistle Sports hits the sports vertical, DanceOn hits the dance/music vertical, and Machinima hits the gamer vertical).  Best known to date is Snoop Dogg's recently launched Merry Jane.

Now, as of yesterday, a new cannabis-focused lifestyle media company has launched.  It is called THE KIND.  It is founded by an A-Team of players, including Phil Shalala, who worked with cannabis-focused Privateer Holdings and previously worked as long-time CMO of Hard Rock Hotel in Las Vegas (so they know their brand and how to differentiate it).  And, on that note, it is different from Merry Jane and others by focusing more on the lifestyle of those who have made cannabis part of their lives, rather than focusing on the cannabis itself.  THE KIND boldly announced itself yesterday with a "Manifesto" -- in which it proclaims that it "is a website about marijuana like how Victoria's Secret is a catalog about sex.  We're not here to sell anything that everybody doesn't want already ... THE KIND recognizes the burgeoning cannabis movement as a mindful, likeminded community unusually attuned to all the world's wonders -- cultural and natural, small and large."

THE KIND is creative.  THE KIND is authentic.  THE KIND is passionate about its mission (hence announcing itself with its Manifesto).  And, unlike others, The Kind is not mostly about celebrity.  THE KIND features real journalism by real respected journalists -- and will leverage all forms of engagement including video of course -- but not forgetting that all of us still enjoy (and always will enjoy) the written word and compelling story-telling.  I know all this because I work closely with THE KIND team as they enter our brave new multi-platform digital world that offers new forms of (and deeper) engagement than ever before possible.  Multi-platform media is, as most of you know, a central area of focus for me and my team at Manatt Digital Media.

We believe in THE KIND as a potentially highly scalable and impactful differentiated voice and business.  And, we absolutely believe the times are right for new major cannabis-focused lifestyle media companies (just like they are and have been for other vertically-focused lifestyle MPNs).  Whether or not cannabis is a part of your life (or the lives of others around you), all of you in digital media should definitely check it out.

Here is THE KIND's full Manifesto:

THE KIND is a website about marijuana like how Victoria’s Secret is a catalog about sex. We’re not here to sell anything that everybody doesn’t want already.
If you’re reading this, chances are it’s because you’re part of a shared cannabis mindset that is expanding across all demographics, spreading even faster than weed laws are changing. We are men, women, old and young, across all racial and income and education brackets, encompassing every spectrum of politics, sexuality, and religious attitude.
We have all arrived at one common core understanding—that cannabis offers a quality-of-life enhancement both individually and to our society collectively.
From the business point of view, this revolutionary confluence signals the birth of an industry. A ton of smart money is betting on legalized weed creating a bonanza of billion-dollar buyouts. The trick is to get in on the early adopter floor, and leverage to cash out when the wave of consumer demand reaches peak swell.

THE KIND RECOGNIZES THIS BURGEONING CANNABIS MOVEMENT AS A MINDFUL, LIKEMINDED COMMUNITY UNUSUALLY ATTUNED TO ALL THE WORLD’S WONDERS—CULTURAL AND NATURAL, SMALL AND LARGE.

All of us at THE KIND are fully cognizant that without a marketplace, our online publication would be launching into a void.
Our biz-dev consultants have strongly urged The Kind to position itself—in a list of branded bullet points—as the singular voice of authority presiding over a Wild West of profit frenzy. The site has been advised to trumpet its intention to impose best practices, raise industry standards, influence outcomes, craft a glowing future of weed abundance.
Maybe we will become the Forbes of THC profiteering. We’re open to it.
But looking beyond the limitless dollar horizon, THE KIND recognizes this burgeoning cannabis movement as a mindful, likeminded community unusually attuned to all the world’s wonders—cultural and natural, small and large. 
Our editors and artists are more comfortable advocating the entertain-and-enlighten route. THE KIND creative staff (in short, everybody on the team) is most credible when promising all the latest news and cultural developmentsdelivered daily in a tone that is not snarky or dumb, that is rich in surprise and delight, that is informed and motivated by curiosity and a sincere desire to share cool shit with people who appreciate cool shit.



If forced to pledge, we commit to keeping the burgeoning cannabis nation abreast of the surges in entertainment, products, tech, the whole business hustle, whatever that turns out to be, and as those surges happen.
Some days, don’t be surprised when THE KIND does exactly that, providing unique perspectives and incisive viewpoints peppered with hilarious video, trip-worthy photo galleries, enchanting personalities, and deep reporting on under-covered narratives.
Other days, the site may circle out for wider views. So relax, drift along with the flow. We’re going your way.

Get Ready To SLUSH! (Or, Nothing Better Than Helsinki In November)

SLUSH - which has emerged as one of Europe's leading tech/digital media conferences - officially kicks off one week from today in Helsinki, Finland.  I will be there for my second year amidst the Helsinki November slush - and will be part of the program this time: first, moderating an MCN/MPN/OTT video panel November 11 at 13:30 (note the Euro time use) that features Urs Cete (of leading video-focused investor Bertelsmann Digital Media) and Christian Meinberger (who leads ProSieben-backed MCN Studio71 which recently merged with U.S.-based Collective Digital Studio); and second, hosting a "transformation of media" roundtable with seven entrepreneurs who signed up to learn more about how technology and mobile have forever changed the media and entertainment landscape.

Why attend SLUSH?  To shake things up, that's why.  U.S. based MCNs (really MPNs) and OTTs -- yes, you may have the November LA sunshine, but, get out of your comfort (and U.S.-centric) zone and get a much-needed global perspective (here's my full review of the overall SLUSH experience after attending last year).  There's much talent (and opportunity) amidst the entrepreneurs across the Pond.  And, yes, you know about Rovio and Supercell.  But, Finland is not just about gaming anymore.  Massive tech innovation is abounding all around in the that great white north -- where innovative minds buzz with their coffee 24/7 amidst the increasing darkness (and, well, slush) of the later months.

SLUSH's vision is to be the Davos for tech start-ups and investors.  But, SLUSH's definition of tech has expanded (as it should) into digital media as well in a big way.  Last year 14,000 attended (including 750 investors representing 140 venture capital funds and 100 senior M&A execs) -- the majority of whom hail from Northern Europe for sure, but are increasingly global -- with the next most significant attending delegations being from Russia, the U.K., Germany, China, Japan, and the U.S.

Why such an international flair?  Just think about Helsinki, Finland's geography.  The city sits at the perfect juncture where the East meets the West (or, vice-versa) -- and with inclusive, worldly sensibilities as a result.