On February 14, 2021, we released the beta version of the functional portion of the app. This includes event building modules (a wedding is a series of different, but related, events - such as reception, rehearsal dinner, ceremony, etc.), guest list builder and RSVP tracker, custom wedding website, budget, inspiration wall. We have created several wedding lifestyle videos as examples to demonstrate how the videos will entertain and support the decision making process. The next steps are to enhance the app with greatly improved UI/UX, more functions, ecommerce/boutique, gift registry and vendor options and packages. Additionally, we need to create 20 to 30 original videos and begin marketing to create sufficient traction and proof of concept.
The biggest obstacle is that we have created about as much as we can with equity and part time staff and need this pre-seed funding to hire the talent necessary to complete and market the MVP.
There is no combined Wedding Planning App and Wedding TV in the US or globally. Gift registry apps with planning capabilities exist. Wedding Wire and The Knot have an estimated combined 9.3M users/month. Zola and With Joy have an estimated 2.7M and 840,000 users, respectively. Pinterest, Instagram, Facebook, YouTube and Twitter are sources for pictures and videos about wedding ideas but are highly fragmented with no dedicated wedding channels.
We understand that content/entertainment and user experience are king. WedFun is built to help the couple make all their wedding decisions, track their budget, create a viral community, communicate with their guests, manage their vendors, etc. Our competitors were built to sell gift registry and products, not solve problems and help in decision making. Further, from a content creation and delivery perspective, WedFun has unparalleled strategic advantage over anyone in the wedding planning space.
The WedFun App will be sold as a monthly $14.99 subscription, with no ads, to future couples (average engagement period is 14 months). Multiple incremental revenue streams include gift registry, e-commerce and vendor commissions, product placement, video content sales, endemic advertising, customer analytic sales, wedding day photo/video storage. WedFun is projected to grow to $160 million in revenue, at a 61% profit margin, on less than 2% of the 65 million annual weddings worldwide.
We are unable to explain the value proposition of WedFun's best-in-class planning app and video content community platform, and no one wants to pay for a WedFun subscription.
Our research through Qualtrics/SAP indicated that 71% of the respondents would pay $14.99 per month for WedFun. In the event we are unable to explain the value proposition, we will migrate to a freemium model and focus on gift registry and vendor commission and product placement revenue. The risk here is the delay in operating cash flow, as much of the commission revenue is back end loaded during the engagement lifecycle. However, our digital marketing costs will be dramatically reduced if we move to a free download version.
Our users don't really want one stop shopping or to have some of their wedding decision choices curated for them based on their input. They would rather wander around the internet looking randomly at pictures, products and themes.
The research, however, does not support this. Users of our competitor's apps like the convenience of a guide and starting point for the hundreds of wedding decisions they need to make.
Our users and their guests do not find the videos entertaining, engaging or inspirational and we spend a bunch of money on shows no one cares about. No viral community is created.
Our projections are that we will have at least 4,000 videos by the end of the 5th year, so we will have some shows that are less popular than others. YouTube views support the popularity of wedding lifestyle themed videos with one "best man speech" achieving 20 million views, and simple wedding cake videos hitting the multi-million viewership mark. We are confident our video production team will create engaging, must-see, videos about wedding dress makers, dress selection, wedding fitness, honeymoon destinations for every budget, best first dances, etc., that couples and their guests will want to watch and recurring series that they look forward to on a weekly basis. Every wedding planning checklist item can be supported by many different videos.
There are unlimited content/entertainment options, but here are a few ideas:
Unlike Netflix, the WedFun business model does not demand expensive productions like Game of Thrones to retain subscribers. The people behind WedFun launched MTV and the multiple award-winning Wedding TV Network. The programming quality will be outstanding; however, the content can be used repeatedly - with new subscribers joining daily seeking inspiration for their weddings. WedFun only needs subscribers for 12 months, not years. WedFun's production team will create its videos. Including Latest Paris Catwalk Wedding Dresses; Bridal Lingerie; Cakes; Shoes; Gifts; Fitness; Jewelry; Travel; Celebrity and Royal Weddings; and Live Daily "WedFun News" on the latest fad, trend or craze in the glamorous world of weddings. We do NOT film people's weddings.
The average time between getting engaged to getting married is 14.5 months; we expect a WedFun subscriber to stay on average for 12 months. With 200,000 couples getting engaged every day globally, WedFun will always be aggressively and creatively adding new subscribers.
WedFun has been created as a community app. Once a couple subscribes to WedFun, their entire guest list receives free access to the WedFun App and all the video productions. Assuming only 100 guests per wedding, we anticipate upwards of 120 million potential app users (1.2M subscribers x 100 wedding guests = 120 million).
There are roughly sixty-five million weddings a year globally, almost 200,000 a day. Worldwide weddings are a $300B annual industry and growing. In 2019, the average cost of a wedding (not including honeymoons or registry gifts) in the US was $34,000; UK $37,000; China $14,000.
While the number of weddings decreased significantly during 2020 and into 2021, wedding planning still continued and the engagement period increased (which extends the term of our subscribers and therefore, their lifetime value). Even when weddings are delayed, or held via Zoom, planning needs to be done and the WedFun App provides entertainment and planning tools. Given the expected return to a somewhat "normal" social environment and economy, the timing for the WedFun App is perfect; during Covid, many weddings were delayed. The enhanced WedFun App, with WedFun TV is set to launch at the end of the year, primed to take advantage of the post-covid boom in 2022 weddings