NAGATO is TOURN's YouTube platform where YouTubers can join to increase their revenue and receive assistance in building their YouTube channel. In 2017, TOURN was approved by YouTube as an MCN (Multi Channel Network), which allowed Tourn to continue the development of NAGATO. NAGATO continuously recruits new YouTubers to the platform. This happens organically as YouTubers discover NAGATO through various communities, and NAGATO also directly contacts YouTubers who fit well into the network.
NAGATO is a full-service platform for Youtubers where we ensure that they receive ad revenue from the content they upload to Youtube and protect their digital rights from exploitation by others. In essence, every view generated by NAGATO members shows an advertisement. The advertisement is booked by various advertisers through Youtube's own advertising system and appears where it is best suited. This means that NAGATO never needs to act as a seller of Youtube ads, it is completely managed by Youtube. Youtube receives a portion of the ad revenue before it is forwarded to NAGATO which then pays the member/Youtuber. When a Youtuber, regardless of the country, joins NAGATO and starts generating views, NAGATO will immediately start generating revenue. NAGATO can therefore accept Youtubers from almost any country without having to set up a sales organization or similar in that specific country. This means a huge scalability in NAGATO
NAGATO's role is to help Youtubers grow and earn more money. There are other companies doing this both in Sweden and abroad. Many of them are pure agencies or sales organizations that require a lot of manual work and have staffing-intensive organizations. NAGATO's strength is its technology and ability to be anywhere in the world - without physical presence. There is a clear increase mainly with channels towards the American market, but also towards Asia where Taiwan is the standout market. NAGATO is today undoubtedly a scalable platform across all regions of the world and we continue to place emphasis on growing primarily in countries with higher revenues per Youtube view. Key competitors NAGATO compares to include publicly listed companies UUUM. UUUM is similar to NAGATO, but today only has Japan as a prioritized market. Japan, with 127 million people, has a high advertising price per Youtube view. Currently, UUUM has over 8000 connected Youtube channels compared to NAGATO's 2000 members. NAGATO, according to us, has a significantly more automated and simpler connection process, aimed at the whole world. The statistics service Socialblade.com, which collects data from over 30 million Youtube channels, shows that currently there are 5 million Youtube channels of interest to the NAGATO platform.
Tourn Agency, which works with influencer marketing, is one of the company's core businesses. Since 2014, the company has developed various tools to streamline the work with influencers, including systems for micro-influencers, measurement tools, reporting tools, CRM administration, and more. Tourn Agency represents most of the country's leading influencers and has a strong grip on the market.
Tourn Agency works with various campaign formats within influencer marketing where everything from influencers with hundreds of thousands of followers down to smaller influencers with only a few thousand followers are in demand, often in combination. Customers contact Tourn to conduct advertising campaigns where Tourn, in addition to the actual advertising placement on the influencers, also contributes with strategy, analysis, tracking, and follow-up. Tourn receives a commission per booked campaign as well as compensation for the tools and services used during the campaign.
TOURN Agency has experienced a high demand for the profiles that the Agency has exclusive representation rights for. The turnover during the quarter is based on how campaigns are booked throughout the year. The intensity of campaigns varies throughout the year, with the first quarter having the lowest intensity and the fourth quarter the highest. Agency continuously works to connect new profiles to the company. One of the goals for 2023 is to expand its offerings outside of Sweden, primarily in Norway and Denmark as neighboring markets. Agency has sold campaigns worth 30 million SEK for 2023.
Charge was founded by TOURN during the second half of 2019 when it was clear that there was a lack of actors helping e-sport players to manage their finances. Charge is a platform that helps gamers handle their finances, salaries from e-sports organizations, taxes, billing, partnerships, etc.
The platform is automated and the goal is to scale up so that all e-sport players/gamers use the platform worldwide. Charge is based on TOURN's existing financial system for influencers, but it focuses solely on Gamers. As a result, TOURN has been able to develop the platform simultaneously while further developing its existing financial system. The platform was launched in December 2019 and started generating revenue on the first day.
TOURN has always had an entrepreneurial spirit and it has been important in continuously developing the business. Examples of this include the creation of HUBSO which now stands on its own and has been a very good business for TOURN. TOURN finally sold off a major part of its ownership with a multiple of about 10 times the invested capital. All businesses created within LAB are expected to be self-financing and profitable after 2-3 years. As soon as the business is profitable, it will be moved out of LAB into TOURN or sold off. TOURN intends to initially have 2-3 projects running and the number of newly started projects will be based on how many are leaving LAB.
