Keek Inc. began as an online social video platform for web and mobile that enabled users to share 36-second personal videos with 111-character text messages back in 2011. Over the following years, the company’s platform grew to more than 75 million registered users around the world and became widely popular among younger demographics. Unfortunately, the company was unable to monetize this user base and halted marketing efforts in April 2015.
In July 2015, Keek began working with Personas.com Corporation to find and develop a viable commercial strategy for its user base. The companies plan to introduce an e-commerce enabled live streaming platform that could revolutionize the way people create, share, and monetize video content. With over 75 million users, effective monetization of this platform could create significant shareholder value over a relatively short period of time.
Live streaming has become increasingly popular over the past several years. In March 2015, Twitter acquired Periscope, a live streaming video startup app that was still in the testing stage, for nearly $100 million in cash and stock. At the same time Meerkat, another live streaming video start up with 100,000 users at the time, announced that it had raised $14 million as part of its own financing round – in a sign that investors are very interested in the space.
In this article, we will take a look at the Peeks platform, what it means for the future of Keek shareholders, and other important considerations.
Innovative Peeks Platform
Keek began planning for the integration of the Peeks e-commerce enabled live streaming technology in April 2016. The service enables users to live stream themselves on their own personal interactive e-commerce enabled mobile broadcast. With the tap of the screen, their viewers can tip them real money, buy products and services, crowd fund projects, participate in auctions, and much more.
This technology differs from competitors in several key ways. The platform provides a real-time, engaging, and monetize-able user experience to all of its members, as well as an enterprise grade global e-commerce infrastructure providing a multicurrency, multilingual, turnkey mobile commerce suite for all of its users, merchants, and advertisers. The platform has also been actively tested in live environments via both a closed and open beta program.
The Peeks platform generates revenue by taking a piece of each transaction. Keek will earn a percentage of this revenue without incurring any of the costs associated with developing and maintaining the platform. This could create a high margin recurring revenue stream for investors and a premium valuation for the company, based upon the premium valuations seen with Periscope and Meerkat’s capital raise.
According to a September 22 press release, Peeks has already monetized its user base, processed over 16,000 transactions in a live environment and has been downloaded in over 100 countries all in its first month. This early success in monetization bodes well for opening the floogates to the 75 million current and former Keek users. Unlike many companies that start with users and then figure out monetization, the company has both ends of the spectrum covered at the same time.
Potential Growth Ahead
Effective monetization of Keek’s 75 million users could create substantial shareholder value over the near-term. For example, investors may want to consider the per user valuations for Periscope and Meerkat, which both exceeded $200 per user. Investors were betting that these services would grow significantly larger – and Periscope had already reached just under two million users by August 2015 – but Keek’s 75 million existing users is a different story.
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Keek’s existing user base could enable it to springboard other companies in the space, while effectively monetizing them with innovative e-commerce functionality. Rather than relying on an acquisition to deliver value to shareholders, the company may be able to generate near-term revenue that can scale substantially higher. These revenues could be used to reinvest in growth in order to accelerate adoption and ultimately become a market leader.
Keek Inc. (KEEKF) represents an attractive opportunity in the rapidly growing livestreaming industry given the company’s significant existing user base, innovative e-commerce technology, and the broader investment interest in the space.