Licensed Content Dominates Platform

Alex Chung shares GIPHY's strategy of building a content platform based primarily on licensed content rather than relying on fair use, making monetization and advertising partnerships easier.

Key Points:

• Content Strategy Breakdown:

  • 90% licensed content from official partners
  • 10% user-generated content (UGC)

• Licensing Partnerships:

  • Sports leagues (NFL, NBA)
  • Movie studios
  • Brands (McDonald's, Pepsi)
  • Entertainment companies (WWE)

• Strategic Benefits:

  • Easier to attract advertisers due to clean rights
  • Avoid legal/copyright issues
  • Direct relationships with content providers
  • Content providers see it as beneficial partnership

• Monetization Approach:

  • Most content is already branded
  • Platform currently doesn't charge for most branded content distribution
  • Plan to add payment gateway for brands
  • Will maintain free content they "like because they're awesome"

• Growth Strategy:

  • Required 5 years to build licensing relationships
  • Focus on adapting strategy as platform scales
  • Different approaches needed at different user volume levels:
    • Early stage: SEO and platform integration
    • Mid stage: More drastic strategy changes
    • Large scale: Piggyback off large networks