Viceconomy
I run BottlesTonight, a mobile marketplace for booking bottle service and concierge experiences. We operate in an emerging economy that’s driven by companies catering to vice. I call it the Viceconomy.
Viceconomy.
1. an emerging economy comprised of companies building experience based products and services, frequently following the themes of drugs, sex, rock n roll.
The Viceconomy caters to industries that have historically operated offline with antiquated process, and tons of friction, but are still generating tens of billions each year. And lately, the venture community has taken notice.
In 2015 Reserve a digital restaurant concierge, raised $15 million in February 2015. Eaze, the medical marijuana marketplace received $11 million in April. In June, 7 Rooms raised $2.46 million, and Minibar, Saucey and Drizly have raised a combined $24.05 million in 2015.
Examples of offline verticals, going online in the Viceconomy:
Drug Dealers ‘Drugs and Alcohol’ -> Online Drug/Alcohol Marketplaces, CRM, Publication: Eaze, Baker, Meadow, Minibar, Caskers, BottlesTonight, Partender, Bevspot, Liquor.com, Merry Jane, Glassful, Leafs By Snoop, Leafly
Meet At A Local Bar ‘Sex’-> Dating/Sex Online Marketplaces: Ashley Madison, Tinder, Bumble, SneakPeak, Flutter
Scalping, Box Office ‘Rock n Roll’ -> Ticket & Experience Marketplaces: Ticketfly, WillCall, BottlesTonight, Sosh, YPlan, Jukely, Headout, Concertwith.me, Fever
In this piece, my focus will be on the on-demand experience space, how it’s moving from offline to online and why that matters.
First, a quick background of myself. I’ve worked on both sides of the table. I’ve worked for and with the hospitality industry, small businesses, entertainment, and technology. I’ve worked with Wiz Khalifa, Jay-Z, Andre Nickatina to name a few. Worked at bars, consulted hundreds of small businesses from mom and pop smoke shops, to bars and clubs, identifying unique revenue channels to increase their bottom line. I have formal sales management training from Altria. I’ve started a two companies prior to BottlesTonight, CampusTracks.com, one of the first mood-music websites driven by human curation and BarSential, the Groupon for bars.
The live event, music scene is growing fast. Why? It’s how most of the up and coming and ultra famous musicians and DJ’s alike, make money. Touring, live shows! Giving away music for ‘free’ is how you gain followers and sell tickets to the live experience is how you make money off them.
My generation of 20-somethings are attracted to experiences rather then cluttering their small apartments with products. It’s the shared belief that being around other people, sharing experiences, really brings us closer together. The human connection is extremely valuable to younger generations, millenials. The sharing economy has proved this correct.
“Live music concerts generate 50.1% of industry revenue and have been both the most lucrative and fastest-growing events in the industry over the past five years. Events in this segment include live music performances at clubs, music theaters, arenas and amphitheaters, as well as local and regional music festivals. Events can range in size from an attendance of fewer than 500 people in local clubs to more than 100,000 in arenas”- IBISWorld Online
It’s all about dance music. Dance music festivals, like EDC serve as the introduction to a multitude of EDM genres. Once a music festival attendee finds their genre, they’ll seek the festival experience out at a local level, at a club or concert venue. DJ’s drive nightclub demand. “XS Nightclub Las Vegas grossed $115 million in 2015, along with Hakkasan Nightclub Las Vegas”-Nightclub Bar Association Top 100 2015 for their heavy programming of EDM acts. Hakkasan accomplished this in it’s first fully operational year.
On Demand.
1. as soon as or whenever required.
The millennial generation I discussed earlier enjoy shared experiences with one another, but they don’t like to plan. The trendy term FOMO is a real thing. Millenials don’t want to over commit in advance, fearing that a more appealing option will come about, closer to the time of the pre-planned event. Another term, FOGO is also true. The fear of going out is largely due to high friction transactions which are not transparent in nature.
It’s taken awhile for on demand tech to be adopted by the hospitality industry. Why? It’s largely due to the emergence of smartphone technology and lack of understanding prior companies had of hospitality space. 2016 will be the best year so far, for tech innovation to influence growth within the nightlife experience space.
How can tech make nightlife experiences better? Mobile tech makes nightlife experiences better. The curation of information in a single place (in your pocket), transparency in pricing, data, and frictionless transactions will benefit the consumer and experience provider in the nightlife experience space.
Technology done right should simplify transactions and consumption of information. This allows for the consumer and experience provider to focus on what each other will benefit most from, the experience.
The Experience. It’s all about the experience.
Technology allows the consumer to consume more of what the experience provider is serving them. More focus on the DJ. More focus on the euphoria of being with friends, dancing and celebrating life. That’s what the millennial generation desires and the Viceconomy companies are uniquely positioned to do this.
