熙熙

[熙熙 @kaylapolu]

现在越来越敏感了，~玩具插进来小逼就开始夹腿缩逼，寸寸止给自己玩到腿抖翻白眼，分明是高潮的表现，却死死压抑住了自己的快感，身体只能感受到微弱的快感和强烈的欲望 #磕炮 #阿黑颜 #寸止 #女S #白虎 #1v1 #连麦 #剧情

[熙熙 @kaylapolu]

🧢 📷 The smell of rain on dry earth always makes me feel brand new.

[熙熙 @kaylapolu]

🪐 Long flight completed safely. Grateful to be home with my people.

[熙熙 @kaylapolu]

💰 🎁 🌻 Baby took several confident steps today. Better than watching any 10x pump in my entire crypto journey

[Pocket FM @PocketFM_App]

Now that’s the kind of story we’d listen to again and again.

[Rohan Nayak @RohanNayak2]

We grew from ~0 to $500M ARR, adding $250M last year alone while being EBITDA profitable.

1,300-word post on every growth tactic that worked for us:

1. What got us from 0-$400M ARR in the US works in every country.
2. Retention and Monetisation Hacks.
3. Localization > Translation.
4. Experiment with $1M internal seed checks.
5. Pivoting to only AI content production unlocked 100% ARR growth.

Pocket FM is like Netflix for audio-only dramas, with our own pool of one-person studios.

1. Acquisition Playbook for 0-$10M ARR in any country in 6 months

We run a 90 sec video trailer of an audio drama as an Ad and ask users to download the app if they're interested in the rest of the story.

Our core insight after spending >$100M on acquisition is: If the clickthrough rate (CTR) for an ad goes from 2% to 2.25%, our customer acquisition cost (CAC) decreases by ~ 30%.

We remodelled our system around this insight and built an AI-first 2.25% CTR ad manufacturing machine that works in every country.

For every new country, we take our hit shows -> use LLMs to extract and most intriguing moments -> Write a 5-min script combining all the best parts. The first 60 seconds has to have a hook every 5 seconds and needs to end with a crazy cliffhanger to force a download mid-scroll.

If a marketing video is not hitting our benchmarks (2.5% CTR and 55% 3-second through-play), a creative director gets involved to change the hook or cliffhanger to get the numbers there.

AI lets us make 1,000 Ads per show, and in total we do ~17.5k Ads per month. When a business creating scales from 1k to 10k Ads, the normal thing is for CAC to skyrocket. But with what I just shared, we 7-8x'd our User Acquisition budget without increasing our CAC materially.

It took us 8 months to figure this out, but then the timeline from 0-$10M in every country got shorter and shorter:

US revenue grew to $25M in 19 months. (US is now 78% of total)
Germany to 21M in 11 months.
France to $10M in 3 months.

2. Retention and Monetisation Hacks.

We knew we wanted to create an audio entertainment platform, but there was no standard format. For the first 2-3 years, we tried 10 different formats before landing on the winner.

After we got it right with audio drama (8-12min chapters, written for mobile fiction, serialized, episodes have strong hooks and end on cliffhangers), avg daily streaming time went from ~25mins to 150+.

Audio drama made us realize that Pocket FM was creating a whole new medium. There was no playbook for anything that we were doing. Everything had to be thought & built from scratch.
This is what we did for each major bullet:

- Monetization: Users have some free daily minutes to listen; then it's pay per episode. We also added the option for users to unlock episodes by watching ads, which is doing extremely well. Ads scaled from zero to a ~$90M run rate in 12 months.
- Engagement & production: You don't become obsessed with an app you open once a week. To have users engage daily, we make the next episode free every day. Also helps them build the habit.
- Discovery. Huge problem because people consuming Pocket FM enter the app, tap the show, and lock the screen. We fixed it by doing "playlists" of episodes. Once users's free minutes on a show are done, we ask users if they want to pay. If they say no, we play a new show, one where they haven't used their free mins. And we stitch episodes of different shows together that way, creating natural discovery.

3. Localization > translation.

78% of our revenue is still concentrated in the US. Localisation is fixing this: You might write a show for a Spanish audience where language, jokes, folklore, have a certain flavor; if you merely translate the show for, say, a Norwegian audience, that color is lost and hurts the show in the Norway. Listeners would relate more if the show was written by a Norwegian.

That's why, instead of translating, we localize shows to different regions. We use AI to take the spine of stories and adapt their whole cultural layer to the other country.

The results: a US show that was localized for a German audience had 50% higher retention than the translated version.

Localization + our user acquisition playbook led to:
- $10M+ ARR in France within 3 months
- $21M+ ARR in Germany within 11 months.

And this expands writers' addressable market.
We get messages of writers thrilled to have revenue coming from the US, India, EU, LatAm, without them doing much incremental work.

4. Experiment.

We give $1M checks to new internal initiatives, and the team has 12-18 months to prove their thesis. If they prove it, we double down.
This is how Pocket Saga came about, our AI video microdrama app. It's an AI video equivalent of Pocket FM. Same shows and structure, but as a vertical 2-min mobile video series.

We launched it two months ago and it's at ~$15M ARR.

Pocket's broader thesis is to help creators tell their stories to as many people as possible. Start with audio drama -> multiple languages or localize to diff countries -> microdrama -> more formats like movies, TV shows, and games.

Best of all is that writers get revenue streams not only from countries they wouldn't have tapped into, but also from formats they wouldn't have thought possible.

5. Pivoting to only AI content production unlocked 100% ARR growth.

In mid-2024, we pivoted to only AI content production.
Our growth took a very direct hit. Pocket was already at $200M ARR, growing 50% YoY, and we flatlined for a whole semester.

Six months later, the business exploded.

After the switch, we went from ~25k hours of content produced per year to over 2.5M hours, which are also higher quality. Because AI orchestrates the writing and more data is fed into it, more blockbusters come out.
Over 90 titles have $1M+ in lifetime earnings and 13 crossed $10M.

Quality control is done with LLM as a judge, and LLMs are quite tough.
Results are very encouraging:
- 12-month revenue retention went from 44% to 76%.
- In the past year, we added $250M in net new ARR.
__________________________________

Pocket Entertainment (Pocket FM + Pocket Saga) has become the largest AI entertainment platform.

We have the largest storytelling catalog with 770,000 titles, 550k creators, and 5.5B hours of playtime with minute by minute retention & engagement data. We are using all of this data to improve every aspect of our business.

Our Bet: In the next 3 years we will be able to produce Naruto-like series for $1000.

Netflix has to spend $17B to find 100 Blockbusters per year.
What happens when you can produce 1M high quality shows for $1B?

The streaming wars caused a $300B reallocation of market cap.
The AI entertainment wars may be a $1T+ reshuffling of market cap.

We are at a unique spot. Unlike other AI creator tools like Runway or Midjourney, we own both the supply and demand side of AI content.

We've attracted over 550,000 writers who are producing an annualized 2.5M hours of content every year. This pairs with 137B+ minutes streamed.

Because of this, growth is accelerating as we scale further.
We have multiple S-curves inflecting at the same time:

- AI produces better and more ads -> scale faster in new countries
- ⁠Writers + AI produce more shows -> more blockbusters
- ⁠Localisation -> more reach per blockbuster
- ⁠Audio to video format expansion -> larger TAM -> more creators

Every aspect of our business is designed to improve another, and everything is aligned so that the number of blockbusters continues to rise.

If you're interested in building at the intersection of ai, tech and entertainment, DM me.

[Ziggy_Sobotka @Ziggys_Duck]

Happy 88th birthday to Bill Raymond, “The Greek” on #TheWire. He’s the oldest surviving cast member from the show.
Born: September 9, 1938 in San Francisco.

[熙熙 @kaylapolu]

@Michaelfiore https://t.co/PIJ0y9nMPi

[SyBorg @SyBorg3001]

@Michaelfiore Wholesome

[Rohan Nayak @RohanNayak2]

In mid-2024, Pocket FM was at $200M ARR, growing 50% YoY, and we decided to kill its business model.

Revenue flatlined for six months, we turned cash flow negative, and investors were writing us off.

But then, Pocket's ecosystem exploded.

Our reasoning and why this happened:

What constrains Netflix's growth is content. They spend $17B+ on content production yearly, but many shows don't make it to the final stage. Of those that do, only a few become blockbusters. And those few are the reason subscribers stay on Netflix.

So we started thinking. Pocket was growing nicely. However, what limited us was how many new users we could add and retain at scale. The only solution we came up with was increasing the number of blockbusters. Blockbusters drive user growth and retention at the same time.

To get more blockbusters, Pocket FM needed more production.
That's why we pivoted to only AI Content production.

This did a number of things:
1. More content gets produced because we removed a lot of friction from doing so. It's easier for writers to maintain daily production. And for writers who still haven't found their hit show, testing and pivoting becomes less time-consuming. From taking several months to test even one show, you can now test 3-4 shows in one month.

2. Content quality increases. The more content gets produced and consumed on Pocket, the better the engine gets. We continuously monitor retention and other engagement metrics. When we detect something is working, our writing copilot learns it.

3. Unlocked hundreds of thousands of writers; Pocket's writing copilot is built to help writers without storytelling training.
This is in contrast to Netflix's model. While their budget gets allocated among a limited number of studios, Pocket's supply side is getting flooded with writers. Over 500k writers are producing on our platform.

4. Made it easier to cross-create ads to attract users. Better shows are easier to sell to people who aren't yet using Pocket. And the same data that feeds our copilot goes on to feed the engine we use to create ad videos, which is also self-reinforcing.
_____________________________
After making the change, ARR flatlined for six months and we started losing money. It was extremely painful, but then growth and the whole ecosystem exploded.

- Hours of content produced per year went from 35k to ~2.5M.
- New titles added yearly more than tripled from 120k to 400k+
- Millions of new users joined Pocket.

The obvious risk was opening the gates to AI slop. That's why we have an extremely rigorous feedback and moderation process

Ultimately, the only thing that matters is whether users are enjoying the content that's being uploaded. Metrics don't lie:
- 12-month revenue retention went from 44% to 76%.
- Avg daily streaming time went from ~25mins to 150+ mins.
- DAUs/WAUs from 30% to 51%.

I think we're extremely early, and I'm excited to see how Pocket's flywheels continue to accelerate from here.

[Ryan @RyStarling]

Happy Friday leg day y'all 😂😂😂

[熙熙 @kaylapolu]

@Ziggys_Duck

[Ziggy_Sobotka @Ziggys_Duck]

“See him go through all that for 10,000?
Man, Slim, go get him 15,000 cash, man.” #TheWire

[熙熙 @kaylapolu]

@Ziggys_Duck

[Ziggy_Sobotka @Ziggys_Duck]

Jon Polito died 10 years ago today. He played Det. Steve Crosetti on “Homicide: Life on the Street.” Pictured w/ Jeffrey Pratt Gordon (pic credit) & Brook Yeaton, who fans of The Wire might recognize. #HLOTS

[熙熙 @kaylapolu]

@ODL589 @BearXRPL

[ODL @ODL589]

Give a BEAR a horse he'll eat in a day, teach a BEAR to horse and make him drinks water.

$BEAR

[ODL @ODL589]

GM to all the GM'ers. Midweek check-in: still bullish. 🐻

[熙熙 @kaylapolu]

@Ziggys_Duck https://t.co/zrK0KDmym4

[Jenn Wilkiway 🐞 @Jenn_Annapolis]

@Ziggys_Duck

[ODL @ODL589]

BEAR Wallet INCOMING!!!!!

[熙熙 @kaylapolu]

@MobstersDaily