Overlay TV – Watch it. Click it. Get it.

Let me paint a picture for you.

You’re watching a music video and you really like the jeans the lead singer is wearing or maybe the funky table in the background catches your eye. Just ‘click’, pay and it’s shipped - then back to your video without disruption. At the end of the clip, the band endorses a charity they are supporting and a button appears giving you the opportunity to donate as well.

With a ‘click’ of a button, video has become interactive, functional and entertaining.

The Ottawa The United Way office is using ‘clickable’ video in their newly launched campaign and the Jonas Brothers turned their video into a video karaoke experience using Overlay TV.

The Backstory

Tyler Cope and his wife were watching TV one night and she commented to her husband that she loved the shoes worn by a character on the TV program but how could she ever get her hands on them. Eureka! Tyler discovers an unmet need.

Over then next six months, Tyler and his business partner Nadav Zin investigated how a solution could be developed. Quite by coincidence around that time Rob Lane is having discussions with a well-known local VC firm who suggests that he meet Tyler and take a look at the concept. Rob brings in Gord Wyse and

Overlay TV formally opened their doors in mid-July 2007. Over the past two years, they have raised $9.2 million dollars in Canadian venture capital financing in two separate rounds. They have 17 staff, are generating revenue and are expanding rapidly.

Where is the opportunity?

The inspiration for the business was the unmet need of being able to buy what we see in videos. But inspiration isn’t enough to open a business. There has to be a clear business opportunity. The four partners of Overlay TV believed that the world of online video was in its infancy. The volume of video was going to grow exponentially and video would be used in new and different ways. They saw their ‘clickable video’ as a big piece of the puzzle.

Rob Lane, the CEO of Overlay TV, was kind enough to sit down and share the history and offer his views on the future. I found him to be inspiring, authentic and genuinely interested in helping students learn from his experience.

When I asked him what the ‘catalyst’ was for launching the business, his response was ‘we just gave it a go’. This statement seemed a little nonchalant for me, but then I realized that when you have a team of seasoned professionals that are comfortable within their business domain and have been around the block a few times, they can trust their judgment and ‘give it a go’. Naturally, this sparked a discussion about risk, which is something every entrepreneur must wrestle with. But that’s another discussion altogether.

Over the past two years, there has been a surge in video uploads, viewing and overall usage on the Internet. Overlay has also been able to capitalize on the surge in social media marketing efforts that many brands have undertaken. Marketing budgets have been shrinking, but activity and effort has been redirected into projects that Overlay can deliver on.

Who are their Primary and Secondary Markets?

Overlay TV does not sell to consumers. Their markets are businesses (B2B). They have a global focus with initial customer traction in the United States, United Kingdom and Canada. Their primary market are large e-commerce retailers, for example, Zappos.com. Their secondary market is creative agencies that are producing video content and online marketing solutions to their clients.

Overlay TV services these markets with a direct sales force and independent consultants and are in the process of securing channel partnerships where they can add value as part of a larger solution.

Surprisingly, they have little in the way of direct competition, as of yet. They attribute this to the fact that they are on the leading edge of how video is being used. They are the first ones at the party, but they have no doubt competition will arrive.

When I asked Rob what success means to him, he feels that you must find success in all levels of your business. There is no one thing that defines success for him. He feels success in building the team, bringing amazing people together, raising finance and winning the trust of customers. From Rob’s perspective, success is in the process of getting things done.

The words of wisdom that Rob would like to pass on to students include;

• Define an idea or core concept and don’t be afraid to think big. It takes as much energy to think small as it does to think big.
• Go for it! The only risk is not taking a risk.
• Course correct rapidly. Be ready to adapt and change.
• Surround yourself with amazing people.

With a smile on his face, he shared with me that he is always looking for PSD’s (Poor Smart & Driven) people. Energy and passion are everything in a business.