5 Questions with Tugg CEO Nicolas Gonda -- My Exclusive Q&A

Tugg is an Austin-based digital media company I have known for nearly a year - and have always found to be in an intriguing space - crowdsourced demand for screenings of motion pictures in movie theaters (which solves a core problem for theater owners -- i.e., filling empty seats during the week).  Tugg is an exciting new approach for independent filmmakers and “smaller” films in general -- and also frequently brings social impact-driven stories to mass audiences who share a sense of “community” (and can now together can share the motion picture experience as a community in a theater environment).  I recently reconnected with Tugg’s CEO Nicolas Gonda, and just yesterday he announced a major new partnership with EDM-focused leader Insomniac (creators of the famed Electric Daisy Carnival) and Focus Features (a division of NBCUniversal) to bring crowdsourced theatrical screenings of the new movie Under the Electric Sky (which was premiered in this innovative new way).  In an increasingly multi-platform OTT premium video world, Tugg uses the virtual (crowdsourcing) to fund the physical (theatrical screenings).  Intriguing ...

On with the 5 questions:

(1) What is the reason your company exists (and what problem(s) are you looking to solve)?

Tugg's mission is engage, empower and entertain. In an age of unparalleled access and choice, Tugg provides a simple way to give audiences a power they never before had: to program their movie theaters with the content they want to watch, when they want to watch it. The magic of Tugg is finding an audience for every film – whether that film be a Sundance award winning documentary about an AIDS orphanage in India (Blood Brother),  a documentary about the spirit of motorcycle riding (Why We Ride) or an inspirational family narrative film about muscular dystrophy (Different Drummers). Giving audiences around the world content that matters to them is our first solution—and everything that transpires from that interaction is the intangible magic that you get from giving people what they want – when and where they want it.

(2) How are you different from your competitors?

We pride ourselves most on our theatrical and content owner relationships - Tugg works with 90% of movie theaters in the country and we partner with major studios and independent filmmakers alike to offer a catalogue of over 1,500 films to fans. Beyond our partnerships, we develop the tools our attendees, promoters and partners need to succeed. Most recently we created a Contributions tool that allows any event to double as a fundraiser so that each event Promoter can raise money for their cause or charity directly on their event page.  We are also constantly evolving our service offering for our filmmakers - we recently began handling Non-Theatrical license sales for our filmmakers, widening their capability to turn interest into action with universities, places of worship, community centers, and a growing body of venues that can facilitate communal experiences of premium content. 

(3) Why will you succeed (and what is your single most important ingredient for success)?

The top-down model for traditional, theatrical distribution is no longer applicable in a world that is so much about tailored experiences and in-demand content. Content owners require a bottom-up way to directly access and empower their fans to engage. One word of mouth conversation has the impact of 200 TV ads. Given that fact, filmmakers and studios alike love that they can directly engage their superfans who will then promote the film to their individual networks allowing anyone, anywhere to see the film the way it was meant to be seen - in a packed movie theater with your community.

Our conversion rate is over 13.3%, which in marketing terms is off the charts. We succeed because we are a company that facilitates open collaboration between content owners, influencers and fans with shared goals and rewards. Our single most important ingredient for success is the long term impact a Tugg campaign can have for a content owner - not only does a Tugg release leads to exposure and revenue through a theatrical campaign, it provides the content owner with deep analytics and contact info for their fan base of superfans and attendees, all of whom are usually ready and willing to purchase the film's DVD, merch, and much more.

(4)  What makes you unique? (and what do you enjoy most outside of building your business)

Well for starters we’re bold enough to start a company in 2014 that focuses on movie theaters [Nick laughs as he writes that].  In truth, we are unique because we are one of the few companies that truly understands the ever-growing importance of the theatrical experience in the film industry and how it acts as the ever-lasting relationship builder with the consumer. With more choice now than ever before, the studio and independent filmmaker both need a tool to identify, engage and activate their audience through theatrical, eventized screenings, and we can’t wait to continue helping them.

As for time spent outside of building the business, I love being in Austin, Texas, where Tugg is based. Every weekend there’s something great happening different from the last.

(5)  What digital media trend is most interesting to you (and what is the least)?

We’re quite excited about the recent activity between studios and MCNs  The more willing major studios are to adopt the latest in what is happening in tech and the Creator movement, the better off everyone – audiences especially – will be. Least interesting? Perceived value of “likes” and “followers” as a determinant of success. The difference between real influence and how many likes a Facebook page has is vast, and we’re excited to see more services like Tugg offering a direct metric for the monetary value of influence (as defined by ticket sales, in the case of Tugg).