vivid CEO on the Divergence of Design Shops
by Ellis Booker
Seemingly restless with doing contract work for others, leading Web design shops are already branching out into other lines of work. Some of these exceedingly entrepreneurial firms are offering their own original content to the Internet; others are launching brand-new enterprises that take them far beyond HTML coding and design.
A case in point is vivid studios, the San Francisco-based design firm that emerged six years ago with the merger of companies started by a youthful group of Silicon Valley multimedia experts. vivid's pedigree includes development of Microsoft's Windows 95 launch site and the related Net hunt, "Bethany, TX"; its client list for Web site design also includes Bank of America, International Data Group and Bell Atlantic, among others.
In April, vivid launched the Vivid Travel Network (VTN). VTN hopes to create a global network of affiliates that will use common technology, traffic and personal user profiles. For its role as the technology facilitator, affiliates will each pay VTN between $50,000 and $250,000, as well as provide a small amount of screen space on their sites for the placement of VTN advertising.
vivid CEO Henri Poole recently spoke with Web Week about the new venture and what vivid thinks will be the differentiating characteristics of Web design shops as they go forward.
Web Week: What was the rationale behind Vivid Travel Network?
Poole: vivid studios started six years ago in multimedia. Three years ago we were asked to work on the user interface for The Well. The business model [for companies such as ours] looked like a technology play; we couldn't see a business course for content. So we focused on service work, always watching for a product that could bring in money.
We worked on a lot of ideas and did market research work to intuit where the money was, which seemed to be in directories--a business we weren't in.
We did think we could build directories, regional directories, with our tools and methodology.
One of the ideas someone came up with was a travel game. You plan a trip to Hawaii, figure out costs, write notes about the trip and so on. It seemed like a product that would go somewhere. We dug into the travel and entertainment industry and found it was the biggest in the world Q 12 percent of the world economy.
WW: What do affiliates get from joining VTN?
Poole: We have an ongoing commitment to integrating new tools. We're providing an ongoing relationship, shipping new technology and tools much as a television network ships new programming daily.
WW: So will all the VTN sites be identical as far as their look and feel?
Poole: The directories will have a common feel. Cars all have a similar feel, but the look might be completely different.
WW: Will vivid derive ongoing transactional revenues from the activities at the affiliate sites?
Poole: No. At this point, those kinds of revenue splits are too complex to handle.
WW: How many affiliates have you signed up to date? What's the goal?
Poole: Since April we have one affiliate in Europe, and we're negotiating with 25 or so others around the world. We're talking to telephone companies, media companies and Internet development companies. In the U.S., we're mostly talking to telephone companies and media companies. We're looking at a couple of affiliates on every continent, looking to get 20 over the year.
WW: Can you share the names of these outfits?
Poole: We haven't announced any.
WW: Are relationships with service providers, car rental companies, airlines or travel ticketing providers in the cards?
Poole: We don't want to get too close with them because the first [alliance] could stop others.
WW: From a programmatic standpoint, how are the vivid tools helping with the VTN effort?
Poole: One of the characteristics of our publishing system [Release 1.0 of the VTN Toolkit was released early this month] is that it works in 25 languages. You author in one language, and it does translation, depending, for instance, on the domain of the incoming user.
WW: Throw a stick and you'll hit a Web design shop. What's vivid's distinguishing characteristic?
Poole: One of our biggest assets is our methodology. It's derived from "Multimedia Demystified" concepts [vivid's 1993 how-to guide for multimedia developers]. We have written up a ton of specifications for coding, flow-charting, testing and HTML building. It allows us and our affiliates to move very quickly. I don't know of another design shop that has a similar methodology.
WW: Every Internet company seems on the brink of a public offering. Will vivid have an IPO?
Poole: Our multi-year business plan is not to go public. We want a big network of independent VTN affiliates around the world.
WW: What will be the revenue split between vivid's design work for others and VTN?
Poole: Probably a 50-50 split. VTN is a client of vivid studios.
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