Media Information

Overview

BetTube is a website for betting on viral YouTube videos. It is the best place to watch and bet on upcoming videos before they go viral. Users can bet that a video will go viral within the next 12 hours. BetTube aggregates all bets into a chart of videos that are likely to go viral in the near future.

To make it easy to find videos to bet on, BetTube features data visualisations which allow users to spot trending videos early. In this way BetTube is not only for gamblers - its also great place to watch videos that are about to go viral.

Currently, BetTube allows play money gambling, real money gambling will be enabled in the future. Users can sign up for free and start gambling right away.

The Rules of the Game

Users can bet on any YouTube video will go viral within the next 12 hours. All user submitted videos are ranked in a chart according to the number of views that a video has received within the last hour. If a video makes it into the top 10 of that chart within 12 hours of the bet, the player that bet on the video wins.

Like in sports betting, we compute odds for each videos that determine how much a user can win if he/she bets on it. A user will win more if he/she bets on a brand new video and less if the video is already ranked quite highly in the chart.

The Company

Photo of Clemens Ley

BetTube launched it's alpha version at the Lauch Festival in San Francisco in March 2013. Since then users have placed tens of thousands of bets. The company was founded in Munich, Germany by Clemens Ley. Prior to working on BetTube, Clemens graduated from Oxford University with a PhD in Computer Science.

The Business Model

BetTube will provide in-app-purchases, for example BetTube will sell play money for real money. A second revenue stream will come from premium features. An example would be private betting rounds in which users are competing against their friends or colleagues, wherease in the free version users compete against randomly selected players.

Once real money gambling is enabled, BetTube will make money in the same way that casinos make money from poker tournaments today: BetTube will keep a small amount of money from every pot played.

The Competition

The concept of BetTube bears similarities to social bookmarking sites like Reddit or Digg. In contrast to BetTube, a video is featured highly on these sites if their respective community likes the video right now. On the other hand, a video is featured highly on BetTube if the YouTube community (which has a much broader audience) will like it in the future. Being based on predictions, we will be able to feature videos before they appear on other sites.

Prediction markets like iPredict or IEM allow users to make bets on future events. However, none of these sites are specialized on video content. BetTube can optimize its user interface to leverage the excitement associated with videos.

Finally, there are numerous online casinos. These concentrate on classic casino games and sports betting, and do not allow users to bet on videos.

The Market

BetTube is working at the intersection of two fast growing markets - online video and online gambling. In the following, we give a short overview over these markets.

Online Video

With over 1 Billion monthly unique visitors, YouTube is the third most visited website worldwide. 72 hours of video are uploaded to YouTube every minute, and this number has doubled in less than three years. In 2011, YouTube had more than 1 trillion views or around 140 views for every person on Earth [1].

Online Gambling

The online gambling market has been growing by an annual average of 18% since 2010 [2] and the online gambling industry had a net worth of $30 Billion in 2012 [3]. With online gambling becoming legal in parts of the US and other countries, this number will surely increase further in the years to come [4, 5].

The Amazing Growth Of Online Gambling
[Source]

Media Coverage

Contact

Clemens Ley
clemens@bettube.co
+49 179 47 90 434

Sources

[1] YouTube Press Statistics
[2] Online Gambling Quarterly Report Q3 2013
[3] Analyzing the Global Online Gambling Industry
[4] KPMG: Online Gambling - A Gamble or a Sure Bet?
[5] New York Times: Tech Industry Sets Its Sights on Gambling

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