MARINA DEL REY, Calif.-David Bell has quite a resume.
He founded his own company in 1997 in his basement. He helped evolve the company from a mostly hardware-focused business into a software and content developer focusing on a niche market. Three months ago, Bell secured seed capital to push forward with his business plan.
Oh, and he’s 17 years old.
The high school senior’s company is focused on marketing interactive content and services to teens, and he has some advice for wireless carriers trying to target the teenage market.
“I firmly believe in the wireless revolution. But when it comes to teens, it’s not being done the right way,” he said last week at the Lucent Technologies-sponsored Global Wireless Multimedia Forum. The event brought together companies interested in the mobile digital space for networking and educational opportunities.
One of the event presenters, Bell is chief executive officer of Chasma Inc., a 30-employee company that employs only teens. He says that is why his company knows what teen-agers want.
Bell describes wireless devices as the “ultimate level of freedom” and discusses philosophical mobile issues like a seasoned veteran. But if he worked for a U.S. wireless operator, he would do things a little differently when it comes to the $116 billion teenage market.
He’d sell a cell phone prepackaged with services targeted at teens. He’d include a gaming option that would allow kids to play interactive games with other kids around the country. He’d offer content developed by teens for teens. And he’d open up the wireless device so it could connect to a Nintendo console, for example. He describes it as integrating a cell phone, teen-targeted information and a Gameboy.
And he’d price it in a teen-friendly way. Think prepaid. Or a flat monthly fee with an extra $5 for an interactive gaming option.
Like a true marketing executive, he’s quick to note that any carriers interested in marketing to teens, should seek out his services. Bell expects 25 percent to 30 percent of Chasma’s future revenues to come from consulting companies on the best way to sell services to teens.
Other revenue sources for Chasma will include licensing content. Two-thirds of the company’s staff is focused on developing teen news and other information. He chides other well-known teen products and services like MTV and Seventeen magazine for their adult-developed content that patronizes teens and dictates interests rather than allowing teen-agers to develop their own content and “to make decisions for themselves.”
Chasma is also developing multiplayer games and software that it can license and distribute. Advertising and product sponsorship will be additional funding sources. The company plans to launch a portal within the next few months. It will use the .cc Web domain instead of the more commonly known .com and hopes an entire teen online marketing community develops within the .cc domain.
Wireless is a big target for Chasma’s content, because Bell notes that most teen-agers don’t have $2,000 to buy a PC, but they could afford a handheld wireless device. He sees a huge future potential in mobile streaming video and audio.
Bell notes the connection for users of Chasma’s services must reach an emotional level to achieve success and calls his company a “cultural revolution,” not a business.
Bell formed Dark Knight Games in 1997 at the ripe age of 15. Dark Knight Games originally developed software and hardware for the interactive entertainment industry, such as a flight joystick for Atari electronic games. Dark Knight Games has evolved into a division of Chasma, with a focus on developing software “with the goal of creating a new experience for teens on the Internet,” the company said.
Satu Toivonen, head of new media for Finland’s National Technology Agency, notes that teens drove the explosive growth of wireless use in Finland. Most teenagers in Finland use wireless service to send short message service text messages, with wireless phones representing fashion and social tools.
“American operators are missing an amazing business opportunity on a silver platter in front of them,” she said.
The non-profit agency she works for is looking to match Finnish wireless companies with mutually beneficial U.S. counterparts.
Numerous companies at the Lucent forum, which along with Bell included speakers from Sony Pictures Entertainment, CNBC and Walt Disney World, were focused on the youth market. Steve Beck, head of research and development for 4 Kids Entertainment Co. is looking into porting a soon-to-be released animated series for kids, Cubix, to a wireless medium. The company’s Wee division also develops wireless entertainment for kids ages 3 to 18. He also noted a service called Date Mate that helps kids of all ages-even those in their 50s or 60s-find dates, which could be ported to wireless devices.
Meanwhile, Bell is busy looking for second-round financing and partners for Chasma and readying for product launches. College plans most likely will wait because he wants to “see Chasma through.” And he only has a few years left to capitalize on being a teenager.
