gm lions!
I made a relatively important investment in my business today, and I'd like to tell you a little bit about it, what motivated to make that decision, and I what I expect as return on my investment (ROI)
Today I purchased a Blackmagic ATEM Extreme ISO.
What does a switcher do?
In essence, a switcher is a device that allows to (as the name implies) plug in several different video sources like cameras and computers and live-switch between those sources with the press of a button while streaming to platforms such as Twitch, YouTube, Facebook Live or VIMM.
Diagram from blackmagicdesign.com
You can also do other fancy editing on the fly like inserting graphic overlays, picture-in-picture and side-by-side shots.
This is very useful for gamers that want different camera angles and even the screen with the game they are playing.
Why I decided to invest in a switcher
One of the main reasons clients come to our studio is to record podcasts. We offer professional, high-definition cameras that record in 4K, a selection of prime lenses, up to four Shure SM7B microphones that look and sound awesome and for a fee, we also give the client the option to build a custom podcasting set.
Our naked recording stages look something like this:
It has sound panels on the wall and ceiling, and some basic props like shelves, coffee tables, screens and of course chairs to sit on.
This is an example of a podcast we recorded with some fellow Hiveans not too long ago:
But if a client wants a custom stage and has the budget for it, we can build them a custom backdrop, neon signs and whatever custom props and furniture that their hearts desire.
Here is our set designer bringing in an all black backdrop. They were very careful not to scratch the floors or bump into walls while they put it together.
The client also requested a neon sign, so here they are testing the right height so that it looks good from the center camera.
This is what the finished set looks like. It's a podcast for a large ATM and payment processing company in the region. It's minimalist, but it's exactly what they requested.
Back to the switcher.
Before the switcher, recording with multiple cameras meant we had to download 3 or 4 SD cards to the main editing computer, synchronize all the video files with the audio files and manually make each cut to each speaker. As you can imagine , it's a time-consuming process.
With this particular switcher, you can record up to 8 cameras and switch live between them. The switcher also records the program output to an SSD drive and the "ISO" in the name stand for isolation footage, which means it also records each individual camera's feed separately for later editing if required.
image source: blackmagicdesign.com
This means that we can now edit faster and offer two tiers of service:
Tier 1: live switching takes ($100 per hour)
We pretty much deliver the recording as is with the camera cuts that were done live during the recording. Camera cuts are pretty basic.
You focus on the host when he/she asks a question and then switch to the guest when they answer.
Tier 2: Medium to heavy editing ($150 per hour)
For this service, we go into the session and cut out dead silence, choose different camera cuts, retakes, add lower thirds with the name of the guests, add intro video & music.
With this new streamlined process we can also book more podcast sessions per day and let's be honest, it looks pretty damn professional, doesn't it?
The switcher cost us $1,200 and the above client has already signed a contract for the production of one season consisting of 12 fully edited podcast episodes. That's $1,800 in revenue from a single client. Did the investment pay for itself? I would say yes.
What percentage of revenue comes from video podcasting?
At the moment, video podcasting represents about 20% of the studio's revenue. The new, streamlined workflow that the Atem mini Extreme ISO gives us will boost it to 30% of our monthly revenue. Our goal for 2024 is to book three sessions per day, 3 times a week. This will allow us to also offer two of the studio's main service offerings:
- Audio and video work for agencies (46% of revenue)
- Content creation for brands (11% of revenue)
Music production for bands and rehearsals is down to 10% of the studio's revenue and is mostly done as a hobby for me at this point. As much as I love it, it's just not a huge source of income for the studio.
I might pick up more remote mixing sessions if the price is right, but for 2024, I'm focusing on the above services for high paying clients.
