Matt Matros knows a thing or two about consumer brands. He sold his popular restaurant chain Protein Bar to L Catterton in 2013, and his caffeinated sparkling water brand Limitless to Keurig Dr Pepper just last year.
But with his latest venture, inspiration struck while he was shopping last year for a baby stroller before the arrival of his first child. It was mid-pandemic and Buy Buy Baby was closed, so test driving a stroller wasn't an option. Images on brand websites were fine, but didn't tell the whole story. YouTube reviews weren't cutting it either.
"I found that the best source of information for which stroller to buy for our family came from just watching people in the park on a Saturday in Chicago," Matros told me.
The experience led him to start Shopflix, Matros's latest venture that's aiming to be a 24/7 video streaming network where brands can tell their stories, and where shoppers can see high-quality demos of products they want to buy. Shopflix creates video content for brands in its production studio in Chicago, using a video team and writers who've worked on Hollywood productions like Rick and Morty and Boss Baby. It works with influencers who host regular segments that focus on products, founders or a specific retail category.
It started as a mix of "QVC meets Peloton meets Netflix," Matros explained. The QVC element being demonstration shopping, Peloton for the ability to follow specific hosts and tune in when they're live, and Netflix for its catalogue of content. But ultimately, the business is a storytelling platform, Matros said, not unlike HGTV or the Food Network, where content comes first and commerce comes second.
"We want it to feel like you’re watching television," he said. "We want it to be a release, an escape. Just turn it on whenever you want."
The startup officially launched on Wednesday. Matros tapped Lindsey Kilbride, one of the first 10 employees at Trunk Club, who most recently led sales strategy at 11Honore and Matilda Jane, as a co-founder. Shopflix has raised $1.7 million in capital from Chicago Ventures, Chingona Ventures, Network Ventures, Chicago marijuana entrepreneur Pete Kadens and Caterpillar executive David Martin.
With Facebook and Instagram becoming an increasingly crowded place to compete for shoppers' attention, Shopflix is providing a completely new avenue for a brand to tell their story, Kilbride said.
"I grew up shopping at the mall and now I shop on Instagram. My experience with consumerism is very transactional right now. And I miss that experience," she said. "This is a new way for these brands to have their stories told and to have them told on their terms."
Shopflix offers three different types of programming: long-form product demonstrations that last 20 to 25 minutes, shorter programs that run 5 to15 minutes, and "pops" that last less than two minutes. Its content, which is made entirely in-house, lives on its website and app but is also distributed on YouTube, Instagram and Facebook, with plans to eventually stream on connected TVs, Matros said. Brands like Yeti and Kitchen Aide are currently using the platform.
Shopflix makes money by charging brands to be featured, though not all brands pay to be part of Shopflix, Matros said. The company also takes a cut of the sales that take place on the Shopflix platform.
Despite being a serial Chicago entrepreneur, Matros wasn't sure if he would launch Shopflix in the Windy City. He contemplated Austin, Nashville, and of course Los Angeles, which is home to the production talent needed to fuel the business. But he opted to stay in Chicago given its growing film production industry.
"Most Chicago companies compete with Silicon Valley from a tech perspective. We’re a Chicago company that’s competing with Hollywood," he said. "Chicago is a good market for this."
