What’s It Worth?
Back in 2017 a paper on the use of AI in video generation written by two computer science professors spurred two European entrepreneurs two form Synthesia (pvt), a company that began operation with a AI dubbing tool that used computer vision to create natural mouth movements that could be adapted to a variety of languages. While the Ai dubbing tool generated sales, the company shifted gears in 2020 toward video creation. The video tools they have developed are based on the concept that a 16-year old should be able to create a Hollywood level video using only a device in his or her bedroom. Considering the cost of a short (1-2 min.) video can run anywhere from $1,000 to $10,000 depending on resources and quality, that was a tall order.
The company used the same computer vision system to create ~159 avatars that could be placed in templates with the ability to easily change features, such as style, skin color, gender, age, etc., all on a smartphone or laptop. Given the previous focus on voice, the avatars can take the user’s script and can ‘perform’ that script with accurate and realistic mouth movements and facial expressions, and a synthetic voice. But it does not stop there. If the user is willing to record 5 to 10 minutes of audio, using text script provided by the company, the AI can clone your voice and transfer it to the avatar in over 140 languages. The system can generate a video from a pdf, a PowerPoint presentation, or even a website, all on a laptop or phone, and the most recent version gives the user the ability to edit the video, match a screenshot, zoom, or transcribe voiceovers, so they seem to have realized their goal.
Synthesia says they have over 200,000 users, ranging from individuals to companies like Dupont (DD), Heineken (HEIA.NL), and Reuters (TRI), most of whom use the application to create inexpensive training videos. Heineken used the service to create videos that trained employees in the basic concepts of continuous improvement, replacing PowerPoint presentations that were uninspiring. Given that Heineken has over 90,000 employees in 170 countries, the cost of producing even simple videos in each language was enormous. Using the Synthesia application, it took only a few minutes to duplicate the videos into any language.
The company used the same computer vision system to create ~159 avatars that could be placed in templates with the ability to easily change features, such as style, skin color, gender, age, etc., all on a smartphone or laptop. Given the previous focus on voice, the avatars can take the user’s script and can ‘perform’ that script with accurate and realistic mouth movements and facial expressions, and a synthetic voice. But it does not stop there. If the user is willing to record 5 to 10 minutes of audio, using text script provided by the company, the AI can clone your voice and transfer it to the avatar in over 140 languages. The system can generate a video from a pdf, a PowerPoint presentation, or even a website, all on a laptop or phone, and the most recent version gives the user the ability to edit the video, match a screenshot, zoom, or transcribe voiceovers, so they seem to have realized their goal.
Synthesia says they have over 200,000 users, ranging from individuals to companies like Dupont (DD), Heineken (HEIA.NL), and Reuters (TRI), most of whom use the application to create inexpensive training videos. Heineken used the service to create videos that trained employees in the basic concepts of continuous improvement, replacing PowerPoint presentations that were uninspiring. Given that Heineken has over 90,000 employees in 170 countries, the cost of producing even simple videos in each language was enormous. Using the Synthesia application, it took only a few minutes to duplicate the videos into any language.
Figure 1 - Synthesia Avatar Examples – Source: Synthesia
The original concept of low-cost, easy to use video creation comes with three price tiers, a free (trial) that allows 3 minutes of video to be created but does not allow it to be downloaded, the Starter tier, for $18/month, that allows for 120 minutes of video creation and does allow downloading, and the creator/business tier, for $64/month that allows for 360 minutes of video and all the bells and whistles. That said, should one search the internet for Synthesia, a number of competitors show up that provide a similar service for a dollar or two more or less each month.
The competition has not stopped Synthesia from raising money as can be seen in the table below, and with Nvidia (NVDA) and Kleiner Perkins on the investor list, the company has VC credibility. While some say the valuation placed of AI application companies remains low (in comparison to the AI hardware space), Sythesia’s valuation at its Series C round was $1b and for it’s Series D round was $2.1b, making it the most valuable media AI company in the UK. While we do not know the details of Synthesia’s financials for 2024, we know that the generated ₤8.6m in sales in 2022 and ₤25.7m in 2023 and posted losses of ₤4.5m and ₤23.5m in those years. What’s it really worth?
The competition has not stopped Synthesia from raising money as can be seen in the table below, and with Nvidia (NVDA) and Kleiner Perkins on the investor list, the company has VC credibility. While some say the valuation placed of AI application companies remains low (in comparison to the AI hardware space), Sythesia’s valuation at its Series C round was $1b and for it’s Series D round was $2.1b, making it the most valuable media AI company in the UK. While we do not know the details of Synthesia’s financials for 2024, we know that the generated ₤8.6m in sales in 2022 and ₤25.7m in 2023 and posted losses of ₤4.5m and ₤23.5m in those years. What’s it really worth?
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