Ray J’s foray into streaming media
Ray J, well-known in the entertainment sector, has unveiled a fresh streaming service named Tronix. He sat down with TheStreet to share his entrepreneurial journey, offer insights to creators, and explain how his network integrates into the broader streaming landscape.
CONWAY GITTENS: So, Ray J, entrepreneur, music producer, social media royalty, we can say. Thanks for joining us at TheStreet.
RAY J: Thanks, man. I’m truly honored. It’s exhilarating. This is what it’s all about. You toil away, and then you arrive at this iconic place that you’ve seen on screens, and now you’re here. Wow, God is amazing.
CONWAY GITTENS: Now, regarding the Tronix network, you’re in charge as CEO, operating a streaming service that’s nearly three months old. How do you feel about the streaming media industry?
RAY J: This is the place to be, especially for us, as we cater to an audience for whom we strive to create top-notch content. We’re in our unique space. Importantly, I prefer to view myself as the founder rather than the CEO. My ambition is to identify the right CEO, CFO, COO, and particularly, CMO. We’re in the early stages, but I aim to enhance it for about six to eight months before making key hires, as this is essential for establishing a solid framework.
CONWAY GITTENS: Why streaming media, though? The media industry isn’t thriving currently, with cable viewership declining and numerous streamers vying for supremacy. So why enter this sector?
RAY J: It suits us well because I wouldn’t label our content as conventional; I’d describe it as high, high drama. The term “ratchet” perfectly defines what we’re offering. There are only a handful of people who take pride in this genre that we produce. We’re already on our own path and just need to maintain consistency. If we ever choose to transition into what the larger streaming services are doing, then we might delve into scripted content and high-budget films. But for now, we’re fully immersed in this vibrant reality genre.
CONWAY GITTENS: For those unfamiliar, what does “ratchet” mean?
RAY J: It’s loud, dramatic, and over-the-top. There’s constant drama. However, our programs include a narrative arc that ultimately leads to a positive or thought-provoking conclusion. I believe that’s what sets us apart from others in the same space. Tronix values talent because I see myself as a reality star, reflecting on my experiences, and I’ve vowed that once we control our destiny, we’ll make it different, enjoyable, and ensure everyone working with us enjoys the benefits at the end. You know what they say, the best deals happen on the back end.
CONWAY GITTENS: How do you assess the back end? Content once reigned supreme, but now with so many streams, how is your content acquisition process? Are you finding the material you desire?
RAY J: Absolutely, we’re developing the content ourselves from the ground up, along with our partners at Viacom. I have huge respect for BET and VH1. I’m still engaged with traditional networks, and our expertise far exceeds that, allowing us to be bolder with streaming. You get it raw and unfiltered. No one does TV like us.
CONWAY GITTENS: Tronix is priced at $5.99 a month or $4.99 a month. Does it make sense to be included in a bundle? There’s talk of partnerships between streamers. Given your audience, would bundling be logical, and what would you seek in a partner?
RAY J: My vision is entirely self-funded, which is daunting since it means investing all your resources and waiting for returns, something that takes time. The larger goal for me across all streaming platforms is to provide a home for everyone at the pinnacle of reality. If everyone has their own niche and network tailored to their fans, then you can bundle the whole package together, right? It’s about creating individual networks from scratch.
CONWAY GITTENS: What does success look like for you? Streamers are infamous for withholding subscriber data.
RAY J: It’s intriguing that those who do so might be concealing their financial issues, right? We’re nearing 20,000 subscribers in just three months, all of whom are loyal supporters. With our new backend system and forthcoming deals, we anticipate significant growth. I’m very transparent with my partners. It’s not about profiting from others’ struggles; it’s about merging our drama, working collaboratively, and ensuring mutual success.
Guidance for aspiring entrepreneurs and creators
CONWAY GITTENS: Beyond being a reality figure, you’re also an entrepreneur, having launched several tech gadgets. How does your tech experience inform your current streaming ventures?
RAY J: My tech journey began a decade ago with Scooty bikes, which was a substantial risk since the wholesale price was high, and I distributed 300-400 bikes to prominent celebrities through our marketing strategies, which was effective. Fast forward to Raycon, and I want to acknowledge Ray Lee and Mr. Lee for their guidance. They taught me about pricing and market positioning, contrasting high-end items like an Apple computer priced at $2,000 with products like the scooter at $200. We adapted our offerings for our demographic with earbuds priced at $79.99. I was schooled on performance marketing by our Hong Kong CMO, and now we’re in a place where I don’t have to handle hardware anymore. All my shares are returned to the company. I’m grateful to Raycon for allowing me to delve into my passions. Having been successful with those two companies, I’m now turning my focus to content, where logistics like shipping aren’t a concern. Building a community and producing content is where I thrive, and I’m thrilled to be fully engaged in that now.
CONWAY GITTENS: You manage multiple tasks, right? In terms of productivity, how do you keep everything balanced and ensure you achieve your goals?
RAY J: It’s challenging. I’m particularly hands-on. As you can see, we’ve been at it since 6:00 AM, and the air conditioning is running, yet I’m still sweating. The foundational work involved in building this company is unparalleled, but we love it. It can be overwhelming at times. My mother supports me. I have a strong team and a dedicated business manager. We just push through the challenges together. Not every moment is ideal, especially starting this company right after selling my shares—we launched the following week and I haven’t even taken a holiday. We’re exhausted but grateful to be here. I believe that once we overcome the initial hurdles, we’ll see positive results. I can’t precisely define success because I don’t celebrate victories; I just believe in continuous progression—that’s our principle.
CONWAY GITTENS: What strategies do you recommend for those overwhelmed by business demands? You’re navigating numerous meetings and calls. For those aspiring entrepreneurs watching, what advice can you offer when things feel too heavy?
RAY J: Take a break. Disconnect for a day, turn off your phone, meditate or chant to regain your focus. You can either quit or persevere. I’ve invested millions of my own funds, perhaps I’m overexerting myself—but I like to think that if we’re sweating, it means we’re working hard enough.
CONWAY GITTENS: What fuels your drive and entrepreneurial spirit?
RAY J: I believe it stems from a necessity to survive. We have exceptional marketing strategies; if we promote something, I’m confident we’ll meet our targets. We aim to under-promise and overdeliver, and we continually push through difficulties. This past year has been tough in terms of our time and investment into this project, but we’re here. We’ve made it to the top. Shout out to my mom—top of the world.
CONWAY GITTENS: What qualities do you think define a great business leader, and what makes you an exemplary leader?
RAY J: Patience is essential. There will be emotions, feelings of burnout, and conversations about compensation. It’s vital to listen to your team, making sure they feel valued and fostering an atmosphere of fun. Enjoyment is integral to our success, and even when issues arise, maintaining a sense of fun is crucial.
CONWAY GITTENS: Can you highlight the similarities and differences between Raycon and Tronix?
RAY J: Raycon focuses on streaming as opposed to hardware, and it’s expanding into home products now. I appreciate how we strategize and plan several years ahead, while with streaming, it’s more of a real-time operation. As long as we deliver stellar content, our audience will follow. We intend to bring over three million fans from the other platforms we assisted at VH1. My ultimate ambition is for Tronix to become the go-to hub for Viacom’s diverse production needs, adapting to whatever genre they wish to explore.
CONWAY GITTENS: In this landscape of social media influencers and brand creators, what advice would you offer to those seeking to establish their brands? How do you differentiate yourself?
RAY J: Observing influencers and brand creators, many are reliant on advertising revenue, creating content without a clear expectation of their earnings, often unsure if it’ll amount to $100,000 or $2,000. This uncertainty hampers their growth. If they shifted their focus to a subscription model where they charge their community a small fee to access their world, they could establish long-term relationships with their subscribers, whether through utility coins or seasonal engagements. It’s all about nurturing the subscriber base, and I think that should be their primary focus.
