Notes
Slide Show
Outline
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Media-Screens Network
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What is the Media-Screens Network?
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What is Different About Media-Screens?
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It’s Becoming Increasingly Difficult to Effectively Reach Advertisers’ Desired Audience Using Traditional Means
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FACT:
During Key Business Hours
America is Out-of-Home...
  • Working, Commuting, Shopping, Traveling, Walking, Visiting, Coming and Going.


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Opportunity
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Opportunity – Converging Trends
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Objectives
  • Create a Distribution Platform Which:
    • Continuously Reaches Business Audiences
    • Integrates Broadcast Quality Video, Interactive Information on Demand and Traditional Advertising Messages in a Unique, Flexible & Programmable Platform
  • Develop and Deliver an Annuity-based Business Model To:
    • Generate Ongoing Revenues for 5-20 Years
    • Permit for Seamless Scalability, Connectivity and Interoperability With Each Location
  • Build the Premiere Knowledge Center for Connectivity to the B2B and Business-to-Targeted-Consumer Marketplaces
  • Design a Distribution Model Which:
    • Is Easily Upgradeable
    • Can Be Maintained Via a Central Location
    • Is Modular to Meet Customizable Configurations
  • Provide Multiple Applications
  • Target Vertical Markets
  • Address Both Internal As Well As External Audiences
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Office Buildings & Business Districts
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US Office Buildings
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Building Owner Value Proposition
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Advertising Market Outlook
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Prospective Advertisers List
  • Media Screens will Attract a Variety of
  • National & Regional Business-to-Business-Professional Advertisers
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Investment Highlights
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Significant Developments
  • Recent Accomplishments
    • Completion of Private Placement Memorandum, Business Plan, and Financial Model
    • Assembly of Core Management Team


  • Major Accomplishments
    • Development Over 3 Years:
      • $200,000 Cash Invested
      • $2,000,000 of Intellectual Property Development
    • Beta Version Platform Fully-functional
    • Letters-of-Intent from Building Owner/Operators
    • Letters-of-Intent from Advertisers and Media Brokers
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Phased Rollout
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Experienced Management Team
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Sales & Marketing Strategy
  • Ad Sales
    • Hybrid Strategy Using Both
      • Existing Independent Advertising Sales Representative Agencies
        • Leverages Existing Relationships and Scale
      • Direct Corporate Sales
  • Site Development
    • Leverage High-level Relationships in Each Target City
    • Independent Contractor Relationships for Initial Site Development
    • Local Company Personnel for Ongoing Relationship With Properties
  • Marketing
    • Strong Marketing and Sales Collateral to Support Independent Reps.
    • Customer-Centric, Continuous Improvement, Measurement
    • Research:  Psychographics, Demographics & Target Markets
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Technology
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The Financial Model
  • Simple
    • Capital Expenditure Cost Structure is Straightforward
    • Advertising Revenue Driven
    • 3-Phase Rollout
  • Conservative
    • Ad Rates Set by Industry Experts and Well Within the Norm
    • Large Price Drop (60%) Between Tiers 1 and 3
    • 75% of Platforms Assigned to Tiers 2 and 3
    • Heavy Revenue Discount (53%) During Initial 12 Month Seasoning Period for All Tiers
  • Powerful
    • Strong Positive Cash Flow and Net Income
    • Attractive IRR


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Revenue Model  (1 of 2)
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Revenue Model  (2 of  2)
  • A “Seasoning Process” Computation Discounts Revenue During the Initial 12 Months of Each Screen Installation
    • First Six Month Revenues Are Discounted 50%
    • Second Six Month Revenues Are Discounted 30%
  • Seasoning Accounts For:
    • Introductory Discounting & Promotions
    • Media Buying Scheduling
    • Installation Time
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Financial Results
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Proposed Investment
  • Financing Requirements Are Framed By:
    • $3 Million Investment Gets Us 85 Screen Installations
    • $9 Million Investment Gets Us up to 300 Screen Installations
    • Another $4million Allows Us to Bootstrap to 3000 Screens Over Three Years.
  • Discussions with strategic partners may have equity implications:
    • Real Estate Owners/operators
    • Large National Advertisers
    • Vendors of hardware, software, bandwidth and Content
    • Leasing of Hardware
    • Possible International Distribution and Licensing
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Next Steps
  • Discussion
  • Open Issue List
  • Next Meeting Date