Post on 29-Jan-2016
CONFIDENTIAL
Digital Services and DistributionAcquisition Strategy: Selected Company Profiles
November 28, 2006
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Break.com
Content OfferingContent Offering
• Online entertainment network and community powered by traditional user-generated content
• Content base skews heavily toward 15-35 year old male-oriented humor, sports and other categories
• Majority of the content is original and created by users specifically for Break.com (Break owns much of its content. Takes an exclusive license to content it doesn’t own)
• Pays $250/ video for videos it wants to feature, incentivizing users to create high-quality videos
PartnershipsPartnerships
Strategic ProfileStrategic Profile
• Established in 1998 as, a video-sharing site
• Purchased in May 2004 by Keith Richman, co-founder of Billpoint
• 100% owned by Richman and a few business partners – has never taken any venture financing
• Generate revenue through custom advertising deals, PPC content plugs, banners and text links
• Based in Beverly Hills, CA with 33 employees
• Leverages AdBrite to sell its banner and text ads
• Established partnerhsip with Amp’d Mobile in Nov. 2005 to distribute videos through mobile, charging $2.99/ month for unlimited access
User MetricsUser Metrics
2.6 2.53.5
2.6 2.9 3.3
Jul-06 Aug-06 Sep-06
MM NR
Web page views (MM)
Time/ person(min.)
141.2 189.2 135.4
16.1 21.5 15.3
Internal Break.com sources estimate global uniques of approx 14.7MM.
Unique Users (MM)Note:
estimated to generate ~100MM streams/ month
Source: Nielsen//NetRating used for page view, time data, AdBrite; BambiBlogs.com; Break.com; Multichannel News; Amp’d Mobile; PureVideo; ComScore Video Matrix
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Break.com
Advertising:
• Banner ads – no pre-rolls or text
Content
• User-generated
• Share it with friends (viae-mail)
• Embed & blog it
Interactivity:
• Promote to home page
• Rate It
• Recommend
• Comment
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ROO Group Business Overview
Content (100+ Partners) Sites
Advertisers
Entertainment
News
Lifestyle and Family
200+ Partner Sites
Owned and Managed
Ingestion Engine
Ad Network and Insertion
Program Channels
Video Player
Licensing fees, payment-per-stream
and ad revenue share
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ROO Group, Inc. (NASDAQ: RGRP)
Technology and Service OverviewTechnology and Service Overview
Core Services provided include:
• ROO Video Solutions - Customized video solutions for specific customers or industry segments; platform accommodates video broadcast over the Internet and to emerging technologies such as wireless devices and set top boxes
• ROO Syndication of Licensed Video Content - Provides a turnkey, global solution for customers to incorporate licensed, topical, programmed video channels into their web sites
• Current customers for this service include Verizon in the United States, Bulldog Broadband in the United Kingdom and News Interactive a subsidiary of News Corp
• ROO’s Online Advertising Network - Through syndication clients, ROO has developed a network of web sites across which the company can sell advertising inventory
• Advertising includes traditional banner ads and television-style 15 second and 30 second commercials, which can be programmed to play before and after video clips that are targeted toward advertisers' chosen demographic
• Syndication clients receive a percentage of the advertising revenue generated on their websites
• Recent advertisers include Microsoft, Apple, Honda, Hyundai, Target, Proctor & Gamble and Pfizer
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ROO Group Video Stream Comparison
Roo Group Inc. 5,841 186 31.3
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8.3 7.5 6.8
3.0 3.5 2.7
Jul-06 Aug-06 Sep-06
MM NR
Heavy.com
Content OfferingContent Offering
• Broadband entertainment network focused on providing high-quality content
• Content base skews toward 18-34 year old male-oriented humor and racy categories
• Takes full and exclusive ownership of a range of content (mix of video, animation, and games) created by Heavy and/or its partners, e.g., NBC delivered through distinct channels
• Generates revenue through banner ads, pre-rolls, and branded production, e.g., Burger King videos
PartnershipsPartnerships
Strategic ProfileStrategic Profile
• Established in 1999 as a P2P digital content sharing site by Simon Asaad & David Carson
• Polaris venture capital holds a 25% stake in Heavy; Polaris lead a $10MM round in January 2006
• Expected to generate ~$20MM adv. revenues in 2006, a 300% increase over 2005
• Ad sales and marketing conducted internally
• Based in New York, NY with 20 employees
• Recently announced partnership with TiVo to provide content for TiVo’s VoD service
• Established partnership with Verizon Wireless in April 2006 and created a channel on V-Cast subscription mobile offering
• Parnter with Sony PSP, video iPod, and Virgin Mobile to distribute non-wireless mobile content
User MetricsUser Metrics
Web page views (MM)
Time/ person(min.)
9.3 10.4 6.6
1.5 1.2 1.0
Unique Users (MM)Note:
estimated to
generate 80-90MM streams/ month
Source: Nielsen//NetRating used for page view, time data, Heavy.com; Multichannel News; PureVideo; ComScore Video Matrix; paidContent.org; FT.com; VCMike’s Blog
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Heavy.com
Advertising:
• Banner ads
• Pre-rolls
Content sharing:
• Heavy/ partner produced channels
• Share it with friends (via e-mail)
• Blog it
Interactivity:
• Rate It
• Comment