Business Plan Home Office Version - WikiLeaks UK/Animax_SVOD_UK_2012… · Business Plan Home...
Transcript of Business Plan Home Office Version - WikiLeaks UK/Animax_SVOD_UK_2012… · Business Plan Home...
ANIMAX DNA
POSITIONING:ANIMAX is the destination for the ultimate anime experience
ATTRIBUTES:... Loud... Colourful... Unconventional... Authentic... Cheeky
ANIMAX is a digital platform for the best in anime
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ANIMAX Target Audience
Primary: 18 - 29 years, Secondary: 15 - 45 years
ANIMAX VIEWERS
• Early adopters with relatively high discretionary income• Pop culture fanatics in search of what’s new…now• Multi-tasking consumers of cross-platform content • Aware of global trends and engaged in global issues • They want to watch TV on-line and on their mobile phones• They’re gamers and they own either a Play station or X-Box
Real time, multi-media consumption lies at the core of our viewers’ lifestyle.
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What you get with ANIMAX
ANIMAX features hit anime series, movies and exclusive materialsuch as behind-the-scenes interviews and music footage.
ANIMAX provides….
• Unlimited access to content
• Subscription = ad free
• Available on IOS, Android, and PS3 from launch, other connected devices in phase 2
• Simulcast – latest shows from Japan
ANIMAX strives to offer its devoted fan base dedicated content tailored to a dedicated platform. World-class production values and first look, high-profile titles.
+ +
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ANIMAX PROGRAM STRATEGY
ANIMAX aims to bring the whole world of anime to a much wider publicwith programming that includes:
• Box Sets – a catalog of complete full seasons• Movies (the competition doesn’t offer movies on their service)• Simulcast series from Japan• First they’ll air on anime-on-demand• Once we have the ANIMAX service they’ll air for 2 weeks in a free window and then move
to the pay window• ANIMAX Music concert (from Japan and Taiwan) • Anime Song Grand Prix (similar to Idol)• Studio Musix’s – each month follow a local artist• Behind the scenes interviews with anime creators (footage provided by ANIMAX Japan)
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ANIMAX - Simulcast Highlights
8-10 new titles every season available day and date with Japanese broadcast
Autumn simulcast titles highlights:
K Project (12 eps)There’s a ton of buzz on the internet as the storyline is shrouded in mystery around this brand-new original anime that will begin airing in October.
Psycho-Pass (24 eps)In the not-too-distant future, a special team of law enforcement officers enact justice based an persons state of mind.
Robotics;Notes (24 eps)Set in a world in the use of Augmented Reality technology is increasing, a group of AR fanatics unearth a sinister conspiracy that could shake the world’s foundations.
Jormungand (12 eps)An arms dealer and her young ward travel the world selling weapons while seeking vengeance for those that have wronged them.
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ANIMAX - Box Set Highlights
Death Note (37 eps)
• When a teenage boy unearths a mysterious notebook, he finds that it possess special powers that allows him to kill anyone he chooses.
• Manga has sold over 26 million copies in Japan.
• As well as the anime and manga, the franchise has been expanded as a live action film series and video game.
Vampire Knight (13 eps)
• When Yuki was a little girl she was attacked by one vampire but saved by another. A decade later, she becomes guardian of the vampire race.
• The Vampire Knight manga continues to be published in Japan.
• Like Death Note, the franchise has been expanded as a video game and radio serial.
Exclusive to ANIMAX!
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ANIMAX - Box Set Highlights
Bleach (366 eps)
• Possessing the power to see ghosts, a teenage boy and his friends use their gifts to solves mysteries involving the spirit world.
• Volumes of the manga have sold more than 72 million copies in Japan, and is one of the most sold mangas in the United States.
• The anime adaptation has been similarly received; it was rated as the fourth most popular anime television series in Japan in 2006 and held a position amongst the top ten anime in the United States from 2006 to 2008.
• In 2011, Bleach was ranked 8th for top selling manga in Japan.
Honey and Clover (26 eps) (EXCLUSIVE TO ANIMAX)
• The story of three college students and their hilarious adventures.
• A manga, live-action film, the series and video game make this a popular series among fans.
From Vampires to Samurai’s all the favourite and top genres are covered with over
Over 20 complete Box Sets at launch.
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ANIMAX CUSTOMER PROPOSITION SUMMARY
SimulcastCatalogue box setsMoviesExclusive behind the scenes/interviewsAnimax Music
Original language audioEnglish SubtitlingEnglish dubbing (boxsets)
No adverts
£5.99 per month14 day free trial
Simulcast (2 week window)
Original language audioEnglish Subtitling
Pre and mid roll adverts
No cost
Video Selection
Language
Video quality
Adverts
Costs
Devices
SD and HD SD only
Phase 1 - PC, iOS, Android, PS3/PS VitaPhase 2 – other connected devices
AD SUPPORTEDPREMIUM
Phase 1 - PC, iOS, Android, PS3/PS VitaPhase 2 – other connected devices
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TRANSITION STRATEGY: ANIME-ON-DEMAND TO ANIMAX
SUGGESTED OFFER BENEFITS
CURRENT AND PROSPECTIVE CUSTOMERS
EARLY ADOPTER DISCOUNTS (1 month before launch)
- 3 month season pass for the Anime-On-Demand price of £9.99 (~45% off Animax pricing).
- 1 year annual pass for the Anime-On-Demand price of £34.99 (~50% off Animax pricing).
- Early Adopter Discounts lock in the equivalent of almost 2 months or over 5 months of Animax revenue before the site even launches.
- Offers real cost benefit to users while shifting possible negative perceptions of the Animax price increases to a positive perception of Animax’s incentive promotion.
- Regular pricing will kick in as the default action once the promotional period ends. Studies show consumers will likely accept the new higher default pricing; “consumers favor the quick, easy, default choice supporting natural human inertia.”*
CURRENT CUSTOMERS(~500)
EXISTING SUBSCRIBER DISCOUNT
- 3 month season pass for 50% off Animax pricing (£2.99 per month).
For customers to positively embrace the transition to Animax, they need to see tangible benefits equal to or better than they were receiving with Anime-On-Demand. Efforts should be made to offset the Animax UK price increase.
*(a study by Eric J. Johnson, professor at Columbia; “Nudge” by Richard H. Thaler, economist at University of Chicago; “Predictably Irrational” by Dan Ariely, behavioral economist at Duke and MIT.)
ANIMAX Our Competition
Crunchyroll
£8.99/mo for full
subscription(£4.99 for
anime only)
N HD/SD >4000 Y Y 14 Day Sub only Y-Free
PC/ iOS/ Android/ Windows/ PS3 (not in
UK)/ Roku / Boxee/ WD TV Live/ Google TV/
Samsung & Vizio Smart TVs
Netflix £5.99/mo. N HD/SD>10,000(anime is
<100)Y N 30 Day Dub only N
PC/ iOS/ Android/ PS3/ Xbox/ Wii/ Roku/ Boxee/
Apple TV/ Google TV/ Smart TVs/ Blu-rays/
Tablets
Love Film £4.99/mo.£3.49/£2.49
HD/SD >7,500Y -
minimalN 30 Day Dub only N
PC/ iOS/ PS3/ Xbox/ Wii/ DS/ Tablets
Animax UK £5.99/mo. £0.99 HD/SD>600 at launch
Y Y 14 DaySub and
DubY-Free PC/ iOS/ Android/ PS3
Anime On Demand
£34.99/yr.£9.99/3 mo.
£1.5/wk.N HD/SD <200 Y Y 14 Day Sub only Y-Free PC/ iOS/ Android
SVOD TVOD Format# of
Titles Anime SimulcastFree Trial
Sub/Dub Ad Supported Platforms
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ANIMAX Launch Plan
•Full Animax service launches•Promotional catalogue episodes on Crackle
•Leverage linear branded block and Crackle to cross-promote and up-sell to premium service
•Transition existing Anime-On-Demand audience and subscribers to Animax (AOD then closes)
Month 1 of LaunchOctober
•Simulcast episodes only•Captures anime fans from start of new simulcast season
•Once Animax has been approved add pre-roll teaser “Brought to you by Animax” to each video
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ANIMAX Promotional Road Map
1 Month Pre-Launch Launch PC and PS3 Launch iOS and Android
Simulcast begins on Anime-On-Demand. Pre-roll will build up ANIMAX transition (i.e. “Brought to you by ANIMAX”). ANIMAX VOD service launches
on iOS and Android
Playstation newsletter to 4.5 mil subscribers to announce Animax launch and push the 14 Days Free offer.
Begin Google Adwords and Facebook Ad Campaign directing traffic to ANIMAX and pushing a 14 Days Free offer.
B2B trade release to announce launch of channel
Presence at conventions and film festivals (see next slide)
Start working with consumer trade-cheap ads or barter in anime mags about 14 Days Free offer.
ANIMAX block begins on SPT UK Channel
ANIMAX VOD service launches on PC and PS3
Promo message on Anime-On-Demand homepage and dedicated landing page; build anticipation, offer incentives, explain why/benefits/differences, etc.Email customers of upcoming change with Call-To-Action to learn more and sign-up for incentive programs.
Use social media to create buzz. Launch Animax Facebook page by taking over Anime-On-Demand and rebrand. Work with iOS and Android stores for
placement.
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ANIMAX PROMOTIONAL IDEAS FOR AFTER LAUNCH
PLAYSTATION• Quarterly newsletter and ads on playstation.com• UI promotional areas – what’s new when you turn on PlayStation
VIZ Media• DVD sleeves and inserts for all VIZ Media and other content partner titles (incl Funimation, Manga, MVM)
SONY Home Entertainment• ANIMAX logo is already on anime DVD’s – raise profile- promote 14 Days Free offer.
SOCIAL• eBlast/highlights to fans and anime press• Website banners promoting 14 Days Free offer.• Social (Facebook/Twitter/blogs) – hire somebody to write information about world of anime and our series on a
weekly basis
Facebook+Twitter/ANIMAX All Access Giveaway/ VIRAL - Promo Seeding • Referral-based. The user that introduces the most friends to the service will win a special, unlimited pass to the
service. Three month initiative. Syndicate trailers for programming highlights on YouTube, Facebook, Twitter. Offer to Anime Fansites
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• London MCM Expo
• Happens twice a year in April and October.
• Biggest Anime event in UK at the ExCeL Convention Centre, Royal Victoria Dock (Attendees: 125,000)
• Shared booth space with VIZ and SONY Playstation
• Alcon
• September 6-9, 2012
• De Montfort University Leicester, UK
• J-Con
• September 14-15, 2012 The Riverside Centre
• Derby, UK (Attendees: 1000)
• The Entertainment Media Show
• September 29-30, 2012 Olympia Grand Hall
• London, UK (Attendees: 25,000)
• Scotland Loves Animation
• Glasgow: 12-14
• October/Edinburgh: 19-21 October
ANIMAX EVENT PARTICIPATION
Anime fans love events and the UK has plenty of them. These are targeted to our consumers and a cost effective way to reach our audience
• Eirtakon• November 9-11, 2012 The Helix• Dublin, Ireland (Attendees: 1,550)
• Hyper Japan Christmas• November 23-25, 2012 Earls Court• London, UK (Attendees: 25,000)
• Midlands Anime and Manga Fan Event• December 8, 2012 Burton Town Hall• Burton-on-Trent, Staffordshire, UK
• We Love Animation
• Glasgow/Edinburgh/Leeds/Cardiff/Dublin/Belfast (Attendees >10,000)
• SunnyCon
• March 23-24, 2013 Seaburn Centre• Sunderland, UK (Attendees: 900)
Year One we’ll be trying to get new users at all events to sign up for our
14 Days Free offer.
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Identify gaps and potential delays to project completion.
Propose launch options and organizational enhancements.
OBJECTIVES
ORIGINAL PLAN REVISED PLAN
InexpensiveFollows Network’s marketing
product launch scenarios
Comparable cost to U.S. lead products, i.e. Crackle
Add small team dedicated to SVOD Product
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OVP OPTIONS AND BUILDING FOR THE FUTURE
Home Office already has in-house Product, Producer and Engineering experts to guide agency builds.–Experience implementing large scale
projects. Positions Home Office for future growth
of similar businesses. MPX is the superior platform for
implementation. The implementation complexity is currently unknown, but indications imply similar complexity and time. Upfront cost will be higher due to Northpoint integration. However, the benefits of implementing MPX will be far reaching for content management and business expansion opportunities.
Recommended
Launch 3.0 and Brightcove
Launch 3.0 and MPX Launch on Crackle’s platform
Networks group does web theme, launch and support Animax UK as a region. Responsibilities for PS3, iOS, Android, Product & Strategy handled by UK.
Northpoint builds MPX integration. Networks group plays a bigger role. Product & Engineering managed from Home Office. Programming and Marketing managed in UK.
Use as the start of a new business model where Networks group builds a pay wall on the Crackle platform.
Option: 1 Option: 2 Option: 3
Project concerns
Only high level project plan required to launch exists.
Currently no dedicated in-house team to launch the product. For example, no information architect ensuring a consistent experience across platforms and no dedicated Producer to ensure direct project management across all platforms. Each vendor manages project on their own.
The business plan assumptions are difficult to support and may lead to hard to meet expectations.
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Team responsibilities - originalHome Office
UK Office
% of Current Staff
Marketing Manager
MobilePS3Website
REGISTRATION SEN
REGISTRATION SEN
REGISTRATION SEN
PAYWALLInvideous
PAYWALLInvideous
PAYWALL/APP DEV
InvideousOVP
BrightcoveOVP
BrightcoveOVP
Brightcove
Finance Manager
ADVERTISING
Videology
ADVERTISING
Videology
ADVERTISING
VideologySITE DEV3rd Party
OPS & LAUNCH
Home OfficeVIDEO OPS
Viz Media20
Operations Coordinator
Team responsibilities - RevisedHome Office
UK Office
Producer/Product Manager
Information Architect
Visual Designer
Marketing Manager
DirectorOperations Manager
MobilePS3Website
REGISTRATION SEN
REGISTRATION SEN
REGISTRATION SEN
PAYWALLInvideous
PAYWALLInvideous
PAYWALL/APP DEV
InvideousOVPMPX
OVPMPX
OVPMPX
ADVERTISING
Videology
ADVERTISING
Videology
ADVERTISING
VideologySITE DEV3rd Party
OPS & LAUNCH
Home OfficeVIDEO OPS
Viz Media
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Finance Manager
RESOURCES: UK officeRESOURCE
RESPONSIBILITY BASE RESOURCE
RESPONSIBILITY BASE
Overheads
$40,000 Director - Lead office personnel - Direct editorial decisions- Build weekly programming schedule- Manage relationship with external partners- Manage metadata of all content- Develop collections and packages- Drive acquisition through programming- Drive experience through programming
$100,000
Marketing Manager
- Day-to-day management of the Animax service- Promote and manage the Animax website, PS3
application, mobile applications- Market the Animax applications with targeted online
marketing tools- Create advertising creative for advertising partners- Manage communities on main social media accounts- Build weekly programming schedule- Manage relationship with external partners
$66,220 Marketing Manager
- Promote and manage the Animax website, PS3 application, mobile applications
- Market the Animax applications with targeted online marketing tools
- Create advertising creative for advertising partners- Manage communities on main social media accounts- Drive awareness, customer acquisition and retention- Manage and optimize SEO and SEM- Manage event planning and execution- Design and produce marketing reports- Oversee brand integrity
$66,220
Operations Coordinator
- Operate and administer the Animax website, PS3 application and mobile applications
- Traffic video content to the applications- Manage the pay wall on the applications- Manage ad operations on the applications- Create monthly billing and traffic reports- Work together with the Channel Manager to create
programming highlights
$38,500 Operations Manager
- Manage day-to-day operations of the Animax website, PS3 and mobile applications
- Traffic video content to all applications- Manage the pay wall on all applications- Manage ad operations on all applications- Create traffic reports, perform analysis - Work together with the Channel Manager to create
programming highlights- Manage partner operational needs
$62,000
Finance Manager
- Manage all financial matters related to Animax- Management accounting- Royalty reporting- Performance analysis and business planning
$58,520 Finance Manager
- Manage all financial matters related to Animax- Create monthly billing and management accounting- Royalty reporting- Performance analysis and business planning- Create financial models to support business needs
$58,520
TOTAL $203,240
TOTAL $286,740
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ORIGINAL REVISED
Y1 DIFFERENCE: $83,500
Y2 DIFFERENCE: $86,005 *
* 3% annual salary increase
RESOURCES: HOME officeRESOURCE RESPONSIBILITY BASE RESOURCE RESPONSIBILITY BASE
PRE-LAUNCH PRE-LAUNCH
% of Current Staff
Oversight of website launch
Soft cost Visual Designer
- Creative oversight consistent across all platforms
$100/hr for 4 months @ 20/hr/wk: ~$32,000
Information Architect
- Navigation flow and user experience consistent across all platforms
$150/hr for 6 months @ 20/hr/wk: ~$72,000
Producer (Contract to Full Time)
- Driving project management and deliverables across all vendors and platforms
$100/hr for 6 months @ 40/hr/wk: ~96,000
POST-LAUNCH POST-LAUNCH
% of Current Staff
Oversight of backend Soft cost Producer (Contract to Full Time)
- Driving project management and deliverables across all vendors and platforms
6 months @ $93,000 annual salary: ~$46,500
TOTAL $0 TOTAL $246,500
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ORIGINAL REVISED
Y1 DIFFERENCE: $246,500Y2 DIFFERENCE: $95,790 *
* 3% annual salary increase to $93,000 base.
Platform rollout – original Plan
Month Month Month Month Month Month Month Year1 2 3 4 5 6 7+ 2
Launch Animax marketing message
Web IA, design
PS3 IA, design
OVP dev
iOS & Android IA, design
Web dev
PS3 dev
OVP dev
iOS/Android dev
Web launch
PS3 launch
OVP launch
iOS/Android launch
Investigate Crackle as a platform
MaintenanceReview other OTT platforms
4 Month Production CycleSEN ID development/access not under our management
Contract signed, work
starts
Smashing Ideas
Factory
Brightcove
Invideous
Web dev
PS3 dev
OVP dev
iOS/Android dev
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Web PS3 iOS & Android App
VENDOR Smashing Ideas + Home Office
Factory Invideous
AGENCY ROLLOUT COST $75,000 $10,000 $20,000
PROS Inexpensive Inexpensive Inexpensive
CONS No custom development; unknown issues with SEN
Factory’s only experience is PS3 browser; no experience with PS3 app or SEN ID integration; no submission consideration. No good track record with SPT; unknown issues with SEN
Unknown working relationship; unknown issues with SEN
Platform rollout – original plan
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COST: $105,000
Platform rollout – revised
Month Month Month Month Month Month Month Year1 2 3 4 5 6 7+ 2
Launch Animax marketing message
Web IA, design
PS3 IA, design
OVP dev
iOS & Android IA, design
Web IA, design
PS3 IA, design
OVP dev
iOS/Android IA, design
Investigate Crackle as a platform
Maintenance,New feature development,Review other OTT platforms, Producer becomes FT
6 Month Production CycleSEN ID development/access not under our management
Contract signed,
positions hired, work
starts
TBD 3rd Party
DADC
MPX
Invideous
Web dev
PS3 dev
OVP dev
iOS/Android dev (contingent on SEN ready)
Web dev
PS3 dev
OVP ready
iOS/Android dev (contingent on SEN ready)
Web Prod/QA
PS3 ready, submit app approvalOVP ready
iOS/Android ready, submit app approval (contingent on SEN ready)
Web launch
PS3 launch
OVP launch
iOS/Android launch (contingent on SEN ready)
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Platform rollout – revisedWeb PS3 iOS & Android App
RESOURCES /
VENDOR
Visual Designer, Information Architect, Producer
3rd Party + Home Office DADC + Home Office L4 + Home Office
APPROACH Integrate MPX, build for the future
Leverage DADC knowledge of PS3 app development
Use app developer that is best suited for streaming video services
AGENCY ROLLOUT COST $129,600 (original $75k + 6 month agency fees $54.6k)
$200,000 $100,000
PROS MPX has a better CMS system; already transitioning from Brightcove to MPX
Launched the Crackle PS3 apps
Currently working on apps for Crackle
CONS Time TimeExpensive
TimeExpensive
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COST: $429,600
RESOURCE: PRODUCT OPERATIONS
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RESOURCE RESPONSIBILITY Y1 COST
PRE-LAUNCH
Tier 1 Agency Vendor fees will increase due to additional required support. 20 hrs/wk at $105/hr for 6 months: ~$54,600
Kristen Huntley Project lead needing to allocate time here when otherwise would allocate elsewhere.
Soft cost
Mike Weksler Tech lead needing to allocate time here when otherwise would allocate elsewhere.
Soft cost
POST-LAUNCH
Tier 1 Agency Vendor fees will remain at this level post-launch. 20 hrs/wk at $105/hr for 6 months : ~$54,600
Kristen Huntley Project lead needing to allocate time here when otherwise would allocate elsewhere.
Soft cost
Mike Weksler Tech lead needing to allocate time here when otherwise would allocate elsewhere.
Soft cost
TOTAL $109,200
The Common Platform 3.0 APIs will supply metadata across all platforms.
Backend and systems engineering
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Brightcove thePlatform
Account Management No admin to easily manage common encoding, publishing, and entitlement rules. Accounts are equivalent to MPX publishing profile. Configuration for streaming and delivery is done outside of Brightcove’s admin console and requires support staff. Greater LOE for similar tasks across regions as they must be re-done per account.
MPX uses a one-to-many scheme. Administ can configure encoding, streaming, publishing, and entitlement rules once and use across all channels. These items can be easily cloned as well. Allows for repeatable, reliable workflow across all our regions/channels. Faster time-to-market, less LOE for similar tasks across regions.
Player Has Flash & HTML 5 Player, configurable; relies on partners for quality selector
Has Flash & HTML 5 Player, Configurable; native quality selector
OTT Requires plug-in and dev configurations. Longer time-to-market, more trial-and-error.
Easy publishing to OTT once profile is set up. Requires knowledge of device specs to configure.
Authentication Brightcove only brokers Adobe Pass (incremental to the MSA).
Options include Adobe Pass, Akamai, and their own custom TVE authentications with MVPDs.
Paywall Has their own payment system (new) and they can also use third parties (BC may be more experienced here). Can use Invidious.
MPX requires third-party payment vendor and interface. Can plug-in Invidious
Mobile Brightcove mobile delivery requires much trial-and-error; repeated configuration across multiple accounts; and much of it cannot be configured in the administration console. HLS encryption is an add-on.
Mobile platforms Can be targeted with publishing profiles which can be configured in the administration console. HLS included.
Uploading & Encoding Uses Aspera and can encode video. Uses Aspera and can encode video.
Live Streaming Brightcove requires ticketing—not productized, not easily configurable w/out developer trial/error.
MPX has this built into their platform.
3rd Party Syndication Brightcove has limitations with their APIs (video updates don’t show up in playlist feeds, no player API for batch operations).
MPX has rich video and player APIs.
Social Media Strong integration with social media. Strong integration with social media.
Geo-Restriction Included Included
Advertising Supports DART and Freewheel Supports DART and Freewheel
Customer Service Ticket-based, slow to resolve issues, additional fee. Free, phone based, gets high marks from current customers. Also offers add-on of Tech Account Manager.
DRM Brightcove must set DRM encryption playback on each account. Configuration of DRM and non-DRM across all regions/accounts requires custom workflow and trial/error. DRM (Adobe Flash Access) is a separate add-on agreement.
MPX has entitlement rules that can be set up to enable designated content to be DRM encrypted. This is inclusive.
Brightcove vs. THEPLATFORM
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Video technology
RESOURCE RESPONSIBLE COST
Kristen Huntley Project / Product lead Soft cost
Mike Weksler Technology lead Soft cost
Northpoint MPX integration with Common Platform 3.0.
$50,000 – Part of the Emerging Technology Budget
Recommend launching with MPX.
MPX has superior asset handling across multiple platforms and rights management handling at the video level across all platforms including PS3, iOS and Android.
MPX can integrate Invideous as easily as Brightcove.
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AD OPERATIONS
RESOURCE RESPONSIBLE COST
Luiz Gustavo Lead: The initial ad set-up will be handled by the Home Office.
Soft cost
Videology 3rd party video ad network % of revenue
We recommend only implementing Videology as this requires no new ad operations headcount and Videology is better for future OTT deployment.
As a second option, we could additionally implement DFP for display ads. And/or implement Freewheel for video ad delivery.
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SUMMARY RECOMMENDATION COSTS
ORIGINAL Y1 COST
REVISED Y1 COST Y1 DIFFEREN
CE
Y2 (ONGOING
) DIFFEREN
CE
Agency Fees $109,200 $109,200 $109,200
G&A (Headcount) $203,240 G&A (contract+ additional head + title changes)
$533,240 $330,000 $181,795
Web (build, updates, payment integration)
$75,000 Web (build, updates, payment integration)
$75,000 -- --
PS3: Factory $10,000 PS3: DADC $200,000 $190,000 --
iOS & Android: Invideous $20,000 iOS & Android: Home Office hires agency
$100,000 $80,000 --
TOTAL $308,240
TOTAL $1,017,440
$709,200 $290,995
As money is allocated between Animax and the Home Office, consider Home Office hours will need to increase upfront and ongoing to
accommodate the requirements of this project.
BUSINESS PLAN - ORIGINAL
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(US$'000) Mar-13 Mar-14 Mar-15 Mar-16 Mar-17Unique users (year-average)
Total UK Facebook users who are Anime fans 450,000 450,000 450,000 450,000 450,000Total Animax UK unique users 15,000 71,666 105,014 132,957 140,519Ad supported users 13,188 62,618 92,347 116,919 123,569
Subscription users 875 5,017 7,351 9,307 9,836 Transaction users 938 4,031 5,316 6,731 7,114
Revenue:Ad revenues 6,892$ 151,909$ 224,028$ 266,032$ 299,771$
Subscription Revenue 26,905$ 462,765$ 678,098$ 829,395$ 962,620$ Transaction Revenue 14,293$ 184,380$ 243,158$ 297,412$ 345,185$
Carriage fees -$ 55,440$ 55,440$ 55,440$ 55,440$ Gross Revenue 48,090 854,494 1,200,724 1,448,278 1,663,016
Ad commission 2,068$ 45,573$ 67,208$ 79,810$ 89,931$ Payment commission 3,546$ 40,031$ 55,875$ 68,208$ 79,068$ Platform commission 3,090$ 38,829$ 48,366$ 50,706$ 58,851$
Net Revenue 39,387 730,062 1,029,274 1,249,554 1,435,166 YOY Growth 1754% 41% 21% 15%
Expenses:Streaming fees 5,994$ 89,164$ 130,654$ 159,806$ 185,475$ Marketing 61,600$ 73,920$ 92,400$ 99,964$ 114,813$ Revenue Share with Content Provider -$ 283,489$ 403,110$ 494,892$ 567,439$ Site development 115,000$ 15,000$ 15,000$ 75,000$ 15,000$ Ongoing site/server costs 6,074$ 36,434$ 43,246$ 48,637$ 53,522$ Overhead 67,747$ 209,337$ 215,617$ 222,086$ 228,748$
Total Expenses 256,415 707,345 900,027 1,100,384 1,164,998
EBIT (217,028) 22,718 129,247 149,170 270,168 EBIT as a % of Net Revenue -551% 3% 13% 12% 19%
Tax (@28%) -$ -$ -$ 23,550$ 75,647$
Cash Flow (217,028) 22,718 129,247 125,620 194,521 Cum Cashflow (217,028) (194,310) (65,063) 60,557 255,077 Terminal value - - - - 2,701,677
NPV (cashflows FY13-FY17) 125,164$ NPV Terminal value 1,677,529$ Total NPV 1,802,693$ IRR 30%
YEAR ENDED