CONFIDENTIAL Digital Services and Distribution Acquisition Strategy: Selected Company Profiles...

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CONFIDENTIAL Digital Services and Distribution Acquisition Strategy: Selected Company Profiles November 28, 2006

Transcript of CONFIDENTIAL Digital Services and Distribution Acquisition Strategy: Selected Company Profiles...

Page 1: CONFIDENTIAL Digital Services and Distribution Acquisition Strategy: Selected Company Profiles November 28, 2006.

CONFIDENTIAL

Digital Services and DistributionAcquisition Strategy: Selected Company Profiles

November 28, 2006

Page 2: CONFIDENTIAL Digital Services and Distribution Acquisition 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