Gramarye pitch deck 2 10

The Cross-Media Story Franchise Incubator

Audience Building for Risk MitigationA graduate of Georgia Tech’s Flashpoint start-up accelerator, Gramarye employs

cross-disciplinary expert mentors and a proprietary technology/social media platform to discover, incubate, and vet the next great event story franchises.

GRAMARYE MEDIA LEADERSHIP TEAM: INNOVATION

GRAMARYE MEDIA LEADERSHIP TEAM: BUSINESS

John Adcox, Chief Executive Officer20+ years in Digital and Integrated Media Creative Direction, Strategy, and UX with VP and C-level titles Novels coming from “Big 5” Publisher Award-winning optioned television and screenwriter

Irtaza Barlas, Chief Technology Officer Former Lead investigator of DARPA Self Awareness Program (The world’s preeminent center for Artificial Intelligence) Inventor and Engineer Georgia Tech PhD

Don Dudenhoeffer, Chief Creative OfficerAward-winning Creative Director and Technologist Winner of the first-ever Primetime Emmy Award for Interactive Television(HBO’s Band of Brothers) Serial Entrepreneur

Previous: Studio lead, COO, and CFO Managed project financing for motion pictures ranging in budget from $2 million to $100 million, totaling one half a billion dollars, including some of the largest independently financed pictures including Terminator 2 and Cliffhanger

Alice Neuhauser, President Jon Wroblewski, CFOFilm Fund Manager and Independent Film Producer VP, Development at FuelD Films, a Forbes Fastest Growing Company VP Production Co-founder, first Chinese/US Joint Film Fund

+ +

CREATE HIGH-VALUE, MULTI-CHANNEL FRANCHISES

Select unreleased stories with the

fundamental structure requirements for

franchise success

Add value to the story at every stage of the incubation process to

develop franchise potential

Invest in and build the single most critical element needed for franchise success:

A BUILT-IN AUDIENCE

BIGTHE BUSINESS OF STORY IS

ANNUALLY MORE THAN $1,000,000,000,000

COUNTING MOVIES, BOOKS, TV, GAMES, THEME PARKS, ETC

RISKYTHE BUSINESS OF STORY IS

THEY ARE PERCEIVED AS SAFER, BUT…

STUDIOS MITIGATE RISK WITH SEQUELS AND REMAKES

“PLAYED OUT”Without exception, the executives

we talked to agreed with J.P. Morgan financial analyst Vasily Karasyov:

“The cycle of sequels and remakes has played out," and

"presents a growing risk to film industry profitability.”

INSTEAD?Studios look to option and adapt

books, comics, and games.

They’re looking for brand awareness.

They’re looking for existing engaged fan communities, a built-in audience.

But….

A SYSTEMIC PROBLEMStudios have become “hunters and gatherers,”

seeking established franchise IPs.

Predictive, reliable, and unbiased analytics in entertainment media don’t exist today

Sales figures for books and comics are undependable. These figures indicate store purchases, not consumer purchases

Core elements of a story that inspire audience passion and loyalty are often lost in translation when adapted across media channels

A vision for a cross-media franchise is often missing in the early stages of story development

WITH BUDGETS SOARING AND COMPETITION FOR SCREENS GETTING MORE FIERCE, RISK MITIGATION IS CRITICAL.

NEED BETTER DATA UNCLEAR AUDIENCE BASE ADAPTATION CHALLENGES NO PLAN FOR SUCCESS

HUNTING AND GATHERING“Big Data” Analytics Doesn’t Provide Actionable Data

According to the Chief Analytics Officer at Legendary, a major production company, Studios spend between $250,000 and $3 million on analytics for a single film without uncovering reliable predictive data.

The “big data” information gathered is biased and unreliable, and doesn’t consistently predict success. For that reason, it’s harder and more expensive to make yes/no decisions.

As a result, studios routinely spend $20 million or more a year developing

films that never get made. Less than 1 in 20 television pilots, filmed at a cost of $1m to $20m, are actually aired.

HUNTING AND GATHERINGPublishers Don’t Gather Meaningful Data

“More data would be great, but there’s no way to get it. Sales figures don’t really mean anything. There really is no data available that’s relevant.”

— Eddie Gamarra, The Gotham Group

It’s difficult to know how many copies of a book actually sell. Bestseller lists don’t reflect consumer purchases; they reflect bookstore purchases … which are returnable.

Producers talk about a “book mafia” that options everything in adaptable genres … before the book reaches shelves. Film rights for The Hunger Games were purchased before the book was published.

One producer actually sends his assistant to Barnes and Noble twice a week to buy everything in his target genres with the cover facing out. Without data, he is literally judging a book by its cover!

HUNTING AND GATHERINGAdaptation Challenges

Even books with a built-in, passionate audience don’t always translate to successful films. The Percy Jackson books have audiences comparable to the Harry Potter books, but the films failed.

Publishers and studios have no mechanism to gauge why audiences respond to specific properties. More, publishers make no effort to “own” or monitor the fan communities that spring up online.

For example? one of the largest communities for the book The Name of the Wind is on Tor.com (a division of St. Martin’s), despite the fact that it is published by DAW (a division of Penguin Random House). DAW misses the key opportunity to understand or measure audience passion.

Studios need to understand why audiences respond to a story, and why they are passionate. The fans are talking, but no one is listening.

HUNTING AND GATHERINGPlanning for Cross-Media Development

“I’ve been telling publishers for years that they need a producer, a development executive, on staff so they can develop some of their own IPs — because they’re leaving literally hundreds of millions of dollars on the table every year.”— Matt Battaglia, Producer, Thor and Brothers

Studios look to publishing for story franchises, but….

Publishers usually don’t acquire media rights for the books they publish.

For example, Bloomsbury took the risk to publish an unknown writer named J. K. Rowling, and didn’t see any revenue at all from the Harry Potter films, toys, apparel, and theme park attractions.

There is a need for a business plan for cross-media development early in the lifecycle.

HUNTING AND GATHERINGThere is a Gap Between Book Publishers and Media Studios

While studios are looking for franchises with a built-in audience, publishing is utterly ignoring an incredibly significant phenomenon:

Thriving fan communities form around core, generational stories, just like they form around sport teams.

As with sports communities, story communities are large, passionate, and incredibly valuable. For example….

More than 150,000 fans pay more than $150 each to attend Comic Con and World Con every year, and more than 90,000 pay at least $100 attend Dragon Con. 50% + travel from other cities/countries.

More than 20,000 fans are active on the Harry Potter Forums and the Trek BBS online communities at any given time.

Hundreds of fans consistently pay to attend Star Wars, Lord of the Rings, and Harry Potter “pub crawls” in more than 52 U.S. Cities.

More than 10 million fans joined online “line parties” around the world before meeting in person to see The Lord of the Rings and Star Wars: The Force Awakens. Those groups still meet.

Targeting these communities is a key part of our selection process.

COMMUNITIES FORM AROUND STORIESWHEN A STORY HITS THE MARK, FANS PAY

TO CONNECT AND SHARE THE PASSION

Stories inspire “tribal identity,” and help individuals find others like them — kindred spirits — without geographic borders.

Fans say that their BEST friends are ones who share their love for the particular stories they identify with.

These fans buy tickets to events and collect and wear merchandise. The story becomes part of their identity. In short, they are loyal and dedicated.

Fan communities enable franchises like Star Wars, Harry Potter, and the Marvel films to be perennial, bankable successes.

Gramarye targets these existing communities that congregate … and expands them.

PASSIONATE COMMUNITIES = SUCCESS

IMAGINE BUILDING THIS KIND OF BUILT-IN AUDIENCE… BEFORE A FILM OR PILOT IS SHOT

Gramarye shifts the “hunters and gatherers”

paradigm to an “agricultural”

model, farming stories with blockbuster DNA and thriving, passionate fan communities.

OPPORTUNITYDiscover unestablished stories

with franchise potential

Nurture and develop the asset into a known brand

Build an engaged audience

Control cross-media development rights

What DOES a story incubator DO?

answers three key questions to ESTABLISH THE VIABILITY OF A potential STORY FRANCHISE

Is there an Audience?1 Can we market

to them?2 Can the story be adapted?3

Our mentorship program teaches authors key collaboration and adaptation skills, empowering them to protect the heart of a story across channels without being precious about details. The mentorship team also advises on revisions for adaptation before launch.

Shares, forums threads, and sections highlighted give us insights into which elements are most important.

Decisions in interactive opportunities give us unbiased insights into story preferences that must be preserved in any adaptation.

Connection to Social Media (via shares and games) gives us access to the user’s list of friends, interests, etc, allowing us to to detect patterns that provide marketing insights.

Active user feedback and realtime marketing techniques drive a refined understanding of the customer response.

Data Mining from games gives us deep insights into story and character preferences, which we can track by age, sex, and geographic location

Our sales are direct to consumer (through markets), so we know exactly how many units are sold, and can track demographics.

Forums and community exist within the app experience, allowing us to capture and measure both the frequency and depth of fan engagement and response.

More, we can track and measure social media shares and the viral spread of brand awareness.

UniteS…cross-disciplinary communities of storytellers, producers, artists, technologists, and investors … because there will always be a need

for the core, generational stories that unite us.

HOW DOES A STORY INCUBATOR DO IT?

DISCOVERS…diversified slates of stories in their infancy because

every media franchise begins with the written word.


INCUBATES…potential story franchises … just like a business or technology incubator launches companies. It’s the Silicon Valley approach applied to storytelling.


VETS…every story through direct interactions with the audience.

Because passionate fan bases = brand awareness = success.


MAXIMIZES…the ones that have traction after proving the one key

element studios demand: a built-in audience.


THE INCUBATION MODEL WORKS IN OTHER REALMS

developing A

world-class

athlete

We treat potential blockbuster story franchises the same way. How?

Building A

blockbuster

franchise

=

A MODEL FOR IDENTIFYING AND MAXIMIZING

Athlete’s Odds of Success < 1%

Play in high school

Avg high school team coach (that’s probably also a geology teacher)

Best may make minors or play in college.

Play in Major League Athlete’s Increased Odds of Success

Training academy identifiespotential elite athletes sooner

Dedicated strength coach, agility coach, skills coach, etc.

More attractive to scouts and major league

Play in Major League

“NEW WORLD”

Gramarye Media is unique in systematically employing incubation methods to identify elite intellectual properties and working with story creators early in the lifecycle to influence controllable factors. The process ultimately increases the odds of success and add significant value to the IP asset.

Today, that athlete’s talent is treated like a commodity. Systematic efforts using controllable factors are employed to improve the chances of success.

“OLD WORLD”Historically, an athlete developed through high school athletics programs,

the best advancing through college to professional careers

EXAMPLE: PRO BASEBALL

A MODEL FOR IDENTIFYING AND MAXIMIZING

“RAW MATERIALS” CONTROLLABLE FACTORS: TRAINING CONTROLLABLE FACTORS: SPECIAL ATTENTION

Athlete • Raw Talent • Character • IQ • Genetics • Resilience • Coachability

• Skills development • Practice • Strength training • Agility training • Endurance training • Year round focus on a single sport

• Coaching • Schools • Club sports • Specific skill development • Competition • Nutrition

Story Creator

• Talent • Creativity • IQ • Life Experiences • Coach-ability

Storytelling skills development • Characters • Structure • Tone

Audience identification, understanding & development • Researching skills • Proper use of Social media Blogging

Attention to detail. Continuous improvement and editing • Collaborative orientation • Acceptance of feedback Resilience • Encouragement • Humility

Coaching and mentoring by experienced professionals

Input from: • Rock star editors • Multi media Marketing experts • Successful authors • Marketing Professionals • Producer

Networking

Platform development expertise

Funding and investment in the asset

A potential pro athlete can increase the odds of success by participating in “travel ball” leagues and attending elite training academies … before they even reach high school.

• Health behavior • Psychology development • Confidence • Financial resources

• World Building • Genre

EXAMPLE: PRO BASEBALL

The Gramarye Process:

STORY SELECTIONTREATING STORIES LIKE A BUSINESS, PLANNING FOR SUCCESS

AIMED AT AUDIENCE COMMUNITIES THAT ALREADY CONGREGATEBegin with Genre-Specific Stories

Selection of Best-Fit Stories

Rate Via Panel of Industry ExpertsUSING 40+ POINT PROPRIETARY RATING SCALE


Identify 10 -12 Best-Fit StoriesTHE ONES THAT HAVE BLOCKBUSTER FRANCHISE DNA


Offer Authors A Compelling OpportunityGRAMARYE ACQUIRES RIGHTS; AUTHOR SHARES IN SUCCESS.


MENTORSHIPTREATING STORIES LIKE A BUSINESS, PLANNING FOR SUCCESS


EDITING/ACQUISITIONS TEAMChristopher Golden, Development Editor

NYT Best-selling Author Editor Executive Producer and Screenwriter Comic Book and Game Writer

Juliet Ulman, Editor in Chief

Editor in Chief, Pugilist Press Senior Editor, Random House Shortlisted for the Hugo Award for Best Professional Editor three times

Peter Miller

Literary and Screen Agent, Executive Producer

Chris Soth

Screenwriter (Firestorm) Author, Filmmaker, Screenwriting Consultant, WGAw MFA from USC

Lou Aronica

Founded Spectra at Bantam Books Publisher at Berkley & Avon Founded The Story Plant Award-winning Author/Editor

James A. Moore

NYT Best-selling Author, Game Writer, and Comic Book Writer

Candice Alger

Founder/CEO, Giant Studios Executive Producer of Motion Capture Effects on Avatar, The Lord of the Rings, Warcraft, and more

Paul Jenkins

Novelist, award-winning comic writer, editor, screenwriter, television writer, game writer, and educator

INCUBATION MENTORS

MONTH 1

A PROCESS TO MAXIMIZE A PROPERTY’S POTENTIAL BEFORE & AFTER LAUNCH

MANUSCRIPT EDITING, POLISH JULIET ULMAN, CHRIS GOLDEN, LOU ARONICA

MONTH 2 MONTH 3 MONTH 4

MULTIMEDIA ASSET DEVELOPMENT (MUSIC, GAMES, VIDEO, ART, ETC.)

TESTINGAPP TECHNOLOGY DEVELOPMENT

PLATFORM DEVELOPMENT (AUTHOR/PRODUCT PROMOTION PLAN) JAMES MOORE, CHRIS GOLDEN, PETER MILLER

ADAPTATION PREPARATION CHRIS SOTH, PAUL JENKINS

CROSS-MEDIA DEVELOPMENT PLAN ALICE NEUHAUSER, CANDICE ALGER

ADAPTATION/COLLABORATION COACHING CHRIS SOTH, PAUL JENKINS

APP LAUNCH

PRELAUNCH PROGRAM LAUNCH PROGRAM

Mentorship Program

LAUNCH & MEASURETREATING STORIES LIKE A BUSINESS, PLANNING FOR SUCCESS


Utilize proprietary digital technology to publish each story in our slates as stand-alone “eBook 2.0” apps for tablets and smartphones Sold as individual apps through the Apple, Google, and Amazon marketplaces

Brand Awareness spreads via a proprietary social media platform

Rich multimedia interactivity enhances the story and engages audiences

DEPLOY STORIES AS ENHANCED “PILOTS”

Combine text, video, music, games, interactive maps, audio book narration, character bios, special effects, social media, and more surprises to make a beautiful and engaging reading experience

Pull the user into a story with integrated Augmented Reality and explorable 3D story/community spaces

Adapt the experience in real time

Stretch the capabilities of a tablet or smart phone to create an entirely new kind of story experience

GRAMARYE TECHNOLOGY: WELCOME TO EBOOK 2.0

CLICK TO VIEW DEMO

http://www.gramaryemedia.com/video-demo/

BETTER DATA THROUGH OBSERVATIONAL ANALYTICS

Traditional analytics are biased and unreliableThe best tests are primary and involve direct observation

We mine audience preference data across socioeconomic and geographic sectors

Interactions are custom tailored to gain specific insights about story elements

We reply on direct observation of real time reactions to the actual story – not a comp

MARKETINGTREATING STORIES LIKE A BUSINESS, PLANNING FOR SUCCESS


SELECTED STORIES HAVE CONGREGATING AUDIENCES

All titles have an identifiable, targetable audience that can be marketed too effectively Heavy emphasis on Publicity/Media Relations focusing on publications/blogs the audience frequents.

Aggressive Channel Marketing Efforts inspire impulse buys.

Focus on online reviews, tech news, and genre-specific Web sites, bulletin boards, and blogs, as well as Social Media and live events.

Targeted $250k online, live event, and print advertising/marketing campaign. Why $250k? It is a sweet spot:

FORRESTER RESEARCH: MARKETING “SWEET SPOT”

In the target genres of Young Adult/New Adult Fantasy, Paranormal Romance, Science Fiction, and Procedural Mystery….With $250,000 “Sweet Spot” cross-channel marketing

Expect Projected sales between 400,000 and 1.5 million copies

These numbers were confirmed anecdotally via interviews with industry professionals.

According to Forrester Research, as cited by Publisher’s Market

PROJECTIONS BASED ON PROVEN “RULE OF THUMB”

A tried and true marketing rule of thumb:

…every dollar spent on marketing should equal $4 in additional revenue.

This is consistent with the marketing sweet spot reported in Publisher’s Market, so the reported numbers pass the “smell test.”

(i.e. Amazon placement, “click to buy” adds, DVDs and magazines in the checkout line at the grocery store)

For consumer “impulse” buys, where a customer can see and purchase instantly…

STRATEGY: CROSS-TARGET GENRE & DEMOGRAPHICS

To increase reach, we select titles that appeal to male and female audiences, across key age brackets. While aimed at New Adult audiences (18 to 30), the story should appeal to the upper end of young adult readers (15 to 18).

Of course, we also expect to attract readers over 30.

Since our sales don’t depend on shelf placement in bookstores, where adult and young adult titles are separated, we can appeal to multiple demographics. 0

115000

230000

345000

460000

Young Adult New Adult Cross-Demographic

A THRIVING MARKETPLACE ENGAGED WITH TECHNOLOGY

65 Million UnitsNew Adult (18 to 30) Urban/Contemporary Fantasy and

Paranormal romance titles sold 65 million total units, with average per

title sales of 335,000 units.

43.5 Million UnitsYoung Adult (12 to 18) Urban/

Contemporary Fantasy and Paranormal romance titles sold 43.5 million total units, with average per

title sales of 277,000 units.

These target audiences (age and genre) are early tech adopters While eBook sales have been flat for the past five years, young adult and new adult eBook sales increased by 42%.

57% of young and new adults own a tablet computer, and 64% of them used tablets to read a book in the past year.

64% of young adults who read an eBook participated in an online forum or social media conversation about that book.

Data from PEW Research

Title/Audience Example:

BLACKTHORNE FAIReTARGETING RENAISSANCE FAIR FANS

Blackthorne Faire meets Gramarye’s requirement of a specific, targetable audience that congregates in both physical and online locations.

Localized and Theme-based marketing tactics can help access this demonstrably passionate fan base.

EXAMPLE TITLE:

BLACKTHORNE FAIRE*

Blackthorne Faire is a blend of fantasy and paranormal romance set at a contemporary renaissance festival

5,000,000 PeopleMore than five million people

attended a Renaissance Festival in 2008 ... TWICE

57 Fairs In USThere are 57 Recurring

Renaissance Fairs in the United States every year

*Blackthorne Faire has not yet been vetted by all of Gramarye’s Mentor Team

More than 65% had previously attended a fair within 5 years and more than 37% plan to attend every year.

There are many more Celtic, Old English, Medieval, and other closely related events. Comic Con and Dragon Con hold themed events.

MORE ABOUT FANS OF

RENAISSANCE FAIRS13,680,000 people attended a US-based Renaissance Fair in 2013.*

*According to the editor of Renaissance magazine

MORE ABOUT FANS OF

RENAISSANCE FAIRS

Between 4m and 8m regular attendees … that we can reasonably expect to touch at a low cost. A great example of a existing audience that already congregates.

These people share common interests and traits with people who read fantasy and paranormal romance, two of our target genres (Blackthorne Faire crosses both).

These fans are the primary target

HOW WE REACH THIS AUDIENCE - PART 1Public Relations: Aimed at book and special interest blogs and publications, technology publications (Wired, Fast Company), entertainment industry (Deadline.com, Variety, Hollywood Reporter, etc.)

Events/FestivalsPublic RelationsAdvertisingBlogs & ForumsSocial MediaProduct Placement

Press Releases: Frame stories for media

Media Relations: Aggressive proactive outreach

Media Training: Coach & prepare Author to engage

Blog and Social Media: Development with Author to interact with Audience

Advertising: Contain URLs & QR Codes for impulse purchases

Key-word Ads: Targeting words such as fantasy, mythology, Renaissance Fair, etc

Low-cost ads: Facebook and publications such as Renaissance, Faerie, The Magazine of Science Fiction and Fantasy, Tor.com, etc.

Blogger Relations: Seek reviews and provide free copies to people who contribute to relevant forums and blogs (fantasy, paranormal romance, Renaissance fairs, the Society for Creative Anachronism, games, film etc.)

Special Events:• Leverage Renaissance Festivals

and industry events

• Event Run of Show: attend events and coordinate schedule

• Gaming and Related Films

• Product Placement – both e-versions and physical copies

• Festival booths (People who buy the print version can download the digital free)

Sponsorships:• Various Renaissance Fair and

Celtic Music podcasts • Creating branded Spotify channels, etc.

HOW WE REACH THIS AUDIENCE - PART 2

Events/FestivalsPublic RelationsAdvertisingBlogs & ForumsSocial MediaProduct Placement

300,000 Units Sold

Some 13,680,000 people have at least a casual interest in our topic.(This doesn’t include people who may have similar, related interests, such as music, fantasy, mythology, gaming, etc.)

Approximately 6,000,000 people appear to have “enthusiastic interest”.

Estimate based on a conservative 5% reach and conversion rate. That’s just the beginning.

(This is our base target that we expect to reach with the tactics outlined on the previous slides.)

ESTIMATED DIRECT TITLE SALES


SOCIAL & COMMUNITYTREATING STORIES LIKE A BUSINESS, PLANNING FOR SUCCESS

Gramarye apps inspire, empower, and provide incentives for users to share

We track viral spread of brand awareness

Measurable social opportunities are built directly into the application experience

Thriving fan communities develop and prove audience size and passion

We use a Deployed and Market-Proven Proprietary

Social Media Platform

A BUILT-IN AUDIENCEAudience Aggregation Establishes Franchise Value

Straight Outta Compton Success Story

Universal spent most of its modest promotion budget for Straight

Outta Compton on social media, allowing fans to customize the “Straight Outta” logo with their own picture and hometown.

The “Straight Outta Somewhere” meme was shared more than 6 million times, leading to a domestic box office of $161,197,785 on a production budget of just $28 million.

Harry Potter and the Philosopher’s Stone Only 500 copies of the 1997 first edition of Harry Potter and the

Philosopher’s Stone were published, with no publicity budget.

Author J.K. Rowling credits the viral spread of awareness via email and online newsgroups for putting the book at the top of the New York Times Best Seller list … two years after initial publication.

FAN COMMUNITIES SPREAD AWARENESSVIRAL SOCIAL MEDIA SHARES = BRAND AWARENESS

COMMUNITIES FORM AROUND STORIES USERS HAVE MULTIPLE OPPORTUNITIES TO SHARE WITH FRIENDS WITHIN THE EXPERIENCE

We empower readers to form and expand thriving fan communities within the app.

Users can engage in discussions and earn rewards and incentives by sharing via email, text, Facebook, Twitter, and GoodReads.

Share Quotes and Passages

Unique Invitations (e.g. Fortune game)

Share Game Results and Scores

Join Integrated Community Forums

Send Video Book Trailer

Remember, communities form around stories … for evidence, look at Comic Con and DragonCon, or the Harry Potter and Star Wars pub crawls. Friends share with people they consider “like them.” Story is a key factor in “tribal identity.”

=INCENTED SHARES & MEASURED ACTIVITY

Some aspect of the story is shared. Users are given

incentives to share multiple times.

The average Facebook user has 338 friends. On average, 7.5% will see

the shares, and 10% will click through.

The result is additional sales … and more Social

Media shares.

KEY SOCIOLOGICAL INSIGHTS ARE GAINED BY MEASURING WHAT IS SHARED AND HOW FAR THAT AWARENESS TRAVELS.

VIRAL EXPANSION & BRAND AWARENESS

Users are given meaningful incentives to engage in community, share favorite passages, their progress, their game scores, and more on Facebook, Twitter, and Goodreads.

Users can even invite their friends to participate in games.

Each Facebook user has an average of 338 friends, of which 7.5% see any given post. It’s reasonable to assume many friends share common interests.

Each reader has REFERRAL POTENTIAL of 1-10 additional readers through social sharing. These additional “earned” sales require no additional marketing funds and enrich the community.

This is a repeating cycle as new readers engage.

SOCIAL SHARES DRIVE FREE, EFFECTIVE MARKETING

400,000 FREE Additional Sales

Initial Direct Sales:

300,000

Tier 3: 75% Share - 25% Engage

10% of those Buy


10% of those Buy


10% of those Buy

Enabling users to become brand “champions,” expanding the audience with trackable activity.

Shares inspire active social conversation and build viral brand buzz.

Shares and community/forum participation provide valuable insights into what users consider to be the heart of the story, helping us avoid adaptation challenges.

Shares also provide valuable insights into favorite characters, scenes, locations, images, etc.

WHEN USERS SHARE, WE LEARN KEY SOCIOLOGICAL INSIGHTS ARE GAINED BY MEASURING SHARE DETAILS AND RESPONSES

THESE INSIGHTS ARE INVALUABLE TO BETTER ADAPTATIONS AND MORE EFFECTIVE MARKETING


PUBLISHING APPSTREATING STORIES LIKE A BUSINESS, PLANNING FOR SUCCESS

PLATFORM

Opus

Story Opulet Generator

Multimedia Assets

Graphics/ Animation

Page Flip Renderer

Story-Awareness

Ribbon Manager

Multi-Reader Profiler

Persistence Manager

To Be Developed

Page Renderer

FIT/FAT Tag Parsers

Awards Manager

Random Effects

Manager

Device Manager

Dynamic Content

Manager

Thread Manager

Event Manager

Opulet Manager

FIT/FAT Tag Generator

Gramarye Function Generator

Gramarye Generator UI

Three-Page State Machine

Loader SplashScreen Handler Unloader

Opulet N

Opulet 2

Opulet 1

Opulet TOC

Opulet Setting

Story Opulets: Encodes the main narrative of the story

Encapsulates tags for ‘story-awareness’ Shows multimedia (video/audio) elements

Opulet Game N

Interactive Opulets: Use ‘story-awareness’ to depict characters

‘Within-the-book’ Interactive activities

Configuration Opulets: Common Configuration Functions

Table of Contents Reader Information

...

Opulet Game 2

Opulet Map

Physics Engine

Look & Feel (CSS3)

Fonts Graphics Animations

Video Clips Audio Clips 3D Models

ASSETS

ENTE

R

UTIL

IZES

INTE

RACT

S

MAIN MODULES

INPUT

Reusable Components

Partially Developed

EVENTS

...

A GRAMARYE TITLE

GENE

RATE

S

Social Media Integration

SOCIAL AMPLIFICATION TECHNOLOGY: PERSONALIZED SHARES, DEEPER ENGAGEMENT

Shares by readers are DYNAMICALLY generated to create a near infinite combination of unique personalized visuals in social media.

Share personalization is story aware — location, scene, character, game, quote, etc.

Personalized shares catch the attention of a user’s friends and increase engagement over standard static posts and ads.

Personalization responses feed analytic insights and get more attention.

“What we’re seeing is impossible. It’s going to rewrite everything we think we know about science. We must solve this mystery! If we can stay alive long enough….”

suzy.planetcallededen.com

A Planet Called Eden: No one expected to find dinosaurs … on a mysterious planet in deep space. Join the immersive adventure.

Hey, all … I am loving this book! Kim is my favorite.

SOCIAL AMPLIFICATION TECHNOLOGY: TRACK AND MEASURE PEER INFLUENCE FACTORS

PEER to PEER recommendations drive responses that ads can’t.

Custom personalized graphics stand out in a busy social media space rise above the noise … because they include a user’s unique identity and touch.

We monitor the influence of all posts, identify key influencers, and track viral reach via a customized dashboard.

This technology is already working and tested in the market.

SOCIAL AMPLIFICATION TECHNOLOGY: LIVE MARKET PILOT, ACTUAL RESULTS

18x Referral Rate

Given fan passion and the overlap of common interests with friends, we project 1 to 5x referral rates that result in a Story App download.

A preliminary tests of a personalized sweepstakes program was expected to return a 1.5 to 2x referral rate.

It actually returned an amazing 18x. These were qualified contacts that gave contact information.

Other programs that have run in local markets have consistently returned 1.5 to 2 x referral rates.


MAXIMIZE SUCCESSTREATING STORIES LIKE A BUSINESS, PLANNING FOR SUCCESS

Unit Sales Social Shares Community Data MiningShare Frequency, Share

Types, Tags, Relationship Dynamics

Depth, Frequency of Participation, and

Aggregation

User Choices, Insights Gained,

Clarity of Viability

Verified Direct Sales, Referral Sales, App and

Story Reviews

Picking the WinnersSuccess is measured by audience response:

WE PARTNER TO DEVELOP HITS ASFRANCHISES

FILM

VIRTUAL REALITY

TOYS & MERCH

GAMES LOCATION BASED

TELEVISION

Cross-media franchises are worth $billions

Each channel supports and promotes the others

Each channel generates revenue

Investors participate in every exploitation across all channels in perpetuity

4: MAXIMIZE1: DISCOVER 2: INCUBATE

IP Potential • Review by “A List” industry experts • 44-point checklist

to evaluate franchise viability • Requires identifiable, measurable

audience that congregates

• $50k plus additional value offered to engage author and secure rights

• Author Advance ($25k) • IP Option fee ($25k) • Long term financial focus • Forward collaboration • Author actively engaged

• Unique approach in the industry • Attractive opportunity to authors

Author Potential • Raw talent • Coachable • Entrepreneurial • Collaborative

• Development notes from Senior Editor • Polish details with mentors/coaches • Develop cross-media treatment(s)

• Blogging and Social Media • Identify and interact with audience • Establish author/IP brand identity • Capitalize on Facebook, Twitter, etc. • Build fan base and Seed advocacy • Active dialog with customer • Media training • Event planning and training

• Collaboration Coaching • Work with mentor and/or screenwriter • Work with Artists/Designers on Character

Designs, World Designs, Map, Video Sequence Design, Game Design, etc.

• Build Asset Experience utilizing interactive application

• Book App • Social Media Platform • Games • Video segments • Music, Sound Effects • Internal forums/community

• App Launch and Marketing Push • Marketing spend ($100k to $250k) • Apps sold in Google Play, Apple, and

Amazon markets for around $14.95 • Expected Revenue Net >$500k per title

• Community/viral brand awareness tracked

• Audience Preference data mined • Audience validated

• Franchise “Business Plan” • Product lifecycle • Comprehensive media opportunity • Preparation of Product for Development • Resource Plan • Talent Attachments • Audience development plan • Feedback processing and incorporation • Marketing to agents and managers • Ready to Greenlight on Day 1

• Cross-channel Revenue Generation • Films • Television • Animation • Games • Location-based

Each channel supports and promotes the others Each channel generates revenue. Investors own a piece of every exploitation through every channel in perpetuity.

EVALUATE IP/AUTHOR

OFFER/ACQUIRE RIGHTS

MATURE THE ASSET

PUBLICITY MENTORSHIP

PREPARE FOR ADAPTATION

3: VET

BUILD APPLICATION

LAUNCH/MINE DATA& GENERATE REVENUE

CROSS-MEDIA FRANCHISE PLAN

PARTNER TO DEVELOP

THE GRAMARYE INCUBATION PROCESS RECAPStarting early in the life cycle and working with a cross-disciplinary team to develop world class story franchises.


incubation REVENUETREATING STORIES LIKE A BUSINESS, PLANNING FOR SUCCESS

EARNS REVENUETHE INCUBATION METHODOLOGY

Traditional Studios Spend:

This is a sunk cost

annually on movies that are never made

$20 Millionannually on TV pilots that are never aired

$30+ Million

GRAMARYE’S Incubation Methodology will generate REVENUE even on stories that are never adapted.

EARNS REVENUETHE INCUBATION METHODOLOGY

MAY FALL SHORTOF BREAK EVEN

4-5 Stories

1 OR 2 = BREAKOUT HITS

12 STORY SLATE PROJECTION:

We researched traditional publishing, games, and film/television average returns

MAKE THE WHOLESLATE PROFITABLE

7-8 Stories

This is NOT a sunk cost and…

ONE TITLEPROJECTED APP SALES

Units Sold 200,000

Unit Price $14.95

Gross Revenue $2,990,000

Production/Marketing -$1,000,000

Channel/Author -$1,290,000*

Net Margin $700,000*Liability to author and sales channel (Amazon, Apple, Google Play, etc.)

LOW END


Units Sold 500,000

Unit Price $14.95




Net Margin $3,111,250*Liability to author and sales channel (Amazon, Apple, Google Play, etc.)

MEDIAN


Units Sold 5,000,000

Unit Price $14.95




Net Margin $40,112,500*Liability to author and sales channel (Amazon, Apple, Google Play, etc.)

BREAKOUT

EXTENDING ASSET LIFECYCLE, INCREASING VALUE

The Gramarye process establishes an intellectual property’s cross-media franchise potential and then

extends and enhances its monetization lifecycle.

IP LIFECYCLE MANAGEMENT

GRAMARYE BOOK

MEDIA

MEDIA CHANNEL 2

MEDIA CHANNEL 3

SUPPORTS & RENEWS PREVIOUS CHANNEL

SUPPORTS & RENEWS PREVIOUS CHANNEL

CROSS MEDIA REVENUEONE BREAKTHROUGH HIT

Film Box Office, Toys, TV/Animation, Apparel, Merchandise, Location-Based =

$500M to $5B gross Revenue

FUTURE VISION

EDUCATIONLOOK BEYOND ENTERTAINMENT TO ADDRESS CRITICAL COMMUNITY ISSUES

According to the National Assessment of Educational Progress and the National Center for Education Statistics, learning to read by the end of third grade is crucial. That’s when children start reading to learn other subjects.

Those who are proficient in reading by the end of third grade are much more likely to graduate from high school, and to be economically successful as adults.

About two-thirds of students in fourth grade don’t meet

reading proficiency standards.

IMPACTING EDUCATION CHALLENGES

FUTURE VISION

Our research identified 15 reasons why kids stop reading before the fourth grade.

While more research is required, we believe that our “eBook 2.0” technology can address them all.

In addition, content created for education can be developed as cross-media franchises.

IMPACTING EDUCATION CHALLENGES

FUTURE VISION

READY FOR SUCCESS

NEXT STEPSINITIAL INVESTMENT AND DEVELOPMENT PHASES

Initial Investment and Use of Funds:

This is the only investment round that will dilute Gramarye Media, Inc. Additional investment will be in annual content slates, following the Hollywood studio model.

$3 MILLION YIELDS: 2 MARKETED APPS & PUBLISHING PLATFORM Platform

Development and Operations

Manuscripts (Advance/Option)

Video/Game/ Art/Music

App Marketing

Subsequent Investments in Content SlatesAvg book app sales = 500,000 units Projected net revenue per slate:

IP1, LLC IP2, LLC IP3, LLC IP4, LLC IP5, LLC

IP6, LLC IP7, LLC IP8, LLC IP9, LLC IP10, LLC

Year 1: $31,112,500Year 2: $12,000,000*Year 3: $ 5,500,000*

* Assuming declines similar to book and game sales. However, a boost from cross media or new material from the same author(s), can increase post-launch year sales by 1 to 5x.

Gramarye/Investors

Slate InvestorsAuthor

Investors Participate in All Media ExpressionsGross Annual Revenue Potential for one “hit” $500,000,000 to $5,000,000,000

Total International Film Box Office Gross

Gramarye/Investors

Slate InvestorsAuthor

IP “X”, LLC

$300m - $2bToy Sales

Year 1 Gross$200m - $2b

Apparel Sales Year 1 Gross

$100m - $1b

Merchandise Sales Year 1 Gross

$100m - $1.5bTV/Animation

Licensing$22m

Location Based Licensing

$5m

means magic or secret knowledge. Gramarye (Gram-uh-ree)

It is the root word for glamour, grammar, and the French word grimoire, which means a book of magic spells.

404.759.6069John Adcox

For more information, contact:

[email protected]

Don Dudenhoeffer

[email protected]

mailto:[email protected]?subject=

mailto:[email protected]?subject=

Gramarye pitch deck 2 10

Investor Relations

Transcript of Gramarye pitch deck 2 10