Moontide Media, LLC

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1 Moontide Media, LLC A Micro-Local Media Network Investment Overview

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Moontide Media, LLC. A Micro-Local Media Network Investment Overview. Agenda. What is Moontide Media The Opportunity The Moontide Model The Moontide Product Suite Rollout strategy Competition Management Summary Financials. What if… - PowerPoint PPT Presentation

Transcript of Moontide Media, LLC

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Moontide Media, LLC

A Micro-Local Media Network

Investment Overview

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What is Moontide Media The Opportunity The Moontide Model The Moontide Product Suite Rollout strategy Competition Management Summary Financials

Agenda

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What if…

An ultra high quality lifestyle magazine existed for your neighborhood?

There was a smart, cool and trusted voice that could guide you to the best finds nearby every day?

And what if…

The most desirable neighborhoods in Los Angeles were part of an upscale media network?

Local advertisers had a marketing partner who really understood how to help them reach their most sought after targets?

A sophisticated and trusted local voice were able to offer marketing opportunities up and down the value chain?

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What if… is Moontide Media

Moontide Media is a network of premium-quality local magazines and digital properties which engage residents of the most desirable Los Angeles communities, while providing integrated marketing opportunities for local and regional businesses.

Building from a base of two existing magazines and websites, Moontide will rapidly scale into a cross-media platform that fundamentally connects readers and marketers in carefully selected affluent sub-regions.

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Moontide Media: The Consumer Opportunity

Magazines

Websites

Emails

Mobile

Moontide provides that consumer:

Ultra high-quality lifestyle magazines about great living specifically in your community

Websites that inform and guide her to the most relevant events and commercial opportunities

Emails that tip her off to local happenings, weekend fun and local real estate listings

Mobile applications that guide him directly to local merchants while offering timely discounts

A premium quality, cross-media guide to living your best life close to home

The average upscale consumer spends 92% of their time within 50 miles of their home

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Moontide Media: The Market Opportunity

Local digital media is expected to grow in excess 18% CAGR through 2013

There is significant lack of high quality print vehicles within the targeted markets

The sub-regional magazine marketplace is relatively uncompetitive in Los Angeles; No sub-regional player operates at scale

Pure play digital providers lack community presence

Local advertisers lack marketing (especially digital) expertise and will respond to customer service

The Moontide Network will connect the most desirable communities

A highly experienced management team is focused on execution

Market Growth

Competition

Advertiser Need

Network

Management

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Why print? Why now?

Lifestyle magazines are not news-driven

Community and passion verticals lend themselves to the immersive print experience

Text, design, photography and permanence appeal to lifestyle readers

Art, architecture, food & wine, people and events are captured well on the printed page

When costs are controlled, print offers solid margins

Periodical lifestyle

magazines are a unique media

experience

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Built to ensure quality across media at a low relative cost and to allow for rapid geographic expansion

A small central organization delivers general management, network editorial, digital services, production, marketing and finance

Four person sub-region teams focus on delivering relevant content and monetizing each market

Editorial structure of XX% shared (network) content and XX% generated in each sub-region

A partnership with a best-of-breed digital platform developer

A controlled circulation model delivers quality circulation with minimal subscriber acquisition costs

The Moontide Model: Low Cost/ High Quality

Rapid Scalability

Hub and Spoke Organizational

Structure

Leveraged Editorial

Proven digital platform

Controlled circulation

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Centralized functions are designed to scale with edition rollouts

Magazine layout, content management, customer relationship management and printing contracts all designed to scale

Centralized costs are borne early in the businesses’ lifecycle and increase more slowly than the revenue growth associated with a new title

XX% of magazine editorial slots into new edition

Digital template; each new site rollout takes 4 weeks

Sales rollout and marketing plan cover XX week period

Centralized Leverage

The Moontide Model: Replicable, Highly Scalable

Digital Efficiency

Editorial Efficiency

Effective Launch

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Centralized General Management Network Editorial Art & Design Digital Services Production Marketing XX Head Count at Scale

Sub-Regions Print and Digital Ad Sales Local Editorial Blogging Local Events X Head Count per Sub-Region

The Moontide Model: Structure

West Hollywood

Southbay

Westside

Ventura Blvd

Canyons

Old Town

Central

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The Moontide Model: Deep Community RelationshipsMoontide gains competitive advantage through community relationships based upon a combination of its editorial products, digital applications and human contact

Readers and Users

Local Merchants

The Moontide Portfolio

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Godengo is a best-of-breed digital platform specifically developed for local publishers

Modular platform allows for maximum flexibility Constant innovation in audience acquisition, revenue

generation and content presentation Modular template; each new site rollout takes X

weeks Pioneers in geo-base listing revenue strategies Outstanding site architecture and SEO capabilities

The Moontide Model: Effective Digital Partnership

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The Moontide Product Suite: Print

High quality local editorial: art, architecture, healthy living, food, wine, travel, fascinating people, great businesses and the best local events

Xx annually XX,000-XX,000 controlled circulation Mailed to highest income homes High quality supplemental distribution: best

hotels, boutiques

Great Living Close to Home

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The Moontide Product Suite: Websites

Each site contains: Daily blogs Calendar Event photo galleries Deal of the Day Contests Business listings Magazine content

Utilizing Moontide’s unique partnership with Godengo, a micro regional website will debut just prior to the launch of each new magazine

The websites will be a dynamic daily connection to our users

The daily connection to your community

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The Moontide Product Suite: Email

“Today in…” Daily email from local editors

“This Weekend in…” Friday email guide to local weekend happenings

“Local Listings” Weekly email on local real estate listings

Email drives traffic to the sites, provides sponsorship opportunities and is a base of Moontide’s data acquisition process

Daily Pushed Communication

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The Moontide Product Suite: Mobile

Iphone and smartphone apps Mapping functionality Enhanced business listings Text for info Contests

Godengo supplied apps launch Moontide rapidly into the mobile market

Community on the Go

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Moontide Media: Development Bridge

2 sub-regional magazines: Southbay and Westside

One website (lifeinthesouthbay.com) Excellent quality/very low cost Strong Southbay advertiser relationships Strong growth path for Westside – third issue ’XX revenues of $XXX; net income of $XX

X magazines/X new launches Vibrant digital activity in each sub-region Established and growing community

relationships and advertiser base Advertising and ecommerce revenue streams X of X regions generating positive net income XX employees ‘11 revenues of $XM; EBIT of $XM

TodayA vibrant young company in need of growth capital

24 MonthsA sub-regional magazine and digital network generating significant cashflow

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Moontide Media – Rollout strategy

Existing Titles

Southbay Westside

Launches

Ventura Blvd West Hollywood Canyons Old Town Beverly Hills 90210

CANYONS VENTURA BLVD

OLD TOWN

WEST HOLLYWOOD

BEVERLY HILLS 90210

SOUTHBAY

WESTSIDE

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Only The Most Desirable Communities

The sub-regions where Moontide currently publishes and will soon launch are among the most affluent communities in the U.S.

Southbay WestsideVentura

Blvd.West

HollywoodCanyons Old Town

Beverly Hills

Households 68,100 54,200 42,500 56,762 36,111 31,438 19,175

Businesses 4,994 6,374 8,159 6,232 5,915 3,049 5,814

Adjusted Gross Income

$177,000 $384,000 $166,000 $97,000 $156,000 $200,000 $343,000

Median Home Price

$1.388M $1.868M $1.004M $1.875M $877K $1.069M $1.255M

Each market Moontide launches has been vetted for:

Affluence relative to region/country A easily defined market Sufficient volume of local businesses Market underserved by competition

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Moontide Media: Competition

No local media magazine company operates at scale

Existing Stand-alone sub-regional magazines 805 Living – Canyons Pasadena Magazine – Old Town The Magazine – Old Town Beverly Hills – Beverly Hills Times, Beverly Hills 213

No sub-regional print competitor employs a meaningful digital strategy

Lower-end local newspapers and “shoppers” fail to adequately service higher end businesses

Local Media Platforms

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Moontide vs. National City Platforms: A Unique Go-To-Market StrategyMoontide is focused first on delivering marketing value for the local advertiser, secondarily on the regional advertiser and finally on national upscale advertisers when the network reaches scale

Moontide Media

City-wide magazines focus most heavily on national advertisers

LOCAL

REGIONAL

NATIONAL

Moontide Media’s focus is first on local markets

NATIONAL

REGIONAL

LOCAL

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Moontide Media: Competition

Yelp, Citysearch, Google, Patch, Yellowpages.com and others

Strong technology platforms; various business models

Local information, business reviews, search Focused on local advertisers Most lack a meaningful local presence and

often rely on business self-service

National Digital Advertising

Platforms

Moontide competes with pure-play digital competitors with a strong technology structure, deep community presence and

business relationships and cross-media capabilities

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Experienced, Execution-oriented Management

Current CEO, Rockmore Media, LLC President & Publisher of Variety; President of RBI

Entertainment Group 2000-2008 Responsible for $XXM operating group representing

XX% of parent company profit Launched Variety.com and built to $XM in revenues Grew mature franchise revenue and EBITDA by X%

and X% (CAGR) during tenure Board member, American Media, Inc. & The Wrap, Inc.

Founded Moontide Media in 2006 with $XX investment VP, Business Development – Silverpop Systems, Inc

2002 - 2006 – leading email solutions provider VP, Sales – Avalon Digital Marketing, 1999 – 2003 –

central role in sale of company to Silverpop Regional Advertising Manager – Curtco Freedom

Group – oversaw sales for The Robb Report

Charlie KoonesChief Executive Officer

Todd KlawinChairman & Founder

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$-

$2,000

$4,000

$6,000

$8,000

Year 1 Year 2 Year 3 Year 4 Year 5

Incremental Profit by Year

$X

$X

$X$X

$X

$X

$X

$X

$X

$X

$X,000

$X,000

$X,000

$

Year 1 Year 2 Year 3 Year 4 Year 5

$2,453

$6,461

$2,710

$2,135$1,854

$2,993

$3,829

$1,278 $1,156$966

$-

$2,000

$4,000

$6,000

$8,000

Year 1 Year 2 Year 3 Year 4 Year 5

Incremental Revenue ($000s)

Incremental Cost ($000s)

$-

$2,000

$4,000

$6,000

$8,000

Year 1 Year 2 Year 3 Year 4 Year 5

Incremental Revenue ($000s)

Incremental Cost ($000s)

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$(X)

$X

$X

$X

Y1 EBITDAX Editions + Nat’l /

Regional Ads and OH

Y2 Incr ProfitXEditions +

Nat’l / Regional Ads and Increased Digital Rollout

Y3 Incr ProfitX Editions + Nat’l / Regional Ads and Increased Digital

Rollout

Y4 Incr ProfitX Editions + Nat’l / Regional Ads and Increased Digital

Rollout

Y5 Incr ProfitX Editions + Nat’l / Regional Ads and Full Digital Rollout

Y5 EBITDAY1 EBITDA Year 3 Year 4 Year 5

$X

$X

Year 2

Moontide Media Profit Bridge