StereoType Des Moines
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Transcript of StereoType Des Moines
Why Do Artists Skip Iowa?
Iowa Colleges
Problem Is Ticket Price Doesn’t Equal Value• How do we offer the consumer low
ticket prices?
• How do the Artists, Labels, Promoters still make a profit with low ticket prices?
• How do we make a profit?
We partner with the Artists, Labels,
Promoters
Provide the Resources to Record• Most bands can’t afford them– We have all resources in house
• Record in hi-def Audio / Video– Create entire product lines• Each product can yield revenue for decades
– Each a StereoType exclusive– Yields massive amounts of revenue
• Subsidize ticket prices – High energy yields a spectacular recording
Business Model• Record/produce/broadcast– Increases profit margin
• Three main products– Audio downloads– Video downloads– Live streams• Physical attendance is not required to
enjoy the show
• Distribute digitally– No manufacturing expense– Minimal warehousing expenses– Establishes brand name status
Additional Revenue Options• Lease the recordings– Video games– Commercials– Television / Movies
• Use facilities to– Stream our events to other venues– Stream live to awards shows– Lease our equipment to other venues– Host: Tradeshows , Weddings, Sporting
events, Gaming Tournaments, Proms
Why will they let us record?
Artists want two things…
Money + Exposure
Profit sharing model• 40% gross to the artist• Artists own the recordings• We retain exclusive distribution rights– We cover ALL expenses• Marketing / Distribution / Manufacturing
• Artists choose– What products are created – Formats used– What distribution channels to use
Year 2 Year 3
$383K $818K
1M 1.7M
211K 536K
Partnership = ProfitYear 4 Year 5
$1.3M $1.7M
2.7M 3.7M*
1M 1.8M
Year Year 1
Average Pay for Artists
$162K
Average # of Downloads Per
Month380K
Average # of Live Streams Per Month
55K
*Oct 24th,2011 iTunes sold its 16 Billionth songSell an average 11 Million songs per day
One-of-a-kind venue• 6 venue spaces, capacities from 200 – 10K– Each has a top of the line
• Audio / Video systems• Full recording capabilities
• Complete entertainment facilities– Green rooms, retail spaces, work/live lofts– Restaurant, nightclub– Accommodate 10 semis/tour buses– 3/4 acre of solar panels
• Offset massive energy consumption/expense– Rooftop garden
• Marketing– Paid Internships + Iowa-based marketing
Marketing and Sales• Perpetual social media campaign– Street team (marketing interns)• Directly engage our consumer base
– Cost effective two-way communication• Create viral ads– More unique = more media attention– Free to upload – YouTube, social media, etc.
• Hire marketing firm– Specialized campaigns
Market• How many of you– Own a smart phone?– Use an online music service like iTunes?
• How many connected devices do you own?– DVD/Blu-Ray player, gaming consoles, tablets, etc.
• You are our potential consumer
Online Market• Google, iTunes, Amazon, etc.– Proven online distribution model– Massive consumer base
• Sell the same products– Seek differentiation• Pay for exclusive products
• We only produce exclusive products– Gives leverage with negotiation
Create an App• 4+ billion connected to Internet– No.1 device: smart phones
• Syncs communication channels– Consumers and social media profiles
• Each new multimedia device – Increases revenue potential• Customer engagement
• Links to our website
Why hasn’t our competitiondone this?
• Napster – Artists want control of their music
• Lack of facilities– Most venues are converted buildings– Recording based on acoustics– Revenue based on recordings
• Cost is only barrier to enter market– Expensive retrofitting– Build from the ground up
Startup Phases / Expenses
Phases Year # Expense $
Construction Pre-Start $51M
Parking Garage 3 $27M
Festival Grounds 4 $5M
Franchise 5 $80M
Our Cash Flow ProjectionsYear 1 2 3 4 5 Totals
Receipts $88M $119M $305M $518M $780M $1.81B
Expenses $78M $69M $196M $278M $494M $1.16B
Taxes $1M $6M $14M $31M $37M $90M
Revenue $8M $43M $95M $209M $249M $604M
Stock $4M $22M $47M $104M $124M $302M
Profit $4M $22M $47M $104M $124M $302M
Management Team• Ryan Lebo – Owner– 7 years of research• Model development• Product development
– Visionary who created StereoType• Pat Williams – C.O.O. – Seasoned playback / recording engineer– Over 10 years experience• Worked more than 3,000 concerts• On 5 continents
Management Team cont.
• Channing Swanson – Architect– Neumann Monson Architectural Firm– Highly skilled – Award winning
• Scott Leighter – President of Public Relations – 20+ years combined experience• Public and private sectors
– City of Altoona
– Proven business and community leader
The City of Altoona, Iowa
Potential Investor Offerings*• Structured as an LLC– Leaves options for franchising
• Offer two classes of shares– Class A (voting rights)• 30 shares available• Full share $500K• Worth 1% of profits
– Class B (non-voting rights)• 200 shares available• Full share $50K• Worth .1% of profits
*Not an offering of securities
Current Status• Build our team– C.F.O. or Financial Firm• Establish solid offerings package
• Market our model to promoters• Seek initial funding– 40% equity, 60% debt financing– Purchase land– Begin construction
Altoona, Iowa
Shoppes At Prairie Crossing
We Have A solid business model An ever growing market Established distribution channels A skilled team A community that wants us Funding