*Achieving Revenue i.believe Targets DRAFT 05/21/2012
*Goals for the Session Review targets as stated in the business plan to Tokyo Discuss current situation Brainstorm on potential paths to achieving goals Identify actions to: Further define our marketplace Begin attacking strategic areas Build a tactical timeline to hit Year2 targets
*Tactical Timeline What do we need to do now to hit the ground running? June 2012 Pilot Launch (09/12) R1 Launch (04/13) Year 1 Target (04/14) What do we need to do to make our Target?
The MCS Ecosystem DBB MBC Rich API / Developer Tools MCS Toolbox CFP MCS Marketplace (Tools and Services) - Project and workflow configuration / product lifecycle planning and management - Bidding tools / RFP management / Deal management - Workforce services / search / recommendations / ratings / qualifications MCS Workforce Rich API / Developer Tools
*Revenue Sources The Vision Long Term Revenue Projections are Based on 4 Sources Core Services Storage, Workflow, Security, Versioning, Transport, Content Processing API(s), Ingest / Outgest, Real time Capture Sony Tools Per Seat License and Per Production License 3rd Party Tools Revenue Share, White Labeled Core Services Marketplace Per Seat Usage, Revenue Share, Referral Fees
*Revenue Sources Business Case Our Business Case is Built Exclusively on Core Services and Sony Tools Core Services Storage, Workflow, Security, Versioning, Transport, Content Processing API(s), Ingest / Outgest, Real time Capture Sony Tools Per Seat License and Per Production License 3rd Party Tools Revenue Share, White Labeled Core Services Marketplace Per Seat Usage, Revenue Share, Referral Fees
*Revenue Targets Summary Category Year1 Year2 Year3 Year4 Year5 Total Enterprise Licenses $0.0M $4.9M $22.4M $35.7M $37.9M $101.0M Per Production Licenses $0.0M $5.6M $18.5M $41.9M $45.6M $111.8M Core Services $0.0M $5.2M $16.2M $36.0M $40.9M $98.3M Total $0.0M $15.7M $57.1M $113.6M $124.4M $311.1M
*Current Situation Beachheads established at NBCU, ABC and Disney for CFP per seat licenses High level conversations started with potential Production Customers (Core Services and Per Seat) National Geographic ITV Zoo Very initial conversations started with potential Customers for Core Services Disney Studio MGM Good (potential) customer base at Sony Pictures across all three sources of revenue
*Potential Paths to Achieving Goals Broaden our current footprint Establish more beach heads Branch out across the organization Penetrate the Production Market Film TV (Scripted) TV (Unscripted) Establish our International Presence Attack other Verticals Mid-Market Non-Entertainment
*Target Customer Assumptions Disney 200 ABC 150 Lionsgate 5 NBCU 200 CBS 50 MGM 5 Fox Studios 10 WB 10 Bin Volt 50 Transatlantic 50 Sony 200 930 AETV 20 HBO 20 Showtime 20 National Geographic 20 Discovery 20 Fox Sports 50 E! 20 MTV 50 Univision 50 ESPN 150 Fox Television 50 CNN 150 Turner 200 DirecTV 200 PBS 20 CW 20 Travel Channel 20 1080
*SPE Landscape Department Current EAGL / CFP User Other 3rd Parties Functionality (Projected) Legal EAGL RATS Clearance Theatrical Marketing HE Marketing (Dom and Intl) TV Marketing (Dom and Intl) EAGL EAGL EAGL Consumer Products EAGL PIX Development PIX, DAX Finance? Corporate Development? HE Sales TV Sales EAGL EAGL Theatrical Releasing WPF EAGL, CFP Post Media Center CFP AVID, Protools Baselight, AVID, Colorworks EAGL Homegrown
*SPE Landscape Department Current EAGL / CFP User Other 3rd Parties Internal Production Theatrical Aspera with Storage, PIX Internal Production TV Cineshare + Sample Digital
*Broaden Current Footprint -- Challenges Are the number of potential seat estimates accurate? Is our average price per year accurate? Do we have the right offerings across multiple organizations if not, when will we? How do we leverage Sony as a Customer Do we have the right list of target Customers?
*Core Service Size Estimation Input Data Segment Feature Films (Budget > $10M) Production s GB per show Months of Storage Total GB- Months per show 300 50,000 6 50,000 x 6 = 300,000 Television Episodes 4800* 6,000 3 6,000 x 3 = 18,000 *Assumption: TV productions by major studios in US = 20% of total (~200 out of 1000) Other addressable TV productions in US = 200 (same size as those by Major Studios) Total TV Episodes = (200 + 200) x 12 = 4800
*Core Service Adoption Estimation Segment Feature Films (Budget > $10M) Production s Year 1 Year 2 Year 3 Year 4 Year 5 300 0% 15% 25% 40% 40% Television Episodes 4800 0% 10% 15% 20% 30%
*Core Service Adoption Estimation Segment Feature Films (Budget > $10M) Production s Year 1 Year 2 Year 3 Year 4 Year 5 300 0 45 75 120 120 Television Episodes 4800 0 48 720 960 1440
*Penetrate the Production Market -- Challenges Do we have services Productions want / need? What are we missing? What s the right list of Customers to target? Is our pricing in line with Customer expectations? How do we get the adoption we need?
*Total Weighted Revenue Projections Year 1 Year 2 Year 3 Year 4 Year 5 US $- $21.3M $38.8M $52.3M $59M ROW $- $10.7M $38.8M $65.4M $73.6M Sub-Total $- $32M $77.6M $117.7M $143.6M Partial Year Adjustment N/A 50% 75% 100% 100% Price Erosion N/A 0% 7% 7% 7% Weighted Total $- $16M $57.1M $113.7M $124.4M
*Establish our International Presence -- Challenges Do we have the right offerings at the right price? How do we determine which markets to attack when? What does the business and technical operations team look like, and when do we need them?
*Other Verticals Segment Targets Comments Seat Licenses Qualified Film and TV 11 Disney, ABC, Lionsgate, NBCU, CBS, MGM, Fox, WB, Bin Volt, Transatlantic, Sony Target Film and TV 24 HBO, Showtime, National Geographic, Discovery, Paramount, E!, MTVN, Univision, ESPN, Fox TV, CNN, Turner, DirecTV, PBS, CW, Travel Channel, Éclair, Studio Canal, TV1 (France), Gaumand, Pathe, Europa Corp, Pinewood Post Production Houses (Major/Small) 80 Online Listings Sports and Content Producers/Owners 9 Equal to Majors Advertising 80 Equal to Post Production Others 17 Unaccounted segments / equal to Independent Core Services and Per Production Seats Film productions 300 Total Addressable Films TV productions 400 Total Addressable TV Episodes
*License Adoption Estimation Segment Estimated Available Seats (Licenses) Year 1 Year 2 Year 3 Year4 Year 5 Qualified Film and TV 930 0% 50% 75% 75% 75% Target Film and TV 1080 0% 5% 50% 50% 50% Post Production Houses (Major/Small) Sports and Content Producers/Owners 400 0% 5% 10% 15% 20% 930 0% 5% 10% 15% 20% Advertising 400 0% 5% 10% 15% 20% Others 1080 0% 5% 10% 15% 20% Film productions 300 0% 15% 25% 40% 40% TV productions 400 0% 10% 15% 20% 30% Total Adoption % 5520 0% 13% 30% 34% 37%
*License Projections Year Year1 Year2 Year3 Summary Year4 Year5 Seats Qualified 0 465 700 700 700 Target 0 54 540 540 540 Sports 0 47 90 140 190 Post Houses 0 20 40 60 80 Ad Agencies 0 20 40 60 80 Other 0 54 110 165 215 Sub-Total 0 660 1520 1665 1805 Per Title Film Seats 0 45 75 120 120 TV Seats 0 40 60 80 120
*Attack other Verticals Confirm we have the right list of Verticals What are the services by vertical, and how should they be priced? Do we have the right skills on the team to be successful?
*Tactical Timeline What do we need to do now to hit the ground running? June 2012 Pilot Launch (09/12) R1 Launch (04/13) Year 1 Target (04/14) What do we need to do to make our Target?
*ROW Build Up (un-weighted) Year 1 Year 2 Year 3 Year 4 Year 5 Multiplier $- 50% 100% 125% 125% Seat Revenue $- $3.3M $15.2M $20.7M $22.5M Per Production Revenue $- $3.9M $12.6M $24M $27M Core Services $- $3.5M $11M $20.7M $24.1M Total $- $10.7M $38.8M $65.4M $73.6M