Bet 2008 proposal


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Bet 2008 proposal

  1. 1. Product and Service Relationship 1 BET Networks, a division of Viacom Inc., is dedicated to maintaining its leadership position on all platforms where consumers seek African-American content, communities and experiences. From its aggressive, ambitious original programming strategy to digital dominance through and BET Mobile to key international growth in the U.K. and Japan, BET continues to deliver the ultimate entertainment experience for its audience. is the No. 1 online entertainment destination for African- Americans. BET Mobile delivers music, gaming and video content on wireless devices across virtually all service providers. BET Event Productions is a full- scale event management and production company, with festivals and live events spanning the globe. BET International delivers BET content to consumers around the world. Through a partnership with Paramount Home Entertainment, BET Home Entertainment distributes BET original television programming and acquired content on a worldwide basis. TARGET DEMOGRAPHIC- African-Americans ages 18-34 BET DISTRIBUTION - 87 million homes in the U.S., Canada and the Caribbean BET J DISTRIBUTION - 26 million homes in the U.S. and the Caribbean LOCATION- Headquarters in Washington, D.C., with additional offices in New York and Los Angeles. Advertising sales offices in New York, Chicago and Los Angeles. OTHER BRANDED ASSETS – *BET J *BET Digital Networks: -BET Gospel -BET Hip Hop * *BET Mobile *BET Event Productions *BET International *BET Home Entertainment Example of BET Campaign- 23888 (BETTV) - BET Network - Entertainment – Free- Send keyword "BET" to 23888 and receive free access to BET's mobile offerings, including ringtones, wallpaper, artist trivia and much more. More info:
  2. 2. Product and Service Relationship 2 This document is being presented as a working proposal between ROK Entertainment Group US and Matt Sapero (Agent) for the development and roll-out of ROK products and services that are white labeled under the BET Mobile Brand. His Agency proposes to perform business development on behalf of ROK and manage day to day relations with BET & ROK USA. Matt Sapero has been selected as BET main agency to offer Products into BET Mobile through contacts at the highest level. BET new strategy for 2008 is to aggressively expanding the brand internationally through distribution in new media, especially in the wireless market. BET Mobile recently fired most of the existing staff and has hired a new team, which are planning to revamp the operation. Time is the essences as BET will be finalizing their plan and partners no later than July 1, 2008. ROK has about 45 days to finalize a deal with BET. Matt is open for a conference call anytime. *ANSA – Text 2 Answer Service *BET ANSA- Example- (Celebrity) ANSA service (rotated monthly). And include promotional Giveaways (paid by sponsors) Wallpapers, tickets, Prizes. Cost $.99 (weekends) $1.99 (M-F) *BET Branded ANSA- Sports, scores, trivia, advice. *Offer products directly to carriers as a brand BET Service *ROK can sign 3 well known African American stars in the industry for a branded ANSA service. *86% of African American-fluentials report that they are more likely to listen to companies that develop products that reflect community and cultural needs Monthly Estimate- - BET Mobile Subs 300k -BET TV Network 87M Subs 10% of Bet mobile subscribers = 30,000 (advertised on TV too) 10% Ask a 2nd question= 3,000 33,000 text x .40 cents = $15K monthly – Agent fee (10% of 15K) = 1.5K = $13,500 Monthly (3% growth) BLUE BOX- Bluetooth technology * BET Events, concerts, sponsorships and marketing tool for brands to promote products to demographic * BET Bluetooth Application will enable to sell ringtones, magazines, games, clips and updated daily. * It becomes your BET Mobile customer. BET Icon App on phone. * Advertisers section offering discounts and coupons- redeem mobile coupon at store. *Ad partner Gorilla Nation is the largest marketing company for new media for Urban demographic. *BET honest their own Yearly Award Ceremony as well events with leading studios to promote movie releases. *Brand & in-store display are key drivers of African American-purchases, coupons and promotions drive sales. *60% of African Americans forward emails with coupons and discount offers (compared to 49%). *49% forward emails with promotion and sale information (compared to 29% of US e-fluentials). Monthly Estimate- - BET Mobile Subs 300k -BET TV Network 87M Subs 5% of Mobile Subs = 15,000 texts x .40 cents = $6K monthly (1% growth) Sales from VAS Services & Rok’s cut $20,000 monthly = 20K (3% growth) Revenue from advertising and promotion tie in with Gorilla Nation = 15K (3% growth) – Agent fee (10% of 41K) = 4.1K = $36,900 Monthly (2% growth) ROK SPARK/NEW ROK CITY- Social Networking site for Mobile & PC * Make BET Social network site that is an all in one solution for Social Networking sites. * Another way to offer sell new media products to consumers and offer deals for products. * BET users provided value information on social community sites compared to any other demographic. * An Adult Portal that takes you “A Privileged World” (21 & over), Patron Sponsored World- * BET is a perfect partner to launch Patron Mobile Value added services. * Advertising Revenue from campaigns that will be handled by Gorilla Nation.
  3. 3. Product and Service Relationship 3 *African American-fluentials are community-oriented *African American influentials are much more likely to make business contacts online (52%) than US influentials as a whole (28%) - but they are African American-fluentials are also less likely to be active on a social networking site (49%), such as Facebook, than the general population of online influencers (76%). The online activities of African American-Influentials: less likely to “make friends online” (39% vs. 58%). Monthly Estimate- - BET Mobile Subs 300k -BET TV Network 87M Subs Estimate amount of users to sign up 150,000 new users per month Estimated Revenue made through Advertising – Agent fee (10% of 50K) = 5K = $45,000 Monthly (4% growth) BET MEDIA STORE- Side Loading content download BET Media Store is a service designed to allow consumers to access and purchase rich-media content for download and use on their mobile phones via their SD, MMC, or other data storage chip. This ‘side-loading’ solution is similar to that of iTunes for the Apple iPod. A peripheral device is connected to a computer via USB and content can then be purchased and downloaded from an internet service (iTunes) *Additionally, opportunity to manufacture and sell blank, branded BET chips at retail. These chips would be packaged and sold as BET Media Store chips, and special offers for free content. *Confirmed interest - Hawk stores,, & Kingston from original Media store project in 06. *65.5% of respondents were 18-34-year-olds, with broad demographic reach into various sub-segments, according to the third-quarter survey that covered more than 2,000 mobile sites. * *Numerous sites that target African-Americans have audience compositions in excess of 50% of that elusive 18-34-year-old demographic, whereas the ethnic group comprises only 6.3% of the mobile population, according to M:Metrics. TERMS- ROK will design and develop the BET Media Store whereby mobile content can be purchased for download. ROK will receive 40% of the revenue from sales of the BET-branded media store. Agent will be entitled to “10% of revenue earned and received of ROK’s percentage of the deal. For example: $100 = 40% ROK, 60% BET, ROK in this case would be entitled to $40 from the $100 Agent fee would be 10% of $40 = $4 Potential Revenue= TBD- MOBILE TV- ROK Intl. Content Distribution * BET partners with ROK Internationally to offer BET channel to existing distribution partners. * Territories of interest for BET Channel- South Africa, India, China, Thailand, China, Middle East * Overlay technology of ROK STAR Application to be added to existing video- Interactive * Main content provider for Patron Branded Mobile service would be BET. *Freebe-TV (Ad-supported) Nokia to help push BET Mobile Brands and products. TERMS- entitled to “10% of revenue earned and received of ROK’s percentage of the deal. Potential Revenue= $ 10-15K Monthly OTHER POSSIBILITES - Cross Promotional of Brands- 1) Patron Spirits – same demographic as BET and would be ideal partner for Patron Mobile. BET & Patron Spirits launch a branded handset together appealing to Niche group. 2) Dejoria Diamonds- A rebranded version for BET. A Hip Hop Diamond line for the stars. Conflict free diamonds branded by BET. 3) Offering ROK Products that are rebranded BET and pitched to the carriers as a BET VAS. An application branded by a brand appeals more to the carriers.
  4. 4. Product and Service Relationship 4 • Community-relevant products, companies that support community philanthropies (85%) and charities (79%) will garner this audience’s attention. These community-focused efforts are more compelling to African American-fluentials than coupons (75%) or promotional emails (66%). Conclusion- Monthly Projected forecast 100k per month within 3 months. This project is ready to proceed as BET Mobile deadline approaches. Matt has informed me he would like to know as soon as possible if we are living to move forward with this Project, which is lucrative for all parties. Working with Matt in the past showed me his passion for ROK, accuracy of work, professional image, & his relationships in the mobile industry for the past 20 years. But most important providing results in a timely fashion. BET is the best brand we can team up with because it hits a demographic of 18-35 yrs.& it’s customers are the most influential demographic for new media in America. It ties in perfectly with existing projects we are planning to do in the near future and will be a great way to launch the USA. “Gorilla Nation” #1 Urban advertising new media agency as well has expressed interest in Mobile and are very interested in joining this project as well. Being a technology partner for BET will bring us even more business opportunities in the USA as well as grow a close relationship with the carriers through their existing deals with BET. The most important factor is the millions of people using our products and gaining a huge base of customers. Proposed Terms by Agent- 1) $10,000 Monthly Retainer for a minimum of 6 months. *Payment for first month due at signing and every 1st of the month. 2) All Mobile products & content associated with BET Agent will be entitled to “10% of revenue earned and received of ROK’s percentage of the deal”. 3) Manage the deal and work closely with both parties. 4) Once an agreement is finalized with BET the Agent fee is valid as long as the term of the Service agreement between BET and ROK is in effect. 5) ROK’s support is extremely important regarding any meeting in New York with BET. If ROK requests that an Agent is needed to travel all travel expenses must be paid by ROK. 6) Revenue/Performance Milestones – The agreement will contain revenue and performance milestones for each party wherein, should any of the milestones not be achieved the parties will re-evaluate the service. 7) Termination Provisions – Either party may terminate the agreement should negotiated milestones not be achieved by either party or by mutual agreement. Additionally, after 6 months, either party may terminate the agreement for any reason. 8) Revenue Share – Split based on net revenue. Net revenue shall be defined as retail sales minus any royalty payments to content providers and licensors. 9) Customer Support – TBD. 10) Term – 6 months, with automatic renewal unless either party terminates the agreement based upon termination provisions. 11) Non- Exclusive for All parties
  5. 5. Product and Service Relationship 5 KEY FACTS ON AFRICAN AMERICAN DEMOGRAPHICS IN USA *Young people in the African American community are particularly value-oriented. There is an emerging group of African American youth poised to enrich and lead society in substantial ways. They are not only a serious target audience for the technology, apparel, sports and entertainment industries, but also are ready recruits for college, job, volunteer and leadership opportunities at every level.” *82% of African American-fluentials say brand drives their purchase decisions (only 68% of US e-fluentials agree). Additionally, 85% of African American-fluentials say that once they find a brand they like, they stick with that brand.
  6. 6. Product and Service Relationship 6 RECENT BET KEY DEVELOPMENTS MTVN and BETN Name Melody Tan Senior Vice President, Strategy & Business Operations, Content Distribution and Marketing 04/14/2008 MTV Networks Company and BET Networks announced the promotion of Melody Tan to Senior Vice President, Strategy and Business Operations, Content Distribution and Marketing (CDM). Tan will continue report to Denise Dahldorf, Executive Vice President, CDM. Previously, Tan served as Vice President, Strategy and Business Operations, CDM. BET Networks Launches New Television Channel in the United Kingdom 02/20/2008 BET Networks announced the launch of BET, a new television channel in the United Kingdom dedicated to bringing British consumers access to top-rated BET shows, including 106 & PARK, AMERICAN GANGSTER, HELL DATE, THE BET HONORS, COLLEGE HILL, MEET THE FAITH and many more. BET will be offered free-to-air on the digital satellite platform beginning on Thursday, February 28. Available via the Sky Guide, BET will be accessible to more than 8.8 million digital satellite homes, adding considerably to BET Networks' global reach. BET Networks is the leading provider of media and entertainment for African Americans and consumers of Black culture, currently reaching more than 87 million households in the United States, Canada and the Caribbean.