Pitch Deck for AFM 2007 Los Angeles

1. A F M 2 0 0 7

2. QuickTime™ and a
decompressor
are needed to see this picture.

3. What we’ve done (so far)

4. …in Brazil :
• 100% of art house theatres are connected to
the Rain Network
• 134 digital screens operating across 20 cities
• 157 films shown digitally
…in the USA :
• 26 theatres operating in 23 cities
• Over 350 digital titles available including:
- Full Frame film festival 2006, 2007
- Latin Beat film festival 2006, 2007
- Global Lens, 2007
- Undiscovered Gems, 2005, 2006, 2007
- The Metropolitan Opera (NYC) in HD, 2007, 2008
- La Scala Opera (Italy) in HD, 2008

5. DIGITAL ART HOUSESDIGITAL ART HOUSES

6. How we do it
Technology + Innovation

7. Operation
Database
Kinocast Player
IP Network
Central Server
Kinocast WebCapture and
encoding
Ad Agencies ExhibitorsDistributors Projector
Local Server
VPN VPNMaster HD

8. Theatre Management System & Kinocast Web

9. • 24 hour phone and online support
• Network operations center
Monitoring

10. Why we do it
The Market Opportunity

11. The Market Opportunity
“Our culture and economy are increasingly shifting away from a focus
on a relatively small number of hits (mainstream products and
markets) at the head of the demand curve, and moving toward a
huge number of niches in the tail.”
Chris Anderson
The Long Tail

12. The Market Opportunity
“Recommendations have all the demand-generation power of advertising, but
at virtually no cost.” Chris Anderson
The Long Tail Facts
75%75% ofof MySpaceMySpace members use the site to find musicmembers use the site to find music
60%60% ofof NetflixNetflix rentals come from recommendationsrentals come from recommendations

13. WHY WE DO ITWHY WE DO ITWHY WE DO ITWHY WE DO IT
Consumers want more options, access and control – niche
products for all tastes
Give them access – Rain’s digital network
Make everything available – provide a robust film library
Help them find it

14. A new business model

15. ESPAÇO DE EXIBIÇÃO
“Theatrical on Demand”
• Digital Theatre Network
• International Film Library
• New cross-media marketing strategies
• Web theatrical management system
• Web 2.0 booking
• Efficient revenue share model
• Agility, Flexibility, Security, Visibility
• Low risk – high return
A new business model

16. “Theatrical on Demand”
key advantages
• No print or delivery costs
• Secure online delivery via Virtual Private Network (VPN)
• Only one encrypted encode per film worldwide
• Multiple language subtitling
A new business model

17. ESPAÇO DE EXIBIÇÃO
Cross-Media Marketing Strategies
• Digital pre-show for trailers – programmed and controlled by Rain
• Digital Media Signage – programmed and controlled by Rain
• Digital word of mouth – widgets
• Online social network – YouRain
• Blog reviews
• Programming block / line up – collective advertising on tv and radio
• Publicity
• Guerilla marketing - events and promotions
A new business model

18. “Theatrical on Demand”
business proposal
• 50% - 50% from the film rental between Rain/Licensor
• $15K P&A, flat fee, retained per new feature
• No P&A retained for classic or catalogue films
• 30% DVD Royalty
• 50% VOD net revenue share
• 80% TV Royalty
A new business model

19. Theatrical on Demand
Partnering with one of Latin America’s most
important independent distributors…
A new business model

20. Benefits for Exhibitors
Sales Agents
Producers

21. Benefits for Exhibitors
Rain offers programming independence
+ Access to more movies
+ Online programming
+ Remote access for scheduling sessions
+ Online exhibition control
+ Flexibility in programming - optimizing theatre occupancy
+ New advertising and event revenue
= AGILITY, FLEXIBILITY, QUALITY, & SECURITY

22. Benefits for Sales Agents
Rain offers lower risk release and provides savings in 35mm and
logistics
+ More films on more screens
+ Simple logistics
+ One encoding per film worldwide
+ Multiple subtitles
+ Simultaneous release
+ Efficient revenue share based model
= NEW OPPORTUNITIES, SAVINGS, & LOWER RISKS

23. Benefits for Producers
Rain increases movie visibility
+ Low investment at release
+ Rights management
+ Multiple subtitles
+ Real time auditing
+ Larger number of screens
+ Delivery and transfer savings
= VISIBILITY + ACCESS + SECURITY + FLEXIBILITY

24. Case Study

25. Case Study “9 Songs”
• Digital release generated positive cash flow for sales agents
• Digital content reduced the initial risk + costs involved with replication
• Movies being distributed in regions where there was no previous market
penetration = new audiences + new theaters

26. 2008 Global rollout of over
300 art house digital
screens throughout the
US, Europe and Latin
America.

27. The Tools

28. Online social network connecting moviegoers to an e-box office for
screenings on demand
Consumers can:
• Decide which films they want to see, when and where
• Schedule and book community demand based screenings
• Access a huge database from classics, to festival films to small foreign films
• Discover new and old films through the power of social media referrals
• Create and join film clubs
The Tools

29. The Tools

30. The Tools
Traveling seasonal film festival showcase for festival fans
Audiences can:
• Watch films from renowned international festivals
• See non-commercially released films
• Enjoy different film styles and genres from around the world

31. The Tools
E-Marketplace for indie film distribution
Sales Agents can:
•Make real time negotiations and deal transactions using a revenue share based model
•Show more films on more screens due to savings in 35mm prints,
delivery and subtitling
•Low risk – high return

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