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New York Production Guide  Using e-commerce to connectBuyers and Sellers in Film, TV and     Commercial Production        ...
History of Film, TV and Commercial Production1.  Very large “connected” community of CUSTOMERS2.  Freelance and fragmented...
$38.6B N. American Market      Film, TV and                               Commercials Below the Line Costs - Film         ...
Information Available Today                              4	  
Slow Process Today  I	  need	  some	    props	  for	  TV	                Sorry,	  we	    in	  one	  wsome	         I	  nee...
Opportunity Technology is changing the way buyers and sellersinteract     Smartphone     Tablet     e-commerce Evolvi...
Our Vision                                              NYPG	   Adding e-commerce to NYPG.com          e-­‐commerce	     ...
Management TeamRick Babchak                Gary Kazmer•  Founder and CEO of the   •  30 years of experience in   New York ...
Transaction FlowSeller input                                                                        Shopping	             ...
Timing         Initial beta test group will include both buyers and        sellers         Our plan requires an investme...
Financial Summary – NY and LA$70,000,000	  $60,000,000	  $50,000,000	  $40,000,000	  $30,000,000	  $20,000,000	           ...
Marketing Strategy Engage 30 years of relationships Allow buyers to utilize real time bidding to makedirect purchases S...
Summary $16B addressable USA/Can MARKET Big and accepted PROBLEM Clear and marketable SOLUTION Highly defined CUSTOMER...
Appendix NYPG Digital Operating Plan                                                        2012        2013          2014...
Advisory BoardMichael Wheeler  Mr. Wheeler is the managing partner in Westerly Partners, LLC, an   investor advisory that...
AppendixBCG –Evaluating NYC media sector development and setting the stage for future growth –Final Report May 8, 2012www....
AppendixThe Economic Contribution of the Motion Picture & Television Industry to the United StatesThe American Motion Pict...
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NYPG presentation Q1 2013

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Seeking $1.5M funding. NYPG started 30 years ago as a directory connecting buyers and sellers for the production of TV, film and commercials

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  1. 1. New York Production Guide Using e-commerce to connectBuyers and Sellers in Film, TV and Commercial Production Q1 2013 1  
  2. 2. History of Film, TV and Commercial Production1.  Very large “connected” community of CUSTOMERS2.  Freelance and fragmented3.  Word of mouth and “Yellow pages”Led to the creation of NYPG which has been around for30 years 2  
  3. 3. $38.6B N. American Market Film, TV and Commercials Below the Line Costs - Film 40% ($16B) is below the line 3  
  4. 4. Information Available Today 4  
  5. 5. Slow Process Today I  need  some   props  for  TV   Sorry,  we   in  one  wsome   I  need   eek   don’t  have   props  for  TV   that   in  one  wsome   I  need   eek   props  for  TV   in  one  week   I  can  email   you  a   picture   I  have  it  at   this  price  – OK!   I  missed   out  on  a   sale   5  
  6. 6. Opportunity Technology is changing the way buyers and sellersinteract  Smartphone  Tablet  e-commerce Evolving our proven revenue MODEL  Directory  Web presence  To build an e-commerce platform for the industry There is no targeted e-commerce platform for thefilm, TV and commercial industry today 6  
  7. 7. Our Vision NYPG   Adding e-commerce to NYPG.com e-­‐commerce   PlaLorm   Allowing buyers to make direct purchases Allows sellers a shot to bid NYPG collects a fee for facilitating the sale 7  
  8. 8. Management TeamRick Babchak Gary Kazmer•  Founder and CEO of the •  30 years of experience in New York Production operational and customer Guide for 30 years contact roles with the last•  Well connected member 16 at the executive table in the Association of •  14 years focused on e- Independent Commercial commerce growth Producers – 30 years designing new platforms and new customer facing applications •  High growth background with QVC and Shop NBC ($30M to $1.4B) 8  
  9. 9. Transaction FlowSeller input Shopping   Search  Pictures anddescriptions are Database   Engine   Cart  entered into our The buyer uses the AICPdatabase so the form to create an order by The items in thebuyer can search searching the database and shopping cartfor the item she/ creating a shopping cart. are split intohe needs There is a free form section separate for items not found. Reverse   requests and sent to multiple AucWon   sellers for bids. Format   Bids and seller questions are Buyer accepts bids, sellers notified sent back to the Seller revealed and bills buyer directly Buyer buyer. Database updated with sales and negotiates The buyer rentals price responds to the The buyer pays each seller for the bids on price, rental of the products availability etc. Multiple suppliers bid on items on the list A   B   C   9  
  10. 10. Timing  Initial beta test group will include both buyers and sellers  Our plan requires an investment of $1.5m Build Test Roll out NY Expand to LA $500k   $450k   $550k   Q1                    Q2                    Q3                    Q4                    Q5                    Q6                    Q7                    Q8                  Q9                    Q10  Initial Funding Break even at $1.5m burn 10  
  11. 11. Financial Summary – NY and LA$70,000,000  $60,000,000  $50,000,000  $40,000,000  $30,000,000  $20,000,000   Positive cash flow in 2014$10,000,000   $0   2012   2013   2014   2015   2016   2017   2018   2019   2020  -­‐$10,000,000   Total NYPG Revenue Base (dollars) Net Income 11  
  12. 12. Marketing Strategy Engage 30 years of relationships Allow buyers to utilize real time bidding to makedirect purchases Sellers have an opportunity to competitively bidon more projects Easy DISTRIBUTION beyond New York 12  
  13. 13. Summary $16B addressable USA/Can MARKET Big and accepted PROBLEM Clear and marketable SOLUTION Highly defined CUSTOMER Easy path to DISTRIBUTION Proven e-commerce MODEL SCALABLE Access to the right TEAM 13  
  14. 14. Appendix NYPG Digital Operating Plan 2012 2013 2014 2015 2016 2017 2018 2019 2020 Annual Growth New York Media Sector Spend ($M) (3 YR) $7,100 $7,143 $7,185 $7,229 $7,272 $7,316 $7,359 $7,404 $7,448 Los Angeles Media Sector Spend ($M) $27,500 $27,500 $27,665 $27,831 $27,998 $28,166 $28,335 USA total (95% of all markets) $7,100 $7,143 $34,685 $34,729 $34,937 $35,147 $35,357 $35,570 $35,783 70% increase since 2002 12.7% growth 2010-2011 Assume future growth of .6% per year for each sector Future annual growth rate per channel 0.6% Television 1.0% $3,144 $3,163 $3,182 $3,201 $3,220 $3,239 $3,259 $3,278 $3,298 News 1.0% $2,006 $2,018 $2,030 $2,042 $2,055 $2,067 $2,079 $2,092 $2,104 Film 21.9% $1,402 $1,410 $1,419 $1,427 $1,436 $1,445 $1,453 $1,462 $1,471 TV Commercials -1.0% $416 $418 $421 $424 $426 $429 $431 $434 $436 Music Video and Documentaries -1.0% $132 $133 $134 $134 $135 $136 $137 $138 $138Total Below the Line Expenses NYC ($M) 40% $2,840 $2,857 $2,874 $2,891 $2,909 $2,926 $2,944 $2,961 $2,979 Total Below the Line Expenses LA ($M) 40% $0 $0 $11,000 $11,000 $11,066 $11,132 $11,199 $11,266 $11,334 Platform adoption New York 0.40% 0.70% 1.00% 1.60% 2.00% 3.00% 4.00% 5.00% Platform adoption Los Angeles 0.25% 0.35% 0.60% 1.00% 2.00% 3.00% 4.00% Spend thru the platform ($M) $0.00 $11.43 $47.62 $67.41 $112.94 $169.85 $312.30 $456.45 $602.32 Platform Fee Percent 10% 10% 10% 10% 10% 10% 10% 10% 10% NYPG Revenue Base (dollars) e-commerce Platform $0 $571,408 $4,761,928 $6,741,427 $11,293,641 $16,984,853 $31,229,739 $45,644,951 $60,232,022 Digital Set Up $30,000 $40,000 $50,000 $50,000 $100,000 $100,000 $100,000 $100,000 Subscriptions $20,000 $40,000 $75,000 $100,000 $150,000 $150,000 $150,000 $150,000 Advertising - banners $20,000 $40,000 $60,000 $100,000 $150,000 $150,000 $150,000 $150,000 Affiliates $10,000 $40,000 $75,000 $100,000 $125,000 $150,000 $175,000 $200,000 Total NYPG Revenue Base (dollars) $0 $651,408 $4,921,928 $7,001,427 $11,643,641 $17,509,853 $31,779,739 $46,219,951 $60,832,022 Summary of Operating Expenses Total Staffing Salaries $0 $972,000 $1,584,000 $1,911,360 $2,298,854 $2,390,809 $2,486,441 $2,585,899 $2,689,334 Total Outsourcing Expense $0 $780,000 $1,030,000 $530,000 $540,000 $540,000 $540,000 $540,000 $540,000 Total Additional Revenue Expense $0 $60,000 $120,000 $195,000 $262,500 $393,750 $412,500 $431,250 $450,000 Advertising and Marketing $0 $150,000 $150,000 $150,000 $300,000 $150,000 $150,000 $150,000 $150,000 Total G&A Expense $0 $175,000 $276,600 $284,898 $293,445 $302,248 $311,316 $320,655 $330,275 EBITDA $0 -$1,485,592 $1,761,328 $3,930,169 $7,948,842 $13,733,046 $27,879,482 $42,192,147 $56,672,413 Taxes 40% $1,572,068 $3,179,537 $5,493,218 $11,151,793 $16,876,859 $22,668,965 Depreciation Net Income $0 -$1,485,592 $1,761,328 $2,358,102 $4,769,305 $8,239,828 $16,727,689 $25,315,288 $34,003,448 Capital 0 50000 50000 25000 25000 25000 25000 25000 25000 Max Outlay Cash Flow $0 -$1,535,592 $175,736 $2,508,837 $7,253,142 $15,467,970 $32,170,659 $57,460,948 $91,439,395 14  
  15. 15. Advisory BoardMichael Wheeler  Mr. Wheeler is the managing partner in Westerly Partners, LLC, an investor advisory that provides strategic, financial and technology solutions to early stage companies focused on the new media and technology industries. He has more than 25 years of senior management experience at NBC, MTV, Showtime, FNN, Meredith Broadcasting and CBS.Jesse Fink  Jesse Fink is an entrepreneur. His professional career involved developing innovative business models including co-founding Priceline.com, and serving as its founding Chief Operating OfficerOpen  We have vetted the business plan with several buyers and sellers and upon an initial investment plan to add 2-4 buyers and sellers to the Advisory Board. 15  
  16. 16. AppendixBCG –Evaluating NYC media sector development and setting the stage for future growth –Final Report May 8, 2012www.nyc.gov/filmTracking the Trends:A Comparison of Above-the-Line & Below-the-LineExpenditure TrendsA Sponsored Report from V12 Group and Winterberry GroupJanuary 2006TV INDUSTRY PERSONNELby Dr. George VinovichABOVE-THE-LINE vs BELOW-THE-LINEReport to The New York Film, Television and Commercial Initiative From Cornell UniversityNew York State School of Industrial and Labor Relations, New York CityDepartment of City and Regional Planning, IthacaFiscal Policy Institute, New YorkNEW YORK’S BIG PICTUREASSESSING NEW YORK’S POSITION INFILM, TELEVISION AND COMMERCIAL PRODUCTIONAugust 2006 16  
  17. 17. AppendixThe Economic Contribution of the Motion Picture & Television Industry to the United StatesThe American Motion Picture and Television Industry:Creating Jobs, Trading Around the World2010Mpaa.orgMpaa.orgPolicy and ResearchState by State StatisticsState-by-State Film and Television Economic ContributionB.C.’s overall ranking drops despite rise in 2011 film and TV spendingAn interview with Peter Leitch, chair of Motion Picture Production Industry Association ofBritish Colombia 17  
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