“A society’s competitive advantagewill come not from how well its schoolsteach the multiplication and periodic tables,but from how well they stimulateimagination and creativity.”
The Need is the Opportunity:Kids are not underserved but Poorly Served: WE WILL DO BETTERJersey Shore is not reality, celebrity behavior such as Sheen’s, Lohan’s and Hilton’s should not becelebrated as well as shows like “Pretty Little Liars” a TV Show on ABC Family for tweens and teens.• We serve quality age appropriate content and purvey positive lifestyle choices andmessages – all in a safe environment• We celebrate the creativity of youth by encouraging and rewarding kids to engage:by creating videos, music, writing stories, plays, compositions and to read• Available to everyone regardless economic status – our user experience is Free,creative tools are provided free, content is free through Freemium Model• All Merchandise, goods and services we sell can be earned by participating on thesite earning or volunteering in Community Servicespending their time in a worthy cause
Immediate Strategy• Focus on building audience – target and positively influence 500,000 monthly eyeballs byend of second quarter 2013 and more than 20 million by 2016.How ?• Build on existing 1,345,000 customers – In our core demographic, including 1 million (and growing)readers of The Magazine.• Leverage a fraction of the hundreds of million marketing dollars spent by our customers on theirschedule launches to advertise their wares and grow our user base. (Warner Bros, Disney, Sony)• Attract new users through marketing, media buys, and attractive new and exclusive content.• Promoting User growth through user generated Content via contest.• Strategic partnerships with our established partner companies that build social media audiences,e.g. video player technology that helps attract new site visitors.
A one-of-a-kind social media platform(Facebook + YouTube + Skype functionality)designed specifically for kids in support oftheir creative expression. Led by media andInternet safety experts, Spillwall.com is anage-appropriate, safe place for kids to makestuff, view content, tell stories, and sharewith parents and friends.Social ProfilesContestsScholarshipsPrizesSpillBucksTalent Searches/Casting
#1 Youth Magazine in Canada since 1990.Covering the latest in music, movies, video games, apps and more.We inspire readers to be content experts submitting their drawings, poems,songs, and articles as they see what their peers are creating.1 million readers*240,000 X 8(3 readers per copy)52% Girls28% Boys80,000 Diverse distribution*Avg. print run
Engages brands with tweens and teens (6 - 17) through unique,exclusive, and collaborative experiences in our in-class or in-group DigitalMedia Literacy Workshops providing the latest in digital gear, curriculumand instruction for creative minds throughout North America.Custom teacher-created curriculumCharacter education through storytellingAssessment and evaluationAll hardware and software providedExpert filmmaker instructionParticipation in our International Film Festival!Inspire collaboration among peersSpark confidence in kidsRemain on the cutting edge of media trendsReflect the tastes and behavior of the Digital Kid!
SPILLWALL PRODUCTIONS is a television and film development, financing, productionand distribution studio focusing primarily on Family-friendly content creation.
OURS is a Low cost Content Model• Our User Generate Content – is Free•Movie and Television Studio Content – is supplied Free•Our Professional Content Development and Production is subsidized(up to 40% of cost reimbursed or subsidized by Canadian Government)• Webisodes• Magazine editorial and production• Film and Television Development /Production• Certain technology spendsCompelling CONTENT IS THE MAGNET
Customers Connect to kids through storyline/character while enhancing brand inthe process. Seamlessly align their product within the emotional promise of a story.Short-form ContentLong-form ContentCustom Branded ContentOrganic Integration into Storyline and CharactersProduct Placement“Presented By” Logo & MessagingCustomized Video Assets and AdvertorialsBranded Hub DestinationsCategory ExclusivityMILLIONS of Video ViewsVideo views activated through display,apps, and editorial partnerships
We can reach and target kids 6 - 18 anywhere on the web andacross devices! Our network serves up distribution acrossapps and gaming sites for display and video to millions of kids.Kids Web SitesSocial Gaming SitesKids Mobile AppsMoms BlogsMoms Web SitesSocial Influencer NetworksGirls / Boy Scouts of America (desired)Girl Guides (Canada)After School ProgramsBoys & Girls Club (desired)KIPP (desired)More TBD
CONTEST EXAMPLE:• Jack and the Giant Slayer Poster -Create your Own!• Customer: Warner Brothers Studios• Curriculum: The Directors Cuts• Venue: In Schools• Medium Delivery: The Magazine• Results Hosted: TheDirectorsCut.ca
Content Partners a vertically integrated model of production, distribution,print and advertising solutions via a la carte or turnkey provisioningPricing Example:Partner uses: 1. Distribution (sell only) 30% of grossPartner uses: 1. Distribution, 2. Print and Advertising 60% of grossPartner uses: 1. Production, 2. Distribution, 3. P&A 75% of grossOffering Content Partners: a succinctly predefined massive audience for a launch or anytime/ ongoingA Reinforcing Business ModelKTI amplifies, leverages, and extends its acquired properties, capabilities andbrands via harnessing the power of the Internet providing:
Film clips viewed prior releaseGlobal brand pays $100,000 to KTI toGarner views of film 90 days beforeFilm comes to area theaters.Minimum initial views = 300,000FeatureFilmsRelease Filmby RegionTelevision WebSeriesSocial Media PlatformViewers are offered a chance to winIPhones by creating and sharing acustom movie poster, and beingrewarded for Spillwall.com by voting.Avg. 30% take rate = 90,000 usersUser and Voting ExperiencesContest becomes vehicle for brandpartners to propagate story usingsocial media for the benefit ofestablishing meaningful connections.Spillwall.comSpillwall.comKairosPartnershipNetwork 750,000 viewers/450,000 new usersAll of the 750,000 users membersand any viewers via the cookietechnology are contacted the daythe day the film comes out in theirareaProject ResultsCustomer reaches 750,000 kids 2 times@ $100,000 = 3.75 cents &Develops a very engaged/loyal fanSpillwall gains 450,000 new usersSpillwall gains user generated contentSpillwall gains $30,000 profitCost: .10 view/.10 Host/.10 profitAudienceAcquisitionAn in-house, solutions-basedmarketing arm for kids contentglobally with distribution acrosssites and apps in display and videoreaching millions.AdvertisingCustomBrandIntegrationMassMarketingReachSignificantBrandEngagementNicheadvertisingResultsGuaranteedViewershipConceptGarner as many views and contacts for ourcustomers by leveraging enterprise assetsthe power of the internet for the purposeof reaching and engaging kids in a creativeprocess, propelling the customers’ messagefarther by enabling social connectivity andmedia.SEE EXAMPLE SERVICE:ChallengeLeveraging global customer media spends,creating the largest global media companydedicated to providing a safe environmentfor kids to create, collaborate, andshowcase their talents, regardless of theirsocio economic status.Brand StoryWe activate the movement and brandengagement through entertainment anddigital, audience development, experientialand partnership programs.Results of Customer Engagement•Leverage Customer spending•Activate an integrated sales platformappealing to global brands release contentglobally•Extend The Director’s Cut platformByproduct Grow Users using CustomerspendsTo be a person is to have a story to tell.– Isak DinesenSpillwall.comTDC CurriculumSpillwall.comGive-backProgramsDistributionAcrossDevicesContentCreationToolsTalentSearchesPrizes/RewardsEvery userhas cookieattached450,000new usersIntegration90,000 UsersCall 5 friendsto signup/voteKid-generatedContentA Case Study of the KTI Model:
2011 2012 2013* 2014* 2015*Revenues: $740k $1.6M $8.6M $27.4M $92.2MEBITDA: -$1.45M -$2.15M -$1.8M $4.9M $18.0MHistorical and Projected Revenues:-2000000020000000400000006000000080000000100000002011 2012 2013 2014 2015REVENUEEBITDA*Reach positive EBITDA 18 mos. from funding - projections based on funding
Financial Projections – Over 36 months Post fundingRevenue Period 1 Period 2 Period 3Spillwall.com $3,500,000 $11,000,000 $42,000,000The Magazine $1,800,000 $4,200,000 $12,200,000Spillwall Productions $1,200,000 $6,200,000 $18,000,000The Directors Cut $2,100,000 $6,000,000 $20,000,000Total Revenue $8,600,000 $27,400,000 $92,200,000Net Income -$1,800,000 $ 4,900,000 $ 18,000,000
Recent Acquisitions:Date Launched Target Val Target Des.8/12 2008 Blinq $100 million Mobile social media Ad & Marketing6/12 2007 Buddy Media $689 million online marketing11/11 2009 Kobo $315 million E-bookseller and e-reader11/11 2010 Zoodles (software basic) $13 million Kids Social Media w/18Kusers $3K/mo.04/12 2011 Instagram $1 billion Social Media Pictures 0 revenue05/12 2006 Vitrue $300 million Social Media PlatformDisney Acquisitions:Company Date Purchased Date Launched Monthly Eyeballs @purchase PriceClub Penguin 8/07 03/05 400,000 $350 millionPlaydom 7/10 05/07 750,000 $763 millionTogetherville 2/11 05/10 125,000 $100 millionPublic COMPSComp. Description Yr. Launched Sym. users Rev Share Price Market CapLinked-In Social Media 2003 LND 200mm $973mm $172 $18.8BFacebook Social Media 2004 FB 1B $5B $27 $65BGroup On Social Media 2008 GRPN 60mm $2.3 $6 $4BBaidu social web services 2000 BIDU n/a $1.2B $85 $28B