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MPC Concepts Executive Briefing Rich Lyons – Jan 2012 COST REDUCTION + INTERNET REVENUE GROWTH  = THRIVING BUSINESS
Our Approach ,[object Object],[object Object],After the 5-year loan period, MPC ownership reverts to the local TV Station Full Partners
Transmission Hub
Group Owners Consolidating Vertically (Master Control Only)
Group Owners “ unite and consolidate”)  It's good to share costs, risks, pain  and even better to share Fat profits!!!  Goggle TV, Apple TV & Facebook TV, Microsoft TV, telecoms, IPTV Companies etc have long harbored ambitions to extend its online advertising business to the television arena, where the lion's share of global ad budgets is spent.
Broadcaster Issues James Bond: “Do you expect me to talk?” Auric Goldfinger: “No Mr. Bond, I expect you to die!” Predicts that only by using excision cost saving models can broadcasters survive even a few years. Microsoft at SMPTE: “ Traditional TV is at the beginning of its end in the business maturity cycle!”
MPC Generation Strong Response to Internet Incursion MPC Concepts ,[object Object],[object Object],[object Object]
New Internet Revenue   MY UNIVERSE iMU (My Universe) website is  a NEW second portal  for all MPC’s TV Stations  Capture Local Following With Sticky Content  MPC Concepts
Advertisers Crave Winners MPC  Cross Platform Internet ,[object Object],[object Object],[object Object],[object Object],[object Object],MPC Concepts
Local TV station’s client You want them to better target their online audiences and provide iMU with impactful relevant content MPC Concepts It is the TV Stations sales force that is responsible to keep their customers iMU calendar full of new content to meet their business objectives
What you really want?  Try to reach a particular audience, build an entire campaign to find and engage that audience .  Using MPC internet local iMU tools: MPC Concepts ,[object Object],[object Object]
iMU offers MPC Concepts ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Next   Generation Maintain User Interest By Recognizing Their Needs Beyond TV iMU  will develop “Life Management” tools for “Habit Driven” marketing with interactive local happenings and a personal daily planner .   We are offering something the subscriber wants!  MPC Concepts
Early Adopters  Digital Complexity For TV  ,[object Object],[object Object],[object Object],[object Object],MPC Concepts ,[object Object],[object Object],[object Object],[object Object],[object Object]
MPC Concepts Exclusive Innovations ,[object Object],[object Object],[object Object],[object Object],[object Object]
MPC Concepts 3 Digital Storage Areas ,[object Object],[object Object],[object Object]
MPC Concepts Target demographic  ,[object Object],[object Object],[object Object]
Twice the Internet Value
A Second Shared Website (iMU) for Your TV Station.  Advertisers Gain Access to Two Websites With the Addition of Your Shared iMU Site.  A New Portal That Advertisers Might Like to See Your Internet $avings
MPC Concepts 13 weeks iMU Inauguration Production Budget ,[object Object],[object Object],[object Object],[object Object]
MPC Concepts iMU Inauguration For the iMU to succeed the advertiser must buy into the idea that this local inauguration will be the  talk of the town  and  a window of opportunity  for TV Station engagement with the community.
MPC Concepts:  Bottom-line  MILLIONS MPC is a sensible way forward The MPC monthly payments is $2,630,000  ($106,520 TIMES 25 stations… 5-years = $ 6.4 M) Equipment Savings over 5 years $5m @ 6% = 100,000 per month +  Labor reduction could be in news, production, Play out, engineering and management  (Including the BELO Tucson Model) Labor + OH  estimate is $60,000 yr per person over 5 years= $300k Or  21 heads ( Some TV Stations over 50 heads or savings = $250k/mo) + New IP revenues  Forecast Av. $100,000 /mo / Station
Start-up Cost Part 1 ,[object Object],[object Object],Cash flow is from Down Payments (DP) ,[object Object]
Start-up Cost Part 2 ,[object Object],[object Object],[object Object],[object Object],[object Object],The above $3.5 Million payback starts ASAP for 12 months
Contact MPC Concepts / Rich Lyons 818-516-0544 [email_address] Reference Information ,[object Object],[object Object],MPC Concepts
MPC Launch Trajectory   40 MPC Facilities in 5 Years
Broadcaster Issues  Fighting the Trend ,[object Object],[object Object]
MPC Makes Business Sense From Day One ,[object Object],[object Object],[object Object],[object Object],MPC Concepts
Current Centralcasting Station Model
Group Owners & MPC ,[object Object],[object Object],MPC Concepts
MPC Generation MPC Concepts
New Playout Model Cross Platform  W ith Interactive Services ,[object Object],[object Object],From  T he Cross-Platform Report , Nielsen
Why MPC site? Part 1  ,[object Object],[object Object],[object Object]
Why MPC site? Part 2  ,[object Object],[object Object]
Rich Lyons Goals ,[object Object],[object Object],[object Object]

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Short mpc presentation-jan_2012

  • 1. MPC Concepts Executive Briefing Rich Lyons – Jan 2012 COST REDUCTION + INTERNET REVENUE GROWTH = THRIVING BUSINESS
  • 2.
  • 4. Group Owners Consolidating Vertically (Master Control Only)
  • 5. Group Owners “ unite and consolidate”) It's good to share costs, risks, pain and even better to share Fat profits!!! Goggle TV, Apple TV & Facebook TV, Microsoft TV, telecoms, IPTV Companies etc have long harbored ambitions to extend its online advertising business to the television arena, where the lion's share of global ad budgets is spent.
  • 6. Broadcaster Issues James Bond: “Do you expect me to talk?” Auric Goldfinger: “No Mr. Bond, I expect you to die!” Predicts that only by using excision cost saving models can broadcasters survive even a few years. Microsoft at SMPTE: “ Traditional TV is at the beginning of its end in the business maturity cycle!”
  • 7.
  • 8. New Internet Revenue MY UNIVERSE iMU (My Universe) website is a NEW second portal for all MPC’s TV Stations Capture Local Following With Sticky Content MPC Concepts
  • 9.
  • 10. Local TV station’s client You want them to better target their online audiences and provide iMU with impactful relevant content MPC Concepts It is the TV Stations sales force that is responsible to keep their customers iMU calendar full of new content to meet their business objectives
  • 11.
  • 12.
  • 13. Next Generation Maintain User Interest By Recognizing Their Needs Beyond TV iMU will develop “Life Management” tools for “Habit Driven” marketing with interactive local happenings and a personal daily planner . We are offering something the subscriber wants! MPC Concepts
  • 14.
  • 15.
  • 16.
  • 17.
  • 19. A Second Shared Website (iMU) for Your TV Station. Advertisers Gain Access to Two Websites With the Addition of Your Shared iMU Site. A New Portal That Advertisers Might Like to See Your Internet $avings
  • 20.
  • 21. MPC Concepts iMU Inauguration For the iMU to succeed the advertiser must buy into the idea that this local inauguration will be the talk of the town and a window of opportunity for TV Station engagement with the community.
  • 22. MPC Concepts: Bottom-line MILLIONS MPC is a sensible way forward The MPC monthly payments is $2,630,000 ($106,520 TIMES 25 stations… 5-years = $ 6.4 M) Equipment Savings over 5 years $5m @ 6% = 100,000 per month + Labor reduction could be in news, production, Play out, engineering and management (Including the BELO Tucson Model) Labor + OH estimate is $60,000 yr per person over 5 years= $300k Or 21 heads ( Some TV Stations over 50 heads or savings = $250k/mo) + New IP revenues Forecast Av. $100,000 /mo / Station
  • 23.
  • 24.
  • 25.
  • 26. MPC Launch Trajectory 40 MPC Facilities in 5 Years
  • 27.
  • 28.
  • 30.
  • 31. MPC Generation MPC Concepts
  • 32.
  • 33.
  • 34.
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Editor's Notes

  1. It is a pleasure to present the Media Processing Center (MPC) business plan. Media Processing Center Concepts (MPCC) can show TV Station owners how to build significant new revenue streams. The Columbus Hub is an example on MPC model, we expect over 40 MPCs in the USA The Columbus Model is 2 MPC sites sharing a HUB (3 rd MPC) playout site for 25 TV Stations Over time Over 1 billion in sales and more than 31% in net profit over the initial 5 year build out, plus positive operating cash flow during the first year from MPC investment. A large MSOs could finance the MPC with current cash available or from their credit standing. Full financing of new equipment deployment with pay back (60 month contract) from the TV Stations starting after build-out, estimated as $13 million for 25 stations This MPC’s 60-month plan paper outlines new internet revenues and a path to “Fight Back”. Again, Partners payments (25) stations are from MPC’s savings New Internet income is forecast at $2.5 M per month Cost Savings after MPC is forecast at $100 K per month to each Stations bottom-line
  2. THE ABOVE WILL ( Compete & Win market share against the internet ) : increase return yield for local TV Stations and group owners and is critical in scale for local broadcast gains as a SHARED social internet provider Leverage infrastructure to accelerate growth - Hedging risk while maintaining local iTV& OTA ownership. MPC Executive Briefs (25 TV Stations & 3 MPC’s sites) The MPC Outsourced Community Centralcasting Model improves local TV Station (Partners) efficiencies. Our approach deploys local consolidation to maintain and enhance the shared strengths of community broadcasters. I believe the MPC project will produce a substantial return on your investment. After the 5 year loan period, MPC site ownership reverts to the local TV Station Full Partners. … The MPC Company could continue providing management services if the contract is renewed
  3. MPC is an urgent plan of action, “ unite and consolidate” will increase your cash flow and coach OTA TV, how to fight back and thrive in the internet world. Many of your internet and M/H resources need only to share to reach local internet “Fighting Back” scale. Focus on “OTA + Internet demand” coming from us (together) against stopping a very large internet companies trends of taking our OTA ad’s $$$$ MPC MESSAGE IS HOW TO GROW, WHEN THE MARKET CAN’T! By TV Stations uniting locality, the scale for broadcasters own OTA + internet intuitive should grow online revenues against large internet company Consolidate Vertically & Horizontally : Scale is very importance in Centralcasting and Internet “LocalCasting” success with “ like thinking cities ” (within 250 miles) Traditional “Cutting Cost” will only help you to beat the Internet Companies, if it is used to finance the MPC plan
  4. Your are already doing the outsourcing (Cutting Cost) This slide shows the vertical pattern of cities where a group owner may centralcasting it’s TV Stations: The group owners consolidate Master Control using a third party outsourcing company In many cases they use the same outsourcing company Group owners carries different network content, so they are friendly with network content provides The networks (ABC, NBC, CBS, FOX, CW, PBS, MYTV, Religious, ION, Spanish, Shopping, etc.) provides their own content and might have their own centralcast infrastructure, they should join in with the MPC concept The MPC business plan outlines “other people” hubs (The above) as MPC Associate Partners to add internet and local cost savings by joining with us
  5. If you want to compete against large internet TV live and streaming companies, you must increase your internet viewership and the value of your OTA 30 second ad with internet interactivity Part of a broader digital-age strategy by corporate America (including Broadcasters) is to create a better platforms to speak directly to customers. THIS IS WHAT MPC CAN DO IT FOR YOU Write your Internet success story before the book on local Broadcasting is closed. Local stations must band together sharing technical facilities including master control and Internet infrastructure to ensure future profitability and enjoy continued relevance. Local value cannot be duplicated by remote TV or Web sites hubs. I like what TV Stations do because it is scalable, if on-line ad revenues increase, a TV station will hire more sales people. Internet companies offer little or no local scalability.
  6. Broadcasters must consider investing in iTV infrastructure to jumpstart or accelerate Internet and mobile revenues . By bringing quality video and compelling local TV station content to the Internet, the local station takes ownership of the gateway to local internet engagement . It takes way more money than any one station can save with belt-tightening to pay for the resources to effectively compete with new media.. As Benjamin Franklin famously stated at the signing of the Declaration of Independence, “We must all hang together, or assuredly we shall all hang separately.” Rule of Thumb MPC full Partner TV Station monthly payment: $100K to $135k & your cost savings shall exceed actual monthly payments to MPC. From day one, Partner bottom lines increase. If 25 TV stations over 60 months @$100k ea payments = $150 Million 5-year income TIMES 40 more MPC sites = $6 Billion of better internet revenue ideas If an advertising competitor is making money, research their success, emulate and improve on their model. The cost is less per MPC shared partnership and we are competing to win with a better MPC’ tool
  7. This new idea builds on the technology consolidation locality between TV Stations coupled with an expansive new media value proposition which promises a sound financial future for competitive local broadcasters and the MPC Company that builds and operates the shared infrastructure. MPC sites allow broadcasters to play spoiler to the large internet international company iTV web strategy by competing at an increase scale with a deliberate local infrastructure using the station history of trusted services, OTA promotions and local resources to revenue potential factor that internet companies can not monetized as well without a local present (retail, social & community activities). The rise of the digital outlets through laptops and tablets and smart phones has left a gaping hole in revenues for broadcasters. MPC can find a way to fill the revenue hole the Web has created.
  8. New portal (iMU) that viewers opt into for exclusive access will increase your internet clout and open the door for broadcasters to compete and win against the “internet companies”. Internet Reach : Lead and enable local businesses with much needed and affordable internet resources enhance social network visibility of participating subscribers. Results: Interactive + OTA market share will increase the value of local 30-second spots if TV stations unite and consolidate. BEST of ALL : your presence is MORE needed for OTA, internet & daily planning activities . Your future is not controlled by home‘s antenna sales and your advertisers will get more viewers from broadcasters (like you) than from those large far away internet companies. Your Perpetual Dominance as an OTA broadcaster has never been more vital to the local community as your influence expands to include internet & daily planning activities. The iMU is a second website, you should have increase activities on your TV Station current web site
  9. Elevator Pitch … for MY UNIVERSE … IMU Advertisers should spend their budget wisely with a complete OTA & internet ad campaign. Superior and complete messaging connects friends and neighbors to your ads You’ll want….. 1) To be seen….. 2) FAQ with local responses …. 3) Order closing Your local TV Station OTA + iMU website platform is the best and only “OTA +internet” solution. Local TV is now a 24-7 advertiser venue thanks to internet VOD, social network/personal planner and a Hyper-Local Search Engine. Viewers are guided to you from both your OTA content and local on-line content. If you want habit fulfillment ads, stick to performance, talk to your MPC’s TV Stations. Capture Local Following With Sticky Content : STEP #1
  10. What you want the local TV station’s client to do is INVEST IN LOCAL RESOURCES to better target their online audiences and provide iMU with impactful relevant content It is the TV Stations sales force that is responsible to keep their customers iMU calendar full of new content to meet their business objectives ( 800 community organizations) . The TV stations will help promote these events At the end of the day : Each of the 800 community organizations, we need to help them with keeping up with new content. Poor metric from these providers means change in style / method (to create and hold viewership) or replacement BY SHARING your local client will provide local internet content at a lower viewer cost Stop Competing against each other ( Compete alone or cooperate and fight back?) What you are missing is a “large scale” plan to take back business and “jump- ahead” of online companies promises before it is too late IF YOU WANT TO COMPETE, YOU MUST EXCEED IN WHAT YOUR COMPETITIONS ARE OFFERING OR WHAT THEY CAN NOT OFFER ?
  11. MPC Internet NEW Revenue Brief Increase “30 second spot” value , new local content needed to complete buying cycle New iMU subscribers with “agreed to” ads . 250,000 subscribers needed : either subscription paid by user or ad’s offset @ $8/month =$2,000,000. .. $8/month can be broken down by many advertisers VOD content with more ads MPC‘s Streaming video tools iMU “personal daily planner” to highlight future tasks and doings MY Explorer search for the information the users want Local enterprise profit, non-profit companies and individuals can create its own direct- customer platform via MY Video. MPC want to better complete all content (OTA, VOD & iMU) with “LOCAL” information via interactive IP. Consumer tastes evolve; are you chasing the change or setting the pace? The iMU on-line tools causes “one-stop” advertising buying
  12. Why will the Advertisers want it? Local content can better sell your products or services. To improve, fulfill and measure results in line with the Sponsors’ organization mission statement and better close the customers buying cycle. How will MPC be successful against internet companies? Each MPC site must differentiate its combined local strength (OTA + internet) and local presence Content provider clients should have a production plan for My Video and / or their web site interactive fulfillment (MY Explorer will find their sites . VOD and MY Video offers Web links with choice’s information) Columbus VOD Hub: designed to accommodate 250,000 internet viewers for 25 local TV Stations in 6 major DMAs (over 9 million TV Viewers) Website traffic data is difficult to predict, but we estimate about 8% of internet visitors might also opt into an MPC subscription. WHY? OTA selling and TV Stations sales personal promoting more local iMU content Follow the MPC plan or BETTER SAID… MPC internet LEADERSHIP is your Focus plan for success
  13. WHAT THEY CAN NOT OFFER? Our Niche must NOT be forgotten but promoted! Local Community organizations, business and individual websites participating, their only source for an OTA + internet advertising package MPC technology will change everything We want to be the local repository for ease and trust by subscribers, iMU is their communication and “at-a-glance” planning calendar ( self-administered marketing and messaging center) . Whatever they ask about, we will give a local response not just one but many and mostly friends For the iMU to succeed the advertiser and organizations must buy into the idea that a local MPC inauguration will be the talk of the town and a window of opportunity for TV Station engagement with the community, NOW and YEARS to come. They must see how MPC and TV Stations New media people, ideas, actions and leadership will Monetize OTA & internet distribution The MPC site is design for better community interactions, info/buying source, local tools for self promotion, and an on-going internet lab for successful fulfillment of our subscribers demands Capture Local Following With Sticky Content : STEP #1
  14. Everyone of our station clients would like to built its community from our subscribers which is deeper and richer relationships than from any one else. … . This will only happen with a major OTA TV Station owners commitment in the MPC project “ It’s important for them to look at developing alternative content channels.“ which the MPC help with MY Video “ Like it or not” It all must be integrated“ MPC Concept or without, then the internet scale of choices will eventually win “ Pay for “ customer’s demand NOW : MPC is actually tailoring the users experience on the fly which sample informational links and MY Explorer: Hyper-Local Search Engine
  15. Local internet reporting equates to helping your neighbors tell their stories, announce events, disseminate hot news, debate development plans, originate commentary, etc., anything you put up on the web should be broadcast professional quality. You won’t get this from the Internet-only Company. ……Another thing is the MPC has “live” people to interact with (if you can not find help), MPC knows that OUR ACTIONS after a discussion will “Matters”. Work with the MPC team to “Run-the-Numbers” to determine your actual savings Develop your KEY PERFORMANCE INDICATORS: COST REDUCTION + INTERNET REVENUE GROWTH = THRIVING BUSINESS Lead in “The MPC iMU inauguration” which will dictate our success The “Winning” process starts by increase your viewership with iMU subscriptions. Local schools, businesses, advertiser, non-profit groups, clubs, theaters, individual subscribers etc. will connect to iMU. They (iMU benefactors) want the visibility and social connections. The iMU can better preserve the “Buying Cycle” path, continuity and local trust than other programs
  16. MPC is all designed to better compete against web-based new media companies Reduces your cost to compete. Includes local VOD, and an interactive social network which we call iMU. “ My Video” will be a virtual neighborhood of locally produced clips, ads and shows. Editorial staff: 3 full-time executive to accelerate advertising and other digital media revenues for each MPC site, 20 part-time (Live Correspondents and blog writers) under contract must have a MPC subscriber base after 60 days and 12 full-time on-line administrators (keep customers contacts up, help others to create local content) HELP with LOCAL NEWS & Website: The local news departments & GMs has the final say on iMU content. What distinguishes iMU from the digital competition? We try to complete the OTA’s message both in ads interaction and addition NEWS or product content We try to complete local organization WEB sites and their activities with our IP + OTA gateway.
  17. Target demographic MPC will continuously be “Looking” for niche viewing groups to highlight MPC want to be a personal iMU calendars and lifestyle planner for our users; 1 st thing you do to start & end the day with iMU Mission: Be the leader, enabling local businesses and individual citizens to use “MY Video” After the iMU inauguration, the MPC will NOT sell or share internet “MY Video” production services cost. TV Stations will have an incentive plan for outside production business to work with its iMU clients. What we expect from the TV stations Sales Force Capture Local Following With Sticky Content : STEP #1 , paid for by advertiser and organizations who want to monetize the MPC tools…. Maintain a growing subscribers base: STEP #2, paid for by advertiser and organizations who want to monetize the MPC tools….
  18. First Look at a new portal that advertisers might like to see, twice the internet value, and lower cost between broadcasters. We want to minimize Google and others sites pointing to your website with iMU as a single community site operated by local broadcasters; we expect more activities than from large internet companies We want to be become the website of “first choice” for the local users time because of our valuable / premium content and “local based” trust. Internet companies combine resources across many platforms, broadcaster, email, gaming, video/music rentals, social, etc. to offer users a single website for products and services. WE NEED TO OFFER THE SAME TYPE OF SERVICES MPC is a third party out source’s team designed to prevent lack of focus both internal and external between TV stations. The stations new internet efforts will be highly visible; the MPC is all about cost saving techniques and services.
  19. For the networks, there's a side benefit to the growth of online ads . If Internet viewers watch shows with exactly the same ads as their TV counterparts, they will be counted in Nielsen's regular TV audience ratings. That means that when networks approach advertisers every spring to sell commercial time for their upcoming fall lineups, they can add online audiences to their total count and bring in more money. Associated Press, June 8, 2011: By Ryan Nadashima Local TV Station viewership is eroding as market share spirals lower. The MPC business model of sharing resources between local TV Stations includes a second shared web site achieving “single portal” clout (called iMU). This is a mandate to avert the total collapse of OTA television and get past failed strategies of “do-it-alone” New Media. THEY HAVE IT AND WE DON’T! is what the MPC offers.
  20. Local TV partners will improve their local venues web sites for the above iMU inauguration activities (free MPC work) for local schools, advertiser, non-profit groups, clubs, theaters, etc resulting in better TV Station connections and visibility via MPC’ new media platform. 390 shoots total per MPC site (Total times 3), in return: they will purchase MPC 90 day Subscriptions to give or sell to their customers or members. Sign-up Projected goal: 80,000 subscribers OTA ads by all 25 TV Stations forecast for 30 days. Sign-up Projected goal: 100,000 subscribers Help your sales force with temporary digital media people: Sign-up Projected goal: 70,000 subscribers (Only 216 per week per station) The iMU inauguration outside cost is $553,000…. Payback: 100,000 subscribers @ $8/month = 20 days
  21. Now is the time to take back what was once yours! Local TV iMU serves their communities by integrating the new media to local rhythms, interests, sentiments, and ideologies. MPC site design is for “ONE – PIPE” (OTA + Internet) to support the communities’ requirements, where the TV Station and others share as owners & partners. We are local OTA + WEB communications gateway to the community. We stand side-by-side with plumbers and painters, Public and Non-Profit Companies, farmers and schools workers, “Movers and Shakers”. We are the voice of house cleaners, window cleaners, carpet cleaners and IP “clutter” cleaners. We are their catalyst of commerce, local social activities programming guide and connecting up with others or just “doing it along” (learning it yourself programs). The MPC must help people find, create, sustain and/or share vibrant public places. The MPC must be the first to inform with local content. Take back internet market share, stay in the game Our goal is to create a single community Social Commerce and Social Marketing presentation to prevent “linking hopscotch”; this means a single shared web portal for VOD content and Subscriptions . Youth oriented portal brings the demographic back to OTA and builds TV Station as trusted brand. MPC is a sensible way forward
  22. The proposal process defines the tasks and service levels between broadcasters and MPC personnel. It is fully detailed in the MPC contract to each TV Station partner. Prior to contractual signing , the broadcasters will know the workflow and management process detailed in the Statement of Work. MPC enables TV stations to develop the kind of local scale that would-be buyers and advertisers deeply care about. MPC lives “down-the-street” from most of the broadcast facility partners to guarantee ongoing healthy ROI decisions for the station’s General Managers (GMs) and Chief Engineers (CEs). They are not, however, directly responsible for MPC maintenance, repairs or operations. MPC will provide Internet resources and infrastructure for the growth of Television local-ism into the rich media space; a hotbed of activity. Future services — mobile, over the top (OTT), 3D, 2K, digital signage, VOD, PPV, Geo-sensitive applications, advanced advertising, social networks, live web, etc. with on-air to web linked viewing experiences.
  23. The MPC team will help create the MPC contract between each station and the MPC owners (see MPC Business Plan) The MPC team, MSO’s Station owners and local GMs responsible is to find the largest number of MPC partners The MPC team will agree on the internet plan & inauguration MPC COO and TV Stations CE responsible for the outside production teams MPC COO and TV Stations GM responsible for overall internet monetizing and the degree of cost cutting MPC COO, MPC I Media Person and TV Stations CE responsible for all new iMU tools MPC COO and TV Station sales force start Discovery Phase for iMU inauguration success including all 25 TV Stations personal selling subscriptions The MPC team, MPC deployment engineer, all TV Station CE, owners CTO and MPC COO will agree on list of equipment, location and NEW MPC personal transfer from TV Stations. This plan must be agreed to by the GM and their CFO. Contract signed, $10 million down Payment av. ($400k per TV Station, depending on planned NEW Equip budget; payback should be within 6 months or less) OTA Build out 4 months from DP and iMU inauguration 8 months from DP Many missing items, see business plan
  24. The MPC Company is divide with two missions Mission #1 is for the MPC site to increase its NP and capital value (Near term Cash) for the partners The site has a fixed & low risk payment income and $500k working cash, the MPC COO and the TV Stations GM must make the asset given, work for 5-years. If more money is needed: the new resources payments are shared Mission #2 : The MPC company will keep the down payment balance, payback amounts and its NP agreed % money The money will pay for future MPC sites and Shared R & D between MPC sites At the end of the contract, financing fully paid, any down payment money will be returned. By the third year DP money can be used to offset NP% payments to the owners The NP % cash paid out and Loan interest paid out will be given to the owners per the Corp bylaws
  25. GENERAL Notes: The MPC Company will successfully renew with the local partners TV Stations for a new 5-year contract. WHY? MPC Company results and expertise demonstrated over the last 5-years. Of course, as in any leadership role, the MPC sites will showcase their people skills to interact with a wide range of personalities; this includes building relationships with TV station customers and third party vendors externally and providing leadership internally across functional lines. We will review the MPCs’ track record for them in financial analysis and budget management. Over the 5-years, the value added with our MPC management service will dissuade the Partners from any thoughts of signing with another management services/consulting vendor. Market share and leadership will be built on reliable performance of the initial MPC deployments. We believe it is the start-up trust factor that must be overcome , not the viability of the MPC project. We are very confident of selling 4 MPC centers in the first 12 months.
  26. The Five-Year MPC Company Targets $8 million revenue each year per MPC site, if 4 partners =$166,000 per month per partner or if 6 partners =$111,500 per month At least 31% NP to 40% $2,500,000 down payment ($625,000 per partner with 4 partners) All partners agree to adjust their respective monthly payments upward to compensate for the loss of a partner due to cash flow issues. Selling Points: An MPC is paid for by reducing Partner TV stations’ current operational expenses and capital requirements via an outsourced Centralcasting model. Monthly payments for the MPC are offset by expense reductions for functions and resources shifted to the MPC. MPC down payment is low enough to fit into any existing budget. Low down payment frees up cash for station growth. The Internet offers “Life Management” tools for scheduling, entertainment, shopping, etc., local TV needs to capture a piece of this action .
  27. Broadcasters need to reverse this trend: Colleen Brown, CEO of Fisher Communication clearly identifies what needs to be done: “ We need to tear down existing walls between our properties, acknowledging that such retracting means huge changes for the way broadcasters have long operated.” As you know, MPC Concept team have conceived the MPC as your local TV Stations’ a realistic response to the internet wolf at the door, addressing dire market trends with aggressive OTA + Internet ad campaign pricing objectives. Goggle TV, Apple TV & Facebook TV, Microsoft TV, telecoms, IPTV Companies etc have long harbored ambitions to extend its online advertising business to the television arena, where the lion's share of global ad budgets is spent. The market would change by letting the “Internet search algorithms” decide if your community opinion or emergency will get up there on page “one”
  28. Broadcaster need to Maintain user interest by recognizing their needs beyond current TV Sorry local TV Station owners, only complete integration into a local social internet media will help you. It’s time to buckle down to turn Internet dollars to an OTA advantage,….. HOW TO? …. THE MPC PLAN Our goal is to create a local community internet video content service A winning TV Broadcaster formula for the internet age Interactivity will increase the revenue generating power of local 30-second spots Capture local following with "Sticky Content” Offer “Life Management” tools with interactive local happenings; a personal daily planner from a local internet platform Create a window of opportunity for TV Station engagement with the community, become “ Talk of the Town ” in both the real and virtual worlds Advertisers relentlessly pursue winners – change the rules of the game and win big!
  29. THIS IS THE OLD CENTRALCASTING MODEL Your station can switch with the local router for Local NEWS, etc from the Hub Looking at this diagram the path is for OTA and other tasks EBS, etc is from the IP network For back-up is a “force turned” IRD based Mpeg 4 satellite switch-over at anytime the fibre goes down, the hub detects the loss video and switches What missing?. Shared, superior internet tools to deliver reach and generate demand on par with Internet based services, yet focused on local-ism. Other savings possibilities by being local (i.e. Centralized Clerical Tasks, Maintenance center (Engineers) , etc.)
  30. Only from us Local responses to viewer inquiries. Larger on-line local social Scale Time Shift Viewing VOD & OTA: Second website for Infinite 24/7 access to all TV show interactive menus, 25 TV Stations within a 200 mile local on-line coverage area to reach all types of internet devices. Closer Social ties Local internet reporting equates to helping your neighbors tell their stories , announce events, disseminate hot news, debate development plans, originate commentary, etc., anything you put up on the web should be broadcast professional quality. You won’t get this from the Internet-only company.
  31. MPC site design is for “ONE – PIPE” to support the communities’ requirements, where the TV Station and others share as owners & partners. What must every city have? What emerges from the viewer experience is that there is no single best pipe. A combination of broadcast and broadband — wired or wireless — is what’s most effective at getting warnings out before and during emergencies. What happens when the power goes out? Is it better to have a solid single response than many disjointed ones? Local TV Station General Managers and Owners need to adopt a start-up attitude and be willing to establish long-term, problem-solving relationships with customers.
  32. CEA: Consumers Tuning Out Over-the-Air TV … “Over-the-air TV was once the defining distribution platform,” said Gary Shapiro, CEA president-CEO. “But using huge swaths of wireless spectrum to deliver TV to homes no longer makes economic sense. Congress should pass legislation to allow for incentive auctions so free market dynamics can find the best purposes for underused broadcast spectrum, such as wireless broadband.” MPC agile Multi-Channel, Multi-format and Multi TV Station playout will become the defining distribution platform MPC goal of internet interactive + OTA is to increase the value of local 30-second spots. The process starts by increasing your viewership with iMU subscriptions. … Before the iMU inauguration each TV Station GM (as outlined in MPC paper) will generate “ad price advances” with each new iMU subscriber/audience.
  33. RESULTS: Savings after the MPC’s payment varies Not Spending on new capital equipment is your first saving opportunity Some TV Stations for play-out only will be are $300 k savings over MPC’s payments RESULTS: Resources not offered by internet companies (our own content) RESULTS: More content providers and their followers, the better YOU ARE
  34. More IP Content = More Subscribers (we want the content providers, OTA ads, TV Station sales force, etc to find more subscribers) Important comment to remember: Is anybody watching? The MPC will monitor metrics and suggest changes RESULTS: Assets to support 500,000 subscribers @ $8/mo Plus your local ad price increases with IP interaction RESULTS: MPC offers a local contact for concerns subscribers What you really want? Try to reach a particular audience, build an entire campaign to find and engage that audience. If you don’t get the Metric, then remove content and “try-try, again”
  35. For me to be personal involved with helping to insure another successful project for our industry Help Picks the MPC Company Organizational Chart: Future MPC sites will empower broadcasters to play spoiler in a game currently dominated by a handful of internet giants Broadcast industry thought leaders, and the MPC team together we’ve crafted a business plan which I hope you’ll agree is a fantastic opportunity for local broadcasters. We must built a virtual consultancy of New idea expands upon the concept of local infrastructure consolidation amongst neighboring TV Stations. We've combined our original shared facilities initiative with an expansive new media value proposition which promises a sound financial future for all local broadcasters iTV web strategy will compete at scale within a deliberate local infrastructure leveraging a legacy of trusted services, OTA promotions and community resources to realize potential revenues which have long eluded internet companies. Monetizing locally, you must have a flesh and blood presence and outreach that actively engages with brick and mortar neighborhood retail, young adult social life and organized community events.