Broadway Near You

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The Broadway Near You Proposal

• Broadway Near You is the !rst company with the mission of presenting throughmovie theaters and ultimately directly to the home, an annual slate of the best inEnglish language musicals and stage shows-focusing on Broadway, the West End,and the best of O"-Broadway and Regional #eater.

• Our goal is to establish Broadway Near You as a key entertainment brand in amedia forum that is only in its infancy.

• We want to expand the market to include more casual theatergoers, lower-incomeviewers, and the young.

• #is business model has proven successful for the Metropolitan Opera’s #e Met:Live in HD series, and the overall audience for theater dwarfs that of opera.

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Why BNY Is Unique

We Are Di"erent From #e One-O" Productions…

• Our strategy — providing an extensive slate of shows — o"ers a di"erent way to invest in theater.BNY’s success is not dependent on one particular show, but rather the entire portfolio.

• We are not tied to any particular theater, producer, or club. #us, we have the opportunity to selectfrom a broad range of productions.

• We are building a brand that will bene!t future marketing e"orts: we will not have to start fromscratch with each new production.

• We are building a subscription base of loyal customers.

• BNY !nances and takes on the risk of the stagecast instead of the producers of the show.

• We will be well-capitalized, which will a"ord us substantial !nancial $exibility.

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Why Presenting a Slate of ProductionsEach Season Is Critical

• Our strategy—providing an extensive slate of shows—o"ers a di"erent way to invest in theater.BNY’s success is not dependent on one particular show, but rather the entire portfolio.

• We are building a brand that will bene!t marketing e"orts: we will bring a ready, preparedaudience to the mix, in addition to the audience that the show-speci!c marketing will generate.

• We will be able to realize economies of scale with production vendors, guilds, theater owners, anddistributors.

THE MISSING LINK IN THEMARKET PLACE IS THEEQUIVALENT OF THE MET:LIVE IN HD BRAND

Regional Play

Broadway Play

Broadway Musical2

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Year 1 Year 2 Year 3 Year 4 Year 5

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Projected Slate of Productions

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Broadway Near You’s Distribution Strategy

• Movie theaters are increasingly looking for alternative content, especially at higher price points.

– #ere has been explosive growth in the conversion of cinema screens to a digital format. At the end of2010, there were 36,242 digital screens globally, up from 849 at the end of 2005. #is number is projectedto exceed 100,000 by 2015.

– According to Screen Digest, the global market for alternative content in cinemas is forecast to be worth overhalf a billion dollars by 2014, rising from $45.7m in 2008.

• Initially, BNY will distribute domestically and internationally in movie theaters.– #e Met: Live in HD has established the model and is currently distributed in approximately 600 domestic

and 900 foreign theaters.– We anticipate working with the major alternative content distribution partners both in North America (i.e.

Fathom Events and Screenvision) and in international markets.

• #e screenings will be a combination of live performances and taped ones.

• We expect that each production will be shown an average of four times.

• As penetration of widescreen Internet-connected televisions proliferate, BNY will aggressivelyseek to explore direct-to-home distribution. We are currently exploring multiple !nancial modelsfor direct-to-home (i.e., direct sale of rights, pay-per-view, and subscriptions).

THERE IS PLENTY OFSHELF SPACE AS MOVIETHEATERS COVETALTERNATIVE CONTENT

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Sales and Marketing Strategy —Creating the BNY Brand

• Creating the BNY brand is an essential part of our marketing strategy.

• We want to expand the market to include more casual theatergoers, lower-incomeviewers, and the young.

• #e e"ective use of viral channels is vital to our strategy; all surveys cite theimportance of personal recommendations in theatergoers’ choice of which showsto attend.

• We believe we can develop a substantial BNY subscriber base because:

– Subscriptions to theater clubs and Touring Broadway seasons are deeply ingrained in thetheatergoing public. 75% of the Met: Live in HD attendees were returning customers.

– #ere are approximately 1900 not-for-pro!t theater clubs in the United States with about1.4 million subscribers.

– #ere are approximately 1.1 million subscribers to Touring Broadway.

– #e Met’s experience demonstrates the importance of the brand. According to a recentsurvey, 39% of attendees heard about the Met: Live in HD from the Met itself, andanother 34% through word-of-mouth.

BASIC PITCH:SEE A BROADWAYSHOW FOR $20.

SELLING THROUGHTHEATER CLUBS WILLBE A CRITICAL PART OFOUR MARKETING,ESPECIALLY FORSUBSCRIBERS.

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Why Stagecast Your Show…

• Signi!cant !nancial bene!ts and exposure to all participants in show-playwrights, composers, producers, participating guilds.

• Exponential expansion of the available audience to see the show (see nextslide).

• Extending the demographic reach of the show-price points encourageunderserved youth market.

• Advance marketing prior to a tour.

• Memorializing great work in a !rst class production.

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Expanding the Potential Audience

• BNY intents to screen the stagecast throughout the United States andextensively in foreign markets

• If a show has a 1 year run in NY less than 20% of the 312 million USpopulation has the opportunity to see it-those who live in the NYmetropolitan area (18.9mn) and those who visit NY (39.1 million)

• #e potential expansion is much greater for foreigners. For example, therewere slightly more than 1 million tourists in NY in 2010 from the UK, acountry with a population of almost 62 million. #ere were 977,000Canadian tourists that visited NY out of a total population of 34 million.

• #e potential audience for other foreign locales can be expanded evenfurther.

• BNY will subtitle many of its shows to further expand the potentialinternational audience.

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• BNY is committedto work very closelywith the showscreative team to besure that this is thecase.

• BNY has noincentive to doanything other thanthis.

Will the stagecast re$ectthe artistic intentions ofthe producers,playwrightand director…

• Very few showsactually become fulllength movies.

• #e look of thestagecast will be verydi"erent from afeature !lm. #isconcern is similar tobelieving thatpeople who see theshow live will notsee the movie.

• In general thestagecast will bepresented 2-3 yearsbefore any feature!lm would bereleased.

A Stagecast will hurt mydeal for a full lengthmovie…

A Stagecast is not the sameas being there…

A Stagecast will cannibalizemy theater audience…

A Stagecast willcannibalize the audiencefor the show’s tour…

• #is is true, there isnothing like being inthe audience at thetheater. However, aspointed out earlier, avery small part of thepopulation even has theopportunity ofattending live.

• #ere are certainaesthetics bene!ts ofattending a stagecast.Everyone has a frontrow seat.

• #ere is no evidence ofthis. #e MetropolitanOpera’s audience at theOpera House increasedevery year since itstarted the Met Live inHD series.

• #e New York Yankeesdraw 4 million inannual attendance atYankee Stadium eventhough every game istelevised.

• #e National #eater ofLondon is stagecasting“One Man TwoGuvnors” currently tobuild support for whenthe show comes toBroadway next year.

• #e stagecast willlikely be shown wellin advance of anytour-generallycontemporaneouslywith the Broadwayproduction.

• As discussedabove,many thinkthat a stagecast willonly heighteninterest in seeing alive production.

• #e stagecast of“Memphis” wasproduced for theexpress purpose ofmarketing the tour.

Addressing Concerns You Might Have About Stagecasting Your Show

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Management Team

Strong Management Team

• Ed Greenberg, Founder Private equity investor and Wall Street investment banker and securitiesanalyst for over 25 years at Morgan Stanley and Sanford C. Bernstein

• Lee deBoer, CEO Veteran entertainment executive with 20 years at HBO

• Rich Martini, Head of #eater Relations Veteran Broadway, O"-Broadway and TouringBroadway producer

• Kenny Leon, Artistic Director Two-time Tony nominee and founder of the True Colors #eatreCompany and former Artistic Director of the Alliance #eatre

• Neetu Jhamb, Head of Research Ten years of Wall Street/!nance experience, primarily at JPMorgan

• Radical Media, Producing Partner One of the foremost production !rms in the world-producedstagecast of Rent

BNY’S TEAM OFPARTNERS CONSISTSOF THEATRICALPROFESSIONALS,EXPERIENCEDBUSINESS BUILDERS,AND SOPHISTICATEDFINANCIALPROFESSIONALS

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Contact

Ed GreenbergPhone: (917) 709-8722Email: ed@bwaynearyou.com

Lee deBoerPhone: (917) 453-0325Email: lee@bwaynearyou.com

Richard MartiniPhone: (212) 730-9500Email: rich@martinient.com

Contacts