it s time for something different - tnfs® …€™s time for something different....
TRANSCRIPT
THE NEXT FEMALE SUPERSTAR® 4535 S. Russell Rd. Suite 10.Las Vegas, NV [email protected](702) 786-‐6316 Office www.thenextfemalesuperstar.com
IT’S TIME FOR SOMETHING DIFFERENT
THIS PACKAGE OF INFORMATION DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO PURCHASE SECURITIES. AN INVESTMENT IN OUR COMPANY MAY ONLY BE MADE BY QUALIFIED ACCREDITED INVESTORS AND IN ACCORDANCE WITH AND FOLLOWING REVIEW OF CONFIDENTIAL OFFERING DOCUMENTS.
• Hosts a multi-‐-‐platform digital content destination dedicated to Empowering women and their talents through its original all-‐-‐female singing competition series.
• Broadcast entirely over the web, TNFS merges two successful reality formulas: “American Idol” combined with an engaging personality drama similar to a “Project Runway.”
• Focused on maximizing the value of content and properties through multiple distribution platforms
• Tailored for a new global audience, with their new TNFS platform digital player designed by AMV Digital Media
BUSINESS OVERVIEW
Auditions will take place in cities around the world utilizing TNFS Live Registration Live Audition Kiosk. The company will deploy kiosks in select countries for a two week live audition and registration process. The following locations have been strategically selected:
• New York City, NY, US • Paris, France • London, UK • Minneapolis, MN, US • Munich, Germany • Morocco • Puerto Rico, US • Geneva, Switzerland • Sydney, Australia• Pittsburg, PY, US • Rome, Italy • Tokyo, Japan • Mexico City, Mexico • Madrid, Spain • Seoul, Korea• Beijing, China
Contestants are invited to become Registered Members, to begin the audition process. The process begins when a contestant fills out an electronic application and performs a live audition from their own country.
BUSINESS OVERVIEW (continued)
THE NEXT FEMALE SUPERSTAR SERIES CORPORATION
• New Day Management• Record Label• TNFS Publishing
Company• Mobile Apps• Fashion Label• Merchandising
Content Distribution Services
Show
THE SHOW• THE NEXT FEMALE SUPERSTAR® will host
worldwide auditions
• Leverage “living under one roof” model and live broadcast format
• No “losers,” each contestant will win a $100,000 prize
• Winner will receive a $2 million recording contract
• Original music produced and customized to the artists’ style and personality
BROADCAST OUTLETSLive Social Media Broadcast Platform
• Gives fans the ability to engage with their favorite artists
• Allows viewers to watch each artist’s original music through live broadcast performances
Internet Radio
• Online Radio has become mainstream with 119 million people listening on a weekly basis
• Streaming audio allows TNFS to identify and target listeners to maximize ad-‐based revenue
SERVICES: NEW DAY MANAGEMENT• Manage careers of
winning contestants• Touring• Artist Management• Creative Production
SERVICES: RECORD LABEL
• TNFS Record Label will develop original music for artists
• The label will manage the winner’s $2 million recording contract
• TNFS will record the female superstars it creates and then sell the music across all borders
SERVICES: PUBLISHING COMPANY• Songs performed on the shows will be original material chosen by respected music industry veterans with the input of the artists
• TNFS Music Publishing will own 50% of the copyrights on songs for all TNFS platforms sung by the female artists
• A catalog of recognized songs will create a valuable asset for TNFS Inc.
SERVICES: MOBILE APPS
Live Broadcast Voting AppAudiences can view the show and
interact with contestants
Harmony AppAspiring singers can find a harmony
and have it sent to producers
Fantasy Superstar Trivia Game App
Viewers can guess who the top three contestants will be
SERVICES: FASHION LINE• Leverage fashion marketplace to
further expand the brand
• Retro glam apparel designed by Melissa Pellone, to be worn by TNFS hosts
• Apparel will be available for purchase by viewers online and at select retail locations
Source: Nielsen 2014
Book Publishing3%
B2B12%
Filmed Entertainment
5%
Internet Access29%
Internet Advertising8%
Magazine Publishing
5%
Music1%
Newspaper Publishing
8%
Out-‐of-‐Home Advertising
2%
Radio3%
TV Advertising10%
TV Subscription & License Fees
13%
Video Games1%
Source: PWC Global Entertainment and Media Outlook 2014-‐2018
Broadcasting and Cable TV
• 2013 Revenues: $436 billion incl. $350 billion ad spend
• Forecast revenues by 2018: $541 billion
Over-‐The-‐Top
• 2012 Revenues: $8 billion• Forecasted revenues in
2015: $20 billion
$1.9 Trillion and GrowingGLOBAL ENTERTAINMENT MEDIA INDUSTRY$1.9 Trillion and Growing
135
140
145
150
155
160
2010 Q2 2011 Q2 2012 Q2 2013 Q2
144147 145 146.5
3.5
46
63.54 5
6
Mon
thly Tim
e Spen
t Per person
(in hou
rs)
Monthly Time Spent Viewing Video Across TV, Online and Mobile 2010 -‐2013
On Traditional TV Watching Video on Internet Mobile Subscriber Watching Video
151 155 156 158.5
Source: Nielsen 2014
ENTERTAINMENT CONSUMERMore consumers are viewing video than ever before….
Ray HallCEO & ChairmanRay HallCEO & ChairmanSeasoned entrepreneur with over 30 years of experience in the entertainment industry. As President and CEO of RH PRODUCTIONS LLC, Mr. Hall oversaw operations for development and production of entertainment content, music and television programming. His current project is THE NEXT FEMALE SUPERSTAR®. He developed and produced several female independent musical artists in Los Angeles California and in London. He raised capital for several entertainment projects, one of which went public.
THE TEAM
Charlie MidnightExecutive Producer of Music OperationsCharlie MidnightExecutive Producer of Music OperationsA multi-‐Grammy award-‐winning Songwriter and Record Producer who has been involved with writing, conceptualizing and producing albums throughout his career that have sold in excess of 50 million copies. He has written and or produced for Barbra Streisand, Cher, Christina Aguilera, IdinaMenzel, Joni Mitchell, Britney Spears, Hilary Duff, Andrea Bocelli, Seal, James Brown, Joe Cocker, Doobie Brothers and more.
THE TEAMCREATIVESusanna Midnight, Executive Creative Director
Ray Kay, Broadcast Director
Carmela Evangelista, Co-‐Producer
Susanna Midnight, Executive Creative DirectorMrs. Midnight has worked in the entertainment industry for 25 years as a model, performer, and producer. She was head of talent development and production for Blue Hotel Music, a co-‐venture with Sony Music. She has served on the Board of Directors for The Geffen Playhouse from 2006 to 2014.
Ray Kay, Broadcast DirectorDirected music videos generating more than 3 billion views on You Tube. Shot with music’s biggest stars, such as Lady Gaga, Justin Bieber, Britney Spears, Beyonce, Cher, Steven Tyler, Gloria Estefan and more.
Carmela Evangelista, Co-‐ProducerActive talent management agent within the fashion, entertainment, and production industry for over 20 years, working with artists in New York, Miami, Los Angeles, and abroad.
CORPORATELaura Anthony, Esq., Corporate and Securities Law
Beth Corson Corporate Finance
Laura Anthony, Esq., Corporate and Securities LawFounding partner of Legal & Compliance, LLC, a national corporate and securities law firm. Ms. Anthony has served as Chief Legal Counsel for a national investment banking firm and NASDAQ broker dealer with over 200 employees.
Beth Corson, Corporate Finance20 years experience as Controller or CFO for companies with revenues over $100 million. Ms. Corson’s experience includes numerous mergers and acquisitions, due diligence, and SEC filings.
SALES AND MARKETING STRATEGY
Media RelationsHave 3 top magazine cover stories by Vogue, ELLE Magazine and InStyle.comEmploy journalists and bloggers to
create media, write stories and curate audience chatter
Interactive TVIntended to be fully
interactive through the use of tactile video interface on mobile
devices
Global Broadcasting NetworkNot geo-‐blocked and does not have any hidden fees. The Next Female
Superstar is the first true ‘Free to Air’ Global Broadcast Network
Social MediaMillennials are the YouTube
generation and our primary early audience base.
Engage in Facebook, Twitter and Instagram to promote the show and offer contest and sweepstakes to
create fan involvement.
Pre-‐Roll AdsAllow advertising partners to insert ads specific to the individual viewer’s
demographic.Three levels of ad campaigns are
Global, Regional and Local
SALES FORECAST
$-‐
$100,000,000
$200,000,000
$300,000,000
2015 2016 2017 2018 2019
Advertising Spots Sponsorship Other Revenue
FINANCIAL SUMMARY
(in millions)2015
Forecast2016
Forecast2017
Forecast2018
Forecast2019
Forecast
Revenues $ 24.40 $ 54.23 $ 125.72 $ 198.07 $ 292.41
Direct Costs $ 21.57 $ 51.13 $ 51.68 $ 54.67 $ 57.91
Gross Profit $ 2.83 $ 3.10 $ 74.04 $ 143.40 $ 234.50
Selling $ 13.36 $ 21.34 $ 42.89 $ 63.63 $ 92.48
G & A $ 2.00 $ 2.58 $ 2.62 $ 2.98 $ 3.22
EBITDA $ (12.53) $ (20.82) $ 28.53 $ 76.79 $ 138.80
RECENT DEALS IN THE INDUSTRY
$1 billion$200 million
PENDING(Preliminary Deal)
Sold to YouTubeDeal Value: $1 billionRevenue: $200 millionDeal Multiple: 5
$145 million$50 to $100 million
NOV 2014
Sold to NexstarDeal Value: $145 millionRevenue: $50 to $100 millionDeal Multiple: 1.45 to 2.9
$48.5 billion$32 billion
MAY 2014
Sold to AT&TDeal Value: $48.5 billionRevenue: $32 billionDeal Multiple: 1.5
$2.7 billion$555 million
JULY 2013
Sold to Tribune Co.Deal Value: $2.7 billionRevenue: $555 millionDeal Multiple: 4.9
$3.3 billion$943 million
AUG 2012
Sold to Carlyle GroupDeal Value: $3.3 billionRevenue: $943 millionDeal Multiple: 3.5