movie beam presentation

VALUABLE TECHNOLOGIES, INC.

A Venture by Valuable Technology Group, the Global Leader in Digital Cinema Transmission, Leveraging moviebeam Platform Developed by Disney and CISCO

VALUABLE TE CHNOLOG IE S , INC . | FOR PR IVATE C IRCULATION ONLY Slide 2

FROM A PIONEER TO A

WINNER

2005: moviebeam was given birth at Disney® to become

a front-runner in the Video On Demand technology

2006: moviebeam spun off with $50 million investment

from CISCO, Disney and several venture capital firms including

Intel Capital, Mayfield Fund, Norwest Venture Partners and

Vantage Point Venture Partners

2008: moviebeam technology assets and content

relationships was acquired by Valuable Technology Group

(VTG)

Today: VTG is a global leader in Digital Cinema transmission

and has successfully launched Hospitality VOD in US Market

HOSPITALITY VOD INDUSTRY:

THE PROBLEM

Valuable Technologies, Inc.


HOSPITALITY VOD: BLINDFOLDED TO THE

EMERGING REALITY CONTINUED RELIANCE ON OUT-OF-DATE PAY-PER-VIEW MODEL

Free High Speed Internet for the

Guests

“All-You-can-View” conquers “Pay-per-

View”

High Speed Internet enables TV anywhere

Hotel Network Upgrade required to

support “Free” VOD


Guests watch video on their own laptops (and now, Tablets) utilizing

free High Speed Internet provided by the Hotel rather than to pay to

view movies on the hotel TV.

Generally, all video consumers (including hotel guests) prefer the “All-

You-can-View” subscription VOD model (a la, Netflix, Hulu, etc.) over

the traditional pay-per-view model of VOD

HOSPITALITY VOD: CHAINED BY THE

LEGACY LEGACY TECHNOLOGY AND STRANDED INVESTMENT PREVENT SWITCH TO “ALL-

YOU-CAN-VIEW” VOD MODEL


Today, every time a guest watches a movie, it is

streamed from the media hub to the guestroom.

Current VOD networks in the hotels are not

equipped to support increased traffic that

may result from the “All-you-can-view”

service unless the Hotel served carries out

expensive network upgrades.

Current VOD operators lack content rights to

store movies locally on the guestroom STB.

They are required to store the content at a

centralized server.

With an existing customer-base served by

legacy technology, it is virtually impossible

for the incumbents to switch to a more

efficient technology architecture or a newer

business model.

THE MOVIEBEAM DIFFERENCE



DUAL INNOVATION BY MOVIEBEAM STORE-AND-PLAY (TECHNOLOGY & RIGHTS) + ALL-YOU-CAN-VIEW TOP

GRADE MOVIES©

Technology Innovation – the Store-and-Play Platform

Marketing Innovation

– the “All-You-can-View” VOD model


VTI is the only VOD operator in

the Hospitality Industry that uses

“store-and-play” VOD technology,

which can support high volumes of

video viewing – it is also the only

operator to have “store-and-play”

content rights.

Capitalizing on its unique Technology

advantage that can sustain high

volume of video viewing, VTI is the

only operator that charges Hotel

Management per occupied room,

which enables them to offer All-You-

can-View Top Grade Movies© to the

guests for free or a flat fee.

VALUABLE TECHNOLOGIES , INC. | FOR

PRIVATE CIRCULATION ONLY Slide 8

STB Features

** integration with PMS dependent upon the PMS provider and API available from the PMS to integrate

VTI’s unique Store-and-play Technology Platform; 100+ movies stored on Room STB activated on occupancy by moviebeam

Free/flat fee All-You-can-View Top Grade Movies© for the guests + vast library of Premium Movies

Increased Take-rate of both, free and premium content

Increased Revenue with no additional network upgrade costs


Why everyone loves

moviebeam? Vast library of Free Top-Grade Movies for the Guests – Superior Customer Satisfaction, better marketability

Hotel Management needs no network upgrade and pays on a “per occupied room” basis

Once engaged, guest is more likely to subscribe to the premium movies, Hotels get revenue share. This

translates into a higher revenue for the Hotel management without any network upgrade costs

THE NEW VOD BUSINESS MODEL



THE BI-DIRECTIONAL VALUE FLOWS A WIN-WIN BUSINESS MODEL


THE ONLY

OPERATOR with

“Store-and-Play”

VOD platform and

“Store-and-Play”

Content Rights

All-You-can-View

Top Grade Movies©

at a “Per Occupied

Room” Cost

Revenue Share on

Premium Hollywood

Cinema

Improved

Marketability with

“All-You-can-View”

movies at no or flat

charge to the Guest No Costly

Network Upgrade

to Accommodate

Higher Take-rate

o Higher Engagement

and Take-rates for Both,

Free and Premium Content

o Higher Guest

Satisfaction

o Greater Occupancy Rate

o Greater Take-Rates

o A Perceived Guest Value of $50 -

$90/Stay

Option to Fund Cap Ex Through Hotel

Vouchers (Barter)

o Faster Penetration

o Higher Profitability

THE GUEST

The moviebeam Value


Free or Flat-rate “All-You-

can-View” model –

Creates Customer

Value and Loyalty

Increases Customer

Engagement

Creates Opportunities

for Tertiary Revenue

for Hotel

Competitor’s VOD

UNIQUE BUSINESS STRATEGIES…



PRIVATE CIRCULATION ONLY

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13

EMPOWERING THE HOTELIER

Multiple Service Offerings at no charge to the hotelier Full Amenity with passcode enables the hotelier to offer free independent movies to all

guests while being selective with the free code for adult movies.

Full Amenity without passcode enables the hotelier to offer free independent and adult movies to all guests.

Partial Amenity with free independent movies enables the hotelier to offer only free independent movies.

Partial Amenity with free adult movies enables the hotelier to offer free adult movies only.

No Amenity mode gives the hotelier full control of pricing and packaging of movies.



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14

AMENITY MODE

Enables hoteliers to offer FREE MOVIES for all guests.

Hotels will have the ability to advertise the FREE MOVIES offering and separate themselves from their competitors.

Guests will have the comfort and convenience of home without the costs.

Perceived value for each guest per night is 2 movies at $15 each totaling $30.

12% of the total amount of guests watch pay-per-view movies per night.

Over 30% of the total amount of guests watch FREE movies per night.

Movies can be viewed without limitations.

Hoteliers can add a fee of $.99 nightly or above to guests for this new amenity.



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AMENITY MODE CASE STUDIES

Best Western Burlington NJ – Movie rentals increased from 8 in May to

184 in June with the same occupancy rate.

Comfort Suites Wilmington – Movie rentals more than doubled during

the first 2 weeks of July compared to the entire month of June even

with a 13% decrease in occupancy.

Comfort Inn Bordentown – Movie rentals increased from 28 for the

entire month of June to 174 for the first two weeks of July with the

same occupancy rate.



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PARTNERING IN SUCCESS

Continuous Improvement Process

• Monthly monitoring of sales, rental patterns, and content performance.

• Business development support in analyzing new strategies and maximizing ROI in terms of driving occupancy and promoting customer loyalty.

• The Moviebeam Commitment to creating a Win Win solution for the hotelier and guests!



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ADVERTISING…..




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Local Area Attractions



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• Additional revenue generating

opportunities for hotels provided

free of charge by Moviebeam.

• Hoteliers can rent advertising space

to local businesses at 100% profit on

the Moviebeam Welcome Screen.

• Hotels can advertise their amenities,

restaurants, bars, etc..

PROGRESS THUS FAR …



TIME-HONORED CONTENT RELATIONSHIPS ONLY HOSPITALITY VOD OPERATOR WITH STORE-AND-PLAY CONTENT RIGHTS

Content Relationships is one of the toughest

entry barrier to the VOD business.

VTI not only bought the moviebeam’s

technology assets from Disney and its other

owners, but also inherited relationships with

Hollywood Studios and Content Aggregators.

These Studios have approved VTI’s store-

and-play technology platform that has

integrated state-of-art Conditional

Access (CA) and Digital Rights

Management (DRM) system.


VTI’S MATURE SYSTEMS & PROCESSES ORACLE-BASED ENTERPRISE PLANNING

VTI has one of the most advanced Oracle-based enterprise planning software that generates

detailed business data relating to Hotel Properties, movie rentals, Set Top Box (STB) inventory, etc.



How We Do It …

VTI is supported by its valued partners in delivering value to its customers:

Satellite Transmission and VSAT installation: Hughes Network System

Technology and Infrastructure: Valuable Technologies Limited

Content: All leading Studios and Content Aggregators

Headend



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• Installed by MovieBeam technicians onsite.

• Hosts the Media Gateway, router, and switch.

• Compact unit to be neatly installed near FTG source.

• Needs an adequate amount of HVAC and clutter free space.

• Only authorized personnel from Moviebeam may alter this equipment.

Set-Top Box



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• Installed In guest rooms

• Small box

TV Bracket



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• Set-top mounted using a bracket on

rear of TV

Furniture Bracket



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• Set-top securely mounted on top of

or on rear of furniture.

VALUABLE TE CHNOLOG IE S , INC . | FOR PR IVATE C IRCULATION ONLY

Valuable Technologies Inc.

Unit F, 100 West Forest Avenue

Englewood, New Jersey 07631.

Phone: (201) 645-4675 | Fax: (201) 266-0917