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Investor Overview
Summer 2015
2
Purpose To connect under-served fans & enthusiastswith genre-specific & lifestyle-specific
video content & community
A portfolio of fan-focused, micro-SVOD video channels
3
Broadband penetration at 79% in US SVOD services adoption at 52%+ in US with 35% year-over-year growth Over-the-top (OTT) video service subscribers to surge to 330M+ in 2019 from 90M in 2014
Market Shifts
Mass market OTT players – Netflix, Hulu, Amazon – use “something for everyone” strategy Few OTT players adopting “everything for someone” approach – deep, genre-specific content &
community
Customer Opportuni
ty
Much genre-specific content not in demand by mass market OTT services (focus on high-potential originals)
Content licensing windows continue to collapse / multiply Creates opening to acquire genre-specific and independent content cost-effectively
Content Opportuni
ty
Channel break-even at 50K subscribers Low-cost online customer acquisition channels Cloud-based platforms enable minimal upfront capital investment
Favorable Economic
s
Opportunity
3
Curated, genre specific content
Content
Fan focused product design
Customer Experience
Highly social experiences
Community
Multi-platform & device access
Connection
Low price point with high value
price ratio
Cost Advantage
Our Approach
4
5
We Are
David WolfeChief Executive Officer
Kirk JohnsonHead of Product
Gary RosenfeldHead of Business
Development
Mike LangCo-Founder,
Board Member
Dan MarchFounder,
Board Member
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First Channel: Horror
Screambox beta launched end of 2014
Currently $3.99 monthly subscription fee
8k subscribers as of August 2015
Positive customer feedback & strong user engagement
Key platform partnerships signed : Roku Microsoft Xbox Sony PlayStation
7
User Feedback
“Awesome site. Every movie I have watched so far is awesome! And no buffering or pixelating. And to top it all of, it’s at a great price! What’s not to like?”- Bill M.
“First let me say that Screambox is outstanding! I’m a huge fan of the horror genre and am sure your product is going to be a huge success.”- Michael C.
“The fact that this is the first of its kind geared towards us die hard horror fans makes it badass in my book.” - Lauren C.
“I’m in, hell yes.”- Nick M.
“I’ve been waiting for something like this.”- Ciara S.
“I just signed up your channel on my Roku and love this already. Your categories are too funny.”- Dori G.
“Started my free trial today. I don’t expect I’ll be cancelling once the 30 days is up. The website is the best of ideas.”- Zach B.
“This seems like a good idea. My Netflix has nothing but horror suggestions but they don’t have that many horror movies.”- Jay J.
8
Subscriber Unit Economics
Lifetime Value = subscriber lifetime x (subscription price – [direct costs + content costs])
Nov-14
Dec-14
Jan-15
Feb-15
Mar-15
Apr-1
5May
-15Jun
-15$0
$5
$10
$15
$20
$25
$4 $3 $4$5
$6$7 $6 $7
$13
$15$14
$18$16
$15
$20
$17
Blended SAC Lifetime Value*
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
3,349
4,445 4,892
5,492
6,717 6,676
7,577 8,020
25%
21% 22%18% 20% 21%
16% 19%
Subscribers % Churn
Subs
crib
ers
% C
hurn
9
Beta Key Performance Indicators (KPIs)
Phase Key User Actions Beta KPIs Market Averages / Comps
Acquisition Clicks on ad unit ~3% click-thru rate (CTR) <1% CTR
Visits Screambox.com 50K unique visits / month 60% organic / 40% paid
NA
Activation Signs up for account 25% visit-to-account conversion rate
30K accounts to date
2-5% visit-to-account rate
Starts 30-day trial 33% account-to-trial conversion rate
14K trials to date
NA
Revenue Becomes subscriber @ $3.99 / month
70%+ trial-to-subscriber conversion rate
7,500 subscribers as of May 31st ~$7 blended subscriber acquisition
cost ($ SAC)
<$10 micro SVOD $ SAC $15-20 mass market SVOD
$ SAC
Retention Continues subscription 20% churn rate or 5 month lifetime $21 lifetime value (LTV) or ~3x LTV
/ $ SAC multiple
5-7% steady-state mass market SVOD churn
3x+ LTV / $ SAC multiple target
Comes back to service 2-4x average weekly log-in NA
Engagement
Streams video ~10 hours / month / user ~15 titles / month / user
Netflix 30-50 hours / month / user
Engages with community
25K Facebook fans 2x Facebook average engagement
(likes, comments, shares)
NA
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Platform Opportunity & Schedule
Platform Est. Base Date
10M Launched
25M Q1 2015
20M Launched
65M Launched
50M Oct 29, 2015
225M Launched
110M Oct 26, 2015
180M L6aunched
Total Estimated Installed Base 800M – 1B
Appendix
Motor Sports
Guns / Hunting
Martial Arts
Horror
Snow Sports
Jazz
Surfing
MilitaryFashion
Astronomy
High School Sports
Large & addressable marketCurrently underserved
Accessible contentRapid concept testing
Analytics-based selectionSource & deploy content
Develop & launch key device minimum viable products (MVPs)
Begin to scale user acquisition approachesGet to 20K subscribers in 6 monthsIncrease content investment & develop original
programmingExpand device footprint & accelerate product innovation
Accelerate branding & marketing effortsDedicated channel team
Fantasy Sports
Identify & Validate
Launch & Beta
Magic
Scale & Grow
Comics
~$1.5M per channel to break-even
Channel Development
Cycling
FilmNoir
DIYLaw
Enforcement
BollywoodWeight
Loss
FishingMedieval
Times
LGBT Broadway
12
13
Beta Year 1 Year 2 Year 3 Year 4 Year 5
$-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
-
200,000
400,000
600,000
800,000
1,000,000
$239,400.0
$3,016,440.
0
$9,216,900.
0
$19,750,50
0.0
$32,917,50
0.0
$46,084,50
0.0
$(453,809.7
) $738,671.8
$4,279,765.
9
$9,656,392.1
$17,300,78
3.3
$22,843,64
3.3 10,000 60,000
175,000 375,000
625,000
875,000
Revenue Contribution Average Subs
Mill
ions
of
$s
Thou
sand
s of
Sub
s
Per Channel Economics
13
ChannelBreak-even
SubscriberLifetime Value
Subscriber Break-even: 50k Subs
Beta Year 1 Year 2 Year 3 Year 4 Year 5 $-
$3
$6
$9
$12
$15
$(20)
$-
$20
$40
$60
$12
$7 $6 $5 $5 $5 $(7)
$22
$36
$49 $51 $47
$ SAC (Blended) Lifetime Value (Net)
$ SA
C
Life
time
Valu
e
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