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Corporate Presentation
SoMedia Networks, Inc.
http://somedia.net/http://somedia.net/7/28/2019 SoMedia Corporate Presentation
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SoMedia is a ground breaking digital media companyfounded in February of 2006. Weve raised over $4.8 million todate.
We have commoditized the production of video forTV, news and B2B markets. Were able to produce video at massivescale and global reach while undercutting competitors by 60% or
more and maintaining margins of 50% +.
We expect revenues to take off in 2011 driving us to cashflow positive with 30% month over month growth and revenues of
$1 million plus a month by Q4.
Executive Summary
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video is a key component of e-commerce + news today $1.5 billion in local demand e-commerce
Created by local SMB directory, website and mobile marketing
100% growth in past 12 months news videoNews video consumption experiencing enormous growth
but.Expensive, Complicated, Local, Not Scalable, Hard to Find
Executive Summary
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Market Entry Timing
DEMAND for News VideoConsumption of online video news clips
doubled over the past 12 months, to 565
million video views
Hours oflocal TV news per day by is now 5
hours a day up 25% since 2008
COLLAPSE of TV News Model
Local news is too expensive to produce
Staffing levels are shrinking and budgets falling:
41.9% of news budgets decreased in 2009, 65% in2010
Percentage of US TV stations reporting a profit
from news is at a 16 year low
DEMAND for Internet Video85% of males and 68% of females now
watching online video weekly: a 15%
and 27% increase over 2009
YouTube is now #2 search engine behind
Google.
A video result is 50 times more likely to
appear on page one of a Google search
query than a web page.
Web video is now a must have
marketing tool for online businesses:
33% of online retailers plan to add videoto their sites, making it a higher priority
than any other advanced feature.
67% of media execs identified the use
of online video as a primary focus of
their digital marketing campaigns
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eCommerce Video Gets Results
Viewers who take action after watching video 52%
Viewers who visit a store after watching video 30%
Increase in clicks for more information after
watching video30-40%
Increase in phone calls to businesses after addingvideo 16-20%
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Local SMB Video Demand
CAGR 2007-2012: 167.8%
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SoMedia Networks Business Opportunity
Use the Internet to streamline processes, create scale, and
provide a low cost standardized product
Create a low cost based business model
Revenue-sharing model gives video producers upside participation while
driving down operating costs
Enable an underutilized and under valued workforce
Pro-sumer video producers who have the skills and equipment but no
professional framework
Google did it.eBay did it.Amazon did it.eTrade did it..
SoMedia is doing it to Video Production
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SoMedia Networks Model
BBN3 Platform is a proprietary eco-system. SoMediacontrols who is allowed to participate and how.
Platform creates professional trust, reliability & offers a guarantee of
performance
Focuses on centralized process control, quality control and jobspecification creation
Controls who is able to create what content through skills assessment
and management
Operates locally in 24 markets today. Globally starting in 2011
Anyone can make 10 or even 50 videos but how do you produce thousands a
month with consistency and quality at a low price?
Key Concept: Control the User + Control the Processotherwise all youre creating is low value user generated content
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SoMedia Networks Model - Videographers
2500+ Ranked and Rated Pro-sumer Videographers
Videographers organized by ability
System is designed to reward videographers ($$) that create the best
work. Start at VJ1 level. VJ2s, VJ3s and VJ4s produce content for
businesses & broadcasters.
Average B2B production job pays videographer $22 to $35 an hour
Recruit, Recruit, Recruit
Recruiting is a process tens of thousands of videographers looking for
work
Craigslist
Film schools, Journalism programs
Word of mouth
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Assignment Creation
SoMedia Networks Cloud Based Production
Client
Account Management
Project Specs
Business Rules
Production Management
QC / QA
BBN3
Local Marketplace & Production Hubs
Videographer ProgramLevel 1
Level 2
Level 3
Level 4
Distribution
Production and News
Editors
Level 1Level 2
Level 3
Assignment Editors(News)
Level 1
Level 2
High Speed Internet
Cloud
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SoMedia Networks Business - B2B
B2B On Demand Video Production Services
Turns B2B video into a product rather than a creative process
Standardized pricing from $499 to $2499 average of $1299
Up to 60% lower cost than local competitors. Margins of 50% to 60%
Over 800 partners/resellers signed to date across North America
Web design cos, web development cos , marketing cos and agencies
Channel partnerships drive sales scale and volume. Early deals in process:
Partners with inside sales teams
No elephant hunting mid sized opportunity focus
Webnames, IFX Medical, Graphically Speaking
Planned scale up to 1000 videos/month by Q4 2011
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SoMedia Networks Business News
First on demand news production service providing low cost
news coverage to broadcasters
Multi format, expanded HD, SD, Web and Mobile content approach
SoMedia owns all content produced provides broadcasters with limited local
license
global news syndication (Reuters, AP, CNN model)
library stock footage licensing (iStockPhoto, Getty model)
Beta launched during Olympics. Broadcasters such as CHEK, CHCH, NBC Universal
and affiliates of NBC and CBS accessed content.
The President of NBC News told us they would encourage and support the
development of an alternative to Reuters and AP.
Currently producing content for CHEK News in Victoria and Global BC as phase
one of operational rollout to continue across North America during 2011
Global rollout to begin Q4 2011
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SoMedia Networks Revenue Model
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Management and Advisors
George Fleming, CEO
Over 20 years of Internet new venture development and financing experience; CEO of One Person
Health (HealthPricer), Co Founder of eCharge Corp.
Travis Moss, VP Sales & Business Development
Former COO, and former VP of Sales and Business Development for The Internet Marketing Centre.Oversaw sales of $22 million/year.
Rick Schultz, CGA, Director Finance & OperationsTactical Corporation, Taleo Corporation, Pivotal Corporation
Amir Mirhosseini, VP Technology & Cofounder
BCIT, BSc Computer Science UBC, Masters Computer Science (unfinished)
Gosia Kamela, VP ProductionHighly Experienced Director, Editor, Producer, Associate Producer, Production Manager, and PostProduction Coordinator
Art Reitmayer, CA, Strategic Advisor
Founder and CEO of Channel M, Former Vice President of Special Projects for Canwest Global,President and CEO of BCTV, CHEK-TV, CKRD, ITV
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B2B Industry Comparables
Competitor StudioNow was purchased by AOL for $36
million in January
StudioNow helps companies create, manage and syndicate online videos
with customized workflows, powerful technology and a lot of personal
attention
Related comparable Demand Media recently completed
an IPO at a valuation of $1.2 billion. Goldman Sachs was
the sponsor.
Demand Media, Inc. is known for being a so called content farm and creates
extremely low cost online content (including video) using a large free lance
producer workforce. The company has pioneered the use of measured
consumer demand and predicted advertising driven ROI to determine what
content it produces. It operates websites such as eHow, LIVESTRONG.COM
and Cracked.
Related comparable ReachLocal completed an IPO in May
raising $54 million with a valuation of $378 million.
ReachLocal brings order to the fragmented local Internet by connectingadvertisers, publishers, and creative solutions providers together on oneplatform.........through a dedicated force of local Internet MarketingConsultants.
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Capitalization and Financing Plans
Summary of Capital Investments (As of July 12, 2010) Total Dollars Raised to Date
$5.2 Million
Financing & IPO PlansSoMedia is hoping to seek a public listing through an IPO
Company has retained the services of an experienced investment banker to assist
in managing a go public process, commenced preparing for an audit, and begun
working with securities counsel
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George Fleming CEO
Important URLs:
BBN3 Network: http://bbn3.com
BBN3 Video: http://bbn3video.com
News Showcase: http://bbn3news.com/showcase
mailto:[email protected]://bbn3.com/http://bbn3video.com/http://bbn3news.com/showcasehttp://bbn3news.com/showcasehttp://bbn3video.com/http://bbn3.com/mailto:[email protected]