gradid_thesis_leslie_evans_leelo

7/29/2019 gradID_Thesis_Leslie_Evans_Leelo

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Leslie Evans

Grad IDAugust 07, 2012


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Table o Contents

Mission Statement

Trends

Description o Products and Services Oered

Industry Value Proposition

Market Analysis

Target Market

Marketing Strategy

Intellectual Property

Critical Technical Developments

Management Team

Implementation Plan

Financing

Financials

Exit Strategy and Terms

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Mission Statement/Overview

Regardless o the changes aecting the media industry in this digital age some things remainconstant: many people still really love to talk about TV (and media in general). Though the methodsare evolving as new technology adds new communication options (chat rooms, SMS and MMS,

e-mail, internet orums, social networking) there still isnt a great solution that helps viewers trulyshare experiences with their close riends.

Our mission is to enhance the value o media by linking it with social interactions. Webelieve that the TV people love becomes part o their own story. Leelo helps you keep greatTV moments and great conversations in one place.

We provide an interace that organizes and highlights media that is socially urgent (media thathas a lot o social interaction tied to it). We help you keep all the great moments that occur whilewatching and while interacting with riends in one place. In this interace you and your riends areessentially creating an intimate space surrounding each property o media you watch. Additionally,

we want to help make your experiences even more memorable by helping you tag and share youravorite moments.

We believe we can provide value to content creators through the social interactions we acilitate.

First, a recommendation rom a riend is, or many, the most inuential way to motivate someoneto start watching a new show or a movie. The Leelo app creates a timeline groups o riendsviewing habits providing them with rich inormation about what their riends are watching.

Furthermore, encouraging social interaction around media properties can increase loyalty to theseproperties and increase engagement, potentially making the user more interested in relevantadvertising.

Leelos product mission is to provide a suite o applications and web technologies that, together,allow a user to interact with their riends directly within the context o the show theyre watching.This is accomplished through the use o clipmarks and associated comments, which are sharedacross a group o riends watching a show together. Leelo is also careul to not spoil the process

o discovering a story by not showing the clipmarks and comments, even rom your riends, untilyouve reached the appropriate point in the show (particularly important or things like sportingevents).

Leelo works with the users own data, and registers interactions with their riends own data, sousers dont have to change their habits by watching television dierently. Leelo simply makes theusers television watching experience better.

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Trends

Social Media is Helping Old MediaWatching television and media has always been a social activity requently described as discussingtelevision events around the water-cooler. In recent years this watecooler has shited and

expanded on the Internet primarily in the orms o Internet orums, and social networking eedssuch as acebook and twitter. Recently big media events (the Superbowl, the Olympics, AmericanIdol or the Lost Finale) have gotten even bigger in some part due to social media. Watchers want tobe a part o a conversation and that conversation has moved online.

Internet TVs Are Entering More HomesAccording to a Nielsen report published in August o 2010, 22% o global TV viewers who currently

watch at least some o their media online plan to add an Internet connected TV, or Internettelevision box in the next year. This could bring Internet Connected TVs into 16 million householdsby the end o 2011. Fueled in some part by the disappointing 3D-TV sales manuacturers areocusing more development eorts into Smart TV which will eature Internet connectivity and an

ever increasing selection o apps in 2011.

Consumption Habits - Time ShitingTime shited TV consumption is up 14.7% rom last year, and video watched on the Internet is up

5.9%, suggesting that social media experiences that ocus on asynchronous communication willbecome increasingly important as viewers watch even more media out o sync with their socialcommunity.

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Social Mediais Helping OldMedia

Internet TVs inmore homes

Time shiting isincreasing

New opportunities or next-generation social experiences

or viewers watching out-o-syncwith live broadcasts (watchinghow they want, when they want.)


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There are three core components to the Leelo architecture

Core components 1 and 2: Phone and TV applications

The frst core component or Leelo are the smart-phone/tablet applications. These control thehand-held portion o the Leelo system. They will be distributed through all applicable app storesor mobile devices or ree. The phone applications are the main user interace or Leelo. They

control the users interactions with clipmarks, comment streams, and Leelos TV control interace.They also provide the primary interace or the users purchases rom Leelo, both in extending thestorage time o their clipmarks and comments, and adding on premium plugins or specifc shows.

The second core component or Leelo is the smartTV applications. These control the TV streamsthemselves and integrate clipmark and comment data rom the user into those streams. ThesmartTV applications also control playback or Leelos television control interace. Like the phone

applications, they will be distributed or ree through all applicable app stores.

Core component 3: Leelo.com website

The third core component or Leelo is the Leelo.com website. Initially this website will serve as amarketing tool, showing demos o what Leelo can do, directing users to the app store and highlightsome o our celebrity clipsters. In later phases a web-only version o Leelo will be made available

so that people who do all o their TV watching on their PCs can join into the Leelo community.

Description o Products and Services

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Phone and TV interacescreen shots o Leelo

Leelo.com


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Interace Paradigm

The Leelo interace is built around timelines and strips o inormation that expand and contract.

Each strip represents a level o inormation. This interace solution helps users quickly navigatebetween and through many levels o content. For example, users will have comments stored withinan episode that is part o a specifc season that is part o one show. To avoid having to burrow downthree or our levels Leelos bars and timelines let the user easily keep track o a large amount o

nested inormation.

Leelo is designed to encourage and acilitate social interaction around users avorite shows.

Timelines are used to present the majority o interace choices to our users. Because the userswill be interacting with timelines to look at their riends recent activity and choose seasons andepisodes they will be more primed to interact with the clips and comments timeline.

Additionally, in a typical comment interace, the comments are listed vertically. The user cannot getan overall view o the conversations happening around a topic. Because the clips timeline on the

Leelo interace is horizontal, users can immediately access comment threads rom any point withinthe episode.


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Choosing a show

Viewing your riends

recent activity on Leelo


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Choosing a season

Choosing an episode

Exploring the clips andcomments associated

with an episode


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Users can edit their clipmarks

and publish them to thetimeline.


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In addition to these three components, Leelo will also produce the ollowing productsPhone/SmartTV application specialty plugins

Specialty plugins are purchased and accessed through the smart phone and smartTV applications,but they are really a separate product line. These would be developed either by the Leelo team or

in conjunction with the rights owner or a show, and would target some specifc attribute o theshow beyond what a general application reasonably could. These could include things like recipeand shopping list generators or cooking shows, voting applications or reality shows, or statistics-related applications or sports.

Web components

Leelos clipmark data would primarily be available using the core Leelo system o smart phone,smart TV, and backend data, but other, non-core, components would also be able to make use othe base Leelo system. Plugins or blogging sotware like WordPress, or example, could make useo Leelos backend data in a read-only ashion. Similarly, an embeddable component could be used

to easily augment pages that reer to specifc television moments, like reviews or reerence pages.

An example Leelo plug-in on television withoutpity, a popular recap and orum site.

An example Leelo plug-in on imdb, allowingviewers to watch clips o the user-submittedquotes on each episodes page.


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User Data

Leelo will have the ability to aggregate its user data into a valuable data set or both contentcreators and advertisers. This product would take the orm o a set o data servers and a querying

website where paid subscribers could access anonymized user data Leelo has collected. The dataservers constantly receive up-to-date data rom Leelos users, and customers visit the websiteto get snapshots o the data aggregates theyd purchased. Leelo would also produce standardreports or each active show at regular intervals that could be purchased separately. These reportscould include data such as when our users actually watch the show (relative to its initial run) which

clipmarks are popular and which moments are being commented on.

How Leelo Works (Systems Map)

Leelo is installed on your smartTV and smartPhone. The system uses your wireless connectionto control your television with your phone and to send additional inormation to your phone as

necessary. Because your smartTV is connected (either physically or wirelessly) to your cable box,the internet and the media you have stored on your PC, we can skin the maximum amount omedia with our interace (and thereore enhance the maximum amount o media).


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Industry Value Proposition

Weve already talked about how viewers can beneft rom using Leelo. They can share their avoriteclips more easily with their riends, and the conversations around their shows are saved in a moresensible way. Leelo creates a space in which each group o riends can watch a show.

However, equally important is the beneft the media industry will receive rom Leelo. Leelo createsvalue in most o the industries that support users television watching habits.

First and oremost, the smartTV platorms that Leelo runs on become much more powerul. Suchplatorms rely on apps to increase their unctionality, much the way current smart phone platormsdo. Leelos clipmarking technology would make smart tv platorms even more compelling or users.

The act that many o these experiences will be provided by Leelo ree-o-charge or users makesthis additional value even greater or the platorms.

The second biggest value Leelo brings to industry goes to the content creators/distributors. Those

who own the rights to the shows that Leelo is tracking and clipmarking will see interactionswith their properties made easier and thus more requent. Buzz around a television series is

important to the rights owners, and Leelo makes that type o communication much easier orusers.

Even more compelling or content creators could be the detailed insight that clipmarks can giveto them about the value o segments o their own content. Leelos data will be able to inorm

a show producer exactly what segments o a show were most likely to be talked about, andusing some simple analyses, whether those comments are likely to be avorable or not. For livebroadcast video, particularly something like sports, Leelos clipmarks could automate the process oidentiying the highlights that ans want to see. This would have value or any set o video streams

where highlight packages are being created (sports, news, etc).

Advertisers are a third industry that will fnd value in Leelo. With more and more communicationdirectly attributable to the specifc moment in the show it relates to, advertisers will fnd a wealth

o targeting data rom Leelo. Beyond the general data, in the growing world o cross-promotionaladvertising and product placement, identiying the valuable moments in shows becomes key tomaking a successul placement. Leelo will let advertisers do that like never beore.

Finally, hardware makers (i.e. companies that make digital video recorders) will fnd value in Leelo,as it allows their streams to be used or the same type o eatureul, next-generation viewingexperience that is currently reserved or web video. Similar to the smart tv platorms, Leelos

registration technology makes their streams just as exible as an internet video, without any workon their part.

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Market Analysis

The relevant players in the social TV space can be organized into fve general categories

TV check in AppsThese apps work on your Phone or tablet and allow you to check-in to media (shows, movies,

sports). You can then share what youre watching on acebook or twitter. Oten there are rewardsor checking-in in the orm o virtual badges.

Remote AppsThese apps aim to replace your remote control by providing you with a less complicated orenhanced interace. These products require smartTVs or an additional piece o hardware thatenables the phone to talk to the cable box.

Media SotwareThese companies are trying to reinvent Windows Media Player or Apple iTunes to create a moresocial viewing experience o content you owned or have rented.

Content Streamers

These services are delivering content to viewers and also provide some social services such assharing links to episodes and clips on acebook and twitter and general orums where viewers candiscuss shows.

2nd Screen AppsThese apps work deliver supplemental relevant media and social tools based on what yourecurrently watching. This could include data and statistics on sporting events, acebook

conversations, access to threads in relevant online orums, inormation about advertisements being

shown or instant messaging windows.

**starred companies are reviewed in depth on the next pages

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and a number o network websites

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Biggest StrengthsIP (Key patents: US 2010/0318587 A1 Media Identifcation System with Fingerprint DatabaseBalanced According to Search Loads, US 7,853,438 B2: Comparison o Data Signals Using

Characteristic Electronic Thumbprints Extracted Thererom)Design (Most polished looking interace, automatic check-in delights the user)

IntoNow is a spin o company o Auditude. They has the most valuable IP proposition o the social

TV apps, having developed technology that processes current television data so that users donthave to check-in to their programs. The app recognizes what youre watching automatically (thinkShazam or TV). IntoNow claims that they have processed almost everything thats aired on TV

or the last 5 years, enabling easy check-ins to reruns as well as current TV content. They planto license this technology to other device manuacturers and app developers. They see potentialrevenues coming rom advertising opportunities (their sotware recognizes ads as well). To the besto my research they are currently unded privately, potentially by Auditude.

Market Analysis

Into_Now iPhone app screen shots the app listening to the show being watched, the app checkingthe viewer into the show, the list o shows currently being watched by viewers

Into_Now webpage showing apromotional tie-in with Jersey Shore

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Biggest StrengthsUser Base GetGlue has the largest user base o the social check-in apps with over 700,000 usersand about 10 million unique check-ins per month. In 2010 their user base grew rom 30,000 users in

January 2010 to 650,000 in January o 2011.App available on a variety o phones GetGlue is one o the only social TV companies that hasaggressively expanded across andriod and blackberry platorms.

GetGlue is a TV check-in app, but you can check in to many types o media and topics such asbooks, what youre eating or what youre discussing about. They are currently trying to expandthe selection o what types o things you can check into. It appears as though their goal is that

beore doing anything, youll check into GetGlue. I you check in to something (a show, or example)enough times you can earn stickers (actual sticky-backed stickers) that are mailed to your house.GetGlue has worked with HBO to create custom stickers or their users. Their revenue currentlymostly is generated whey users click through to afliate sites to buy books, movies or TV episodes.

Market Analysis

GetGlue iPhone app screen shots GetGlue works across almost every smartPhone and on theiPad. You can check into a show and share that inormation with your riends on acebook/twitter.

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Biggest StrengthsCross-Platorm Integration The app works across your TV and SmartPhone and Television or amore integrated experiencePublic Support rom Samsung Samsung eatured their app at CES in 2011

Numote is a cross platorm TV/phone app that is a social remote control or your TV. It monitorswhat your riends are watching and makes recommendations to on what they think youd like to

watch based on what your riends watch. The app is meant to replace your remote control andallows easy integration wtih acebook so you can post what youre watching to your riends. Theyare a very small start-up company and its unclear how many users theyve been able to secure so

ar.

Market Analysis

Numote TV app interace the interace appears to work by overlaying options over the right side oyour TV screen.

Numote Phone App showing the show suggestions made by theNumote sotware.

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Biggest StrengthsWatch Anywhere (all your digital media (owned fles) can be watched rom any internet connecteddevice thats running QVIVO)Flashy Interace (X-game designers developed the interace)Q-Store or DRM-ree Media (positioned as a potential competitor to iTunes and amazon, viewerscan buy music and movies rom the Q-Store)

QVIVO is a ree social media center application that can be downloaded to a PC, tablet or phone.Their goal is to create a well-organized library o the viewers media, and to allow that content tobe accessed anywhere through their QVIVO app. QVIVO also ties in with acebook allowing viewers

to post updates and potentially chat with riends in real-time through acebook IM. The Q-Store willalso sell DRM-ree media to viewers. Currently QVIVO appears to only be compatible with mediayou already own or can potentially rent rom the Q-Store. QVIVO is currently unded by Vida NovaVentures, an investment frm that specializes in media and technology.

Market Analysis

QVIVO Interace the social eed section to the let and the home screen or movies on the right

The Q-Store screen shotso the interace to buy music

or the TV and the iPad

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Biggest StrengthsTheyre Content Distributors Strong relationships with content creators (they were ounded bycontent creators) means they can get access to exclusive clips and contentMassive User Base Serving up hundreds o millions o videos each month, hulu has millions ousers and hopes to have 1 million paying subscribers to hulu plus by the end o 2011.

Hulu is an online video streaming service that delivers ull TV episodes, movies and clips to users.

They also have some social eatures such as discussion threads or each show, and the ability tolink to video and the ability to embed user-defned clips in social networking sites like acebook andtwitter.

Market Analysis

Hulu Discussion Interace Screen shot o the discussion tab o a hulu television show.

Hulu Sharing Interace Allows you to post an entire or defned section o a video to a variety osocial networks.

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Market Analysis

Biggest StrengthsIndustry Support (Spot441s TVplus was eatured as a best new idea in the 2011 CableLabsinnovation show case, they stress how they can add value to the entire media ecosystem rom

advertisers to content creators)

UncertaintiesNot clear how it will handle asynchronous viewing (currently publicized applications ocus onsporting events and other media that are usually watched in real time)Enhanced ads have a poor track record (or decades now developers have dreamt up ways tointegrate shopping and television in a more interactive way (buy Jennier Anistons sweater shes

wearing on Friends!!) and its never panned out.)

TVplus also uses audio recognition technology to recognize what viewers are watching and thenpopulate a second screen (most likely a table) with a collection o widgets that allow them to chat

with riends, look up details o the show on imdb, or interact with exclusive content related to themedia. The March Madness basketball tournament was one o the frst test runs o this product,

users could access statistics, talk with ellow ans and potentially make purchases online. They planto use their audio recognition to also listen to the ads the viewer is seeing in order to deliver rich

content.

TVplus Interace iPad interace showing widgets or social interactions (acebook updates) statisticsand purchases

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Market Analysis Attribute Comparison

Biggest StrengthsClip sharing across all media (Leelo is the only product that allows users to share clips across allthe media they have the rights to watch. Leelo is also the only product that allows users to startconversations around specifc clips theyve created.)

compatible contentfa

cebo

ok/twitt

er

messa

gebo

ard

clip

sha

ring

all

last fve years

fles you own

all

all

programs they

specifcally design ortablet (second device)

PC, tablet, phone

all

phone

phone/tablet

phone+TV

phone+TV

hulu content

social sharing allowedbetween viewers

platorm

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Target Market

Our primary target users are20-35 year oldsthey own both a smart phone and a smart TVthey have strong virtual social networks (meaning they use acebook and or twitter tocommunicate with riends and oten have virtual conversations through e-mail, instantmessage or text messaging)they talk about the TV that they watch

Ater launch, we hope to capture a small raction (around 1%) o this market. This company can beproftable with a small number o dedicated users.

Current Market Size

As an example, lets examine the applicable target market or this product by looking at AmericanIdol viewers.

Each season about 25 million Americans watch American Idol

o these viewers, 84% say they talk about the show with their riends

So ar thats 21 million Americans.

To use Leelo, they have to have the right technology, meaning a smartTV. By the end o 2011, itspredicted that 13.8% o all households will have at least one internet TV.

13.8% x 21 million viewers = 2.9 million eligible viewers

I Leelo wants to have about 50,000 users by the end o 2011, ONLY looking at American Idolollowers, we need to capture 1.7% o the eligible audience (.2% o the total American Idol

audience)

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Marketing Strategy

Preliminary Ideas or Marketing Leelo to Viewers

Getting Friends-o-Friends through acebook

Leelo will oer the opportunity or riends to post what they are watching and that they are usingLeelo to acebook. This is a eature thats integral to most TV check-in apps currently on the market.However, Leelo can use the acebook integration in a way to make it more appealing or riends

to invite riends to Leelo. I Kate is watching Top Che on Leelo, Leelo can look at Kates acebookriends to see i she has other riends who also have Top Che listed in the TV show section othe ino section o acebook. Leelo can suggest that Kate ask those specifc riends to join the

service so that they can talk together about the show and start sharing clips.

Publicity on blogs/websites

We plan to issues a press release to the ollowing blog/websites at the launch o Leelo. Becausewe understand that theses sites want exclusive news, weve chosen our top three sites to

approach frst with the news o our release.

Wave A:Mashable, TechCrunch, Fast Company

Wave B:Wired, MediaPost, Inc., Gizmodo, MediaWeek, CNET

Increased Awareness through plug-ins on third party websites

In the early phases o Leelo, wed like to oer some o our webplugin in services or ree, inexchange or the publicity well receive. For example, televisionwithoutpity.com (run by BravoTV) has millions o devoted ollowers who read their recaps and post in their orums. By making

the clipmark technology available to their reviewers all their readers who ollow either realitycompetitions or cult comedies would be exposed to the power o Leelo.

Celebrity Clipsters

We hope to fnd a series o celebrities whom we can hire to be celebrity clipsters. A celebrityclipster would be given their own special Leelo timeline where they can clip their avorite moments

and make comments (think o it as an enhanced twitter eed or actors). In the frst phase o Leelo,when we are targeting reality competitions and cult comedies here are some examples o peoplewed like to approach:

Rainn Wilson (actor rom The Ofce)MJ rom MJs Big Blog (the most widely read American Idol blog)Claire Zulkey and Scott Tobias (reviewers rom The Onions AV club website)

Taylor Hicks (ex-American Idol contestant)

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Marketing Strategy

Hulu Advertising

Hulu would be a good place or us to advertise our app because wed be reaching the kinds o

people who are watching media in new ways. Hulu also gives its advertisers a lot o exibilityin their pricing plans, we have fne-grained control over out targeting, and can easily test outadvertising during some dierent types o shows. Our ad on hulu would contain an inormativevideo/demo on what Leelo does and then a link or 3-D barcode that the user can snap a picture o

to take them to the app store. Hulu might be one o our strongest advertising candidates becausetheres a strong match between why someone went to hulu (to watch and enjoy a show) and whatLeelo provides (an enhanced viewing experience)

AdWords campaign

For shows like American Idol, and or cult comedies, our target viewer is probably conducting anumber o repeated searches or easily identifed key words. We can bid on certain key words and

have a Leelo ad show up during that search. This could be very powerul advertising method orusers who are searching or inormation or even youTube videos o moments rom these shows. At

that moment they would probably be very receptive to a product build around the idea o sharingclips.

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PatentLeelos Clipmark Sotware

Description o the Clipmark Solution

My solution allows users to designate starting and ending points on a larger piece o media todefne a subset o that media: a clip. These clipmarks can then be sent to their riends, posted on ablog etc.

LieSpan o ProductThis patent will be o very high value or the next 3 to 5 years. This patent will be valuable until (ithis ever happens) viewers o media can subscribe to a service that provides them with streamingversions o EVERYTHING they want to watch. The key is that all the riends also have to have theexact same service to make this patent truly obsolete. In this case, there would be no need to

calculate the osets o dierent tags because the data streams would actually be identical or eachpiece o media.

Problem DefnitionViewers have a desire to share moments o media with their riends and to re-watch or reerencethese moments. (See IMDB quote pages and user research or validation). This is complicated todo without massive rights inringement because each riend in the group might have legal access

to these pieces o media in dierent orms (riend A has season 2 o parks and recreation on DVR,riend B is watching on Netix, riend C owns the DVDs, riend D is watching on huluPlus). How canthese riends easily share a moment with each other?

Solutions Used to Solve this Problem in the PastThe imdb quote page is a maniestation o this need. Users input quotations (text only) that viewerscan search through and read and then send to a riend through a link. Hulu has a eature where you

can create a short clip o a show and embed the link on acebook or a blog or riends to watch.People also send around illegal videos.

Limitations o these SolutionsImdbs page has no rich content, its text only. Hulu has a limited amount o content available ora limited amount o time, viewers who havent subscribed to huluPlus have even less content.Though its not currently illegal to watch videos that have been uploaded illegally, its still a verynon-ideal solution. Additionally, some o those clips get taken down or blocked. Oten links to these

moments (on YouTube) dont work ater a ew months because they have been removed.

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Novel CharacteristicsThis solution is novel because it recognizes that the absolute time value o these clipmarks (ex.5:54-6:17) maybe not be consistent across media streams. My solution will involve a scanning and

synching algorithm that fnds the appropriate oset or each o these clipmarks.

in the above example three riends are watching the same the same 30 minute show, but usingthree dierent methods to watch. I user a wants to share what happened rom 5:54-6:17 with theirriends we need to be able to identiy the osets or each o these dierent streams so Leelo canset the appropriate start and end points o the clip or each viewer.

Non-Obvious Characteristics

To come up with this invention, an inventor would have to have my unique point o view on howviewers want to share their experiences in media. Though socialTV is a hot subject right now,my proposed solution, which this invention is a part o, takes a unique view o human interactionsurrounding TV, choosing to ocus on asynchronous sharing rather than real-time chatting.

Results Achieved by this Solution.My solution allows users to share media clips in an easy and completely legal way. It might alsostore in a database certain osets across media platorms or specifc properties. For example,

storing the act that House season 5 episode 6 on DVD has a 1.54 second oset rom that sameepisode on Hulu.

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Description o UtilityThis solution is useul because it allows viewers to share clips o media they both have the right towatch even i that media is not coming rom the same stream. Take American Idol or an example.

There is no legal way to watch this show except rom its original broadcast stream which can thenbe recorded onto a DVR. When groups o riends watch this show, it is requently accompaniedby discussion and critique. Though all riends in this group have a recording o the show that theyare ree to watch and rewatch, there is no way to reerence specifc parts o that recording other

than telling your riend, ast orward to 73 minutes in, that perormance was amazing. Most peoplewill not take the time to do that. However, i you can send a clipmark to that riend, they canimmediately watch the moment in discussion.

DIsclosure o this Invention to DateMembers o my thesis class at Art Center know about this invention, that number will grow duringgraduation as more o my classmates and more proessionals look at this project during interviews.

TrademarkThe name Leelo

Trademarks or Leelo are available in all relevant categories (009, 035, 038, 041, and 042)

www.Leelo.com also appears to be available or purchase.

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Stream Registration Using signals rom video streams to identiy how they match up to oneanother.

Why is it ImportantThe dierent data streams that represent tv shows need to be registered to one another so thatwhen a user defnes a clip rom 10:45 to 10:49 in a show, it doesnt end up being 10:47 to 10:51.This is especially critical or short clips, improper osets could actually link to the wrong moment.With a longer clip, event, the cutting o o a punchline could lead to an extremely diminished

eect. Because DVR recordings will vary with each other and online streams this eature is critical.

How Can it Be DoneThere are many ways o registering streams o data, and these are extremely rich and varying dataseries (its very easy to tell one part o the video rom another). The challenge will be perormance.Leelo sotware engineers will have to fnd a set o signals that are quick to calculate and areaccurate enough to give a good video registration signal.

How Much Work is itOne man-month (50 hours x 4 weeks at $30/hr. = $6,000)

Television to Phone Communication Inrastructure Developing a way or the television andphone/tablet to react to one another.

Why is it ImportantMany parts o this project depend on the television and phone/tablet being in sync. A commandgiven on the phone triggers interace events on the television screen. Additionally, content rom

the screen needs to dynamically load onto the phone.

How Can it Be DoneAn in-home network would be the easiest way o handling this. The phone application can run a

server that accepts incoming connections, and the televisions app can also run a server acceptingincoming connections. The next step is registering these to one another. We could establish thisrelationship using the cameras phone. The phone can read a barcode with server inormation o

the TV screen, then send its own communication ino to the TV device over that server.

How Much Work is itSubstantial. Networking phones together is relatively new, though we are starting to see a

trickle o apps that all talk to a single TV set. Leelo will need to do some experimentation with thebest way to connect these two devices. The eort or the TV app will also be signifcant, mostly

because the application ramework is brand new and there will defnitely be bugs.

Since this is the core way to interact with the product it needs to be bulletproo and testedthoroughly on a range o supported devices. 3 man-months to get a minimum acceptable version,i you really want to push, but it may take more time, as the responsiveness o this interace will

play heavily into how people react to the product.

3 to 4.5 man-months (50 hours x 12-18 weeks at $30/hr. = $18,000-$27,000)

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Implementing the Social Network Working out interaces and back-end storage to representwhich users are connected to which others in which contexts.

Why is it ImportantLeelo is about more than just saving a clip and later coming back to it. The users need to beconnected to other users so they can share those moments. So really we need a (riend, show)matrix social network.

How Can it Be DoneThe basics o the user registration and (riend, show) matrix network creation are understood, and

requires mostly man-hours to create the database. The initial user base (less than 1 million users)is unlikely to pose challenges. O the shel database components will likely be fne. The userinterace or defning riends will be more complex, and will require solid integration with the UXteam.

How Much Work is it

The implementation is not that much work, but the design should be careully considered. Baddecisions made at this level can be very hard to deal with in the uture as more and more data

gets populated into a bad data structure. An exhaustive study o potential use cases needs to beconsidered and laid against potential data designs to fnd one that wont be a road-block to uturedevelopment.

3 man-months (50 hours x 12 weeks at $30/hr. = $18,000)

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Management Team

Leslie Evans Founder/CEO/UX LeadWith a diverse educational background (engineering, business, and design degrees) and workexperience in the engineering and design world, Leslie is uniquely positioned to lead a company

that requires technical profciency, strategic business partnerships and revelatory design.

Her key responsibility is to execute the companys vision, to get quality products developed on-time, and work to secure the fnancial stability o the company. Secondary responsibilities will be

creating the interace/interaction design o the phase one version o the Leelo app and leadinginteraction and experience design development throughout subsequent phases.

Leelo is also searching to fll two key position on our core management team

TBD Director o New Media Business DevelopmentLeelo is looking or an executive level proessional whos passionate about communicating the

value o technological advances to content providers, advertisers and distributors. Were lookingor someone whos media-obsessed during their personal time and has at least a decade o work

experience in the digital/new media industry. He or she should have a deep understanding o themarketing/sales implications o digital media, app development, and online video and be passionate

about fnding new ways to let content creators and distributors tell their stories.

Were looking or someone who can think creatively about new business models and revenue

streams and also leverage their history o working with media providers and advertisers inunderstanding real-world limitations and concerns. We need someone who will secure new clientsor Leelo, listen to their requirements, and help Leelo develop solutions that meed their needs.Ultimately this person will help us team with the media partners and work to push the limits o the

social TV space.

TBD Lead Sotware EngineerThe LSEs technical skills should include a range o programming languages: at least some

amiliarity with Java, C/C++/C#, some type o assembler/low-level programming, and a avor odatabases. Also should have working knowledge o Java because Android uses it, C# or iphone, C/C++ or other phones, and databases or dealing with user data. Experience with C/assembler or

dealing with the embedded devices (such as cable boxes) is a necessity. Equally important is thewillingness and ability to pick up whatever new skills become necessary as our company expands.

Experience running large-scale projects is a required. Leelo requires that multiple independent

components developed on their own timelines communicating together to orm one coherentsystem. We want someone whos comortable working across dierent projects at the same time.

Leelos looking or someone with a hacker-type personality. The requirements and even the deviceswere working with are likely to change, and many o these devices, particularly the phones andtablets, are going to change while were in the middle o working on them. Their documentation isgoing to be non-existent and/or misleading or outright wrong. We need someone who fnds joy in

sitting there and sending 300 dierent permutations o possible parameter orderings until they fndthe right one or that device.

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Implementation Plan

Our Implementation Plan has three major phases, lasting three years.

Phase 1 Development (0-6 months)Key ActivitiesDevelopment o the phone/TV app interace and inrastructure

Testing o beta version o appDevelop clipmark technology or IPFile provisional or IP as soon as possible

Business Development work, creating relationships with content creators

Develop web plug-in sotware, prep this or licensing and or marketing planDevelop Leelo.com (marketing version)Begin to approach angel investors or frst round unding

Product Oeringsphone/TV app launches at end o month 6

User Base Size500 beta testers

Targeted Media Genres

Reality CompetitionsCult Comedies

Capital Required$90,000

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months 0-6

Leelos basic app launches Leelo has proven value

development

launch

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Implementation Plan


Phase 2 Launch (7-18 months)Key ActivitiesContinued development o the phone/TV app interace and inrastructure

Sales eort to license clipmark technology and sell licenses to web plug-insFile patents or clipmarksMarketing eorts

Continue business development work, creating relationships with content creators

Start exploring the user data Leelo is acquiring, investigate its value to the industryDevelop Leelo.com (web version o Leelo apps)

Product Oeringsphone/TV applaunch frst specialty apps (antasy sports, ticker tape app, laugh track app)launch web plug-ins

User Base Size150,000 users

Targeted Media GenresReality CompetitionsCult Comedies+Sports

Capital Required$375,000 (angel)

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launch

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Implementation Plan


Phase 3 Expand (19-36 months)Key ActivitiesMarketing eorts, key is securing as many devoted users as possible

Continued development o the phone/TV app interace and inrastructureSales eort to license clipmark technology and sell licenses to web plug-insContinue business development work, start creating apps or specifc show properties

Start selling data to the media industry

Start serving ads on Leelo.com

Product Oeringsphone/TV appweb plug-insLeelo.com web versionlaunch more specialty apps (show specifc apps, ex. x-actor/American Idol add-ons)

User Base Size1.2 million users

Targeted Media GenresReality CompetitionsCult Comedies

Sports+Movies+Web Videos

Capital Required$2.1 million (angel)

At the end o these 36 months Leelo has created value throughLoyal user base

Expertise in cross-platorm interacesRich viewer dataMedia partnershipsClipmarker IP

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Financing

Leelo will require three phases o fnancing to reach our goals at the end o year three.

Phase 1 - $90,000 - Personally Funded

I will personally und the $90,000 required to get Leelo through the frst six months and into beta

testing. This is an idea that needs to be acted on now. Once we complete the core Leelo team, wecan start work tomorrow.

Phase 2 - $375,000 - Angel Investment

Starting in Phase 1, once we have enough o a working prototype we will start looking or angelinvestment capital. I possible, we are going to look or three angel investors to each invest

$125,000. At the end o three years, at the sale o Leelo, we estimate that we can repay ourinvestors with a 3x return.

Phase 3 - $2.1 million - Angel Investment (round 2)

At the end o phase 2 we will seek another round o angle investment to raise 2.1 million to carryus through the next 18 months. Again, ideally we are going to look or three investors to invest

700,000 each into Leelo. The same repayment terms will apply, at the sale o Leelo, investors willearn a 3x return.

sel unded angel investments

angel investments

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$90,000

$375,000

$2.1 million

months 7-18

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Financials

Overview o Revenue Streams

Sales o user data

One o the interesting by-products o clipmarking is aggregate inormation about what momentsin shows people fnd worth re-watching. We believe that this inormation, properly anonymized toprotect the users privacy, has value to both content creators and advertisers. By understanding

what moments in their shows spur the audience to send clips to their riends, they can betterunderstand at a fne-grained level what is successul in their shows, and what clips they can use topromote the shows more eectively.

For advertisers, particularly those involved in cross-promotion and product placement,understanding the value o particular moments in a show is key, and clipmark data can help withthat. In addition, should a placement be made in a segment that becomes clipmarked by a number

o people, that advertisement gets lots o ree repetition.

Licensing o Clipmark Intellectual Property

Leelos intellectual property could fnd use in other applications, where we could license thetechnology or an appropriate ee. The crowd-sourcing o highlight annotations could fnd use

outside the direct Leelo system or things like identiying sports highlights, important parts ospeeches and news conerences, or key points in classroom lectures. The video stream registrationconcepts could be used to bring all kinds o exible, interactive behaviors currently only availableusing hosted internet video to video streams recorded at home on digital video recorders.

Web Plugins

There are a number o web platorms that support plug-in architectures where we believe Leelosclipmark technology could be successully integrated. Wordpress plugins are a great exampleo this kind o thing. A clipmark-based Wordpress plugin would allow television bloggers to post

clipmark-based clips to their reviews, without having to worry about hosting clips or third partyvideo platorms. This could be particularly valuable to bloggers who are analyzing with a little moredepth, who need clips longer than the standard editorial length.

Ad revenue rom Leelo.com

The Leelo.com website itsel would be a central repository or people to manage their clips and,more importantly, their relationships with riends. It is also a place to continue discussions startedaround a clipmark on a larger screen. With regular visitors, and a discussions going on, Leelo.comcan be directly monetized or targeted advertising revenue, at frst with display ad networks like

Google or Yahoo, and eventually with direct ad sales.

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Financials

Overview o Revenue Streams

Freemium model data storage

The Clipmarks a user stores or a show have their highest value shortly ater the user watches theshow. They continue to have signifcant value over time though. By introducing an expiration dateto the Clipmarks stored or a show that can be extended indefnitely by a small purchase price per

show (on the order o $0.99), Leelo can generate an amount o revenue proportional to its userbase without severely curtailing the unctionality users get to access up ront.

Sales o specialty apps

Similar to the reemium model, special apps, developed on a show-by-show basis, are another way

to raise revenue while still giving the user a compelling experience in the base product. Specialapps could either be developed by Leelo directly, licensing the name and iconography o a show, or

they could be developed in conjunction with the content creator, with the content creator getting aper-purchase percentage o the revenue.

How Leelos revenue shits rom the second to the third phase:

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Exit Strategy

The most successul exit scenario rom the business plan outlined here or Leelo is to be acquiredby a major media/technology company. The most likely candidates would be Internet technologygiants like Google, Microsot, or Facebook. Some other candidates would be media-related

hardware companies like Sony or Nokia. Here are some acquisitions by these companies that wethink are in a similar space and size as Leelo will be during the execution o this business plan:

Google - 2010-12-03 - WideVine Technologies - Online video rights management - rumored > $50M

Facebook - 2010-10-20 - Hot Potato - Status updates - $10MGoogle - 2008-04-02 - Omnisio - Online video editing and annotation - $15MYahoo - 2008-02-12 - Maven Networks - Online video platorm - $160M

Note that some o these companies were acquired very early on in their history. Omnisio, orexample, was acquired less than 6 months ater their frst public launch.

The acquisition value o Leelo would include the technology weve developed to that point(application code, server code, databases, etc), the intellectual property rights weve secured

through patents, the value o the user and show-based data weve collected so ar, and thegenerated expertise o the people weve put together to work on the problem.

While the most successul exit strategy is an acquisition, this business plan is designed to makeLeelo proftable. I Leelo has grown into a proftable business at the end o three years and no

acquisition is possible, we are prepared to continue the company as a standalone business. Aslong as we can maintain our users, time will only increase the value o things like minable user dataand our developed technology.

At that point, we would obviously construct a new business plan to carry through to a dierenttarget, either long-term proftability or a uture sale.

Finally, should the acquisition value o Leelo be low (or non-existant) and the company not become

proftable, we should still be able to sell the intellectual property rights weve secured, and possiblyanonymized user-based and show-based data.

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