somedia corporate presentation

7/28/2019 SoMedia Corporate Presentation

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Corporate Presentation

SoMedia Networks, Inc.
http://somedia.net/http://somedia.net/


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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

[email protected]

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]

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