BUSINESS PLAN
Transcription
BUSINESS PLAN
BUSINESS PLAN ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL V1 BANG | BUSINESS PLAN – DISCLAIMER BUSINESS PLAN DISCLAIMER AND UNDERSTANDING This Business Plan [the “Plan”] has been prepared solely for informational purposes and is being furnished solely for use by prospective parties in considering a financing transaction with its BANG, LLC [The “Company”]. The information contained herein has been prepared to assist interested parties in making their evaluation of the Company and does not purport to contain all of the information that a party may desire. In all cases, interested parties should conduct and rely on their own investigation and analysis of the Company. The Company does not make any representation or warranty, express or implied, as to the accuracy or completeness of this Plan and shall have no liability for any representations, express or implied, contained in, or omissions from, this Plan or any other written or oral communications transmitted to the recipient in the course of the recipient’s evaluation of the Company. The Plan includes certain statements, estimates and projections with respect to the anticipated future performance of the Company. Such statements, estimates and projections reflect various assumptions, which assumptions may or may not prove to be correct. No representations are made as to the accuracy of such statements, estimates or projections. The Company does not have any obligation to provide additional information or to update any of the information set forth in this Plan. By accepting this Plan, the recipient acknowledges and agrees that all of the information contained herein is confidential. Without limiting the generality of the foregoing: [1] the recipient will not reproduce or use this Plan other than for the purpose of financing BANG, in whole or in part; and [2] if the recipient does not wish to pursue this matter, it will return this Plan to the Company as soon as practicable, together with any other material relating to the Company which the recipient has received from the Company. The Company reserves the right to negotiate with one or more prospective parties at any time and to enter into agreements with such parties without prior notice to the recipient or other prospective parties. The Company reserves the right to terminate, at any time, any further participation of itself or any party in the investigation and consideration process of any party. The Plan may not be reproduced or distributed without the written authorization of the Company, and is to be returned upon request. This Plan does not constitute an offer to sell or a solicitation of any offer to buy any securities of the Company. The use of any images in this Business Plan is not an endorsement of BANG by any of the artists featured in those images. page 2 PROPRIETARY & CONFIDENTIAL ©2016 its BANG, LLC BANG | BUSINESS PLAN TABLE OF CONTENTS ONE EXECUTIVE SUMMARY................................................................................ 4 TWO MUSIC COMMERCE ................................................................................. 15 THREE THE MARKETPLACE ................................................................................. 22 FOUR BANG MARKETING & SALES STRATEGY .................................................... 30 FIVE BANG ARTIST RELATIONS......................................................................... 39 SIX BANG MERCHANDISING .......................................................................... 42 SEVEN BANGTV.................................................................................................... 49 EIGHT BANGNET ................................................................................................. 68 NINE BANGMOB ............................................................................................... 84 TEN BANG MARKETING/COMMERCE/CRM TECHNOLOGY 2.0 ...................... 90 ELEVEN FINANCIALS .............................................................................................. 93 TWELVE MANAGEMENT ...................................................................................... 100 THIRTEEN APPENDIX ............................................................................................... 115 BANG Artist Relations: Letters of Interest ....................................... 116 BANG Licensed Music Merchandising: Companies .......................... 125 Home Shopping Channels .............................................................. 127 Music Television Channel: MTV ...................................................... 130 U.S. Cable, DBS, Telco Systems ...................................................... 131 ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL page 3 BANG | BUSINESS PLAN ONE EXECUTIVE SUMMARY Slash, Bang, Boom page 4 PROPRIETARY & CONFIDENTIAL ©2016 its BANG, LLC BANG | BUSINESS PLAN - EXECUTIVE SUMMARY WHERE PASSION & LIFESTYLE MEET, it’s BANG The world’s first one-stop music lifestyle & commerce connection – an unprecedented global gateway and clearinghouse for all things music, becoming the singular voice and commerce intersection/destination of music fans everywhere – delivered by a convergent 24/7/365 network of BANG Television, BANG Social Media, BANG Internet, and BANG Mobile. OVERVIEW Of all the aspects of personal lifestyle, none surpasses the power of popular music as the means by which people define their persona—their memories, their social connections, their sense of fashion and style, their source of entertainment, their refuge and how they choose to devote much of their leisure time. Music fans everywhere [250 million in the US alone] continually seek ways to express and enjoy their love of popular music; from recorded material to concerts, artist-branded merchandise, fan clubs, Internet sites, TV and radio programming, music-based films and more. THE TOTAL MUSIC LIFESTYLE & COMMERCE EXPERIENCE Now, for the first time music fans can have all they’re looking for in one place, an unprecedented entertainment/home-shopping commerce platform that will ignite the passions of music fans, lovers, fanatics, musicians and culture hounds, bringing them closer to the music artists and lifestyle they admire… • Music Artists Licensed Merchandise + • Personalized Brand Extension Lines • Music Fan Social Media/Collaborative Networks • Music Downloads, Box CD/DVD sets, Ringtones • Music Artist Tour Schedules • Music Concierges and Travel Service • Music Memorabilia Auctions • Music Books, Education, • Instruments and Sheet Music • Music Films/TV • Music Electronic Games • Music Concert Ticket Packages • Music RSS News/Gossip Feeds • Music Charity Causes…and more BANG will bring about a “fan” lifestyle connection never seen or felt before to eventually include adding Film + TV + Sport commerce to the overall value proposition. ©2016 its BANG, LLC COMPANY PROFILE its BANG, LLC 410 Lancaster Avenue, Suite 15 Haverford, PA 19041 610-658-1996 its BANG, LLC is a Pennsylvania Limited Liability Company Category: Music Commerce “Celebrity Lifestyle” Shopping Network [TV/Internet/Mobile/Social Media] Launch: 2017 Raise: $30M URL: www.itsbang.com Sizzle Reel: itsbang.com Contact: JOSHUA SIMONS [email protected] 240.626.0033 BILL KOSOVITCH [email protected] 914.610.5588 PROPRIETARY & CONFIDENTIAL page 5 BANG | BUSINESS PLAN – EXECUTIVE SUMMARY CONVERGENT MEDIA NETWORK FOR 24/7/365 ACCESS BANG’s confluence of unprecedented marketing forces delivered over an advanced merged channel platform offers a new approach to home shopping through BANGTV’s “artist-branded ‘pod’ programming.” BANG’s lower-cost pre-recorded programming stratagem is a new approach to direct marketing that meshes continuous retail activity with entertainment content for a “dialed in” music-driven audience that is passionately reaching for its stars. BANG is delivered via an integrated, multi-platform media network and revolutionary social media component – creating enormous reach and influence over groups crossing nearly all age segments, both genders, multiple ethnicities and a wide range of income categories…available on-demand, every minute of the day, as they wish: Enhancing the experience, BANG will feature all original programming, fusing entertainment content – artist interviews, background stories, anecdotes and performance footage to parallel today’s e-commerce offerings – all dedicated to focus on a single group or artist or music genre - repurposed as required to create new segments revolving around a central theme or personality. High-energy Marketing Support A resourceful, multi-platform marketing pro-gram [“If the music fits, wear It”], will prompt consumers to learn, discover and interact with BANG. The marketing effort will fuse traditional techniques and new media/viral tools – search, social media, affiliate network marketing, CRM-driven email, advertising, promotions, events and public relations – driving awareness, trial and loyalty, and reinforcing the Brand’s sense of character and energy. •BANGTV – The lead creative voice of BANG, delivering exclusive BANG programming and commerce sales carried on the top MSO’s across multiple markets-augmented by red-button interactive technology and collateralized across all BANG delivery channels. •BANGNET – For BANG social media •BANGMOB – Commerce experience on a dedicated BANG App for 3G/4G smartphones. •BANGFAN – Websites worldwide under the BANG UNIQUE CONSIGNMENT MODEL FOR umbrella, creating a vast, virally-expanding network MAXIMUM PROFITABILITY/MINIMAL RISK and presentation upgrade Goods and services sold through BANG will be seALL GENRES/ALL ORIGINAL PROGRAM- cured and satisfied though the merchandisers’ own warehouses and fulfillment operations, with virtually MING no purchase commitments required of BANG. No Fulfilling its mission as a total music lifestyle destiinventory means lower costs. nation, BANG programming and commerce will cut across five [5] lead music genres: • Pop · Rock · R&B/Urban · Country · EDM page 6 PROPRIETARY & CONFIDENTIAL ©2016 its BANG, LLC BANG | BUSINESS PLAN- EXECUTIVE SUMMARY A PROPOSITION SERVING EVERYONE BANG will benefit everyone involved in the world of popular music, impacting, if not totally shifting, the paradigm of music + lifestyle commerce: • Music Fans: BANG serves fans that cannot find or access the “must have” music lifestyle items they want. For many the live concert hall may be sold out or the concert venue may be too far away or economically prohibitive to attend the show. • Music Merchandisers: BANG supports music merchandisers to expand and extend their entire retail reach by creating the first user-friendly TV/Online/ Tablet/Mobile experience that gives music fans what they want when they want it by creating an original, truly dynamic, one-to-one celebrity commerce selling environment, operative 24/7/365. • Music Artists: BANG provides new outlets beyond the concert tour venue for offering all types of commerce access that builds the artists brand value and expands the fan base – all generating new music revenue and access well beyond the traditional concert hall and the standalone music artist Internet site. • Record Labels: BANG elevates their value as “core brands” while accessing and enhancing fan [customer] relationships more today than ever before especially now where there exist little to any brick and mortar retail outlets. The CD + DVD have almost disappeared. The iTunes Store and others are very one-dimensional at best. • Music Industry: Record Labels, Agents, Talent Managers, Publishers, Associations, and the 30+ recognized Licensed Music Merchandisers have strongly voiced their support and are encouraging ©2016 its BANG, LLC BANG to launch its celebrity commerce gateway and clearinghouse now. • Lowers Costs Of Entry Thanks To Established Music Category BANG has lower costs of entry. The keys here are: [a] many artists have established their retail brands, [b] artists and their merchandising partners already have made product line development investments, [c] artists have established a retail mass market proof of concept, and [d] artist brands have available merchandise in volumes that BANG can sell without requiring a fully loaded warehouse and fulfillment costs. • Established Brands Offer Merchandise & Warehousing BANG is aggregating a market with established brands and brand personalities, developed lines of goods, existing merchandise volume, the availability of an existing warehouse and fulfillment infrastructure and most importantly, a wildly passionate and fanatic consumer base. • Intelligent, Merged-Channel, Integrated Business Model BANG’s platform optimizes the connectivity, consumer intelligence, and operational efficiencies of an advanced merged-channel retail network. BANG’s structural DNA begins with the latest methodologies, technologies and applications. BANG does not have to over-come, integrate or retrofit legacy technology environments. Merged-Channel – An organizational retail structure that integrates the brand and product experience for consumers across television, online and mobile channels with a centralized IT system that aggregates the movement of information across these channels – where customer information, customer purchase history, inventory availability, pricing, and metadata is managed in one place to create a superbly, productive CRM model. A merged-channel retail operation provides two critical capabilities: 1] externally, it provides consumers with a consistent brand/product experience and, 2] internally, it provides the company a single customer information view for optimal CRM. PROPRIETARY & CONFIDENTIAL page 7 BANG | BUSINESS PLAN – EXECUTIVE SUMMARY “In 2015, globally, for the first time, more than 92% of record companies’ Revenues came from digital channels. Fans can acquire tracks and albums In ways inconceivable a few years ago—from download stores, streaming sites, Free-to-user sites, bundled with their broadband or a mobile phone handset.” IFPI Digital Report BANG DELIVERS ACCESS TO MUSIC HOME SHOPPING IS AN OPTIMAL STARS AND ARTIST-BRANDED PRODUCTS INTERNET & TELEVISION REVENUE MODEL With BANG, music artists now have a vehicle to promote and mass market their licensed product lines and exclusive lifestyle merchandise via artist-focused original television programming that is also a perfect vehicle for general artist self promotion. PROXIMITY TO MUSIC ARTISTS LIFESTYLE, APPAREL, AND ICONIC GEAR Music fans, of all ages and demographic groups, have demonstrated that they have the disposable income to express their “fanatic” music brand allegiance. They are loyal, passionate, and demanding. BANG will afford them greater proximity to their favorite music artists and access to their lifestyles, their apparel, their gear, their music, their videos, their DVDs and the iconic merchandise that identifies them. Home shopping revenue continues to accelerate year after year [QVC USA: $9.2B in 2015; HSN USA: $3.0B in 2015] with the majority of commerce coming directly through telecasts [55% of total revenue via phone] and sales from web operations as a part of the total sales growing daily [45% of total revenue via Internet]. CONCERT TICKET PRICES & CONCERT MERCHANDISE SALES CONTINUE TO RISE The concert industry continues to command higher ticket prices [$125.00 average] for top tier artists. In CY2015, more music artists toured arena, stadium and small concert venues over the course of the year than ever before. CY2016 continues to demonstrate increased ticket demand and concert attendance with more superstar artists out on the road before the summer shed tours. The demand for concert merchandise continues to improve as well, per head sale continuing to increase. And that demand is growing outside the concert hall…. page 8 PROPRIETARY & CONFIDENTIAL ©2016 its BANG, LLC BANG | BUSINESS PLAN – EXECUTIVE SUMMARY Rock legends U2 and Bruce Springsteen, CY2014 and CY2015, generated an average of $55.00 per-head in concert merchandise sales; Country Music and now Pop Star Taylor Swift [$65.50] per head, while lesser known acts like acts Locksley generating an average of $8.00 per-head in merchandise sales alone. Concert-generated licensed merchandise sales exceeded $4.2B in CY2015 [up +27% over CY2014] coupled with retail/online generated licensed merchandise at $2.1B [up +7% over CY2014]. This does not account for boot-legged sales that continue to erode profits which licensed merchandisers estimate at over $1B average on an annual basis. In CY2015, concert merchandise continues to see increased sales movement that now includes offering new product categories [belt buckles, cowboy hats, pendants, cartoon books and more…] that were not commonly offered in a live venue setting. ARTIST-BRANDED PRODUCTS ARE HOT WITH BRICK & MORTAR RETAILERS The number of hip-hop, rock and pop music stars now creating custom branded labels is growing and improving overall licensed merchandising sales for traditional retail merchandisers. Artists with clothing, jewelry and cosmetic lines include LL Cool J, J Lo, Rihanna, Gwen Stefani, Justin Timberlake and Nickelback to name just a few. By example, J Lo’s clothing brand which launched in 2001 has seen revenue skyrocket, from $130M in CY2002 to over $460M in CY2015. [Source: Pollstar] ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL page 9 BANG | BUSINESS PLAN BANG: NOTHING LIKE THIS EXISTS TODAY The majority of music fans buy artist licensed merchandise at concert halls when their favorite artists are on tour. The other sources for music merchandise are online [65+ sites] and select mass-market retailers [9,200 store fronts] with limited product offerings. Yet a full Internet search of popular music artist merchandise [Pop/Rock/Country/Urban/Dance] reveals that while there is a smattering of music artist merchandise being sold online and in retail stores, it is a challenge to find what fans are looking for. When fans do find the right licensed merchandise it is often showcased in website environments that are not user-friendly and, in many instances, the merchandise is either out of date or out of touch with what fans really want. For the first time, music fans will have complete, user-friendly access to the artist-branded merchandise they crave 24/7/365. BANG is the solution music fans will welcome with enthusiasm and loyalty. THOUSANDS OF ARTISTS & BAND BRANDS LOOKING TO BREAKTHROUGH When it comes to independent labels versus popular “big name” music artists, the online universe becomes even more difficult to navigate, with 50,000+ independent bands at garageband.com alone, and thousands more found at mp3.com, Vitaminic and dMusic page 10 page 12 PROPRIETARY & CONFIDENTIAL PROPRIETARY & CONFIDENTIAL [which continues to add new servers because their artist base is growing so fast]. MUSIC FANS LOOKING FOR EASY ACCESS TO MERCHANDISE VAULT There are millions of music fans eager to find and purchase lifestyle merchandise and other music-related products [i.e. music travel packages, special section ticket packages, and fan club memberships, etc.] for big name and “indie” bands and, in most cases, the fans’ needs are underserved. Music fans want easy access to a complete music merchandising vault – a gateway and clearinghouse that showcases a spectrum of music artist merchandise at attractive prices that are deliver-able on a timely basis. With BANG, fans no longer have to wait for their favorite artists or bands to go on tour or for artist-branded lines to arrive at the local mall to get the latest merchandise. BANG: UNIQUE SELLING PROPOSITIONS BANG provides empowering and practical connective links between music fans and the music industry. BANG is a hybrid – a cross between home shopping and music television programming – that delivers completely new retail possibilities through an intricately woven entertainment- based merchandising landscape. ©2016 its BANG, LLC BANG | BUSINESS PLAN BANG’s unique selling proposition serves everyone: • For Music Fans – BANG serves the music fan that cannot find or access the “must have” music commerce products and services they want. For many, the concert may be sold out, or the concert venue may be too far away or economically prohibitive to attend. BANG will deliver this access around the clock. They want the ability to get all of their “music” information in one-location instead of having to travel around the Internet to find it. BANG delivers it all by becoming their ‘one-stop’ music commerce gateway • For Music Merchandisers – BANG serves the licensed music merchandisers by becoming the first global storefront, expanding and extending their non-concert retail reach by creating a new and more creative selling environment, a four-pronged music commerce platform that delivers music artist merchandise 24/7/365 [BANGTV, BANGNET, BANGMOB, BANGFAN]. Our celebrity commerce reach will establish a much more fan-oriented environment to serve the music fan whenever they want. • For Music Artists – BANG provides entire new outlets beyond the concert tour venue for moving more than just live concert merchandise. BANG offers a “first-ever” business building model to create product offerings, through its three-programmed music commerce platform, that so far have not been available. ©2016 its BANG, LLC MERCHANDISE ALWAYS ACCESSIBLE, ALWAYS IN STOCK & AVAILABLE With Cable/Satellite/Telco’s as the compelling driver, BANG gives music commerce an engaging lifestyle treatment that has been created to present music artists through a new lens, one that offers them the chance to engage new topics and new discussions while feeling comfortable to speak about their music commerce offerings. BANG will ensure that what they say will be available for purchase as BANG music commerce services will always be accessible and always in stock. BANG’s continuous retailing programming business model will provide substantial incremental celebrity commerce revenue over its first five [5] years of operations. [See financial section]. REPLENISHABLE Music fans drawn to BANG will discover that no item will ever be “sold out’ with the exception of special and limited edition offers or finite inventories like concert tickets, etc. BANG merchandise is replenishable, in nearly all cases, and ready for sale and shipping on an immediate basis. PROPRIETARY & CONFIDENTIAL page 11 BANG | BUSINESS PLAN “Unlike traditional designers who spend years trying to establish brand recognition, music celebrities rely on their pop culture power. They are already household names and have a reputation for being moneymakers. They also have a media advantage. Many entertainers can simply mention the clothing line in their songs and wear them in their videos. Fans then rush out and buy them. Free publicity is the best advertising.” SUPPORT FROM MUSIC INDUSTRY, ARTISTS, & LICENSED MERCHANDISERS MILLIONS OF DIGITAL STORE FRONTS ARE ATTRACTIVE TO MERCHANDISERS The music industry [record labels, music agents, music publishers etc.], music artists [talent, managers], licensed merchandisers [Bravado, Richards and Southern, Live Nation, AEG etc.] continue to demonstrate their support of a new commerce destination in which everyone benefits. Discussions with music merchandisers have made it clear that BANG is a paradigm-shift for their business from the “one-and-done” concert-driven model to a 24/7/365 digital “store front” – a business that is capable of generating revenues from hard-core music fans as well as from other consumers generally interested in music, but who may not have pursued music merchandise because of concert hurdles, inadequate online sites or poorly stocked retail stores. LaShelle Turner, thesop.org TELEVISION EXPOSURE BOOSTS PRODUCTS SALES AND DRIVES BRANDS PRODUCT SALES, BRAND PROMOTION, PURE EXPOSURE ARE KEY FACTORS The consensus among music industry interests is that the timing couldn’t be better for BANG. The overwhelming sentiment is that entertaining, artist-focused content and merchandise programming will quickly generate music fan viewership and positive word-of-mouth. Managers already see their artists vying for air time with a new generation and a new breed of home shoppers – music fan buyers creating previously untapped revenue streams for music lifestyle merchandise. Artist managers also are well aware of how important television exposure is to an artist’s career. page 12 PROPRIETARY & CONFIDENTIAL WIN-WIN BUSINESS MODEL FOR ALL MUSIC INTERESTS BANG is a win-win business model for everyone with a business interest in the music industry. BANG also expands the music merchandise environment with advanced social network tools offered through BANG’s music fan clubs – dedicated destinations for music fans wanting closer access to their favorite artists – creating a place to “hang out” with like-minded people using the latest communication tools offered on the BANGNET web and ever expanding BANGMOB smartphone wireless devices with preemptive apps. ©2016 its BANG, LLC BANG | BUSINESS PLAN INCREMENTAL REVENUE FROM NEW MODEL AND NEW MUSIC BRAND BANG will see channel revenue from hip, sharply produced television, and well adapted web and mobile program, product, and purchasing capabilities. BANG’s marketing and sales efforts will strive for heroic brand reputation - nothing less than the most exciting, the most unique, and the most reliable music merchandising and music commerce destination worldwide. MERCHANDISE, WAREHOUSE & FULFILLMENT CONSIGNMENT IS KEY BANG’s primary revenue will be generated from the sale of licensed merchandise and branded artist packages including: apparel, electronics, instruments, travel packages, fan club membership, music software, and more. Of critical importance, BANG’s inventory and fulfillment obligations are predicated on not having to purchase and/or place any of the music artist licensed merchandise into BANG’s warehouse. All of the goods sold through BANG will be secured and satisfied through the licensed merchandisers’ own pick and pack warehouse. Merchandise items will be housed by the merchandisers on a consignment basis. BANG will not be required to purchase any goods for sales from its multi-channel operations. No inventory means lower costs. ©2016 its BANG, LLC WORLD-CLASS MANAGEMENT TEAM BANG’s management team has been assembled to balance world-class music industry, television industry, brand strategy, creative, merchandising, and new media talent with exceptional executive-level experience. BANG is led by Joshua Simons, Entertainment marketing pioneer; Bart Fox, ESPN television producer and programming creator; Bob Tulipan, Music industry operations and music artist relations specialist; John Caputo, Strategic Partnerships, industry marketing executive; Bill Kosovitch, Strategic Financial Entrepreneur and business management disciplinarian; Brad Rubens, Senior Entertainment Industry Legal Counsel; Joy Perkins, former HSN [Home Shopping Network] Merchandising Operations specialist; Todd Gordon, Multi-platform Technology/IT Systems and Service leader; Maggie Bellville, USA Cable/TV/Satellite Industry Veteran; Brad Mooberry, Branding & Marketing innovator and a host of in-the-know executive management talent. PROPRIETARY & CONFIDENTIAL page 13 BANG | BUSINESS PLAN FINANCIAL HIGHLIGHTS Start Up Yr Internet / Mobile Average Monthly Unique Users Internet / Mobile Average Transactions per Minute TV Forcasted HH's by end of Year TV Average TP HH TV TP HH Discount to QVC TV Average Transactions per Minute TV TPM Discount to QVC Revenue [Including Brand Marketing / Ads] COGS, Card Fees, Rev Share Gross Margin Operating Expenses Profit (Loss) Before Taxes - Internet +TV page 14 PROPRIETARY & CONFIDENTIAL N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 16,413,189 (16,413,189) Year 1 Year 2 Year 3 Year 4 Year 5 8,125,000 22,583,333 39,291,667 59,375,000 72,250,000 0.3 0.9 1.7 2.8 3.7 20,000,000 30,000,000 45,000,000 55,000,000 70,000,000 0.12 0.20 0.19 0.22 0.26 91% 85% 86% 84% 81% 5 11 16 23 34 98% 95% 93% 90% 85% 142,140,763 224,561,073 387,464,627 565,873,626 820,067,914 104,468,691 153,260,148 250,155,412 343,339,270 474,858,642 37,672,072 71,300,926 137,309,215 222,534,356 345,209,272 39,792,799 44,881,185 50,222,002 57,588,537 65,559,994 (2,120,726) 26,419,740 87,087,213 164,945,819 279,649,278 ©2016 its BANG, LLC BANG | BUSINESS PLAN TWO FULL SERVICE MUSIC COMMERCE If the Music Fits, Wear It. ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL page 15 BANG | BUSINESS PLAN - MUSIC COMMERCE MUSIC FANS WANT EASY ACCESS TO COMPLETE MUSIC MERCH VAULT There are millions upon millions of die-heart music and entertainment fans that are hungry for all forms of celebrity commerce, from the big name headliner’s to the new online and touring artist. In virtually every instance, these superfans are woefully under-served. Whether they prefer Pop, Country, Rock, Urban, EDM or another genres, they each want more access to the complete artist lifestyle. A new and more engaging commerce gateway and clearing house. A dedicated one-stop service that enables them to buy the likes of Katy Perry, Drake, Eminem, The Rolling Stones or Taylor Swift that is more than just the typical concert merchandise. They want immediate “all access” to every aspect, where it be something that is offered on the tour even thought they might not be able to attend the show, to one of a kind items in limited supply, to all new items that never go on tour. The never-before offered item is exciting and wanted. And with BANG, they will learn that they can get at a very attractive price point and have it shipped to them immediately. The opportunity to buy at auction like they have learned from an EBay experience would be considered in the same light as a fantasy game, but this time it is real. page 16 PROPRIETARY & CONFIDENTIAL “Unlike traditional designers who spend years trying to establish brand recognition, celebrities rely on their pop culture power. They are already household names and have a reputation for being moneymakers. They also have a media advantage. Many entertainers can simply mention the clothing line in their songs and wear them in their videos. Fans then rush out and buy them. Free publicity is the best advertising.” LaShelle Turner, thesop.org ©2016 its BANG, LLC BANG | BUSINESS PLAN – MUSIC COMMERCE Music Fan Profile by Age & Music Genre* Teens: 13-19 years Adults: 35-49 years MaleMale Rock 65% Rock 70% Hip Hop 60% Hip Hop 50% Country 45% Country 45% Pop 35% Pop 20% FemaleFemale Rock 35% Rock 30% Hip Hop 40% Hip Hop 50% Country 55% Country 65% Pop 65% Pop 80% Young Adult: 20-34 years Mature Adults: 50+ MaleMale Rock 70% Rock 55% Hip Hop 50% Hip Hop 50% Country 40% Country 45% Pop 25% Pop 25% FemaleFemale Rock 30% Rock 45% Hip Hop 50% Hip Hop 50% Country 60% Country 55% Pop 75% Pop 75% CONCERT MERCHANDISING – COMPROMISE FOR FANS & MERCHANDISERS Concert-going fans love artist merchandise, but the shopping and buying experience is typically a combination of waiting, rushed decisionmaking and a level of pandemonium that is not ideally suited for smart shopping. Nor is it, from the merchandising vendor’s perspective, an optimal or efficient way to capture sales. CONCERT MERCHANDISING – A LESS THAN IDEAL The consumer merchandise buying ritual nearly always involves standing in line for long periods of time approaching a poorly organized and hastily constructed sales area and confronting a less than an ideal shopping experience. More often than not, consumers are challenged in getting the exact merchandise they want in the right style, the right color and the right size. Even worse is discovering that the item that you want has just sold out. Concert merchandising is a hit-or-miss proposition – a swap-meet milieu that has not evolved for decades. A HIT-OR-MISS SWAP MEET MILIEU Worse, if fans decide to buy online and forego the lines at the concert merchandising tables, they are disappointed by the lack of current tour merchandise on the artist’s website. Tour merchandise is not typically coordinated with web site merchandise – another hit-or-miss scenario *Source: Billboard Magazine ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL page 17 BANG | BUSINESS PLAN - MUSIC COMMERCE MUSIC MERCHANDISE REACHES ONLY A FRACTION OF THE MARKET A band selling out three [3] nights at an arena holding 25,000+ fans generate an impressive 75,000 tickets sold, however, if the band has a 750,000 fan-base in that DMA [designated market area] then as much as ninety [90%] percent of the potential merchandise and other commerce sales opportunities are lost. MERCHANDISE ACCESSIBILITY AND AVAILABILITY LIMITED AT BEST Another phenomenon is music fans treating music merchandise like museum collectibles – memorabilia saved and perhaps displayed but not worn. Fans are often reluctant to wear their “swag” because replacement merchandise is difficult or impossible to purchase. A sports fan, by comparison, could confidently wear a licensed NFL jersey knowing that it could be easily replaced from a variety of retail destinations. This situation also suggests that repeat music merchandise sales are not nearly as efficiently captured. Music Fan Digital Buying Power* Teens [13-19 yrs]: ..................................... 22% Young Adults [20-34 yrs]: .......................... 29% Adults [35-49 yrs]: .................................... 38% Mature Adults [50+]: ................................. 11% *Source: RIAA BANG’S MERCHANDISING PARTNERS BANG has been actively pursuing relationships with the world’s most experienced and respected licensed music merchandisers, global music product manufactures, and the most progressive music managers with significant artist rosters. The response to a BANG one-stop music and commerce clearinghouse has been overwhelmingly positive and warmly received. [See letters of intent in the appendix]. page 18 PROPRIETARY & CONFIDENTIAL ©2016 its BANG, LLC BANG | BUSINESS PLAN - MUSIC COMMERCE LICENSED MERCHANDISERS CONTROL OVER 85% OF ARTIST BRANDS Music Fan Purchasing Destination & Credit Card Payment [web/credit card, voice]* Teens: 13-19 years Web/Mobile Credit Card Voice 56% 70% 44% Young Adult: 20-34 years Web/Mobile Credit Card Voice 58% 77% 42% Adult: 35-49 years Web/Mobile Credit Card Voice 54% 89% 46% Mature Adult: 50+ Web/Mobile 21% Credit Card 97% Voice79% *Source: Radio & Records ©2016 its BANG, LLC The music industry’s leading licensed merchandisers, who control over 85% of the touring artists’ brands and trademarks for licensed merchandise, are also responsible for maximizing merchandise sales outside the concert hall including sales in brick and mortar retail, online destinations and catalogs. BANG gives merchandisers and their artist brands presence, exposure and storefront. BANG is the critical next step for expanding the possibilities for music merchandising, maturing the sales process and establishing a coherent global retail environment. REACHING OUT TO RECORD COMPANIES AND ARTIST MANAGERS BANG is aggressively building direct relationships with labels and artist managers who have significant artist rosters and who are looking to expand and increase their merchandise exposure. Artist managers are frustrated by the lack of a comprehensive retail mechanism for music shoppers and the lack of dialogue and connection with music fans on a day-to-day basis. FASTER RECOUPING OF EXPENSES FOR MERCHANDISERS/MANAGERS BANG will substantially reduce the lead time it takes to recoup advances on merchandise and products by pre-selling concerts, promoting and selling tour merchandise in advance of the show [so that fans can actually wear their band swag at the show instead of having to take it home in a bag]. BANG management believes that if executed properly merchandisers and mangers can cut “manufacturing costs exposure time” by as much as half. Clearly the potential for money savings, increased sales possibilities and leveraging opportunities are significant. PROPRIETARY & CONFIDENTIAL page 19 BANG | BUSINESS PLAN - MUSIC COMMERCE END-OF-TOUR INVENTORY OVERAGES COSTLY TO MERCHANDISERS BANG also provides revenue opportunities and savings at the end of a tour. At this time merchandisers are typically holding 10% or more of all of the tour merchandise which then must be returned to warehouse and fulfillment centers. This necessitates that the merchandiser find alternative ways to put this merchandise in front of the fan base in order to sell through the balance of the inventory. BANG solves this end-of-tour inventory problem by providing the BANG “store front”. The only option merchandisers and managers have currently is placing the merchandise on artist web sites and third party merchandise sites. CLEARINGHOUSE STRATEGY PROVIDES MERCHANDISE SELL-THROUGH Today merchandise overages are relegated to narrow sellthrough strategies with limited expectations. Merchandisers and managers must rely on the sales capabilities of their artists’ websites and third party merchandise sites and hoping that the fan will somehow find the merchandise on their own. There is no storefront – no coherent media or marketing strategy – to move the product. BANG will transform music merchandising sell through. page 20 PROPRIETARY & CONFIDENTIAL ©2016 its BANG, LLC BANG | BUSINESS PLAN - MUSIC COMMERCE PRODUCT CATEGORIES APPAREL: PRINTED: • Casual Apparel • Better Apparel • Seasonal Apparel • Active Wear • Denim • Intimate Apparel • Poster -- Original -- Autograph -- Framed ACCESSORIES: •Hand Bags •Belts •Hats •Seasonal Accessories FOOTWEAR: •Dress •Comfort •Boots •Athletic JEWELRY: • ------ Designer Jewelry Gold Sterling Silver Gemstones Fashion Jewelry Fashion Watches •Handbill -- Original -- Autograph -- Framed •Playing Cards •Tour Books •Comic Books ELECTRONIC: •Games -- Electronic -- Board •Consumer Electronics -- MP3 -- Head Phones -- Auto Sound -- Storage Devices •CDs •DVDs MOBILE: EDUCATION: •Hardware •Software -- Wallpaper -- Music -- Special programming •Weekend artist seminars •Music School programs •Music Lessons PERFORMANCE: •Autograph Guitars •Autograph Drum heads •Autograph Drum Sticks •Framed -- Artist Photos -- Concert Tickets -- CD’s -- Posters •Concert Ticket Sales •Fan Club Membership •Live Event Passes TRAVEL: •Concert weekends •International music programs •Domestic music programs AUCTIONS: •Cars •Boats •Motorcycles •Scooters •Weekend getaways •Private Dinners •Instruments •Paintings •Drawings •Jewelry •Clothing ARTIST-BRAND ENDORSEMENTS: •Cosmetics •Fragrances •Hair Care •Beauty Aids SERVICES: •Concierge •Personal meet & greet Personal autograph signings MUSIC THEMED SPORTS: •Skate Boards •Inline Skates page 24 ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL page 21 BANG | BUSINESS PLAN THREE THE MARKETPLACE The Magic’s In The Music page 22 PROPRIETARY & CONFIDENTIAL ©2016 its BANG, LLC BANG | BUSINESS PLAN - THE MARKETPLACE BUSINESS BACKGROUND/BUSINESS PERSPECTIVE: “The number of individual digital tracks sold in 2015 far exceeds Singles and Album Music Category Overview: The traditional music business has been struggling for several years are now recognizing that major new forces are trans forming the analog methods of doing business with more efficient digital strategies, providing new opportunities for music artists to exploit their brands and expand their business building potential on a global basis. sales in 2008. And there are so many ways for people to consume music these days,” he adds, citing satellite and online radio, numerous music streaming websites and mobile apps.” Ken Barnes, USA Today iTUNES STORE CHAMPIONS DIGITAL SALES WITH TOTAL BRANDED SOLUTION Apple has done an incredible job of merchandising recorded music and revitalizing the singles business, and more recently, full album sales through MP3 sales [much to the chagrin of CD sales focused record labels, brick & mortar music retailers]. Megapromoters like Live Nation redefine artist relations by securing long-term, bundled deals with superstars like Madonna, U2, Jay-Z, Nickelback and Shakira that often encompass multiple albums, concert ticket sales, merchandise sales, sponsorships and endorsements. Social networks like Facebook has spawned a gigantic music profiling “mosh pit” featuring breaking bands – but it is twenty million band pages deep and offers little in terms of artist commerce outside of digital download sales. The methods and means of merchandising and vending broader categories of music-related products and helping artists reach a larger audience are, in many critical ways, hit or miss propositions. ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL page 23 BANG | BUSINESS PLAN - THE MARKETPLACE WHAT APPLE DID FOR DIGITAL [iPOD + iTUNES] SALES---BANG WILL DO FOR GLOBAL CELEBRITY COMMERCE The new marketing and commerce frontier is seeing celebrities going beyond just recorded music and touring. They have realized that a more 360 degree business approach sets the stage for a long term career strategy. The ability to brand themselves in multiple creative environments has become the new paradigm to enhance and extend their brand and image with multiple demographics. The Sean John “Diddy” of the universe learned this at the start of their career having expanded their music brand to include owning and/or licensing their name to distilled spirits, automotive, wearing apparel, even creating a 24/7 Cable TV Channel [Diddy’s Revolt on Comcast and Time Warner systems]. What began as an urban phenomenon with the likes of JayZ has now crossed over to the pop, rock, dance, and country markets. The needed tipping point is a multi-diverse commerce strategy that reaches beyond just the music loving mainstream audience to now speak to TV, Film and Sport fans who respect the music Icon but can now see them in a new, more imaginative light that extends well-beyond what they know about them as just a music artist. Recent success can be demonstrated with Justin Timberlake’s crossover to mainstream audiences that includes his music base but now is so much larger and broader on a global stage. Britney Spears appearance as a judge on American Idol to now have a showcase venue to perform exclusively in Las Vegas for two [2] consecutive years. BANG will help each of these and many other celebrities to cross-pollinate each of new footprints, giving them greater access and dimension with a slew of new commerce and lifestyle experiences to be made available for the first time to the adoring fans. “The concert industry did extremely well in 2015 than it should have. Despite the ever-challenging economic climate, whatever it is that triggers the off-switch on consumer spending for tickets doesn’t appear to have happened yet. A 5.6 percent increase in ticket sales, or about 2 million more than in 2014, was offset by an increase in average ticket prices of about 10.9 percent, to $125.00. The industry’s continuing trend of growth based on selling more expensive tickets, which would assume is not a sustainable path that must continue adding new customers.” Gary Bongiovanni – Pollstar Albums - The number of digital tracks sold, meanwhile, jumped twenty-two [22%] percent, to 1.9 billion in CY2015, compared with 788.2 million in CY2014, with digital album sales accounting for more than [92%] percent of total album purchases according to Nielsen SoundScan, which tracks point-of-purchase sales. page 24 PROPRIETARY & CONFIDENTIAL ©2016 its BANG, LLC BANG | BUSINESS PLAN - THE MARKETPLACE “More music is being produced today than ever before – and plenty of people are still making a ton of money in the music business. What’s actually in trouble is the traditional recording industry, which is quite different than the music industry.” Lea Goldman Forbes Downloads – In the ‘70s, albums drove the market, replacing singles. With the advent of digital music, fans went in the opposite direction. Not only are people buying individual songs again, there’s a broader spectrum of songs available. In the ‘90s, record companies sup-pressed the sales of “hit singles” by not making them available at retail. The record companies aren’t able to do that anymore. Consumers are making more music purchases now than they did ten [10] years ago. Merchandise – “With the slowdown in album sales and a new reliance on concerts and merchandise to bring in revenue, giving fans what they want has become increasingly important to the music industry,” according to Gary Bongiovanni, editor of music industry magazine Pollstar. Twenty years ago artists toured to help sell records, but today they tour to make money and sell a few more records along the way. Merchandise and other forms of revenue is now a very significant part of artist revenue streams. Many popular recording artists make more money from their commerce related sales than they do from any of their recordings. Concert Tickets - Pollstar [Music Industry Trade Publication] reports that the gross ticket sales from the top one-hundred [100] concert tours during the CY2015 was $4.5 billion, up 14 % from CY2014. Live Nation Entertainment represented close to onequarter [24%] percent of Tickmaster’s $3.8 billion in ticket revenue in the USA. In the CY2015, AEG, another mega-promoter did the same with options looking at its own in-house ticketing services. This now includes its partnership with AXS.com [the quad partnership with Mark Cuban + CAA + Seacrest Productions on the 24 hour AXS Cable TV Channel]. Recent salvos include Live Nation’s long term partnerships with SMG, a Philadelphia company that manages two-hundred [200] venues with twenty-five [25] to thirty [30] million tickets with a value of $90 to $100 million in ticketing fees. There will be continued challenges for Live Nation, SMG and AEG. Perhaps these departures have put even greater emphasis to include their expanding into international markets to satisfy their public offerings. Music Commerce is Stuck in Neutral – The Internet and mobile provides a bounty of variety and variation with millions of digital destinations covering music genres and the lifestyles that go with them, but a brand for music celebrity commerce is conspicuous by its absence in the popular music universe and the business of reaching and building interested lifestyle consumers and music fans to expand and extend pop music commerce is currently stuck in neutral. ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL page 25 BANG | BUSINESS PLAN - THE MARKETPLACE THE MUSIC MARKETPLACE – A SITUATION ANALYSIS The Music Artist Community – Music artists and bands are breaking out on their own in a digital landscape teeming with hundreds of thousands of competing music artist brands. The post-record label era is invigorating but it is an overwhelming place for most artists and bands trying to break out of the pack. Bands need to supplement their music sales and performance earnings by expanding their merchandising activities. This holds true for the biggest stars and breaking bands. Record Labels – Over the past ten [10] years, due to innovations in technology and changing consumer tastes, channels of product sales and distribution have gone fully digital, having virtually eliminated the music retail store front—now the digital store fronts have consolidated physical inventories and pricing in which Amazon.com is now the largest provided of the CD and DVD; Apple though its iTunes store is serving as the largest distributor of digital downloads. Pricing models changed in which the music fan is now more a ‘singles’ buyer as opposed to an ‘album’ buyer. But in the past three [3] years, there seems to be a reversing trend to capture the full length album [actual CD + digital offering] as the price-point is much more attractive when one can now hear several songs [tracks] being played on their favorite radio channel in heavy rotation as opposed to just one song at a time as before. Even the 33 1/3 vinyl is making a nice comeback due in part to music fans wanting to experience the pure sound of an analog recording with its hisses and crackles. EDM has also played a role here with extended mixes and varied mixes used by DJ’s and those fans wanting more access to more than just the radio-only song mix. “Whether we admit it or not, a lot of success in fashion is directly tied to music, if not in the lines themselves than through the use of artists in marketing campaigns. The bottom line is that when done right, the stuff sells.” Marc Ecko, Fashion Designer Fans - Fans are sophisticated and demanding and expect to be entertained at every turn and they are developing the technical acumen and networking resources to get what they want, where and when they want it. Music consumers are increasingly turning away from the traditional gatekeepers and looking instead to one another. The tools for music merchandising are finally here for music fans, but a global entertainment and retail destination with millions of mobile touch points is missing. Fan Clubs – Fan clubs have the potential to become retail conduits but lack reliability, functional uniformity and interconnectivity. Building a fan club network in collaboration with a global music merchandising destination gives fan clubs and fanatics access to music media, tickets and an online community page 26 PROPRIETARY & CONFIDENTIAL ©2016 its BANG, LLC BANG | BUSINESS PLAN - THE MARKETPLACE COMPETITIVE ASSESSMENT: BANG’S MUSIC & LIFESTYLE COMMERCE COMPETITION Music Merchandise Sites - BANG’s primary music commerce competitors come from a diversity of online services that include each of the large concert promoters. But their offerings are limited to just the artists they have licensed. The product mix is dedicated to the typical tour merchandise aspects. Some of the more advanced licensed music merchandisers like Bravado have become much more savvy in their offerings beyond the traditional T-shirt, Hat and Hoodie. But for a music fan, unless you know which artist site to go to or the right merchandiser who has what your looking for, it can be a very daunting and frustrating experience. [see Appendix for sampling of listing of Licensed Music Merchandise online vendors]. Where as if you’re an Baseball or Football or Basketball fan, you know that your team’s merchandise can all be found at www.store.nba.com or www.nflshop.com and the like. All offered in one easy to navigate location. If you want to dive deeper into a particular clubs product offering, the leagues gateway sight will bring you directly to the team site and there you can dive deeper if you wish. Social Networks – Have grow one-hundred fold in the past ten [10] years with their command of the user sharing experience, yet none of them have set up a commerce experience where they can bring something more than the traditional social media [photos/comments/show & tell] offerings. BANG does see the social media universe and a potential gold mine with its BANGFAN model that will create the first, fully dedicated celebrity to fan proposition which will set up an entire new social connection and experience. Music Media - Apple along with Spotify and Pandora dominate the top spot with 84% of all digital music downloads. Brick and mortar retail music sellers are topped by Wal-Mart followed by Best Buy and Target, according to NPD figures. A sizable influence of the past few years has been the onslaught of music competition programs from American Idol to The Voice which has spawned new music showcases, new artist prospects and the record label signing contracts that are awarded to the top five winner performances from each show. Combined, at the start of 2015, over twenty-two [34] new artists from these TV programs have charted with sizable hit singles and full-length albums. Some, like Carry Underwood have gone on to huge success with multiple platinum selling digital singles and CD’s sale creating a whole new A&R aspect for the record labels knowing that there is an already an early built-in fan based who voted for their favorite new artist on these show and are expecting to buy their new releases and will go out on tour. ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL page 27 BANG | BUSINESS PLAN - THE MARKETPLACE POST-MODERN MUSIC PROGRAMMING & RETAIL FOR TV, WEB & MOBILE BANG has developed a new strategy to reach younger, gender-neutral music audiences with pre-recorded program pods that air, repeat and rotate through cable, DBS, Internet and mobile channels. Of note is the potential to create even greater virtual distribution by exploiting cable’s VOD [video on demand] capabilities in cable systems where BANG doesn’t have carriage. BANG is a post-modern, disruptive programming and retail model that exploits television, web and mobile, casting a globally scaled brand destination that provides new and personalized music entertainment experiences to attract music fans worldwide. In addition to the quality, value, and cost that are the rubrics of QVC, BANG offers merchandise that is always available – anytime – a “salability” dimension that traditional home shopping cannot meet. Shop Television - BANG believes that the higher costs of always-live shop television programming is too costly to launch a new retail brand in today’s marketplace. In turn, BANG believes it has created a more flexible television, web and mobile pod-based programming model that features the artists, their music, and their products in a manner more in synchronization with concert tours, media campaigns and album/product releases. Overall music purchases, including albums, singles, digital tracks and music videos, rose to in the billion units. On the positive side, the industry has built a $7.2 billion digital business full of consumer friendly services. On the negative side, global sales fell by around 7 from 2015 to 2013. The growth of digital sales is strong and continues get stronger especially with mobile APP’s taking the leadership position. To grow will require continuing to address the fundamental problem of piracy. IFPI Digital Music Report 2015 MTV/VH1/FuseTV cable channels – Whatever they once were, MTV, VH1 and Fuse their permutations no longer represent the music but have become, instead, lifestyle channels. Cablevision/MSG Entertainment’s FuseTV has attempted to reinvent itself as a music-centric cable television offering, but to date their audience numbers have been marginal. MTV aggressively pursued online business strategies that are primarily focused on video games and audience-building ad strategies. page 28 PROPRIETARY & CONFIDENTIAL ©2016 its BANG, LLC BANG | BUSINESS PLAN - THE MARKETPLACE “Many recording artists are smart enough to know that it’s not just about selling albums. That’ll keep you going for maybe two, three years tops. It’s about building an empire and plowing those earnings into lasting businesses that will generate income long after the music stops selling.” Lea Goldman Forbes Beyond its core music commerce “lifestyle” product offerings, BANG will enable music industry powers, giving boosts to their individual commerce models by supporting concert promoters with concerts events, tickets and beyond the concert merchandise sales; and record labels with artist promotions, physical album sales and digital single sales to work with them on their new 360 artist management agreements: • Concert & Tour ticket sales • Concert & Tour merchandise sales • Record label album sales • Record label single sales • Artist Promotions • Artist Destinations • Digital Media Partners • Sponsors, Advertisers and Marketing Partners BANG effectively creates, expands, extends and increases the revenue windows for concert tours, records, merchandise and all aspects of the music artist brand. Music labels, music promoters, music concert ticket sellers, licensed music merchandiser—all will win and work together. BANG will also be perceived as “Switzerland”, able to work with every music industry enterprise. It will have everyone’s best interests in mind as it works to “super serve” the music fan both in the USA and in its eventual International rollout. ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL page 29 BANG | BUSINESS PLAN FOUR BANG MARKETING & SALES STRATEGY page 30 PROPRIETARY & CONFIDENTIAL ©2016 its BANG, LLC BANG | BUSINESS PLAN – MARKETING & SALES STRATEGY CORE STRATEGIC ELEMENTS Establish the BANG brand – Our primary marketing initiative is creating an authentic brand of iconic proportion. The brand will consist of core brand properties, sub-brands for our business segments and a unifying strategy to become the premier commerce “gateway” for music artists, music fans, licensed merchandisers and music industry stakeholders – worldwide. BANG’s brand is delivered through a fully integrated, merged-channel platform that consolidates singers, sirens, songs, and stories with search, shopping, sales and services activities. BANG’s user-base will be established by its merged-channel TV/Online/Mobile media commerce platform. . BANG Marketing Extend the Brand - The BANG signature descriptor, “If the Music Fits, Wear It”, will be reinforced with meaningful and memorable iconic communication elements. Support tags will include “Music You Get Into”, “You Can’t Stop the Music” and “Reach for the Stars” to illustrate that music is here and music commerce is evolving and moving forward. Build Awareness – BANG’s launch stratagem begins by establishing an awareness of BANG’s entertainment and retail experience – the BANG big idea. Reaching and activating music fan critical mass requires brilliant, creative and provocative messaging that is expertly woven into advertising strategies and guerrilla marketing tactics. This will result in stimulating real, viral, and organic growth through music fans – fans who are actively involved in spreading the word about BANG to friends and associates in their network. This is an essential component. Brands, products and services that are worth talking about... get talked about. ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL page 31 BANG | BUSINESS PLAN – MARKETING & SALES STRATEGY Commit Marketing and Strategic Resources – Our launch mission is to orchestrate an unforgettable BANG brand buzz – an irresistibly seductive music lifestyle experience – a leading edge destination with unprecedented vision and marketing innovation that is purposebuilt to grow market share and achieve genuine and durable brand leadership for the long term. Super-serve the Music Industry – BANG marketing will lead the music industry, brand marketers, licensed merchandisers, and Cable TV/Satellite/Telco affiliates in building a global flagship, artist-branded, music commerce “lifestyle” retail destination. We will achieve this through professionalism, unrelenting creativity, technical competency, and marketing excellence. Our business objective is to build an enduring brand that delivers the best in music-based, commerce-centric entertainment; exceptional product quality; and heroic customer service. BANG’s goal is becoming music’s aspirational brand – the ultimate, authentic destination that offers the very best that music lifestyle can deliver to its target audiences. Relevant Products Spur Additional Sales – BANG is designed to drive repeat visits and repeat product purchases. Like Amazon’s customer referral method “If you like this, other music fans like you bought this.” page 32 PROPRIETARY & CONFIDENTIAL ©2016 its BANG, LLC BANG | BUSINESS PLAN – MARKETING & SALES STRATEGY Convert Prospective Music Fans To Loyal Buyers – BANG will implement a communication strategy that shortens selling cycles, making it easier to drive music fan interest and ensuring a winwin experience for all who engage the brand. WOM [Word of Mouth] is a strategic cornerstone of this effort and a key factor to engage the music fan where they live and play. BANG will also deploy resourceful promotional marketing techniques to drive trial, frequency of purchase and loyalty. TACTICAL EXECUTION BANG’s marketing and sales mission is capturing market share for the first-ever music fan digital commerce gateway. BANG is accessible through three integrated marketing channels, television, online and mobile. BANG will exploit two kinds of demand generation: •Demand Creation – Outbound creation of awareness of brand and services •Demand Fulfillment – Inbound requests for specific artist products while expanding consumer awareness of similar products Creating Buzz - Market dynamics demand that BANG create a high level of brand presence and music fan “buzz” to initiate and grow top-of-mind awareness – converting music fans to visitors, visitors to shoppers, shoppers to buyers, and buyers to loyal customers. BANG will build and deliver a series of ground- ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL page 33 BANG | BUSINESS PLAN – MARKETING & SALES STRATEGY breaking on-air, online, and mobile launch campaigns. These music fan-directed messages are designed to create dialog and viral exchanges of active music fans while simultaneously growing music industry support. Triggering music fan word-of-mouth is the critical ingredient for growing audience awareness, interest, activation and membership – the keys to establishing and expanding BANG storefront visits and sales. BANG Messaging - BANG will create provocative messages that capture the attention and imagination of music fans to visit and sample BANG. BANG’s messages will be interruptive and stimulating, and designed to generate high levels of measurable response. Messaging elements include staging BANG as the premier gateway for all music commerce with strong call-to-action elements. Leveraging the Media and Influencers – Key marketing tactics will include viral media, blogging and relationship word-of-mouth. Both online and offline, BANG messages are designed for reach and frequency against a broadly targeted audience with primary attention given to active teens and young adults [12-17yrs / 1834 yrs]. These demographics are typically more receptive to brand messages and the most likely to become BANG advocates. We will strive to identify influencers and incentivize them to evangelize our brand and effectively disseminate our key messages. page 34 PROPRIETARY & CONFIDENTIAL A brand is nothing more than an idea. Ideas that spread are more likely to succeed than those that don’t. Ideas that spread are ideavirus. The way to break through to the mainstream is to target a niche instead of a huge market. Early adopters in this market are more eager to hear what you have to say and more likely to talk about the brand. If you are good - that innovation will diffuse. After it dominates the original niche, it will migrate to the masses. Seth Godin, Purple Cow ©2016 its BANG, LLC BANG | BUSINESS PLAN – MARKETING & SALES STRATEGY Online Media - Online media will be designed for reach and frequency. BANG’s online campaign will target a broad cluster of adults [45+ yrs] who are likely to see the benefits of participation and will recognize that they have real access to their favorite artists and to a world of music commerce. Website – The BANG website will be designed with multiple landing pages targeting the varied interests of our diverse audience. The site will be a destination where users can engage in a variety of activities related to their interests – buy celebrity branded merchandise and collectibles, sign-up for alerts and announcements related to their favorite artists, enter contests, take part in promotional offers from our sponsors and much more. By engaging visitors in the site, we will capture informative data that will be used to help personalize their experience and provide a knowledge bank for future marketing efforts. Online Marketing Campaign – We are planning an integrated approach to search engine marketing combined in strategic ways to reach a highly targeted audience in the most efficient and cost effective way, maximizing the return on investment. Our plan combines an extensive search engine optimization strategy combined with both Search Engine Marketing and Social Media Optimization to create awareness and drive traffic to the site. ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL page 35 BANG | BUSINESS PLAN - MARKETING & SALES STRATEGY Social Media Optimization – Social media is a cornerstone of our online marketing strategy. In addition to all of the top social sites – Facebook, Twitter, YouTube, etc – there are 80-90 sites that are relevant to reach our target audiences and to leverage our SEO. We will deploy the latest monitoring tools to manage our brand’s reputation online and measure the effectiveness of our messaging. Social Media Activation – The key to any social media strategy is engage users in a way that leads to activation. We plan to develop tactics that will engage users throughout the social media sphere with viral elements, such as infographics, gamification and badgification to name just a few. page 36 page 42 PROPRIETARY & CONFIDENTIAL PROPRIETARY & CONFIDENTIAL ©2016 its BANG, LLC BANG | BUSINESS PLAN – MARKETING & SALES STRATEGY Market dynamics demand that BANG create a high level of brand presence and music fan “buzz” to initiate and grow top-of-mind awareness – converting music fans to visitors, visitors to shoppers, shoppers to buyers, and buyers to loyal customers and subscribing members. BANG Marketing Email Marketing & Alerts – Through a carefully planned optin strategy, we plan to stay relevant with our visitors through continuous messaging that delivers value to them, such as announcing a new artist, new products, special promotions and more. Lifestyle Marketing - The BANG brand is all about lifestyle. Our visitors are fans and they live the celebrity brands they love. We plan to integrate our brand into their lives through a long list of events, such as concerts, festivals, celebrity appearances, on-campus venues and sponsored happenings. This will make our brand highly recognizable and incredibly relevant in the lives of our customers. Guerrilla Marketing – Similar to Lifestyle Marketing, Guerrilla Marketing infuses our brand into the lives of our customers. There are a number of tactics we will use including, marketing stunts, street teams, urban hacks/projections, campus ambassadors and much more. Viral Marketing – This is also closely tied to lifestyle marketing and includes a complete roster of tactics that include storytelling videos, celebrity appearances, augmented reality, etc. Promotional Campaigns – We plan to have a series of promotions, premium giveaways, referral rewards, incentive offers and sponsordriven contests with phenomenal prizes to engage and activate our audience. ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL page 37 BANG | BUSINESS PLAN – MARKETING & SALES STRATEGY CONTINUITY Exceptional customer service not only leads to repeat customers but will result in loyal customers. We plan to optimize fan connectivity to the BANG Universe – BANG’s customer dedication will rival the passion that music fans have for their favorite artists – a customer service reputation that is built upon: • Exceptional quality of BANG merchandise • Rapid, timely delivery • Smart, dedicated customer service • Depth and variety of product availability • Variety of payment and shipping options • “Wish List” feature A Customer Conversion Campaign that builds on the brand’s “Its BANG Or Nothing At All” attitude, showcasing celebrity artists across music genres as spokespersons who instantly deliver credibility and positive endorsement of BANG by their association. page 38 page 44 PROPRIETARY & CONFIDENTIAL PROPRIETARY & CONFIDENTIAL ©2016 its BANG, LLC BANG | BUSINESS PLAN FIVE BANG ARTIST BANG RELATIONS ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL page 39 BANG | BUSINESS PLAN – ARTIST RELATIONS GROUP SEASONED PROFESSIONALS INVESTED IN THE MUSIC BUSINESS The BANG Artist Relations Group [BANG AR] is an extraordinary team of seasoned industry professionals who have invested their careers in popular music and the incredible artists and legendary performers that carve indelible impressions on our collective souls. The BANG AR mission is building durable and proactive relationships with visionary artists, their management, their record companies, their merchandisers and their associated business partners. AVOIDING INDUSTRY PITFALLS AND NAVIGATING THE MAZE OF RED TAPE BANG’s AR Team is intimately familiar with artist productions for both live and televised events and understands the intricacies of producing at the global level. Purview is based on reputation and the BANG AR team has earned the trust of artists and their managers. Equally important, our team understands how to avoid industry pitfalls and how to maneuver through the industry maze of red tape with confidence. Essentially, BANG AR speaks to artists and management in ways they understand. page 40 PROPRIETARY & CONFIDENTIAL ©2016 its BANG, LLC BANG | BUSINESS PLAN – ARTIST RELATIONS GROUP INSPIRING ARTISTS TO PRESENT, PERFORM, AND PROMOTE WITH PASSION BANG AR has a specific agenda – establish relationships and secure key artist participation. Excite and inspire artists and the music industry to get involved with the entertainment and commerce that we trade in. We will work closely with both high-profile artists and BANG producers to develop storylines and production presentations. TELEVISION EXPOSURE, INCREMENTAL REVENUE, & AN ENERGIZED FAN BASE BANG AR is responsible for clearly establishing how BANG benefits artists in terms of television exposure and that successful product presentation produces new revenue, new fans and new channels of expression. ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL page 41 BANG | BUSINESS PLAN SIX BANG EXPANDED LIFESTYLE COMMERCE ENGINE Music You Get Into page 42 PROPRIETARY & CONFIDENTIAL ©2016 its BANG, LLC BANG | BUSINESS PLAN – BANG MUSIC COMMERCE BANG Music Celebrity Commerce is the product hub. The key to success for BANG is orchestrating the world of music artists and their brands, covering all music genres and their vibrant pop cultures with captivating, fashionforward product lines. BANG MERCHANDISING & BANG ARTIST RELATIONS WORK TOGETHER BANG Music Celebrity Commerce will work closely with the BANG Artist Relations Group in developing productive relationships with music artists and their managers and crafting the artist’s retail posture and brand positioning. The goal is building artist-brand authenticity by creating product assortments that are true to the lifestyle, music genre and personality of each artist. CURATING ARTISTS-BRANDS AT VARIOUS STAGES OF DEVELOPMENT In many cases music artists have already had some level of success in mass market branding and retail product merchandising and for these artists the goal is building on that success by introducing product extensions and category expansions. Yet, ongoing retail success for any artist brand is not guaranteed. Success requires continual product line assessment, sales performance evaluation, updating products, new product introductions and product deletions. BANG Music Commerce will carefully curate the products necessary to optimize each artist product line while carefully tracking the appeal and sales performance of those products in each artist-branded program segment. Building optimal artist retail performance relies on an ever changing mix of signature products, fresh product offerings and variety within those product offerings. Variety, new products and product exclusivity are all critical components to the success of the artist and BANG. ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL page 43 BANG | BUSINESS PLAN – BANG MUSIC COMMERCE MATCHING PRODUCT TO THE ARTIST IS RELEVANCE-BASED BANG Music Commerce “lifestyle approach” to artist product assortments are based on being relevant to the artist’s persona, to the artist’s brand and to the artist’s music genre. BANG’s initial artist brands and product assortments will come from those artists who have available licensed products as well as with artist-brands that make the most sense to BANG’s Music Commerce and programming strategy. At launch, product availability will be a critical element. Matching product to the artist is relevance-based: product should mirror the artist’s image and product should be meaningful to the artist. This is critical to building credibility for artist brands and their product lines and will increase consumer desire to purchase. PRODUCT LINE EXPANSIONS PRODUCED THROUGH LICENSEES Product assortments are important to consumers generally and no less so for music fans. Assortments will be expanded carefully as artist brands sales reach sale performance thresholds. At launch product line expansions will be produced through the licensees. Product line expansion will generate variety and newness for BANG’s programming pods which is imperative to success and increased sales. BANG Music Commerce Group will develop new product lines for hit artists that don’t have enough relevant products available for purchase. page 44 PROPRIETARY & CONFIDENTIAL ©2016 its BANG, LLC BANG | BUSINESS PLAN – BANG MUSIC COMMERCE LIMITED EDITIONS FOR ASSORTMENTS, BUNDLING, CONFIGURATIONS In developing product line assortments, the BANG Music Commerce Group will carefully monitor existing artist lines to better understand the best categories for generating new lines of product. Sustainable product lines are imperative. BANG will also take advantage of “kitting” [bundling] product in unique configurations to generate exclusivity for BANG within assortments and give the consumer more reasons to purchase. BANG will obtain limited edition products for assortments to generate excitement, differentiate price points and ignite consumer response. NEW PRODUCT CATEGORIES BEYOND TRADITIONAL SHOPPING MATRIX Unique product categories will be developed that don’t currently exist in the traditional home shopping matrix. These categories include: Travel – concert weekends and international music programs; Education – music lessons; Auctions – cars, artwork, memorabilia, instruments, clothing; and Performance – autographed drum sticks, framed artist photos, etc. CATEGORY THRESHOLDS, IGNITOR PRICES DRIVE REVENUE WITH PRICING The BANG team will carefully track merchandising category thresholds within the marketplace and drive revenue with pricing. Pricing will be competitive within the marketplace, but will take into consideration premium pricing for celebrity brands. Additionally, assortments for each artist will include “ignitor” priced items to drive consumer purchasing. “Ignitor” priced items are lower costing products [typically under $50.00] and are capable of generating large unit movement. ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL page 45 BANG | BUSINESS PLAN – BANG MUSIC COMMERCE EXTENDED ASSORTMENTS ARTISTS-BRANDS – THE ALL & THE EVERYTHING On-line: In addition to BANGTV’s featured product assortments, extended assortments will be critical to driving the consumer to the web. However, web assortments must make sense to the consumer. Volumes of assortments don’t necessarily equate to conversion, but BANGWeb provides additional opportunities to build out unique categories of business. BANG MUSIC COMMERCE GROUP BANG Merchandising is comprised of buyers [category managers], associate buyers, merchandise analysts, planners and merchant relations specialists. Each member of the team will have expertise within their categories of business and work across all product lines. BANG Merchandising will have category expertise in curating assortments and building brands. CONSIGNMENT INVENTORY & FULFILLMENT MANAGEMENT All inventories will be purchased on consignment. Purchasing on consignment reduces the risk of inventory liability and offers BANG the opportunity to test more products. Avoiding the traditional model of inventory ownership equates to a more profitable business and eliminates the need for markdowns. Eventually, inventory investment may be made on selected exclusive products giving BANG the option to evolve to product ownership, if market conditions allow and product development capabilities expand. page 46 page 54 PROPRIETARY & CONFIDENTIAL PROPRIETARY & CONFIDENTIAL ©2016 its BANG, LLC BANG | BUSINESS PLAN – BANG MUSIC COMMERCE MANAGING INVENTORY BY EVENT & LOCATION BANG Music Commerce will manage inventory by event [tours, concerts, album releases, etc.] to ensure optimal revenue. BANG will make sure that product is available, by location, as artist tours are critical to success and important to music fans – whether they have tickets for their artist’s show or not. FULFILLMENT BANG BRAND APPLIED AND EXECUTED BY SHIPPING PARTNERS Initially, product will be shipped to the consumer by the manufacturer. BANG Music Commerce will ensure that each BANG package sent will be carefully designed and bear the BANG brand experience; in many cases the particular artist brand will also be featured in the packaging elements. BANG will custom design packaging materials and coordinate their application and execution with BANG’s warehousing and shipment providers. BANG branded packaging could also include inserts, special tags, BANG program guides, etc. These BANG branded packaging elements are primary touch points with the consumer – both from BANG’s perspective and the artist’s perspective. QUICK SHIPMENT CRITICAL TO LOWER RETURNS Orders are planned to be filled within 7-10 days. However, the ultimate goal is to ship product within 24 to 48 hours of the order. Consumer research shows that orders received after 10 days of purchase run higher risks of cancellation. Additionally, the fallout rate of unavailable product at the time of purchase is 40-50%. Merchandise availability is critical to success and customer loyalty ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL page 47 BANG | BUSINESS PLAN – BANG MUSIC COMMERCE Eventually, fulfillment will move over to BANG merchandising through a dedicated 3rd party warehouse. EXPANDING A BANG ARTIST-BRANDED LIFESTYLE BRAND Today, many music artists and celebrities are using their fame to build fashion and lifestyle businesses. Some succeed. Others fail. Still others have initial success but have trouble sustaining success. The continuing notoriety of artist brands like Sean Jean, Rihanna and J Lo require a great deal of ongoing marketing, product development and continuous branding. Often the success or failure of an artist branded product line is tied to their star status. Maintaining a high profile and building a durable brand requires innovative products, quality goods, brilliant marketing and relentless brand exposure. Merchandising success is often more elusive than achieving and maintaining success as a musician or a recording artist. page 48 page 56 PROPRIETARY & CONFIDENTIAL PROPRIETARY & CONFIDENTIAL ©2016 its BANG, LLC BANG | BUSINESS PLAN SEVEN BANGTV Bang a Gong, Get it On ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL page 49 BANG | BUSINESS PLAN – BANGTV page 50 PROPRIETARY & CONFIDENTIAL ©2016 its BANG, LLC BANG | BUSINESS PLAN – BANGTV BANG A GONG. GET IT ON! BANGTV is a departure from traditional home shopping television, both from a programming perspective and from a business model perspective. Home shopping television has already proven to be one of the most profitable, if not the most profitable business model for generating revenue and building fan and consumer loyalty. In fact, QVC is the second-most-profitable television network after CBS, according to a recent Broadcasting & Cable Annual Survey. DELIVERING THE 24/7/364 MUSIC EXPERIENCE Home shopping is also the most profitable retail sector by an order-of-magnitude when compared to brick and mortar and Internet-only retail competitors, thanks to enormous sales velocity, higher product margins and lower costs of retail operation. Yet 24/7, “always live” shopping television & Internet program production comes at a substantial expense and requires the buying volume of a mature and loyal customer base. Shouldering “always live” production expenses would be cost-prohibitive for a new home shopping entry launching and deploying today. DRAMATIC INNOVATIONS IN ENTERTAINMENT PROGRAMMING DESIGN BANGTV is the next logical step in home shopping – an evolutionary advancement in digital commerce that offers dramatic innovations in entertainment-oriented programming design, new retail methodologies and time-shifted multi-platform programming delivery. ©2016 its BANG, LLC Range of prices offered Lowest .................................... $19.95 - $59.95 Mid ....................................... $69.95 - $299.95 Highest ............................... $399.95 - $1,000+ In 2015, QVC broadcasts live in the United States 24/7 [apart from the Christmas show which is pre-recorded] to more than 100 million households, and ranks as the number two [2] television network in terms of revenue [#1 in home shopping networks] behind CBS TV. QVC handled 199,000,000 calls, an average 341 calls per minute, and an average 3.5 items shipped per second. On the web their numbers are also impressive with 225,000,000 page views in their online community, and 400,000 online customer reviews. Back in 2013, QVC launched a timeshift channel called QVC Plus [the first such channel operated by a home shopping network], made available initially on cable provider Bright House Networks and satellite provider DirecTV, which broadcasts the channel’s programming on a three-hour tape delay. Josh Hallet Shop.org PROPRIETARY & CONFIDENTIAL page 51 BANG | BUSINESS PLAN – BANGTV INCREASED RETAIL CAPABILITIES & EXPANDED MUSIC ENTERTAINMENT BANGTV is a hybrid digital medium that can be found on the television set, the computer screen and the mobile phone. You can experience BANG on any one of these devices, but in aggregate they compliment each other in novel ways that enhance BANG’s brand presence, increase its retail capabilities, and expand the parameters of music entertainment. THE BANGTV EXPERIENCE BANG is a 21st Century digital brand whose iconic, entertainment fueled retail engine courses over a continuum of aired television programs which are then archived and made available as videopods-on-demand for TV, online, and mobile. BANGTV’s multichannel network is multi-functional – switching from scheduled shows to VOD from BANG’s archives to BANG “live” simulcasting on all three platforms. page 52 PROPRIETARY & CONFIDENTIAL “The roster of names on designer labels reads like the Billboard charts as a growing number of music celebrities become fashion entrepreneurs. At retail and on the runway, several fashion lines launched by music stars have made an impact.” Carla Hay Billboard ©2016 its BANG, LLC BANG | BUSINESS PLAN – BANGTV BANGTV will enchant viewers and compel music fans to become shoppers and discover our other platform realms – BANGNET and BANGMOB. As the lines of television, online, interactive, and on demand become blurred the business potential becomes extraordinary. BANGTV HAS THREE PRINCIPLE GOALS: •Become the world’s celebrity shopping channel beginning with the celebrity music lifestyle shopping network •Maximize artist-branded merchandise sales through scheduled television programming and VOD on the TV, the Web and Mobile •Teach music fans the unique roles BANGNET and BANGMOB have by creating a digital destination that is more than a network, more than a portal, more than phone. MUSIC ARTIST PARTICIPATION NEW COMMUNICATION STRATEGIES NATURALIZE RETAIL PROGRAMMING Active participation and endorsement from the music artists is key to bringing BANGTV programming to life; traditional home shopping [QVC/ HSN] numbers spike when music stars appear on these channels to sell their CD’s. BANGTV is a uniquely tuned-in entertainment environment that sets a new stage for millions of consumers to make personal connections with their favorite music artists. Our artist guests, hosts and producers will need to develop new communication strategies to naturalize the retailing dimension of the programming. ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL page 53 BANG | BUSINESS PLAN – BANGTV SOME ARTISTS ARE BETTER ADAPTED TO MARKETING THAN OTHERS BANG TV is creating an ideal selling environment for music artists to directly engage their music fans and become involved in the marketing of their products. Some artists are better suited than others to sales and promotion and BANG has developed a number of strategies to accommodate artists’ personal styles and comfort zones. PERSONALIZATION CLOSES DISTANCE BETWEEN VIEWERS AND ARTISTS Attractive, funny, engaging BANGTV hosts will set the tone and cadence of the shows for their featured guest artist[s]. The show can take a variety of paths, but the narrative should be working at closing the distance between artist and viewer. In telling the story behind the merchandise, the artist increases the value and meaning of the goods. BANG ARTIST RELATIONS HELP HARMONIZE THE TELLING AND SELLING For some music artists, their role in “the sale” will be more transparent. Music artist involvement will be established and refined by BANG’s Artist Relations Group, who will work in harmony to ensure the music artist and the music merchandising being presented are bringing something exciting to the music fan that has not been offered or showcased ever before. - page 54 PROPRIETARY & CONFIDENTIAL ©2016 its BANG, LLC BANG | BUSINESS PLAN – BANGTV BUILDING ARTIST RELATIONSHIPS “Unlike actors, who play different characters, music celebrities’ art is usually a reflection of their personalities, and their fashion choices are extensions of that.” Peter Moore, Vibe Magazine It is paramount to BANG’s success that our relationships with the artists, their managers, and the licensed merchandisers are collaborative and creative. It is BANG TV’s role to know how the music artist will be most comfortable presenting who they are and why their specific licensed music merchandise is clearly worth the music fan’s time, attention and interest. BANGTV MUCH MORE THAN MTV OR QVC BANGTV will not be MTV, nor will it be QVC or HSN. BANG TV will become its own viewer destination, one that incorporates valuable principles learned from Viacom’s music television channels and Liberty Media and IAC’s home shopping channels. CONNECTING WITH MUSIC FANS TO DISCOVER A WORLD OF MUSIC LIFESTYLE GOODS BANGTV will deliver a new, more lifestyle-oriented shopping experience that might be edgy or softer dependent upon the content and the artist’s personality. BANGTV’s ultimate goal is to connect with music fans and help them discover the world of music lifestyle goods that BANG delivers. We can almost hear our music fans saying “I found it on BANG”. ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL page 55 BANG | BUSINESS PLAN – BANGTV BANG TV – PRODUCTION Program Pod BANGTV programming will be taped and edited for the first several years of operation. We are pursuing this course for several reasons. 1] taped and edited programming is less expensive than live television. 2] Taped programming enables greater flexibility in re-purposing programming assets. 3] Music merchandise digital commerce has different dynamics than traditional home shopping. BANG’s viewers know their brands and are actively seeking brands that they are passionate about. BANGTV’s production strategy is the creation of one-hour original programs that feature artist-branded products. Each hour is taped then edited into a program pod that will air and re-air in rotation in a variety of different day parts over the course of one to four weeks. Each one hour program is subdivided into eight pod segments that will run approximately seven and a half minutes each. To deliver on this production strategy, the content of each pod segment will be independent so that each seven and a half minute pod segment can be repackaged with related ‘theme’ pod segments that intermix other artist segments. These thematic programs will air at different times and days of the week. BANGTV can combine similar thematic pod segments from multiple artists and create a unique new hour of programming: • Headbangers – Three or more artists from the heavy metal set [Example: Ozzy/Metallica/Iron Maiden] are grouped together for an hour of the best black T-shirts. page 56 PROPRIETARY & CONFIDENTIAL ©2016 its BANG, LLC BANG | BUSINESS PLAN – BANGTV • Four from the Heart – Four or more female artists [Example: Mariah/ Gwen/Mary J/Carrie] are grouped together to present their individual jewelry lines. • New Rock Gods – Three or more artists from the Rock set [Example: Hives/White Stripes/Pearl Jam] are re-edited together to showcase their latest leather jackets. As each one hour program pod is programmed and re-airs, BANG TV has the ability to replace the merchandise for sale as needed. By shooting pickups with the show’s host and updating the show graphics, BANG TV can adapt artist-driven pods with new merchandise. BANGTV – PROGRAM DEVELOPMENT AND PRODUCTION At launch, BANGTV will have artist-branded original programs edited and ready to air. Each program will be re-aired over a full quarter or a specific time frame working in different day parts [morning/afternoon/evening/ weekday/weekend] to engage the music fan through BANGTV’s programming week. Re-airing original programs, creating themed compilation programs in their original format or edited together will be based on the success of the specific music artist sales activities and their sales trends. A country music hour could consist of three country female or country male artists, all taken from their original one-hour shows, but edited to fit a new one-hour country theme program. What changes is the ability to update the music commerce offering so that it is never stale. The ability to also use footage that has not been used in the first programming edit, but sits in the edit library to adjust for any artist program to look new and original as required. As we proceed week to week, the number of programs moved onto the schedule could build quickly. ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL page 57 BANG | BUSINESS PLAN – BANGTV Factors used to determine which artist programs get active rotation will be predicated in part on: - Merchandise sales success - Deal points established by artists for re-airing and merchandise change outs - Available new merchandise to swap out on a pre-existing program - Breaking news related to the music artist that allows for timely programming insertion - Music fan requests REPURPOSING PODS INTO THEMATIC PROGRAMS BANGTV’s hour of programming will be built into eight independent pods. The ability to offer a variety of BANGTV thematic program-ming can be identified with 3 lead thematic approaches. Shuffling programming will be effective from an entertainment standpoint and efficient from a production expense perspective. • Similar Content Themes: Example – Take the “how they got started in music” pod segments from eight different music artists and compile them into a new one hour program. Or blending “in their own voice” pod segments from eight different artists to create a new hour of programming. • Similar Merchandise Themes: Many programs will be compiled from different music artist pod segments whose merchandise or lifestyle theme is similar. Thematic programs like “Best Black Concert T-Shirts Hour”, or the “Best Leather Jackets Hour” etc. • Similar Genre Themes: Compilation of music artist genre pods working artists of the same music genre [Country, Pop, Rock, Urban, and Dance, etc.]. page 58 PROPRIETARY & CONFIDENTIAL ©2016 its BANG, LLC BANG | BUSINESS PLAN – BANGTV CHANGING EXISTING PROGRAMS IF THE MERCHANDISE CHANGES As artist-branded merchandise lines change or new versions or assortments become available we will be able to make changes to reflect the new items. • Bang TV Hosts: Each programming pod has a BANG on-camera host that introduces the hour, introduces the artist, sets up pro-gram segments and closes the show. These host inserts can be re-shot to introduce and emphasize new merchandise. Certain parts of the pod will remain the same. We can always use B roll from the original artist taping to freshen programming as well. • Bang TV Screen: Each programming pod will have a series of on screen graphic packages that will serve a variety of purposes like description, pricing and product exposition, etc. BANGTV’s on screen displays will include changeable artist logos, product names, ordering details, pricing, our toll-free call center number and the www.itsbang.com online address on the left and bottom of the BANG TV screen. We also will have the option to display the artist’s latest CD and DVD. As music artist merchandise changes, information on the perimeter of the screen will change to reflect the new information. Keeping the taped portions of the pods intact, BANGTV will update host setups and change the information which will provide additional shelf-life to BANG TV’s artist programming. ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL page 59 BANG | BUSINESS PLAN – BANGTV 1-HOUR POD BREAKDOWN: RIHANNA POD APPROACH WITH INTERCHANGEABLE HOST ON CAMERAS In year 1 of BANG each hour of programming will be devoted to a single artist or band. Each hour will be broken into 8 different pods with each pod running roughly 7 minutes and 30 seconds. Here is the breakdown of the 7:30 pod: • Each pod will start with a host on camera for 1 minute. In that minute, the host will introduce the piece of merchandise for sale for about 45 seconds and then lead to the subject matter of the segment – this will take 15 seconds • For the next 2:45 we will air part 1 of the pod. During this time the merch item will be displayed on the left side of the screen along with purchase price, item #, phone #, web site address and other data • At the end of part 1 we will do another 1 minute host on camera to highlight the merch item for 55 seconds and then lead to part 2 of the pod for 5 seconds • Part 2 of the pod will pick up where part 1 left off and run for another 2:45 • here will not be a host on camera at the end of the pod. The host on camera for the next pod will serve as the transition • KEY 1: For re-air purposes we will shoot new host on cameras so that, if needed, the merch for sale can change every time • KEY 2: For re-air purposes the pod order can be changed. Additionally, any pod can be compiled with pods from other artists / bands. In essence: each pod will be created to stand alone page 74 page 60 PROPRIETARY & CONFIDENTIAL PROPRIETARY & CONFIDENTIAL ©2016 its BANG, LLC BANG | BUSINESS PLAN – BANGTV A 1 HOUR POD BREAKDOWN: RIHANNA POD 1 History: Rihanna Story Begins MERCHANDISE Rihanna inspired silver earrings POD 2 Rihanna - Good Girl Gone Bad Live in Concert DVD - Limited Edition Rihanna Cover Girl Make Up POD 6 RUN TIME 1:00 2:45 1:00 2:45 RUN TIME 1:00 2:45 1:00 2:45 Rihanna Totes Umbrella Rihanna Inspired Nike Sneakers Host On Camera History Pod Pt. 1 Host On Camera History Pod Pt. 2 POD 7 Rihanna Inspired Marc Jacobs Bag Host On Camera History Pod Pt. 1 Host On Camera History Pod Pt. 2 1:00 2:45 1:00 2:45 CONTENT Host On Camera History Pod Pt. 1 Host On Camera History Pod Pt. 2 CONTENT Host On Camera History Pod Pt. 1 Host On Camera History Pod Pt. 2 RUN TIME 1:00 2:45 1:00 2:45 CONTENT Host On Camera History Pod Pt. 1 Host On Camera History Pod Pt. 2 Rihanna Duets with JayZ MERCHANDISE CONTENT 1:00 2:45 1:00 2:45 Rihanna: Making a Music Video MERCHANDISE CONTENT POD 8 RUN TIME RUN TIME Skin care products Host On Camera History Pod Pt. 1 Host On Camera History Pod Pt. 2 Rihanna - The New Album MERCHANDISE ©2016 its BANG, LLC 1:00 2:45 1:00 2:45 Rihanna and Cover Girl MERCHANDISE CONTENT History: The Song That Launched Her Career MERCHANDISE POD 4 RUN TIME History: Donna Summer Inspires Rihanna MERCHANDISE POD 3 POD 5 RUN TIME 1:00 2:45 1:00 2:45 CONTENT Host On Camera History Pod Pt. 1 Host On Camera History Pod Pt. 2 Rihanna at Home MERCHANDISE Rihanna Perfume RUN TIME 1:00 2:45 1:00 2:45 CONTENT Host On Camera History Pod Pt. 1 Host On Camera History Pod Pt. 2 PROPRIETARY & CONFIDENTIAL page 61 BANG | BUSINESS PLAN – BANGTV A 6 HR TELEVISION PROGRAMMING SAMPLE: 6:00AM 7:00AM ARTIST ALICIA KEYS ARTIST CHRISTINA AGUILERA MUSIC CATEGORY ARTIST 9:00AM ARTIST 10:00AM ARTIST ARTIST MILEY CYRUS JONAS BROTHERS CHRIS BROWN MUSIC CATEGORY MUSIC CATEGORY MUSIC CATEGORY MUSIC CATEGORY POP POP POP POP POD POD POD POD POD PRODUCT SALE 11:00AM BRITNEY SPEARS R&B INTERPRETATION OF SONGS page 62 MUSIC CATEGORY 8:00AM POP/R&B POD MUSIC VIDEOS ARTIST STORIES MUSIC VIDEOS MUSIC VIDEOS MUSIC VIDEOS PRODUCT SALE PRODUCT SALE PRODUCT SALE PRODUCT SALE PRODUCT SALE 6:00 - 6:20 7:00 - 7:20 8:00 - 8:20 9:00 - 9:20 10:00 - 10:20 11:00 - 11:20 Artist Inspired Ring Artist Endorsed Perfumes Backpack Artist Endorsed Shampoo Baseball Jersey Bag 6:20 - 6:40 7:20 - 7:40 8:20 - 8:40 9:20 - 9:40 10:20 - 10:40 11:20 - 11:40 Artist Inspired Necklace Undies Hair Accessory TIn Artist Endorsed Face Cream Burning Up Tour Book Autographed Poster 6:40 - 6:59 7:40 - 7:59 8:40 - 8:59 9:40 - 9:59 10:40 - 10:59 11:40 - 11:59 Artist Inspired Bracelet Ladies Zip-Up Hoodie Charm Bracelet Artist Endorsed Hand Cream Pewter Crest Bracelet Hoodie PROPRIETARY & CONFIDENTIAL ©2016 its BANG, LLC BANG | BUSINESS PLAN – BANGTV A 6 HR TELEVISION PROGRAMMING SAMPLE: 12:00PM ARTIST NELLY FURTADO MUSIC CATEGORY POP/R&B POD 1:00PM ARTIST 2:00PM ARTIST 3:00PM ARTIST 4:00PM 5:00PM ARTIST ARTIST CHRIS DAUGHTRY JANET JACKSON SHERYL CROW BEYONCE SPICE GIRLS MUSIC CATEGORY MUSIC CATEGORY MUSIC CATEGORY MUSIC CATEGORY MUSIC CATEGORY ROCK POD POP/R&B COUNTRY POD POP/URBAN POP POD POD IN THEIR OWN WORDS HISTORY OF THE ARTIST ARTIST FASHION PRE-ARTIST STORIES IN THEIR OWN WORDS ARTIST FASHION PRODUCT SALE PRODUCT SALE PRODUCT SALE PRODUCT SALE PRODUCT SALE PRODUCT SALE 12:00 - 12:20 Replication of Furtado 14K Gold Bracelet 12:20 - 12:40 Replication of Furtado 14K Gold Bracelet 12:40 - 12:59 Replication of Furtado 14K Gold Earrings REPEAT ©2016 its BANG, LLC 1:00 - 1:20 2:00 - 2:30 Exclusive Concert T-Shirt Artist Endorsed Face Cream 3:00 - 3:20 Replication of Crow Silver Chain Belt 4:00 - 4:20 5:00 - 5:30 Beyonce Perfume Spice Girls Inspired Perfume 1:20 - 1:40 2:30 - 2:59 3:20 - 3:40 4:20 - 4:40 5:30 - 5:59 Exclusive Concert Backpack Artist Endorsed Hand Cream Replication of Crow Silver Earrings Beyonce Lipstick Spice Girls Tote Bag 1:40 - 1:59 3:40 - 3:59 4:40 - 4:59 Exclusive Concert Bracelet Replication of Crow Designer Watch with Silver Strap Beyonce Hand Cream REPEAT REPEAT PROPRIETARY & CONFIDENTIAL page 63 BANG | BUSINESS PLAN – BANGTV A 6 HR TELEVISION PROGRAMMING SAMPLE: 6:00PM ARTIST ARTIST MARIA CAREY DIXIE CHICKS MUSIC CATEGORY MUSIC CATEGORY POP/R&B POD INTERPRETATION OF SONGS PRODUCT SALE page 64 7:00PM COUNTRY POD 8:00PM ARTIST PRINCE MUSIC CATEGORY POP/R&B POD 9:00PM ARTIST JUSTINE TIMBERLAKE MUSIC CATEGORY 10:00PM ARTIST THE ROLLING STONES MUSIC CATEGORY POP ROCK POD POD IN THEIR OWN WORDS MUSIC VIDEOS MUSIC VIDEOS PRODUCT SALE PRODUCT SALE PRODUCT SALE IN THEIR OWN WORDS PRODUCT SALE 11:00PM ARTIST U2 MUSIC CATEGORY ROCK POD HISTORY OF THE BAND PRODUCT SALE 6:00 - 6:20 7:00 - 7:30 8:00 - 8:20 9:00 - 8:20 10:00 - 10:20 11:00 - 11:20 Artist Inspired Necklace Artist Inspired Perfume Sunglasses Backpack Leather Jacket October Album Lithograph 6:20 - 6:40 7:30 - 7:59 8:20 - 8:40 9:20 - 9:40 10:20 - 10:40 11:20 - 11:40 Artist Inspired Jeans Artist Inspired Face Cream Hat Track Jacket Sneakers War Album Lithograph 6:40 - 6:59 8:40 - 8:59 9:40 - 9:59 10:40 - 10:59 11:40 - 11:59 Artist Inspired Cotton Top Autograph & Framed Poster Calendar Gold Chain with Emblem Special Edition T-Shirts PROPRIETARY & CONFIDENTIAL (men, women) ©2016 its BANG, LLC BANG | BUSINESS PLAN – BANGTV A 6 HR TELEVISION PROGRAMMING SAMPLE: 12:00AM ARTIST AC/DC MUSIC CATEGORY HARD ROCK POD 1:00AM ARTIST 2:00AM ARTIST 3:00AM ARTIST 4:00AM 5:00AM ARTIST ARTIST WHITE STRIPES OZZY OSBOURNE RAMONES GOOD CHARLOTTE THE VINES MUSIC CATEGORY MUSIC CATEGORY MUSIC CATEGORY MUSIC CATEGORY MUSIC CATEGORY ROCK POD HARD ROCK POD ROCK ROCK POD POD ROCK POD HISTORY OF THE BAND MUSIC VIDEOS IN THEIR OWN WORDS HISTORY OF THE BAND ARTIST STORIES FAN CONTRIBUTION PRODUCT SALE PRODUCT SALE PRODUCT SALE PRODUCT SALE PRODUCT SALE PRODUCT SALE 12:00 - 12:30 1:00 - 1:20 2:00 - 2:20 3:00 - 3:30 4:00 - 4:20 8:00 - 8:20 Guitar Hero Statue 48 Record Box Exclusive Black T-Shirt DVD 2 Pack Runner Shorts White Logo Cap 12:30 - 12:59 1:20 - 1:40 2:20 - 2:40 Pajama Pants Flash Camera Exclusive Black Leather Wrist Band 1:40 - 1:59 2:40 - 2:59 4:40 - 4:59 8:40 - 8:59 Official Concert T-Shirt Exclusive Black Leather Pants “Messy Bars” T-Shirt Kids Full T-Shirt (men, women) (guys) (men, women) (men, women) 3:30 - 3:59 4:20 - 4:40 8:20 - 8:40 Hoodie + T-Shirt Combination “Take Over” Cadet Hat White Logo T-Shirt (men, women) (men, women) (men, women) (men, women) Black Leather Skirt (girls) REPEAT ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL page 65 BANGTV 7 DAY TELEVISION PROGRAMMING SAMPLE MONDAY Time Slot #1: 6:00AM ARTIST: GARTH BROOKS Music Category: Country Pod: Band Fashion (#7} Product Sale: 6:00 - 6:20 Replication of Garth Cowboy Hat (Male/Female) 6:20 - 6:40 Replication of Garth Cowboy Scarf (Male/Female) 6:40 - 6:59 Replication of Garth Cowboy Belt Buckle (Male/Female) Time Slot #2: 7:00AM Product Sale: 9:00 - 9:20 Replication of Crow Silver Chain Belt 9:20 - 9:40 Replication of Crow Silver Earrings 9:40 - 9:59 Replication of Crow Designer Watch with Leather Strap Time Slot #5: 10:00AM ARTIST: NELLY FURTADO Music Category: Pop/R&B Pod: In Their Own Words (#2) Product Sale: 10:00 - 10:20 Replication of Furtado 14K Gold Necklace 10:20 - 10:40 Replication of Furtado 14K Gold Bracelet 10:30 - 10:59 Replication of Furtado 14K Gold Earrings ARTIST: CARRIE UNDERWOOD Music Category: Country Pod: Band Fashion (#7) Product Sale: 7:00 - 7:20 Artist Inspired Blouses 7:20 - 7:40 Artist Inspired Scarf (Female) 7:40 - 7:59 Artist Inspired Silver Bracelet (Female) Time Slot #3: 8:00AM Time Slot #6: 11:00AM ARTIST: RIHANNA Music Category: Pop/R&B Pod: History of the Artist (#1) Product Sale: 11:00 - 11:20 Artist Inspired Designer Pajamas 11:20 - 11:40 Artist Inspired Designer Bathrobe 11:40 - 11:59 Artist Inspired Designer Slippers ARTIST: TRISHA YEARWOOD Music Category: Country Pod: Interpretation of Songs (#3) Product Sale: 8:00 - 8:20 Replication of Skirt featured in Music Video “I Would Have Loved You Anyway” #1 Charted Country Album 8:20 - 8:40 Replication of Boots featured in Music Video - “I Would Have Loved You Anyway” #1 Charted Country Album 8:40 - 8:59 Replication Leather Jacket featured in Music Video - “I Would Have Loved You Anyway” #1 Charted Country Album Time Slot #7: 12:00PM (Noon) ARTIST: FLEETWOOD MAC Music Category: Rock Pod: Fan Contributions (#4) Product Sale: 12:00 - 12:20 Autograph Acoustic Guitar (limited edition) 12:20 - 12:40 CD Catalog in special case (12 CD’s in leather carrying case) 12:40 -12:59 DVD Special Package (3 DVD’s of Music Video Collection in leather carrying case) Time Slot #8: 1:00PM Time Slot #4: 9:00AM ARTIST: SHERYL CROW Music Category: Rock Pod: Pre-Artist Stories (#10) page 82page 66 PROPRIETARY & CONFIDENTIAL Product Sale: 1:00 - 1:20 Artist Exclusive Concert Baseball Cap 1:20 - 1:40 Artist Exclusive Concert Designer Jeans 1:40 - 1:59 Artist Exclusive Concert T-Shirt ARTIST: COLDPLAY Music Category: Rock Pod: In Their Own Words (#2) Time Slot #9: 2:00PM ARTIST: ENYA Music Category: Pop Pod: Music Videos (#5) Product Sale: 2:00 - 2:20 Replication of Enya Gold & Silver Ankle Bracelet 2:20 - 2:40 Replication of Enya Silver Earrings 2:40 - 2:59 Replication of Enya Gold Earrings Time Slot #10: 3:00PM (Repeat) ARTIST: SHERYL CROW Music Category: Rock Pod: Pre-Artist Stories (#10) Product Sale: 3:00 - 3:20 Replication of Crow Silver Chain Belt 3:20 - 3:40 Replication of Crow Silver Earrings 3:40 - 3:59 Replication of Crow Designer Watch with Silver Strap Time Slot #11: 4:00PM ARTIST: JANET JACKSON Music Category: Pop/R&B Pod: Artist Fashion (#7) Product Sale: 4:00 - 4:30 Artist Endorsed Face Cream 4:30 - 4:59 Artist Endorsed Hand Cream Time Slot #12: 5:00PM ARTIST: GWEN STEFANI Music Category: Pop/Rock Pod: In Their Own Words Product Sale: 5:00 - 5:30 Exclusive Lamb Tops 5:30 - 5:59 Exclusive Lamb Sweaters ©2016 its BANG, LLC BANGTV 7 DAY TELEVISION PROGRAMMING SAMPLE Time Slot #13: 6:00PM (Repeat) ARTIST: FLEETWOOD MAC Music Category: Rock Pod: Fan Contributions (#4) Product Sale: 6:00 - 6:20 Autograph Acoustic Guitar (limited edition) 6:20 - 6:40 CD Catalog in special case (12 CD’s in leather carrying case) 6:40 - 6:59 DVD Special Package (3 DVD’s of Music Video Collection in leather carrying case) Time Slot #14: 7:00PM ARTIST: NICKELBACK Music Category: Rock Pod: History of the Artist (#1) Product Sale: 7:00 - 7:20 Artist Inspired Designer Leather Jacket (1 design, two colors) 7:20 - 7:40 Exclusive Concert T Shirt (3 designs) 7:40 - 7:59 Exclusive Singed Concert Poster (1 design) Time Slot #15: 8:00PM (Repeat) ARTIST: COLDPLAY Music Category: Rock Pod: In Their Own Words (#2) Product Sale: 8:00 - 8:20 Artist Inspired Baseball Cap 8:20 - 8:40 Artist Inspired Designer Jeans 8:40 - 8:59 Artist Inspired T-Shirt Time Slot #16: 9:00PM ARTIST: DAVE MATTHEWS BAND Music Category: Rock Pod: Interpretation of Songs (#3) Product Sale: 9:00 - 9:20 Artist Inspired Sneakers 9:20 - 9:40 Artist Inspired Long Sleeve Shirt 9:40 - 9:59 Songbook (24 of DMB Greatest hits) + Karaoke CD ©2016 its BANG, LLC Time Slot #17: 10:00PM (Repeat) ARTIST: RIHANNA Music Category: Pop/R&B Pod: History of the Artist (#1) Product Sale: 10:00 - 10:20 Artist Inspired Designer Pajamas 10:20 - 10:40 Artist Inspired Designer Bathrobe 10:40 - 10:59 Artist Inspired Designer Slippers Time Slot #18: 11:00PM (Repeat) ARTIST: NELLY FURTADO Music Category: Pop/R&B Pod: In Their Own Words (#2) Product Sale: 11:00 - 11:20 14K Gold Necklace 11:20 - 11:40 14K Gold Bracelet 11:30 - 11:59 14K Gold Earrings Time Slot #19: Midnight ARTIST: BON JOVI Music Category: Rock Pod: History of the Band Product Sale: 12:00 - 12:30 Artist Inspired Designer Leather Jacket 12:30 - 12:59 Artist Inspired Designer Belt Buckle Time Slot # 20: 1:00AM ARTIST: OZZY OSBORNE Music Category: Hard Rock Pod: In Their Own Words Product Sale: 1:00 - 1:20 Exclusive Black T Shirt 1:20 - 1:40 Exclusive Black Leather Wrist Bank 1:40 - 1:59 Exclusive Black Leather Pants (guys) Exclusive Black Leather Skirts (girls) Time Slot #21: 2:00AM (Repeat) ARTIST: CARRIE UNDERWOOD Product Sale: 2:00 - 2:20 Artist Inspired Blouses 2:20 - 2:40 Artist Inspired Scarf 2:40 - 2:59 Artist Inspired Silver Bracelet Time Slot #22: 3:00AM (Repeat) ARTIST: GWEN STEFANI Music Category: Pop/Rock Pod: In Their Own Words Product Sale: 3:00 - 3:30 Exclusive Lamb Tops 3:30 - 3:59 Exclusive Lamb Sweaters Time #23: 4:00AM (Repeat) ARTIST: GARTH BROOKS Music Category: Country Pod: Band Fashion (#7} Product Sale: 4:00 - 4:20 Replication of Garth Cowboy Hat (Male/Female) 4:20 - 4:40 Replication of Garth Cowboy Scarf (Male/ Female) 4:40 - 4:59 Replication of Garth Cowboy Belt Buckle (Male/Female) Time Slot #24: 5:00AM (Repeat) ARTIST: TRISHA YEARWOOD Music Category: Country Pod: Interpretation of Songs (#3) Product Sale: 5:00 - 5:20 Replication of Skirt featured in Music Video - “I Would Have Loved You Anyway” #1 Charted Country Album 5:20 - 5:40 Replication of Boots featured in Music Video - “I Would Have Loved You Anyway” #1 Charted Country Album 5:40 - 5:59 Replication Leather Jacket featured in Music Video - “I Would Have Loved You Anyway” #1 Charted Country Album Music Category: Country Pod: Band Fashion (#7) PROPRIETARY & CONFIDENTIAL page 67 BANG | BUSINESS PLAN EIGHT BANGNET page 68 PROPRIETARY & CONFIDENTIAL ©2016 its BANG, LLC BANG | BUSINESS PLAN - BANGNET ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL page 69 BANG | BUSINESS PLAN - BANGNET BANGNET While BANGTV is the voice of the BANG branded enterprise – the music fan attention-getter, BANGNET is the lead ‘gateway’ to all things music fans can find and purchase with their BANGNET shopping carts. BANGNET is the online destination – the functional center of the overall BANG universe – the platform through which a sizable percentage of television sales activities will also occur. BANGMOB mobile sales activities will be driven to BANGNET for music fans to make their purchases. BANGNET is the axis of BANG’s merged-channel, gateway retail operations, delivering licensed music artist merchandising access with full 24/7/365 transactional services to make the ‘personal engagement’ with BANG the most cost effective environment. While BANGTV has the theatrical advantages that television brings, a full service directory of programming will also be identified and presented through BANGNET’s video on demand [VOD] streaming, represented both as current or previously broadcast segments on BANG TV that are in active rotation. BANGNET offers a variety of features for searching and discovering the music fan’s favorite artists and the merchandise they want to purchase. BANGNET’s merchandise categories are organized by music genre with drop down menus enabling the music fan to become both pre-planned and impulse shoppers in search of their favorite artists, their favorite merchandise and the services they might wish to put in their BANGNET shopping cart page 70 PROPRIETARY & CONFIDENTIAL ©2016 its BANG, LLC BANG | BUSINESS PLAN - BANGNET BANG anticipates that music artists with established and extensive licensed music merchandise lines will be given increased rotation on BANG TV, supported with easy to find VOD, in concert with a proper showcase of their licensed merchandise offerings on BANGNET, allowing the full offering from each individual music artist to be found and obtainable in the BANGNET web universe. BANGNET – RETAIL MODEL The underlying success factor in BANG’s multi-channel retail is a seamless customer brand experience. BANGNET will offer the ability to differentiate between programming and merchandising-offering attributes across its three marketing channels [TV/Web/Mobile] by simply making the online shopping experience easy to use and navigate. BANGNET will ensure that BANG delivers on its promise of being the “gateway,” a single licensed, music merchandise clearing house with great effectiveness and efficiency. BANG NET – MUSIC ARTIST LICENSED MERCHANDISE SELECTION BANGNET will be built on the proposition that if you are looking for that easy-to-find or that hard-to-find licensed music merchandise, BANGNET’s ability to “sort and tag” by music artist, music genre and music merchandise category, will become the most proactive licensed music merchandising search engine being offered anywhere. ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL page 71 BANG | BUSINESS PLAN - BANGNET BANGNET will deliver the full range of licensed music merchandise housed inside its online universe with all product being presented for sale. BANGNET will feature the most cost effective and profitable way for both music fans and BANG to exchange information and product information. BANGNET will become the most respected and tested gateway for BANG’s own Fan Club community, in addition to providing features for auctions, product specials, travel packages and other exclusive offerings. BANGNET is also where BANGMOB users will be directed initially, as the mobile retail functionality grows and matures. BANGNET – TRANSACTIONAL INTERFACE The center of the BANGNET retail marketplace, where the information is exchanged and transactions are conducted between interested music fans, starts with simply educating each music fan as to what is available, what it costs, and how long it will take for their purchased licensed music merchandise to arrive at their preferred destination. BANGNETS customer service system will put the music fan and the music shopper in touch with easy to follow instructions, providing information that will quickly address and ensure the buyer can go from thinking about making a BANG purchase, to actually make the purchase with real ease and no frustration. BANGNET music fan shoppers will be smartly matched with exactly what they want to purchase and know they will get full satisfaction through out the entire buying and shipping process. page 72 PROPRIETARY & CONFIDENTIAL ©2016 its BANG, LLC BANG | BUSINESS PLAN - BANGNET BANGNET is built to provide a powerful set of tools which allow several ways to find or match the music fan with the right licensed music merchandise: • Profile Matching: All music fans will create their personal profiles. The music fans will define their needs and desires so that BANG can correctly display the products and services to satisfy these requests. The BANGNET solution creates “best of product” matching profiles and produces choices for each product or service requested. These best of product offerings are made available to engage each music fan profile as it comes on stream. All music fans and the requested music artist licensed music merchandise will be set up and communicated through BANGNETS communications tools and online retail channels. • Communications: BANGNET communication channels and tools allow two directional exchanges between music fans and BANG’s licensed music merchandising The channels that the tools drive include direct mail, email, fax, phone with both operators and Interactive Voice Recognition, wireless for both TXT and SMS, and Direct-to-Desktop. • Search Engine: The same powerful BANGNET marketplace solution that allows music fan to match up to licensed music merchandise also allows ad hoc searches. The search engine allows specific targeting based on product category, product specialty, product uniqueness [i.e. one of a kind], special music fan service needs etc. Music fan reviews of music artist licensed merchandise is another popular search criteria. Music fan insight, description of the product purchased, price, availability and product warranties, will help BANG music fans become better educated, knowing what is sold with certifications or warranties in case they need to return a ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL page 73 BANG | BUSINESS PLAN - BANGNET product purchased on BANGNET. Once profile matches have been created and direct communications established, BANGNET tools focus on the steps required to service a music fan moving from being a shopper to becoming a loyal and ongoing BANG Fan Club member by automating all the shopper information so it is available 24/7/365. • Customer Relationship Management [CRM]: The music fan and the music artists licensed merchandiser benefit from the Customer Relationship Management [CRM] solution created by BANGNET. Profiles are the core of CRM, and are the collection points for details used for searching, matching, and communications. Specific profiles are also the starting point used to create BANG music fan audits [a statement of current usage and purchasing rates] and then identifying what the music fan really wants to purchase so that the RFP [Request For Product] can be offered for music artist licensed merchandisers consideration. • Payment Plan: Music fans must understand the financial requirements— what does it cost, how do I make the payment, [especially if the BANG Fan Club is going to offer special personalized services]. BANGNET will develop incentive plans with the full knowledge and understanding of the licensed merchandiser COG’s [cost of goods] and, more importantly, in this type of transaction, the ROI [Return On Investment]. How the music fan pays will be effected by the incentives, like quantity of merchandise purchased during any one or many transactions or service discounts, rebates, and special credits page 74 PROPRIETARY & CONFIDENTIAL ©2016 its BANG, LLC BANG | BUSINESS PLAN - BANGNET page 75 PROPRIETARY & CONFIDENTIAL ©2016 its BANG, LLC BANG | BUSINESS PLAN - BANGNET ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL page 76 BANG | BUSINESS PLAN - BANGNET page 77 PROPRIETARY & CONFIDENTIAL ©2016 its BANG, LLC BANG | BUSINESS PLAN - BANGNET ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL page 78 BANG | BUSINESS PLAN - BANGNET page 79 PROPRIETARY & CONFIDENTIAL ©2016 its BANG, LLC BANG | BUSINESS PLAN - BANGNET ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL page 80 BANG | BUSINESS PLAN - BANGNET page 81 PROPRIETARY & CONFIDENTIAL ©2016 its BANG, LLC BANG | BUSINESS PLAN - BANGNET ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL page 82 BANG | BUSINESS PLAN - BANGNET PARTIAL LIST OF MUSIC ARTISTS WITH CLOTHING, JEWELRY & COSMETICS LINES “As the number of hip-hop and rock stars in the clothing business grows, it is getting harder for shoppers to know whether they’re in Macy’s or Tower Records.” Tracie Rozhon, NY times •Lily Allen •Jay-Z •Britney Spears •Mel B aka Scary Spice •Jonas Brothers •Stars and Straps •Patti Labelle •Gwen Stefani •Jennifer Lopez •Dave Stewart •LL Cool J •Rod Stewart •Ludacris •Justin Timberlake •Benji and Joel Madden •Tico Torres of Bon Jovi •Madonna •Ian Watkind of The Lost Prophets •Victoria Beckham aka Posh Spice •Chester Bennington of Linkin Park •Beyonce •Blink 182 •Bono •Bow Wow •Mariah Carey •Kenney Chesney •Sean Combs aka P Diddy and Puffy •Sheryl Crow •Miley Cyrus •DMX •Snoop Dog •Hilary Duff •Eminem •Eve •50 Cent •Janet Jackson ©2016 its BANG, LLC •Cedella Marley •Rohan Marley •Master P •Reba McEntire •M.I.A. •Kylie Minogue •Nelly •Nickleback •Rihanna •Ryan Seacrest •Kane Robinson •Busta Rhymes •Gene Simmons •Pete Wentz •Kanye West •will.i.am of Black Eyed Peas •Amy Winehouse •Wu-Tang Clan In addition: •Fender Guitars branded clothing line •Gibson Guitars branded clothing line •Grammy Awards [NARAS-branded clothing line] •Russell Simmons •Jessica Simpson •Matt Sorum of Velvet Revolver PROPRIETARY & CONFIDENTIAL page 83 BANG | BUSINESS PLAN NINE BANGMOB Reach For The Stars page 84 PROPRIETARY & CONFIDENTIAL ©2016 its BANG, LLC BANG | BUSINESS PLAN - BANGMOB ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL page 85 BANG | BUSINESS PLAN - BANGMOB YOU SAY GOODBUY AND I SAY HELLO! Thanks to Apple’s hugely successful 5S iPhone and its earlier releases, coupled with Google’s Android open platform that offered new devices from Samsung, LG, Motorola, and many others, the mobile Web with the over 2M APP’s is getting a lot more crowded and a lot more useful. With Microsoft taking ownership of Nokia, Blackberry to be acquired, has made the mobile platform the lead contender for all new content and programming experiences. Web pages that were originally designed for desktop browsers. BANG will now take the Mobile Web Platform and utilize it to maximize its presentation and one-stop gateway commerce clearing house position. And with more speed and endurance, BANGTV’s programming content can play much more smoothly [flash] without interruption. BANGMOB APP will create a clear point of distinction offering a highly exciting, easy to navigate and very attractive shopping experience. The mobile platform also sets up the ability to offer live customer services to ensure there is no stall or disruption to place an BANGMOB order. “Wait. Scroll. Scroll. Tap-tap. Wait. Wait. For many years, that was the typical experience of someone surfing the Web using a mobile phone or PDA, at least in the U.S. Although some content providers offered stripped-down versions of their sites specially designed for mobile users, most did not, and reading a page designed to be viewed on a PC on the small screen was about as much fun as sitting in a dark room reading a newspaper by flashlight.” Jesse Scanlon Business Week To BANG’s advantage, the mobile environment is a constant and rapid changing platform in which to smartly, creatively and intelligently present celebrity commerce product and services in the most imaginative and smart way possible. page 86 PROPRIETARY & CONFIDENTIAL ©2016 its BANG, LLC BANG | BUSINESS PLAN - BANGMOB Because software now controls the platform, it is able to improve the experience and introduce new features or applications more quickly than before. Mobile market testing provides excellent proof of concept that confirms that with the proper mobile tools and a simplified intuitive user interface mobile video is explosive as a display medium and a subscriber network aggregator. E!, the entertainment news cable channel and Web site, like many others, offers celebrity news for the mobile platform users. Now text alerts are the norm with over 130,000 subscribers, sending them as many as three alerts a day. Of significant interest to BANG, E! broadcasted live to mobile phones from the red carpet at the primetime Emmy Awards each year. Verizon Wireless estimates a few years ago that mobile content was consumed mostly by mobile users under than 25 years old. Today that figure is more like 44+ years old. “People are getting more adept at using their phones – and phones are getting better,” said Verizon’s digital media marketing at Verizon Wireless. This upward migration [that includes Millennial, Gen Xers and Boomers] supports BANG’s targeting strategy that sees older demographics contributing to BANG’s sales activity as robustly as the under 25s. [Source: Razorfish 2015 Digital Outlook Report]. ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL page 87 BANG | BUSINESS PLAN - BANGMOB The new and growing merged-channel retail model is a perfect storm for BANG. Mobile can finally deliver entertainment experience and shopping tools that put easy-to-use merchandise ordering systems in the hands of millions of sophisticated users. BANG Mobile is the ultimate tool for reaching its existing music fan customers as well as its loyal fans and subscribing BANG Fan Club members. page 88 PROPRIETARY & CONFIDENTIAL One of the most popular mobile sites for celebrity news comes from many sources including Yahoo Entertainment, which recently had 44.2 million visitors, according to Nielsen. Yahoo’s mobile search strategy and services leadership, said that 4 out of every 10 people used one Search, Yahoo’s mobile service, to find entertainment and celebrity news. By contrast, Yahoo Sports had 21 million visitors and Yahoo Finance had 1.5 million, Nielsen reported. Such services are at the intersection of two powerful demographic trends that provide enormous potential for BANG’s mobile strategy: the young are entertainment obsessed, and they are very addicted to their mobile phones. They cannot live without it. Los Angeles Times ©2016 its BANG, LLC BANG | BUSINESS PLAN - BANGMOB TOP 10 CATEGORIES OF INTEREST FOR MOBILE VIDEO PROGRAMMING – Q4 2015 Category: Percent of Users Interested Comedy11% Music 10% Cinema-released movies 9% Action/adventure9% News 8% User-generated content 8% Movie trailers 8% Entertainment news 7% Sci-Fi/horror7% Sports7% ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL page 89 BANG | BUSINESS PLAN TEN BANG MARKETING/ COMMERCE/CRM TECHNOLOGY 2.0 You Can’t Stop The Music You Can’t Stop The Music page 90 PROPRIETARY & CONFIDENTIAL ©2016 its BANG, LLC BANG | BUSINESS PLAN - MARKETING BANG’s marketing, commerce and customer services platform is designed to reduce organizational boundaries in order to adapt to changes from traditional retail business functions in the areas of communications technology, and organization. The underlying success factor in multichannel retail – from a consumer perspective is a seamless customer brand experience. The underlying success factor in multi-channel retail from an internal business perspective is a single customer information and intelligence view. BANG has developed the ability to differentiate between programming and merchandising-offering attributes across different channels. BANG’s channel synchronization ensures consistency across television, online and mobile touch points. ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL page 91 BANG | BUSINESS PLAN - MARKETING BANG is a multi-channel marketplace that collects orders from all places and centralizes the transactional process, creating an incredibly efficient and productive CRM model. BANG’s customer services-based system is specifically designed at the top to generate offers and orders and at center to streamline order processing and customer information and intelligence development. BANG’s offer engine starts the process by converting a web browser into a shopping experience. By targeting offers and awareness to BANG users by their previous purchases and web views BANG adds value to sales presentations and increases the overall commerce of the network. BANG’s targeting increases operational efficiency by lowering the number of offers and increasing the numbers of sale conversions. Today, the best way to broadcast the message and the worst way to take an order is through television and when television becomes truly interactive our expertise in Internet, phone, and wireless will make BANG a breakout market leader – an ecommerce specialist in the emerging interactive television/online/ mobile world. BANG targets consumers based on prior order information and by following their online behavior when they visit BANGNet. intelligence by combining buying information with viewing habits and category preferences. BANG’s marketing, commerce and customer services platform is purpose-built to turn visitors into shoppers, shoppers into buyers, buyers into repeat customers and to convert music fans into BANG fan club members. page 92 PROPRIETARY & CONFIDENTIAL ©2016 its BANG, LLC BANG | BUSINESS PLAN ELEVEN FINANCIALS ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL page 93 BANG | BUSINESS PLAN - FINANCIALS FINANCIALS REVENUES – OVERVIEW BANG is projecting annual revenues of $40M in YR 1 of operation and growing to $700M by YR 5. These assumptions are based on conservative estimates of average sales price per product and the average number of transactions per minute/hour/day for Internet and TV. We are showing $64.00 [with shipping] as the average BANG merchandise Internet purchase price for YR 1 to a $142 average purchase in YR 5. The music lifestyle products presented through BANG will vary across a wide spectrum of categories, with the lowest category average price from printed items [$30.00] to the highest category average price from jewelry items [$106.00]. The average sale-to-consumer price will be in line with the licensed merchandise sold by the music artists at the live concert venue and through their established websites. BANG merchandise that is also offered exclusive-to-sell will continue to support the $54.00 average purchase [exclusive of S&H]. BANG is delivering “music artist branded’ music commerce products and services versus a non-branded item. The simple example would be a baseball cap. A plain black baseball cap, in the open market would fetch anywhere from $5.00 to $7.00 dollars. That same black baseball cap with a U2 or Madonna logo will fetch upwards of $20.00 to $35.00. BANG is presenting OLM [Official Licensed Merchandise] for each music artist. Merchandise that is well made and not perceived in any way as being subpar. The two top home shopping channels, HSN and QVC, boast approximately an average of 228 TPM [transactions per minute] capitalizing on an average $61 average purchase price [HSN] to $41 average purchase price [QVC] in the USA. page 94 PROPRIETARY & CONFIDENTIAL NOTE: QVC has seen up to 341 TPM per minute during the holiday selling seasons [Thanksgiving / Christmas / Valentines, etc.] especially when a high profile celebrity [i.e Mariah Carey] have presented on the channel. HSN has also seen a significant increase in TPM during the same selling seasons. ©2016 its BANG, LLC BANG | BUSINESS PLAN - FINANCIALS REVENUES – MERCHANDISING BANG’s forecasted TPM is: Year over Year Revenue Growth Growth is calculated as: YR 1 to YR 2 ....................... 179% YR 2 to YR 3 ......................... 93% YR 3 to YR 4 ......................... 80% YR 4 to YR 5 ......................... 84% This is predicated on BANG being discovered in YR 1 then building a loyal and growing fan base based on the brand’s ability to demonstrate that if “the music fits, wear it” strategy. As BANG sees more Internet & TV distribution, the number of accumulated new TV viewers, Internet and mobile wireless users will all see an increase. ©2016 its BANG, LLC YEAR ONE Internet 0.3 TV 11 YEAR TWO Internet 0.9 TV 16 YEAR THREE Internet 1.7 TV 23 YEAR FOUR Internet 2.8 TV 35 YEAR FIVE Internet 3.7 TV 57 PROPRIETARY & CONFIDENTIAL page 95 BANG | BUSINESS PLAN – FINANCIALS MERCHANDISING REVENUE CATEGORIES BANG merchandise will be sold through thirteen [13] categories to determine the COGS [Cost of Goods Sold]: Category Average Price Est. % of Sale YR 1 – YR 5 Apparel $44.8345 Accessories $58.7510 Footwear $86.00 5 Printed $30.005 Jewelry $106.67 10 Electronics $46.8815 Mobile $34.804 Performance $78.501 Travel $46.671 Education $43.331 Auctions$50.00 [YR 2 start]1 Sport $60.001 Artist Brand Endorsement $42.50 1 page 96 PROPRIETARY & CONFIDENTIAL BANG average 5-year projections from its four [4] revenue quadrants as a percentage of total revenue is: Merchandising ...................... 77% Advertising ............................ 22% Sponsorship ............................1% ©2016 its BANG, LLC BANG | BUSINESS PLAN - FINANCIALS FINANCIAL HIGHLIGHTS Start Up Yr Internet / Mobile Average Monthly Unique Users Internet / Mobile Average Transactions per Minute TV Forcasted HH's by end of Year TV Average TP HH TV TP HH Discount to QVC TV Average Transactions per Minute TV TPM Discount to QVC Revenue [Including Brand Marketing / Ads] COGS, Card Fees, Rev Share Gross Margin Operating Expenses Profit (Loss) Before Taxes - Internet +TV N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 16,413,189 (16,413,189) Year 1 Year 2 Year 3 Year 4 Year 5 8,125,000 22,583,333 39,291,667 59,375,000 72,250,000 0.3 0.9 1.7 2.8 3.7 20,000,000 30,000,000 45,000,000 55,000,000 70,000,000 0.12 0.20 0.19 0.22 0.26 91% 85% 86% 84% 81% 5 11 16 23 34 98% 95% 93% 90% 85% 142,140,763 224,561,073 387,464,627 565,873,626 820,067,914 104,468,691 153,260,148 250,155,412 343,339,270 474,858,642 37,672,072 71,300,926 137,309,215 222,534,356 345,209,272 39,792,799 44,881,185 50,222,002 57,588,537 65,559,994 (2,120,726) 26,419,740 87,087,213 164,945,819 279,649,278 REVENUE Year Internet / Mobile TV Advertising Sponsorship Total Revenue ©2016 its BANG, LLC Start Up Yr Year 1 N/A $7,873,413 N/A $131,095,300 N/A 2,497,050 N/A 675,000 N/A $142,140,763 Year 2 Year 3 30,926,546 75,944,696 174,793,734 262,190,601 16,951,050 46,084,410 1,889,744 3,244,920 224,561,073 387,464,627 Year 4 150,412,342 320,455,179 90,416,250 4,589,855 565,873,626 Year 5 249,583,734 407,852,046 156,216,060 6,416,075 820,067,914 PROPRIETARY & CONFIDENTIAL page 97 BANG | BUSINESS PLAN - FINANCIALS REVENUES – ADVERTISING & SPONSORSHIP BANGTV, BANGNET and BANGMOB mediums will have the ability to capture increased brand marketer communication spending. In YR 1 – YR 5, BANG has forecasted advertising and sponsorship revenue from BANGTV, BANGNET, BANGMOB experiences. BANG will deliver the right balance of TV [Sponsor Programming Pods], Web [branded templates], Mobile [branded short webisodes]. The traditional media [commercials/site visits/banner ads] exchange and set up must be properly defined and delivered. STARTUP PERIOD BANG will require a ten [10] month period to produce and secure all of the brand elements prior to the first day of the launch. This has been established to ensure that executive management will be able to secure the best and the brightest team and produce the most inviting and compelling programming through BANGTV, BANGNET and BANGMOB. page 98 PROPRIETARY & CONFIDENTIAL ©2016 its BANG, LLC BANG | BUSINESS PLAN - FINANCIALS REVENUE PLATFORM Revenue Quadrants BANG’s three [3] revenue quadrants: Merchandising Advertising Sponsorship BANG’s audience make up will be comprised of Internet savvy music fans that spend a sizable proportion of their time using, surfing and shopping online. The significant number of BANG’s transactions will occur on the Internet based on these assumptions: • BANG TV - will stimulate high profile interest and intent to share the information with friends in real time • BANG TV - exposure as VOD, music fans will either TIVO/DVR the onair programming or go to BANG online and watch the TV programming at their chosen time • BANG TV - will remind fans to seek out more product information and get better acquainted with their favorite artist or get exposed to new artists and new merchandise that they are discovering for the first time ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL page 99 BANG | BUSINESS PLAN TWELVE MANAGEMENT Slash, Bang, Boom page 100 PROPRIETARY & CONFIDENTIAL ©2016 its BANG, LLC BANG | BUSINESS PLAN - MANAGEMENT JOSHUA SIMONS – MANAGING PARTNER, CORPORATE STRATEGY Joshua Simons is the music-marketing specialist who pioneered the proposition that music artists and brand marketers form strategic partnerships to transcend all media platforms. He accomplished this with the creation of the first music marketing company, Rockbill, Inc. which produced and delivered over 300+ sponsorship and product endorsement packages in the 1980’s – with notable examples Pepsi + Michael Jackson; Rolling Stones + Jovan, Journey + Budweiser, and Jimmy Buffett + Miller Beer. Mr. Simon’s firm eventually transformed into EMCI [Entertainment Marketing and Communications International], which became the first full-service Entertainment and Lifestyle Marketing company in the 1990’s. This brand evolution set the stage for putting the first TV commercials on Cinema Screens, re-launching the Nintendo brand in North America, creating the first product integration model with Electronic Video Games, and successfully defining and delivering – as executive producer – MTV’s first-ever non-music program series, MTV’s Half Hour Comedy Hour. Mr. Simons then set the stage with World Space [an internationally licensed satellite and communications company, headquartered in Washington DC] to produce and deliver the first satellite radio infrastructure and music/news/education programming designed exclusively for third world countries outside of North America [Africa/ India/Asia]. Within the first year of his tenure, Mr. Simons realized the opportunity for WorldSpace to purchase one of only two FCC “L” band satellite radio licenses. This led to the branding and underwriting of XM Satellite radio for the US [now merged with Sirius Satellite Radio]. ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL page 101 BANG | BUSINESS PLAN - MANAGEMENT With Buzztone, Mr. Simons redefined and delivered a more engaging wordof-mouth posture in the late 90’s whose philosophy and approach helped set the tone [and trend] which became known as “buzz marketing” for clients as diverse as Sony Pictures to Coca Cola. His ability to incorporate the ‘tipping point’ in the brand development cycle showed how strategic creative communications in non-traditional areas could become the lynchpin necessary to capture a successful branded entertainment philosophy and position product for longterm efficacy. Mr. Simons Curriculum Vitae includes his role as the youngest product manager at E&J Gallo Winery in the 70’s that included the launching of the first ‘spirits’ brand – successfully marketed as E&J Brandy [it is currently the #1 selling brand in the category]. Other notable marketing initiatives included developing [with Billboard Magazine and Burt Sugarman Productions] Billboard’s #1 Music Awards – the first music trade awards television show which led to FOX Broadcasting [News Corporation] acquiring the rights to the property for exclusive broadcast on their network for eight consecutive seasons. page 102 PROPRIETARY & CONFIDENTIAL ©2016 its BANG, LLC BANG | BUSINESS PLAN - MANAGEMENT ROBERT TULIPAN – MANAGING PARTNER, ENTERTAINMENT INDUSTRY RELATIONS Bob Tulipan has more than thirty years experience in the entertainment industry representing numerous artists, film, television, media and cultural projects. He began his career in Miami while in college, managing several leading regional bands with major recording contracts, producing events and starting a successful booking agency. Then moved to NY and expanded into film and television, successfully distributing and marketing theatrically released concert films by THE ROLLING STONES and YES by initiating unique cross medium marketing and promotion campaigns. Bob also honed his production skills; working for top agencies Gomes-Lowe and Directors Circle on major television commercials and independently producing live concert videos. Concurrently, he served as Publisher for “Grapevine” Canada’s leading rock magazine where he increased its revenue and image. In 1980, he entered the global market representing international rock bands Public Image Ltd, Psychedelic Furs, The Only Ones, Mi Sex and several notable American acts, while serving as an International Artist Development Consultant to the CBS Records Group. Throughout the years he’s produced major concert events in the USA and abroad including The Radio Rock Series in Puerto Rico, Central Park’s Sheep Meadow for feature films, A Day at the Races Concert at Liberty Bell Racetrack, Presidential Campaign Events, Concerts for The G-8 Summit, The Clinton Inauguration Tennessee Ball at Washington’s Union Station, Escape to NY Festival, and others with artists including The Police, Gloria Estefan, Hootie and the Blowfish, The Scorpions, Judas Priest, Talking Heads, Patti Smith, Cheap Trick, Lou Reed, and others. In 1985, Bob founded The Traffic Control Group [TCG] with offices in New York, London and Moscow. The company is recognized as one of the world’s premier global logistics firms specializing in travel documentation and event facilitation for the entertainment, film and sports industries. Their client list includes major artists, athletes, institutions, events, record labels, booking agencies and corporate entities with ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL page 103 BANG | BUSINESS PLAN - MANAGEMENT clients ranging from Madonna, Elton John, U2 and Bonjovi, to Valentino, Red Bull, MTV, Warner Bros, Showtime, IMG, Sony, Universal, Victoria’s Secret, Live Aid, and more. TCG played a major role in the USA-USSR Cultural Exchanges from 1986-1992, facilitating and overseeing the historic North American tours by The Kirov Ballet, Alexandrov Red Army Ensemble, Moscow Circus, Maly Theater, The Kremlin Museum and others. And in 1990 helped the Rotary Club’s Washington International Air Fair, sponsored by Boeing and BF Goodrich Aerospace, realize their dream by arranging and facilitating the participation of Soviet Aviation bringing front line Soviet SU-27 fighter planes, the giant An225 transport plane, numerous other aircraft and more than a hundred Soviet participants including cosmonauts, veterans and dignitaries to the USA for the first time. TCG’s also were the Western Nations Representative for VIP [World Leader] Monthly Magazine and Advisors to SNC Radio, Russia’s first independent Rock Radio station, establishing global ties, obtaining content and advertisers for each entity. In 2006 Bob and his partner sold TCG to return fulltime to creative endeavors, creating, developing and funding projects in music, film, television, art and literature. And in 2011, Bob was approached by Sterling Publishing, Barnes and Noble’s imprint, to write a “How To” book for musicians today and the result, “Rockin’ in the New World” (RNW) came out in July of 2011 to critical acclaim and was chosen by Billboard Magazine as a “Top Resource” for new and established artists. It is now required reading in many university music industry classes. He’s also returned to artist management this year representing emerging UK band Strangefruit, signing them to a major publishing company. Bob’s appeared on Bloomberg TV, BBC and numerous other TV and Radio programs, has been a Keynote speaker, moderator and panelist at major industry events and guest lecturer at several prestigious universities. As a giveback to the music industry he has underwritten concert tours by independent music artists and showcases at SXSW and other music industry events. And in recognition of his expertise throughout his career, he’s been written up in countless major publications worldwide, ranging from Izvetzia to the Huffington Post, received various commendations and numerous gold and platinum records. page 104 PROPRIETARY & CONFIDENTIAL ©2016 its BANG, LLC BANG | BUSINESS PLAN - MANAGEMENT BART FOX – MANAGING PARTNER, TELEVISION Emmy Award winning producer Bart Fox has 20 years of experience in all facets of television production. With an emphasis on sports television, Fox has worked on a freelance basis for every major sports network and has been involved in the production of every major sport. As President of Bart Fox Productions, Inc. he has created and Produced original television programming in both the entertainment and sports industry. Programs that Fox created, developed and produced include “Sports Night at the Improv”, “The Washington D.C. 4th of July Parade”, “Bally’s Fitness”, Killerspin Table Tennis and “Weekend Chicago”. Fox has a strong working history with ESPN and ABC which started in 1996 as an associate producer for college basketball broadcasts. Since 2001, he has produced the live broadcast of hundreds of college football, college basketball, baseball, softball and Arena Football games. Over the years Fox has played a primary and integral role on broad-casts for ESPN/ABC, CBS, NBC, Fox, SportsChannel and Fox Sports Net. Those broadcasts cover the NFL, NBA, MLB, NHL, and virtually every college and high school sport. In 2000, Fox won a Sports Emmy Award for his work on NBC’s coverage of the Olympic Games in Sydney. Fox created the concept for “Sports Night at the Improv” – a stand-up comedy show devoted solely to sports. With creativity and ingenuity, Fox produced the pilot for the show and had it broadcast on NBC in Chicago. ESPN then came on board and purchased the show. The success of that show led to the impetus to create additional original programming. ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL page 105 BANG | BUSINESS PLAN - MANAGEMENT WILLIAM KOSOVITCH – MANAGING PARTNER, FINANCE An operations and finance professional with 20+ Yrs. experience having achieved significant business creation acumen as a hands on operations and finance manager for a variety of enterprises simultaneously; building [as Co-founder/CFO] American Softworks [“ASC”] an original video game product distributed in big box retail in North America and international markets; a worldwide video game publishing company producing licensed games with Sony, Nintendo, Sega and PC; CFO of a respected independent television production company and a finance partner with one of the first entertainment marketing firms, EMCI; consulting for Diagnostic Chemicals, Limited, a structured medical diagnostic company set for acquisition, working to improve manufacturing efficiencies; Protiviti, Financial Risk Management Services, a technical accounting service firm working their US and Canadian clientele and Volt Information Sciences as Controller. page 106 PROPRIETARY & CONFIDENTIAL ©2016 its BANG, LLC BANG | BUSINESS PLAN - MANAGEMENT BRAD A. RUBENS – MANAGING PARTNER, BUSINESS AFFAIRS Brad Rubens is a nationally recognized entertainment attorney with more than 18 years of experience, the last 10 as a partner with the Law Office of Brad A. Rubens, LLC. Mr. Rubens represents recording artists, producers, songwriters, managers, publishers and record companies as well as screenwriters and performers of film music. Mr. Rubens’ clients have included superstar producers Rodney Jerkins, Scott Storch, Andre Harris/Vidal Davis, Grammy award winners The Roots, America’s Got Talent singer Bianca Ryan, rappers Whodini, Luther Campbell and Beanie Sigel and multi-platinum artist, The Bloodhound Gang. Mr. Rubens has served as general counsel for various independent and major distributed labels including Darkchild/Sony, Ropeadope/ Atlantic, Rykolatino, Motive/ MCA, Antra/Artemis and Relapse Records. Since 2001, Mr. Rubens has been a personal manager for a number of emerging music acts. Through his company, A Priori Music Management, LLC, Mr. Rubens discovered, shaped and managed the careers of Silvertide on J Records and illScarlett on Sony Canada, among others. As a manager, Mr. Rubens handled all aspects of his artist’s touring and merchandise on a worldwide basis. Prior to founding his own firm, Mr. Rubens created, launched, managed and ran [before the age of 30] a national entertainment practice at Montgomery, McCracken, Walker & Rhoads, a 150+ member law firm based in Philadelphia. Mr. Rubens previously has won the “Best Entertainment Attorney” award in Philadelphia Magazine’s “Best Lawyers in Philadelphia” poll. He also is a frequent speaker at national industry, bar association and law school ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL page 107 BANG | BUSINESS PLAN - MANAGEMENT seminars and has been an adjunct professor in music business education at the University of the Arts in Philadelphia. Mr. Rubens holds a Bachelor’s degree from Haverford College [1983] and a J. D. from New York University School of Law [1986]. TODD GORDON – TECHNOLOGY OFFICER Todd Gordon brings nearly 20 years of broadcast and cable television production and management experience to BANG. He has held multiple technical positions at Post Newsweek Cable and ABC, and spent 10 years at FOX SportsNet Chicago as operations manager. Todd has been online for over 20 years, and has run several online services – the first when he was 15 years old. In 1997, Todd launched Zoot’s Place Online Services in order to provide email services and websites to small businesses. Zoot’s Place created and managed dozens of websites, provided dedicated Internet access to numerous companies, and supplied email to hundreds of business accounts. By 2000, Todd’s online business had grown to the point where it was necessary that he dedicate himself to it full-time. So, in August of 2000, he left FOX SportsNet and formed TeamWorks Media with three other partners. The focus of this new venture was on creative storytelling across multiple platforms. In a few short years, the digital media portion of TeamWorks Media grew to include hundreds of designed and hosted websites and thousands of users relying on TeamWorks for Internet connectivity and email. Given this steady growth, TeamWorks made the decision to break out the digital media portion of the business into a new entity [Nology Interactive], with Todd at the helm. Todd focused Nology on its strengths of web development, hosting, and IT consulting, but also found ways of bringing his passion for video production to the table through his creation of several webcasting platforms. At the same time Todd converted Nology into a sales driven organization with a small and efficient full time sales force and account team in order to drive business to Nology. page 108 PROPRIETARY & CONFIDENTIAL ©2016 its BANG, LLC BANG | BUSINESS PLAN - MANAGEMENT Todd bridges the gaps among several key groups: Nology’s highly technical development and network operations teams, Nology’s designers and their creative genius, and the company’s clients, who just want the results in plain English. Most recently, Todd has put the final touches on Nology’s search engine optimization [SEO] and search engine marketing [SEM] programs. These programs are the culmination of ongoing study, research, and experimentation that provide clients with substantial increases in search engine ranking and stellar conversion rates from Internet advertising campaigns, significantly impacting the ROI of clients’ Internet ad spending. Calling on his extensive video production and Internet background, Todd continues to find new ways to bring these passions together in creative and innovative ways. JOY PERKINS – MERCHANDISING AND FULFILLMENT OFFICER Ms. Perkins has over 20 years experience in manufacturing, wholesale and retail operations planning, logistics, supply chain management, merchandising procurement and quality control. She has guided the evolution of total customer satisfaction programs from first touch-point interaction to the last touch point total satisfaction. Most recently, Ms. Perkins was the Senior Vice President of Merchandising Operations for multi-channel retailer HSN. Ms. Perkins was responsible for all fulfillment operations, industrial engineering, quality control, risk management and inventory management, as well as, serving on the executive committee for strategic planning, merchandise planning, sales and brand building awareness. ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL page 109 BANG | BUSINESS PLAN - MANAGEMENT In her tenure, Ms. Perkins played an instrumental role in helping grow the company’s bottom line through developing customer loyalty programs and many cost reduction/avoidance programs all the while improving service levels and employee morale. Ms. Perkins worked hand in hand with the entire merchandising team, including staffing, to ensure defining ‘best of sale’ product styles, quality standards and vendor management. In addition, prior to joining HSN, Ms. Perkins served Tech Data Corporation as Vice President of Distribution, where for over a decade she was a key player in evolving the business from a ‘pick, pack and ship’ operation into an ‘integrated supply chain specialist’ model where technology manufacturer and resellers rely on Tech Data as a strategic go-to-market partner. Ms. Perkins also served on the acquisition team to foray into foreign markets including Canada, Europe and Latin America. MARGARET A. BELLVILLE – TELEVISION DISTRIBUTION/AFFILIATE RELATIONS ADVISOR Margaret A. “Maggie” Bellville joined CarterBaldwin as a Partner in 2005 to establish a Telecommunications and Broadband Practice, which has grown to 30% of the Firm’s overall revenue. Ms. Bellville specializes in “C” level, Officer, and Board of Director searches for public and private clients in the areas of operations, business development marketing, sales, customer care, and advertising. Throughout her executive career, Ms. Bellville has established a proven record of attracting key leadership, and successfully partnering with each individual to drive success and change. Most recently she exhibited these skills as Executive Vice President and Chief Operating Officer for St. Louis-based Charter Communications, Inc., [Nasdaq: CHTR], a Fortune 500 company controlled by Microsoft co-founder Paul Allen, and among the nation’s largest cable television distribution companies. page 110 PROPRIETARY & CONFIDENTIAL ©2016 its BANG, LLC BANG | BUSINESS PLAN - MANAGEMENT Previous to Charter, Ms. Bellville was President and CEO of Incanta, Inc., a start-up streaming media company based in Atlanta. She has also served as Executive Vice President of Operations for Atlanta-based Cox Communications, Inc., and held leadership positions with the former Century Communications, and the former GTE Wireless/ Contel Cellular. Ms. Bellville is the recipient of numerous honors and distinctions, including being named among the Top Ten Women in Business in Atlanta, and “Woman of the Year,” a national award presented by Women in Cable and Telecommunications. She serves on the Board of the Academy of Television Arts & Sciences Foundation, and in April of 2009 was inducted into the Cable Pioneers Hall of Fame. Maggie has most recently been named to the Binghamton University Board of Directors of the Alumni Association. JOHN CAPUTO – STRATEGIC PARTNERSHIPS OFFICER A multi-channel marketing professional bringing 35+ years experience to BANG, John is recognized as a highly strategic, creative marketer and business development entrepreneur.. Following seven years at TLK Advertising (Chicago), managing the agency’s Procter & Gamble brand assignments, John joined Glendinning Associates, one of the world’s foremost promotional marketing consulting firms. Over a 15 year span, John became Executive Vice President, managing the GA domestic consulting practice, and with the emergence of the EC, revitalized the firm’s European business as International Managing Director, based in London. ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL page 111 BANG | BUSINESS PLAN - MANAGEMENT John spearheaded continual revenue growth via new business development and resourceful expansion of existing clients including AT&T, Del Monte, Exxon, Georgia-Pacific, Marriott, NFL Properties, PepsiCo and United Way, along with retailers such as Wegman’s, Publix and Safeway. John later founded Equity Communications, a consulting firm focused on creation of integrated marketing programs tailored to extend brand equity/ market positioning. In parallel, he was named Managing Partner of yours LTD, an entrepreneurial marketing agency focused on lifestyle industry sectors. John’s focus continues on strategic consulting and business development, with particular emphasis in creative branding/market positioning, strategic partnership development and promotional marketing. John also sits on the Advisory Boards of several companies, including Integrated Cloud Intelligence (a leading edge consumer insights/information management firm), Better Leaders, Inc.,(a corporate organizational consultancy) and Innovative Graphics (a firm specializing in emerging consumer direct-response technologies). BRAD MOOBERRY – CHIEF MARKETING OFFICER Brad Mooberry spent nearly 30 years as president and CEO of ad2, inc., consulting with a variety of corporate, entertainment and non-profit clients on concepts for, and implementation of, multi-channel initiatives ranging from brand strategy and website development to social media and mobile marketing tactics. As an experienced professional in both traditional and digital advertising, Mooberry has been deeply involved in creative marketing strategies and brand building solutions since 1980. When he founded ad2, it started as page 112 PROPRIETARY & CONFIDENTIAL ©2016 its BANG, LLC BANG | BUSINESS PLAN a boutique agency designing ads, catalogs, and brochures. Mooberry’s early adoption of digital prepress and desktop computing was considered highly visionary at the time. By the early 1990’s, ad2 emerged as a leader, not only for its creativity and marketing savvy, but also for its expertise and innovation in digital technology serving clients, such as Amblin Entertainment, Sony Pictures, Pepsi, Hilton Hotels, Columbia/TriStar Pictures, 20th Century Fox and many others. In 1992, Mooberry designed and programmed the industry’s first interactive CD-ROM press kit for Steven Spielberg’s Schindler’s List, which opened the door to the company’s shift to digital production processes and communication mediums. In the late 90’s, working closely with the President of Hilton Hotels, Mooberry was tasked with many high profile assignments, including the strategic planning for Hilton’s corporate intranet; designing and building a company-wide interactive training program; writing and designing numerous presentations; and finally, articulating the vision for the Hilton Value Chain and designing the visual graphics for the poster sent to every hotel. Under Mooberry’s leadership as owner and creative director, ad2 received more than 160 interactive awards, including New York Festival, Summit Emerging Media, MarCom, Horizon, W3, Hermes Creative, Webby, Davey, London International and One Show Awards. The company was regarded as one of the top interactive agencies in the country having produced more than 300 web projects and more than 100 interactive CD-ROM titles with distribution of over 100,000,000 disks. Over the years, Mooberry has gained extensive experience creating and implementing digital projects across multiple marketing channels - websites, micro sites, social sites, ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL page 113 BANG | BUSINESS PLAN interactive CD/DVD-ROMs, online campaigns, interactive games & activities, custom online applications, mobile sites and mobile apps, and much more. Throughout his career, Mooberry has always been very ‘handson’ with computer software and using these tools to enhance his marketing skills that include brand identity, brand building, strategic planning, articulating vision, concept ideation, UI design, information architecture, copywriting, graphic design, photography, digital storytelling, print production, digital video editing and even programming. page 114 PROPRIETARY & CONFIDENTIAL ©2016 its BANG, LLC BANG | BUSINESS PLAN THIRTEEN APPENDIX ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL page 115 BANG | BUSINESS PLAN BANG ARTIST RELATIONS LETTER OF INTEREST Bravado Kanye West Robbie Williams Alicia Keys Beyonce Gwen Stefani Led Zeppelin Metallica Shania Twain Elton John Spice Girls Kelly Clarkson Pink Shakira Oasis Celine Dion and many more page 116 PROPRIETARY & CONFIDENTIAL ©2016 its BANG, LLC BANG | BUSINESS PLAN Abba Adam Lambert Alan Jackson Alexandra Burke Alice In Chains Alicia Keys All American Rejects American Idol Amy Winehouse Avenged Sevenfold Axewound Axwell Backstreet Boys Bad Meets Evil Beach Boys The Beatles Big Sean Black Sabbath Bleed From Within Bob Marley Boyzone Brandon Flowers Bring Me the Horizon Bryan Adams Buckcherry Bullet For My Valentine Buju Banton Cage the Elephant Capital Cities Carly Rae Jepsen Cassadee Pope The Charlatans Cher Lloyd Chris Mann Coco Jones Conan O’Brien Concord Jazz Cory Arcangel ©2016 its BANG, LLC Crossfaith Crowded House Cypress Hill Children of Bodom Dangerkids Dappy David Bowie David Nail Dawes Deftones Device Dimebag Darrell Disturbed The Doors Drake Drake White Ellie Goulding Elvis Presley Eminem Escape The Fate Far East Movement Five Finger Death Punch Florence + The Machine Frank Turner Freddie Mercury Fresh Beat Band Gallows Greg Bates Greyson Chance Goo Goo Dolls Grace Potter & the Nocturnals Green Day Guns N Roses Hot Chelle Rae Il Volo Imagination Movers Imagine Dragons Incubus Jackie Evancho Jake Bugg The Jam Janis Joplin Javier Colon Jennifer Lopez Jessie J Jessie Ware Jimi Hendrix (Authentic) Job For a Cowboy Joe Cocker Joey Ramone Johnny Cash John Coltrane John Lee Hooker John Lennon Josh Groban Justin Bieber Kacey Musgrave Kanye West Kasabian Katy Perry Kelly Clarkson Kid Cudi Killers Killswitch Engage The Kinks Korn Lady Gaga Lana Del Rey Lil Wayne Limp Bizkit Linkin Park Lionel Richie Little Big Town Little Mix LMFAO Mariah Carey Marilyn Manson Machine Gun Kelly Manic Street Preachers Martin Luther King, Jr Metallica Michael Jackson Mika Mike Oldfield Mindless Behavior Miles Davis Miss May I Modestep Motown Musical Mumford & Sons Murderdolls Muse Naked & The Famous Nas NDubz N.E.R.D New Kids on the Block Ne-Yo Nicki Minaj Niki & The Dove Nine Inch Nails No Doubt Of Mice & Men The Offspring OMG Girlz Orianthi Otis Redding Owl City Pantera Paul McCartney Paul Weller Peter Tosh Pet Shop Boys Phillip Phillips The Pierces PiL P!nk Pixie Lott The Pogues The Prestige Primal Scream PSY Queen Queen Extravaganza R. Kelly Ramones Razorlight Red Hot Chili Peppers Rick James Robbie Williams Rod Stewart The Rolling Stones Ronnie Wood Run DMC Rush Sade SafetySuit The Saturdays Sebastian Ingrosso Shania Twain Semi Precious Weapons Silversun Pickups Slaughterhouse Slipknot Smash & Grab Social Distortion So You Think You Can Dance? Sonic Boom Six Soundgarden Spandua Ballet Steve Angello Style Council Stone Roses Stone Sour Sugarland Superheavy Susan Boyle Swedish House Mafia Take That Tamar Braxton Three Days Grace Thompson Square Tiesto Tim McGraw Tyga Usher Verve Records Victoria Justice We are the Fallen Westlife While She Sleeps Whitney Houston Wretch 32 Yelawolf Young Guns Young Jeezy ZZ Top 2 Chainz Marvin Gaye Billy Joel PROPRIETARY & CONFIDENTIAL page 117 BANG | BUSINESS PLAN BANG ARTIST RELATIONS LETTERS OF INTEREST Red Light Management Alanis Morissette Carly Simon Carly Simon Cheap Trick Dave Matthews Band Fantasia Good Charlotte The Decemberists Switchfoot Chris Cornell UNKLE and many more ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL page 118 BANG | BUSINESS PLAN 311 78Violet Aaron Neville Alanis Morissette Alicia Keys Amos Lee Ben Harper Blackhawk Black Prairie Blind Pilot Bobby Long Brandi Carlisle Bruce Hornsby Carley Simons Casey James Cheap Trick Cheers Elephant Chris Cornell Chris Stapleton Coco Jones Collective Souls Counting Crows Crystal Castles Damian Marley Dave Matthews Band Deaf Havana Deap Vally Diego Garcia Dierks Bentley Don Felder ©2016 its BANG, LLC Drew Emmit Enrique Iglesias Fantasia Franz Ferdinand Gomes Good Charlotte Grace Potter and the Nocturnals Here We Go Magic Hybrid J.D. Macpherson Jackie Thorn Jason Bentley Jerry Garcia Jim James Jinx John Butler Trio Jon Kaplan Junior Sanchez Kaiser Chiefs Kelis Kip Moore Kool and the Gang Lewis Watson Lionel Richie Lissie Local Natives Los Lobos Luke Bryan Machines Are People Too Mako Marcus Schulz Mariachi El Bronx Mike Gordon MMX Morning Teleportation Natalie Stoval Natasha Bedingfield Naya Rivera New World Punx Old 97’s Other Lives Parachute Phish Photek Propellers Pujol Punch Brothers R. Kelly Red Robin Meade Sandra Lynn Skaters Soja Soul Asylum Steve Angello Styx Sugarcult Switchfoot Syd Arthur Tamy Winette The Acid The Band Perry The Bronx The Cribs The Crystal Methos The Dangerous Summer The Decemberists The Disco Biscuits The Heavy The Pierces The Stepkids The Vaccines Third Day Tim McGraw Tune-Yards Unkle Victoria Justice Von Grey PROPRIETARY & CONFIDENTIAL page 119 BANG | BUSINESS PLAN BANG ARTIST RELATIONS LETTER OF INTEREST Island/Def Jam Recording Jay Z Rihanna LL Cool J Ludacris Janet Jackson Bon Jovi Mariah Carey Duffy U-2 Bob Marley and many more page 120 PROPRIETARY & CONFIDENTIAL ©2016 its BANG, LLC BANG | BUSINESS PLAN 2 Chainz 4th And B’way Afrojack American Authors August Alsina Avicii Baby E Babyface Big K.R.I.T. Big Sean Black Cards Big Boi Bob Marley Bon Jovi Brandon Flowers Burnham Cazzette Clinton Sparks Cris Cab Cy Hi The Prynce The- Dream Duffy Elijah Blake Fabolous Fall Out Boy Frank Ocean ©2016 its BANG, LLC The Gaslight Anthem Gentlemen Hall Gin Wigmore Gunplay Iggy Azalea Jadakiss Jake Bugg Janet jackson Jay-Z Jeremih Jhené Aiko Juelz Santana Justin Bieber Kanye West Kaptn Laura Welsh Lawson Lil Durk Lil Reese LL Cool J Ludacris Luke James Madison Beer Maejor Ali Mariah Carey Melissa Etheridge Mona My Darkest Days Nas Neon Trees Nikki Williams Parachute Patrick Stump Pepper Pusha T Rihanna The Roots Rick Ross Snow Patrol Taio Cruz The Airborne Toxic Event The Killers The Mowgli’s The Vamps Timeflies Trinidad James Triple C’s Verse Simmonds The Wanted Wrabel Y.G. Young Jeezy PROPRIETARY & CONFIDENTIAL page 121 BANG | BUSINESS PLAN BANG ARTIST RELATIONS LETTER OF INTEREST Paradigm Avril Lavigne Aerosmith Phish Dave Matthews Coldplay Scissor Sisters Black Crows Polyphonic Spree and many more ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL page 122 BANG | BUSINESS PLAN Jerry Garcia Jesse McCartney Jill Hennessy Joan Osborne Joe Cocker Joe Jackson Joe Piscopo Adam Cohen Descendents Joel Compass Adem DeStorm Joni Mitchell Aerosmith dEUS Jonny Pierce Alice and the Glass Lake Donny Osmond Julio Iglesias Andy Garcia Doobie Brothers k.d. lang Andy Grammer Doves Kim Taylor Animal Kingdom Dr. Dog The Kooks Anjulie The Drums Kreayshawn Anthony Green Dwight Yoakam Krystal Keith Aqualung Ed Harcourt KT Tunstall Ash Eisley Kuroma The Bacon Brothers Elayne Boosler Labrinth Badly Drawn Boy Faces On Film Lisa Hannigan The Band of Heathens Faithless Lissie Barenaked Ladies Fergie Live The Bees Fischerspooner LIZ Big Scary Fixers Liz Phair Bill Engvall Flagship Lyle Lovett Bipolar Sunshine The Fling Marc Broussard The Black Crowes The Floozies Marianne Faithfull Black Eyed Peas Foreigner Marillion Black Prairie Foxes Mario Cantone Blind Pilot Franz Ferdinand Mark Ronson Bob Schneider The Fray The McClain Sisters Boys Like Girls The Futureheads Megan and Liz Brandi Carlile Ginny Blackmore Melissa McClelland Brenda Lee God Street Wine Metric Bruce Hornsby Gomez MGMT Cheatahs The Good Natured Mica Roberts Chelsea Williams Gospels Michael Feinstein Cillie Barnes Grand Funk Railroad Micky & The Motorcars Circa Survive Greylag The Mighty Mighty COIN The Gutter Twins Bosstones Cold War Kids Hannah Cohen Mother Mother Coldplay Helena Mountain Man Colin MacIntyre Herbie Hancock The Mowgli’s Con Bro Chill Hesta Prynn MURS The Coral Huey Lewis & The News Natalie Stovall and the Cris Cab Human Nature Drive Curtis Grimes Humming House The National D-Pryde Jack Ingram Naturally 7 Dale Earnhardt Jr. Jackie Greene Naughty Boy Damien Rice Jake Miller The Neighbourhood Dave Matthews Band James Blunt Never Shout Never The Decemberists James Walsh Nina Nesbitt Delta Spirit Jamie Scott ©2016 its BANG, LLC Nina Persson Nine Black Alps Noam Pikelny Novelette O.A.R. Ocean Colour Scene Of Monsters and Men The Oh Hellos Oh Land Old 97’s Old Crow Medicine Show OMD Other Lives Our Lady Peace Ozokidz Ozomatli Pacific Air Paddy Casey Page McConnell Palma Violets Panic Is Perfect The Panics Paradise Fears Parkington Sisters Passenger Patrick Park Paul Banks Paul Kelly Paul McDonald and Nikki Reed Paul Weller Paula Abdul The Perishers Peter Buffett Phish The Pierces Pilotdrift PINS The Pipettes Plan B Plug In Stereo Pnau Poliça The Polyphonic Spree POND Pop Etc Porcelain Raft Pork Tornado The Postelles Preteen Zenith The Pretty Reckless The Pro Letarians ProbCause Pulp Punch Brothers The Queen Killing Kings Quixotic Rachael Yamagata Rachel Platten Radical Something Radney Foster The Railers Raine Maida Rainy Milo Randy Newman Raul Malo Ray LaMontagne RDGLDGRN The Ready Set Rebelution Reckless Kelly Red Wanting Blue Reno Collier rePLAY Rhett Miller Riceboy Sleeps Rich Robinson Richard Ashcroft Richard Bona Richard Swift Richie Sambora Ricky Skaggs Rise Against Rob Fisher Roger Creager Romans Rome Ron Sexsmith Roseanne Barr The Rosebuds Rosie Lowe The Royal Concept Royal Teeth Rudimental Rue Melo Ruston Kelly Ry Cooder Rye Rye Sahara Hotnights Saint Etienne The Saint Johns Sam Bush Sam Morril Samsaya San Cisco Sanders Bohlke Santigold Saosin Sara Bareilles Sarah Jaffe Sarah Jarosz Savages Scala & Kolacny Brothers Scars On 45 Scissor Sisters Sea of Bees Sebadoh Selah Sue Shankar Mahadevan Shawn Colvin Shout Out Louds The Shouting Matches Sia Sigur Ros The Silent Comedy The Sippy Cups Skaters Skinny Singers The Skins Skizzy Mars Slightly Stoopid Sloan The Smashing Pumpkins Smoke Signals Snow Patrol SOJA Solange Solid Gold SoMo Sondre Lerche The Specials Spin Doctors Starsailor Stereophonics Steve Burns Steve Miller Band Steve Trevino Steven Page Strangeheart The Strypes STS9 Stu Larsen Sturgill Simpson Sublime with Rome The Subways The Summer Set Sun Rai The Sunshine Underground Superdrag Supergrass Supreme Cuts SWIMM Swiss Lips Sydney Wayser Sylvan Esso T-Pain Taking Back Sunday Tame Impala tapes ‘n tapes Taylor Hicks TC Cope Ted Wendler Teddy Thompson Tennis Terraplane Sun The The This Century This Is The Kit Timeflies The Ting Tings Tired Pony To Kill A King Toby Keith Tom McRae Tom Odell Tommy Emmanuel Treeside Trey Anastasio Trigger Hippy Truth & Salvage Co. Tumbleweed Wanderers Turin Brakes The Twilight Singers Uh Huh Her Ume Umphrey’s McGee The Vaccines Vadoinmessico Vanaprasta Vance Joy Vancouver Sleep Clinic The Veils Veronica Falls The Verve Vicci Martinez Victoria Ghost Vida Blue The View Volcano Choir Wake Owl Walk Off The Earth Walk The Moon The Walkmen Wang Chung War Washington Waters We Are The In Crowd We Are Twin We The Kings Weir, Robinson, & Greene Western Underground White Denim The White Mandingos The White Panda White Rabbits Whitehorse Whitney Wolanin Wild Cub Wildlife Will Johnson William Clark Green William Orbit Willis Earl Beal Willy Mason Willy Moon The Wind and The Wave Wolf Gang The Wombats The Wood Brothers World Party Ximena Sariñana YAWN Yellowcard yMusic You Am I You Me & Apollo Young The Giant Youth Lagoon Yuck Zeale Zella Day Zowie PROPRIETARY & CONFIDENTIAL page 123 BANG | BUSINESS PLAN BANG ARTIST RELATIONS LETTERS OF INTEREST Express Entertainment, Inc. Ian Brown Cut Chemist Truth & Soul Amy Winehouse Adele Jet Iggy Pop and many more page 124 PROPRIETARY & CONFIDENTIAL ©2016 its BANG, LLC BANG | BUSINESS PLAN – APPENDIX MUSIC MERCHANDISING COMPANIES ANTHILL TRADING LTD, LLC. BAND MERCH INC. BAND MERCH INC. BRAVADO INTERNATIONAL GROUP INC. BRAVADO INTERNATIONAL GROUP/SANCTUARY MERCHANDISING www.anthilltrading.com www.bandmerch.com www.bandmerch.com www.bravado.com www.bravado.com 126 Fifth Ave., 5th Floor New York, NY 10011 5126 Clareton Dr., Ste 140 Agoura Hills, CA 91301 3640 Holdrege Ave Los Angeles, CA 90016 330 7th Ave. New York, NY 10001 T: 212-675-1114 F: 212-675-3014 E: reception@anthilltrading. com T: 818-707-1471 T: 877-502-3728 F: 818-707-7126 E: [email protected] T: 212-343-2070 F: 212-343-2072 E: [email protected] T: 310-237-7100 F: 310-237-7132 E: [email protected] T: 212-279-3636 F: 212-279-8222 E: [email protected] VP retail Sales: Matthew Young Contact: Steve Miles 520 Broadway #1002 New York, NY 10012 CEO: Tom Bennett VP Fin/Admin: Pete D’Auria VP Wholesale: Tracy Stone Sr Dir. Prod.: Alan Rebhun Dir. Tour Ops: John Barwick Dir. Prod Dvp/Whol: Ted Mattes Contact: Norman Perry COO: Cathy Cleghorn VP retail Sales: Matthew Young VP Touring: Steve Varga Dir. Licensing: Kirsti Payne Dir. Ops: Dayton Hicks Dir. Art: Jackson Chandler VP retail Sales: Matthew Young VP Touring: Steve Varga Dir. Licensing: Kirsti Payne Dir. Ops: Dayton Hicks Dir. Art: Jackson Chandler Description: Description: Description: Description: Description: Provides complete merchandising solutions for their artists in the entertainment industry worldwide including touring, retail, licensing and e-commerce. An AEG company A full service entertainment merchandising company for touring, retail and 3rd party licensing worldwide. A Universal Music Group Company Merchandise and licensing for bands and brands. ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL page 125 BANG | BUSINESS PLAN – APPENDIX MUSIC MERCHANDISING COMPANIES CINDERBLOCK, INC CINDERBLOCK, INC GIANT MERCHANDISING SIGNATURES NETWORK MUSIC TODAY www.cinderblock.com www.cinderblock.com www.giantmerchandising.com www.signaturesnetwork.com www.musictoday.com 5655 Union Pacific Ave Commerce, CA 90022 San Francisco: T: 415-247-7400 5391 Three Notched Road Crozet, VA 22932 T: 323-887-3300 F: 323-887-3383 Los Angeles: T: 310-492-9700 Pres/CEO: Jeffrey Ganz E: [email protected] T: 877-MUSIC77 T: 1-877-DISCREP T: 800-594-TIXX T: 434-984-6798 6195 Coliseum Way Oakland, CA 94621 T: 510-957-1333 F: 510-957-1350 E: [email protected] Pres: Jeffrey Bischoff Artists rel Mgr: Carol Grey Natl Sales Mgr: Kevin Penton 9440 Santa Monica Blvd Ste 610 Beverly Hills, CA 90210 T: 310-786-2150 E: [email protected] Licensing: Ira Sokoloff Artists rel rep: John Mathiason Description: Description: Full service merchandiser Full service merchandiser page 126 PROPRIETARY & CONFIDENTIAL Contact: Del Furano Live Nation CEO: Michael Rapino Live Nation CEO: Michael Rapino Description: Description: Description: Worldwide leader in entertainment related apparel A Live Nation Company A Live Nation Company ©2016 its BANG, LLC BANG | BUSINESS PLAN – APPENDIX HOME SHOPPING CHANNELS HSN Home Shopping Network [HSN], one of the leading shopping channels on television, has built its reputation with daily specials, theme blocks, and personalities. HSN begins each calendar day with a “Today’s Special,” a featured item at a special sale price. Every item that they sell can be reviewed by an individual on the HSN website [one to five stars], and every product that has an average of four stars or higher is considered to be a “Customer Pick”. HSN broadcasts 24 hours a day, 364 days a year. On Christmas, a mix of Christmas music performed by children from schools in the Tampa-St. Petersburg area, holiday wishes from HSN staff, and public service announcements air from Christmas eve afternoon until midnight on December 26. For the first twelve years, a looping yule log was aired. The HSN channel is known for featuring celebrity-branded products sold on air by the celebrities themselves. Its slate of personalities includes Lauren Hutton, Patti Labelle, Susan Lucci, Wolf-gang Puck, and Suzanne Somers. In 2005, HSN’s parent company IAC acquired catalog retailer Cornerstone Brands for about $720 million and merged HSN’s catalog operations into the newly acquired business, while HSN began offering many of Cornerstone’s upscale lifestyle products through its television and web operations in the hope that the new product mix would lead to high margins for the shopping channel. IAC’s 2005 acquisition of search engine Ask Jeeves [now Ask.com, operated by IAC Search & Media] was made as a means by which to drive traffic to hsn.com and its other online shopping sites. HSN’s sales are increasingly coming from its web site; HSN. com accounts for about a quarter of the company’s sales [up from 18% a year ago]. ©2016 its BANG, LLC In late 2007, Barry Diller announced that he planed to split IAC up into five separate businesses. To that end HSN, which accounts for nearly half of IAC’s revenues, will be spun off. HSN has tapped former Nike exec Mindy Grossman as its new chief executive. Grossman is charged with reversing HSN’s lengthy sales slump. Planned changes include ditching hour-long programs that focus on one product, say a treadmill, and fewer product pitches from celebrities. The company is also shaking up the ranks of its merchandising executives. HSN’s U.S. operations are based in St. Peters-burg, Florida, which houses its corporate headquarters, studio and broadcasting facilities. Additional call center facilities are located in Roanoke, Virginia. Distribution centers are situated in Roanoke, Salem, Virginia, Piney Flats, Tennessee, and Fontana, California in order to ensure the fastest possible delivery of items. HSN also operates a series of outlet stores in Florida and Tennessee. QVC QVC was founded on July 13, 1986. The first live broadcast took place at 7:30 ET on November 24 of that year. Hosts Kathy Levine and Bob Bowersox featured a shower radio for $11.49. Initially running live for 16 hours a day, the channel extended its broadcast hours to 24 at the beginning of 1987. The corporation set a new record for first full-year fiscal sales for a new public company of $112 million. QVC carries a large range of products, and offers a 30-day money-back guarantee on all of its items. Items are present-ed by hosts, who may be assisted by guests — typically, people who work for the item’s manufacturer or an expert on the subject. Each item is identified by a unique item number, allowing for easy identification when ordering. In commonality with many of its rivals, QVC offers one product at a reduced price for that day only – the Today’s Special PROPRIETARY & CONFIDENTIAL page 127 BANG | BUSINESS PLAN – APPENDIX Value commonly referred to as TSV. In the US, the Today’s Special Value was launched on August 11, 1987 with a 30” long wave necklace. When a TSV sells out, there are several “one Time only” items good only on certain shows the rest of the day. QVC offers products from a wide variety of famous brands and wellknown celebrities. Joan Rivers and Laura Geller [9] are amongst those whose products are demonstrated on-air. On June 15, 1998, Models Prefer Color Cosmetics, QVC’s first exclusive color line, was introduced. Other beauty brands include Le Mirador Skin care, Smashbox cosmetics, Joan Rivers beauty, Peter Coppala Hair Care, Mally Beauty, dessert Beauty, and Jonathan Product Salon Hair Care by Jonathan Antin. QVC usually has many types of program-ming in one day, but sometimes a day has a single theme. Such 24-hour events include St. Patrick’s Day celebration, Fashion Day, Christmas in July, Craft Fest, Big Bonanza Silver day, Klondike Gold Rush, Rose of Tralee, Now You’re Cooking Day, and others. Once a year, QVC broadcasts FFANy Shoes on Sale with designer and brand name shoes at half the price, benefiting breast cancer research. QVC recognizes that ‘celebrity’ is an important and growing asset to be grown in its overall product mix. While about 80% of QVC’s sales come from its television programming, Internet sales are on the rise increasing from 18% to 20% of total revenue in 2005 and 2006, respectively. The home shopping channel is available in more than 165 mil-lion cable and satellite homes worldwide. Doug Briggs, QVC’s president and CEO, retired from the company in March 2006. Briggs was succeeded as CEO by Dell veteran Michael George, who joined QVC as president in December 2005. In early 2004, QVC, Inc. bought out the minority stake of QVC UK formerly held by its original partner in the endeavor, British Sky Broadcasting group. QVC launched a beauty catalog in September 2005, targeted at 500,000 of its highest page 128 PROPRIETARY & CONFIDENTIAL spending beauty viewers. To grow sales, the home shopping channel is looking to acquire developing brands. QVC’s flagship brand is Diamonique, a simulated gemstone exclusive to the company [having acquired manufacturing facilities, proprietary technology, and trade name rights from MSB Industries, Inc. in 1988]. QVC’s most popular brand of apparel in the US is Denim & Co; others include Dialogue, Sport Savvy, Citiknits, Quacker Factory, and Susan Graver Style. The most popular beauty brand on QVC in the US is Bare Escentuals, followed by Peter Thomas Roth, philosophy beauty and Laura Geller Make-up Studio. SHOP NBC Shop NBC is an American broadcast and cable home shopping network, owned by ValueVision Media, which is in turn 37% owned by NBC universal, and based out of Eden Prairie, Minnesota. The network itself was previously known as ValueVision which was started in October of 1991 nationally after a brief time as a local, afternoon shopping program in 1990. ValueVision changed its name to ShopNBC in the early 2000s. ShopNBC is well known for sales of jewelry items. It has recently expanded into sales of household items such as Serta mattresses, computers, Big screen TVs, Skin Care products such as Isomers Laboratories Skin Care and home goods. Some of ShopNBC’s home shopping hosts over its history have included Charla Rines, Jolene Benoit, who left in 2007, Skip Connolly and Karen Connolly, Carmela Richards, Jim Fisher and Wes McCoy and his wife, Pamela McCoy. Key guests have included: Jim Peterson and Manuela Marcheggiani. ShopNBC’s main competitors are HSN [Home Shopping Network] and QVC. ©2016 its BANG, LLC BANG | BUSINESS PLAN – APPENDIX SHOP AT HOME Shop at Home was a regional shopping network based in Newport, Tennessee. In the beginning, it was similar in format to larger national rivals QVC and HSN. However, beginning in 1989, the network pioneered the sale of collectible coins and currency. The success of the Coin Vault program allowed the network to branch out into shows that featured other collectible items during the 1990s, thus setting SAH apart from its peers. The fact that the Coin Vault sells coinage at grossly over inflated prices is often discussed on various numismatic boards online. Whereas QVC, HSN and others were primarily targeted at a predominantly female audience, SAH’s unique collectible-themed shows attracted a mostly male audience. The new management switched the network back to a more traditional shopping channel format, and as a result, replaced many of its old hosts and brought in new personalities, most notably Paula Deen and Emeril Lagasse. Prior to the network’s temporary suspension, it operated 24 hours a day, but ran some taped programming in addition to live broadcasts. Dell, and the Sports Collectibles show, emceed by Don West for a majority of its run. The network also kept an eye on the most popular collectible trends of the late 1990s and early 2000s including shows devoted to Beanie Babies and Pokémon. Starting in 2000 however, SAH’s collectibles based format began to wear off in popularity and most of its management was replaced. THE JEWELRY CHANNEL The Jewelry Channel currently broadcasts on DirecTV Channel 226 and dish Network Channel 218. It began on April 18, 2007. They are located in Austin, Texas. The network also offers online streaming of its network through their website. There are also UK and German versions of the channel as well. They do drop auctions of fine jewelry. They make their own pieces and they have limited quantities. The original schedule was 10 p.m. to 8 a.m. eastern time. Todd Boone, Shawn Leflar, and a few other hosts were brought back. On September 11, 2006, Shop at Home returned to a full 24-hour on air schedule, returning to selling a variety of products. It was announced on January 8, 2008 that Shop at Home will again cease its broadcast on March 7, 2008, again citing its failure to successfully compete with QVC, HSN, and ShopNBC. The network’s website will continue in operation. Popular shows during the 1990s and early 2000s also included The Knife Collector’s Show co-hosted for most of its run by Shawn Leflar and former SAH personality Tom O’ ©2016 its BANG, LLC PROPRIETARY & CONFIDENTIAL page 129 BANG | BUSINESS PLAN – APPENDIX MUSIC TELEVISION CHANNELS MTV [MUSIC TELEVISION] MTV [Music Television] is an American cable television network based in New York City. Launched on August 1, 1981, the original purpose of the channel was to show music videos. Today, MTV broadcasts a variety of pop culture, youth culture, music videos and reality television shows aimed at older adolescents and young adults. One of the earliest and greatest cable success stories, MTV was established by Warner Amex Satellite entertainment Company [wASeC] after extensive marketing research. The key to MTV’s viability, at least initially, was the availability of low-cost programming in the form of music videos. Originally these were provided free by record companies, which thought of them as advertising for their records and performers. Since its premiere, MTV has revolutionized the music industry. Slogans such as “I want my MTV” became embedded in public thought, the concept of the VJ [video jockey] was popularized, the idea of a dedicated video-based outlet for music was introduced, and both artists and fans found a central location for music events, news, and promotion. MTV has also been referenced countless times by musicians, other TV channels and shows, films and books. MTV has spawned a handful of sister channels in the U.S. and dozens of affiliated international channels around the world. MTV’s moral influence on young people, including examples of censorship and social activism on the channel, has been the subject of debate for years. MTV’s choice to focus on non-music programming has also been contested relentlessly, demonstrating the channel’s continued impact on popular culture. Now owned and publicly traded by VIACOM, MTV and its sister network VH1 are by far the most important outlets for music video programming in the United States today. page 130 PROPRIETARY & CONFIDENTIAL Many competing services have fallen by the wayside, while BET [Black entertainment Television], CMT [Country Music Television], and TNN [The Nashville Network] are probably the most important survivors as of 1995. These networks specialize in black programming and country and western, which means that they compete only in a limited way with MTV and VH1. Music video and MTV are major ingredients of television programming internationally. MTV Europe, launched in 1987, was followed by an Asian service in 1991 and MTV Latino in 1993. VH1 seemed poised to follow a similar course, having established a European service in 1994. Both economically and aesthetically, MTV has wrought major changes in the entertainment industries. By combining music with television in a new way, MTV has charted a path for both industries [and movies as well] into a future of post-modern synergy. MTV [Music Television] is the oldest and most influential American cable network specializing in music related programming. It was launched with the words “Ladies and gentlemen, rock and roll,” spoken on camera by John Lack, one of the creators of MTV. This introduction was immediately followed by the music video clip Video Killed the Radio Star, featuring a band called the Buggles. The title proved somewhat prophetic as MTV greatly transformed the nature of music industry stardom over the next several years. At the same time, MTV became a major presence in the cable TV industry and in fact in the overall American cultural landscape. ©2016 its BANG, LLC BANG | BUSINESS PLAN – APPENDIX U.S. CABLE, DBS, TELCO SYSTEMS Total US Television Households – U.S. TV HH Total Digital Cable Customers Housing Units Passed by Cable HDTV Service Housing Units Passed by Cable High-Speed Internet Service Total Advertising Revenue Annual Cable Revenue Top 10 MSOs Q2 2013 [NCTA] 112,275,000 [Kagan] 77,000,000 [Kagan] 100,000,000+ [NCTA] 117,700,000 [U.S. Census] $25.0 Billion $88.2 Billion Basic Cable Subscribers [in millions] 2013 114 M Subscribers Comcast Cable Communications 24,553,000 Time Warner Cable 13,297,000 Cox Communications 5,403,740 Charter Communications 5,162,000 Cablevision Systems 3,132,000 Bright House Networks LLC 2,338,103 Mediacom LLC 1,321,000 Suddenlink Communications 1,300,000 CableOne701,834 Insight Communications 692,800 DBS Subscribers DirecTV21,400,000 Dish Network 14,200,000 TELCO Verizon FiOS AT&T U-Verse ©2016 its BANG, LLC Subscribers 4,900,000 3,300,000 PROPRIETARY & CONFIDENTIAL page 131