INVESTMENT IN Deal Overview October 19, 2012
INVESTMENT IN
Deal Overview
October 19, 2012
Executive Summary
SPT Digital Networks has the opportunity to launch Flixela, the premier multiplatform digital network for women in Latin
America
• Features premium movies for women A18-44 and follows same business model as Crackle, free ad-supported video on demand
(AVOD) anywhere, anytime
• Exploit significant advertiser demand to reach female demographic; alongside Crackle’s male-skewing audience, opportunity to
broaden addressable market and provide all-encompassing solutions to advertisers
• Capitalize on window of opportunity to fill market gap and be an early mover for premium AVOD services in high growth Latin
America market, forecasted to experience significant increase in broadband penetration and online advertising
• Drive synergies by leveraging SPT’s ad sales capabilities and Crackle’s backend infrastructure, as well as cross-promotional
opportunities across SPT Network’s pay TV channels/websites in region (AXN, SET, SPIN)
• Launch Network in August 2013 in Brazil and LatAm across web, OTT (BIVL), and mobile (iOS/Android); 2.3mm
uniques/month in Y1 growing to 7.1mm in Y5, and $2.0mm of net revenue in Y1 growing to $16.3mm in Y5; by FY16 (Y3),
revenue forecasted to be 10%, 20%, and 8% of total online video advertising market in Brazil, Mexico, and Argentina
respectively, based on current estimates(1)
• From a SPT View, including licensing fees (considered incremental) and ad sales commission to SPT, investment forecasted to
generate a NPV of $9.1mm and IRR of 43% based on a $5.5mm DWM. From a stand-alone Channel View, investment forecasted
to generate a NPV of $2.5mm and IRR of 24% based on a $8.0mm DWM
• No FY13 EBIT/Cash impact; EBIT impact of ($4.0mm) and cash impact of ($4.0mm) in FY14
1 (1) By 2016, Flixela and Crackle combined video advertising market share is 32% in Brazil and 53% in Mexico
Source: PWC Media and Entertainment Outlook, 2012
Overview of Flixela
2
• Latin America’s premier digital network featuring movies for women
– Same business model as Crackle:
– Targets female audiences A18-44
– Features popular romantic comedies, dramas, thriller films with strong female leads
• Provide an enhanced movie experience that satisfies advertisers’ demands for a
female-focused network
– Capture highly attractive female demographic in Latin America. For women online
with an affinity to movies(1):
78% of Brazilians and 54% of Mexicans watch at least 5 movies per month
89% of Brazilians and 62% of Mexicans watch movies on their computer
70% of respondents prefer movies, TV series, or music videos over short-form
YouTube content
68% of respondents claim they would visit a female movie centric site 2-5x per
month
96% of respondents say they would likely recommend this service to a friend
– SPT receives approx. 50% of its online video RFPs targeting a female audience;
Crackle’s audience is ~35% female(2)
– Significant interest from consumer product companies including Dove, Pampers,
Rexona, Sedal, Bimbo, and Baileys
• Brand meaning: “Flix” means online movies, “ela” means “she” in Portuguese
(1) Crackle LatAm team conducted a survey to understand LatAm online female audiences’ attitudes, interest and behavior as it relates to online movie watching. Sample size
included 500 women from Brazil and 500 women from Mexico that came from a local database of female users with an affinity to movies. Results taken over a 7 day period in
October 2012. No incentive was provided for completing the survey in Brazil; reward points were awarded in Mexico. Sample size age range: 15-39 years old
(2) Source: ComScore.com April 2012
Free to consumer
Ad-supported
Long form content
On-demand
Multiplatform (OTT/mobile/web)
Strategic Benefits to SPT, SPE, and Sony
3
• Be first to market to establish the dominant female-branded digital network in Latin America; Crackle is currently #2 streaming
video service on BIVL
• Complements Crackle’s male-focused offering to fully exploit advertisers’ digital marketing demand across demos
• Build a bouquet of digital networks, creating synergies by leveraging:
– Existing ad sales infrastructure to enhance upfront and scatter offerings
– Crackle’s technology backend with minimal incremental investment
– Crackle’s management team to oversee operations
• Hedge constraints on Pay TV in Mexico and Brazil(1)
• Leverage SPT’s Pay TV Networks in region (SET, AXN, SPIN) to drive brand awareness and enhanced ad sales opportunities
– Establish ad barter relationship to drive large scale on-air messaging and cross promotion
– Create custom ad sales packages sold across SPT’s portfolio of digital and Pay TV networks
• Use key findings from Flixela Latin America launch to rollout brand in other regions (e.g., U.S., Canada)
• Exploit SPT’s library of female-oriented film content to generate incremental returns for SPT’s licensing team
• Utilize ad inventory to market SPE television and film products, as well as Sony consumer electronics
(1) New laws for international Pay TV networks in Mexico and Brazil restrict total number of advertising minutes per hour
Market Overview
4
• Broadband households are forecasted to grow at a 15% CAGR
from 2012 to 2016
• Total broadband penetration is expected to increase from 40% in
2012 to 67% in 2016
• Watching online video and downloading media are in the top 5
most popular “bandwidth” activities; 85% of broadband users in
LatAm watch video (comScore, April 2012)
Source: PWC Media and Entertainment Outlook, 2012
• Digital video advertising is forecast to grow faster than
total internet advertising (excluding Search) at CAGR
of 36% from 2012 to 2016
• Total internet advertising (excluding Search) is
forecasted to grow at a 20% CAGR from 2012 to 2016
• By 2016, Flixela and Crackle combined video
advertising market share is 32% in Brazil and 53% in
Mexico
• Opportunity to “expand” the market for digital video
advertising and to gain a strong foothold in LatAm
• Advertisers seeking outlets to market on
premium long-form content but limited by
offerings in market
• Counter downside of internet piracy
Video Internet Advertising '12-'16 CAGR: 36%
Internet Advertising (Exec. Search) '12-'16 CAGR: 20%
$216$306
$375$493
$617
$751
$925
$1,124
$1,328
$1,547
$0
$250
$500
$750
$1,000
$1,250
$1,500
$1,750
2007 2008 2009 2010 2011 2012E 2013E 2014E 2015E 2016E
($ in
mil
lio
ns)
Total Internet Advertising (Excluding Search)
Video Internet Advertising, LatAm
Latin America will experience strong double digit growth in broadband households and internet advertising over the next
couple years
Broadband Households '12-'16 CAGR: 15%
Broadband Household Penetration '12-'16 CAGR: 13%
1522
2734
40
48
56
65
75
84
13%19%
24%29%
34%40%
47%54%
60%67%
0%
20%
40%
60%
80%
100%
0
20
40
60
80
100
2007 2008 2009 2010 2011 2012E 2013E 2014E 2015E 2016E
La
tAm
Bro
ad
ba
nd
Ho
use
hold
s
Pen
etr
ati
on
La
tAm
Bro
ad
ba
nd
Ho
use
hold
s
(mil
lio
ns)
Competitive Landscape
5
Opportunity to capitalize on limited premium AVOD content in online
market and fill void of a dedicated female-focused online network
• Strong competition in subscriptions (Netflix and NetMovies) and short
form content providers (YouTube and Vevo)
• Terra is primary competitor (offers AVOD , SVOD, TVOD content)
– 12mm unique users on Terra TV, with an average of 1.5bn
streams / year(1)
– By FY16, Flixela is projected to have 7.1mm uniques /
month and have an average of 21.6mm streams / year
• Some traditional media portals (e.g. Globo, Televisa) and video leaders
(e.g. YouTube, Vevo) retain users for an average of 3 to 9 minutes
• Crackle’s average stream is 26 minutes
• Historically limited female TV options due to the traditional
'machismo' roles men had in society
– Within the past 10 years, Argentina, Trinidad and Tobago,
Brazil, Chile, and Costa Rica have all elected female
presidents. According to the United Nations, women
doubled their presence to over 20% in the region's
legislatures between 1990 and 2009
(1) Source: South By South West
(2) Source: comScore April 2012, MRP Infographic
Key Competitors(2)
Operating Assumptions
6
DISTRIBUTION
• Launch in Brazil and LatAm: August 2013 (19 countries)
• Launch on Web & Bivl: August 2013, Android: September 2013, IOS: October 2013, Syndication Partner: November
2013
• 2.3mm uniques / month in FY14 growing to 7.1mm uniques / month in FY18
• 2.1 streams / unique in FY14 growing to 3.0 streams / unique in FY18 (average)
• $2.0mm of net revenue in FY14 growing to $16.3mm of net revenue in FY18
AD SALES
• Revenue mix: 85% premium, 15% sponsorship revenue in Year 1, Years 2-5: 90% premium, 6% ad network, 4 %
sponsorship revenue
• Premium CPMs: Year 1: $35/$30/$25 for OTT/Mobile/Web decreasing to $29/$24/$19 in Year 5
• Streams monitized Year 1: 75%/60%/75% for OTT/Mobile/Web. Years 2-5: 85%/70%/85%
• 2.9 ads / stream in FY14 growing to 3.5 ads / stream in FY18 (across all platforms)
CONTENT /
PROGRAMMING
• Content mix: All movies (no TV content is planned)
• 130 average monthly titles at launch growing to 173 in FY18
– Content mix at launch list AAA (4), AA (8), A (41), B/C (75), Drivers (2)
• Approx. 50% of content licensed from third parties across forecast period
• Crackle LatAm FY14: 151 movies / 605 TV episodes; Crackle Domestic FY14: 300 movies / ~1000 TV episodes
OPERATIONS
• Outsource product development to third party. Year 1: $680k, Years 2-5: $400k/year
• $100k - $200k annually for Shared Services to leverage Crackle’s core platform (CMS, API’s, etc.)
• Leverage existing management. Hire 15 new employees starting in April 2013 (including 5 ad sales) scaling to 27 in
FY18 (including 8 ad sales)
MARKETING
• $1.8mm of annual marketing support
• $500k of annual in-kind barter advertising on SPT LatAm cable channels (SET, AXN, SPIN)
• $1mm of annual in-kind marketing from Syndication and Device Partners
Financial Projections ($ in thousands)
7 Notes: FX rates used in the projections: 2.04 Brazilian reals / $1 US, 12.88 Mexican pesos / $1 US, $4.72 Argentine pesos / $1 US, 1,800 Colombian pesos / $1 US
Service launches in August 2013; Year 1 includes 8 months of results.
Launches August 2013
Year 1 Year 2 Year 3 Year 4 Year 5 CAGR
Channel View FY 2014E FY 2015E FY 2016E FY 2017E FY 2018E FY'14-FY'18
Operating Stats (Monthly Averages):
Movie Titles 130 132 151 151 173 7%
Uniques 2,274,500 3,719,479 5,514,070 6,426,343 7,138,149 33%
Streams / Unique 2.1x 2.3x 2.5x 2.8x 3.0x 10%
Streams 4,691,509 8,525,079 13,966,332 17,853,918 21,644,881 47%
Ad Opportunitites 13,516,952 25,824,759 44,595,390 60,151,222 76,768,144 54%
Ads / Stream 2.9x 3.0x 3.2x 3.4x 3.5x 5%
Revenue:
Brazil $1,092 $2,942 $4,785 $6,004 $7,006 59%
Mexico 753 2,276 3,708 4,962 6,329 70%
Pan Regional 345 774 1,222 1,664 2,114 57%
Argentina 0 181 460 622 795 NA
Colombia 0 171 362 493 628 NA
Other Countries 20 106 209 286 365 107%
Gross Revenue $2,211 $6,450 $10,747 $14,031 $17,239 67%
Brazil Sales Tax $156 $393 $639 $802 $936
Net Revenue $2,055 $6,058 $10,108 $13,230 $16,303 68%
Growth % -- 195% 67% 31% 23%
Programming Costs $1,006 $1,569 $1,981 $2,167 $2,633
Hosting / Bandwidth 90 279 510 728 979
Ad Sales Commissions 686 1,823 1,526 2,007 2,480
Agency Incentives 308 849 1,417 1,856 2,288
Partner Revenue Share 33 255 400 482 566
Product Dev. & Search 735 460 460 465 465
Marketing 2,142 2,157 2,273 2,395 2,688
Total Expenses $5,000 $7,392 $8,567 $10,099 $12,099 25%
Gross Profit ($2,945) ($1,334) $1,541 $3,131 $4,204
% Net Revenue (143%) (22%) 15% 24% 26%
Staff $750 $952 $1,180 $1,345 $1,405
Shared Services 200 103 106 209 216
G&A 116 141 164 176 180
Total Overhead $1,067 $1,197 $1,450 $1,730 $1,801 14%
EBIT ($4,012) ($2,530) $91 $1,400 $2,403
% Net Revenue (195%) (42%) 1% 11% 15%
Channel View Cash Flow ($4,010) ($3,230) ($727) $785 $1,796
Cumulative Channel Cash Flow ($4,010) ($7,241) ($7,968) ($7,182) ($5,387)
SPE View Cash Flow ($3,526) ($1,942) $438 $2,253 $3,705
Cumulative SPE Cash Flow ($3,526) ($5,469) ($5,031) ($2,778) $927
Financial Impact to SPE ($ in thousands)
8
• Cash flow break even in Year 3
• Cumulative cash flow break even in Year 5
(1) Calculated based on the timing of Commissions to Ad Sales cash flow less taxes
(2) Calculated as expense only for Ad Sales staff less taxes
(3) Deemed as incremental revenue. Calculated as a percentage of programming, less 15% for talent residuals, less taxes
Channel View SPE View
NPV of Cash Flows ($1,677) $4,926
NPV of TV $4,202 $4,202
NPV Combined $2,525 $9,128
IRR 24% 43%
DWM ($7,968) ($5,469)
WACC 18% 18%
Year 1 Year 2 Year 3 Year 4 Year 5
FY 2014E FY 2015E FY 2016E FY 2017E FY 2018E
Aggregate Benefit to SPE
Channel View Cash Flow ($4,010) ($3,230) ($727) $785 $1,796
Commission to Ad Sales(1)
431 1,185 1,063 1,348 1,673
Ad Sales Expenses(2)
(223) (360) (443) (483) (498)
Aggregate Cash Flow to SPT Networks ($3,802) ($2,405) ($107) $1,650 $2,971
Cumulative Cash Flow ($3,802) ($6,208) ($6,315) ($4,665) ($1,694)
Licensing Revenue to SPT(3)
$276 $463 $545 $602 $734
% Licensing Revenue of Programming 51% 52% 48% 48% 49%
Total SPE Impact ($3,526) ($1,942) $438 $2,253 $3,705
Cumulative Cash Flow ($3,526) ($5,469) ($5,031) ($2,778) $927
Risks & Mitigants
9
RISKS MITIGANTS
• Ad revenue market share projections are relatively high to market forecasts; Flixela
and Crackle LatAm projected to take 32% of video advertising marketing in Brazil
and 53% in Mexico by FY16(1)
• Conversations with advertisers indicate significant demand to reach female
demographic
• Nascent video advertising market
• Advertising revenue forecast is diversified; no industry represents more than 25%
of total revenue and no client represents more than 7% of total revenue
• Crackle LatAm outperformed advertising forecast in business plan (excluding FX
adjustments), demonstrating strength of ad sales capabilities and ability to enter
emerging market
• High organic market growth: LatAm internet advertising industry (excluding
search) projected to grow from $751mm in 2012 to $1.5bn in 2016, a 20%
CAGR(1)
• Programming investment in movies only (no TV product contemplated in plan) is
insufficient to drive forecasted streaming volume
• Growth in movie titles across forecast period; 130 average monthly titles at launch
growing to 173 in FY 2018
• High volume of new titles year-to-year (approx. 40-50%) will drive return users
• Opportunity to revisit TV strategy in future years should a movies-only strategy
underperform
• Ability to attract and retain users is less than forecasted
– Projected amount of organic uniques across all platforms grows from 12% of
total uniques or 286k uniques in FY14 to 44% or 3mm uniques in FY18
– Projected amount of retained uniques across all platforms grows from 9% of total
uniques or 212k uniques in FY14 to 31% or 2.2mm uniques in FY18(2)
– Unable to secure syndication deals as forecasted
• Est. $500k of annual in-kind barter advertising on SPT LatAm cable channels
(SET, AXN, SPIN)
• Est. $600k of annual in-kind marketing from established Device Partners
• Attractive programming offering drives repeat users and positive word of mouth
(see programming mitigations above)
• UOL, MSN, YouTube deals expected, though deals are not signed
• Relatively high number of monthly average movie streams on Flixela (3.6mm in
Y1) relative to current performance on Crackle LatAm (1.4mm monthly average
movie streams in 1H Y1). Note this excludes syndication partners
• Opportunity to increase revenue by adding second ad unit per break
• By the time of Flixela’s launch in August 2013, team will have improved
operational learnings from Crackle LatAm to drive better user acquisition and
engagement
• Uniques required to generate forecasted streams is a small portion of broadband
users
(1) Source: PWC Media and Entertainment Outlook, 2012
(2) Organic uniques may be included in Retained uniques. Please see Appendix for retention rates used in analysis
Next Steps
10
10/19 Present to Andy Kaplan
10/22 – 11/9 Update key SPE Management and secure investment approval
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September October November
Appendix
Market Analysis ($ in millions)
12
• Flixela is first to market, no current competition
• Flixela and Crackle LatAm will provide SPT significant shares of double digit growth video advertising markets in Brazil,
Argentina, and Mexico
Note: Total Internet Advertising for each country excludes Search
Source: PWC Media and Entertainment Outlook, 2012
Market Analysis FY 2012 FY 2013E FY 2014E FY 2015E FY 2016E FY 2013E FY 2014E FY 2015E FY 2016E
All Countries in LatAm Brazil
Market - Video Advertising $32 $47 $67 $88 $109 Market - Video Advertising $23 $31 $40 $49
Growth % 47% 43% 31% 24% Growth % 35% 35% 29% 23%
Market - Total Internet Advertising $719 $878 $1,057 $1,240 $1,438 Market - Total Internet Advertising $460 $536 $618 $706
Growth % 22% 20% 17% 16% Growth % 17% 17% 15% 14%
Flixela Revenue - - $2.1 $6.1 $10.1 Flixela Revenue - $1.1 $2.9 $4.8
Growth % - - 195% 67% Growth % - - 169% 63%
% of Video Advertising Market - 3% 7% 9% % of Video Advertising Market - 4% 7% 10%
% of Total Internet Advertising - 0.2% 0.5% 0.7% % of Total Internet Advertising - 0.2% 0.5% 0.7%
Crackle LatAm Revenue $0.1 $3.4 $8.1 $16.4 $22.0 Crackle LatAm Revenue $1.5 $4.5 $8.4 $10.9
% of Video Advertising Market 7% 12% 19% 20% % of Video Advertising Market 6% 14% 21% 22%
Flixela & Crackle LatAm Revenue $0.1 $3.4 $10.1 $22.5 $32.1 Flixela & Crackle LatAm Revenue $1.5 $5.5 $11.3 $15.7
% of Video Advertising Market 0% 7% 15% 26% 29% % of Video Advertising Market 6% 18% 28% 32%
Argentina Mexico
Market - Video Advertising $2 $3 $4 $5 $6 Market - Video Advertising $9 $12 $15 $19
Growth % 50% 33% 25% 20% Growth % 50% 33% 25% 27%
Market - Total Internet Advertising $48 $56 $65 $74 $86 Market - Total Internet Advertising $167 $197 $228 $262
Growth % 17% 16% 14% 16% Growth % 22% 18% 16% 15%
Flixela Revenue - - - $0.2 $0.5 Flixela Revenue - $0.8 $2.3 $3.7
Growth % - - - 155% Growth % - - 202% 63%
% of Video Advertising Market - - 4% 8% % of Video Advertising Market - 6% 15% 20%
% of Total Internet Advertising - - 0.2% 0.5% % of Total Internet Advertising - 0.4% 1.0% 1.4%
Crackle LatAm Revenue - - $0.5 $1.1 Crackle LatAm Revenue $2 $3 $5 $6
% of Video Advertising Market 0% 0% 11% 18% % of Video Advertising Market 17% 22% 33% 33%
Flixela & Crackle LatAm Revenue - - $0.7 $1.6 Flixela & Crackle LatAm Revenue $1.6 $3.4 $7.2 $10.1
% of Video Advertising Market - - 14% 26% % of Video Advertising Market 17% 28% 48% 53%
KPI Comparison (in millions, except for multiples and titles)
13
FY 2013E FY 2014E FY 2015E FY 2016E FY 2017E FY 2018E CAGR '13-'16 CAGR '14-'18
Uniques (Monthly Average)
Flixela - 2.3 3.7 5.5 6.4 7.1 33%
Crackle LatAm 3.1 5.3 9.0 10.8 - - 52%
Crackle U.S. 16.8 19.1 21.6 24.5 - - 13%
Streams / Unique
Flixela - 2.1x 2.3x 2.5x 2.8x 3.0x 10%
Crackle LatAm 2.1x 2.3x 2.6x 2.8x - - 10%
Crackle U.S. 2.7x 3.1x 3.2x 3.3x - - 7%
Streams (Monthly Average)
Flixela - 4.7 8.5 14.0 17.9 21.6 47%
Crackle LatAm 6.5 12.4 23.0 30.4 - - 67%
Crackle U.S. 45.6 59.8 69.7 81.5 - - 21%
Ads / Stream
Flixela - 2.9x 3.0x 3.2x 3.4x 3.5x 5%
Crackle LatAm 2.8x 3.0x 3.2x 3.4x - - 6%
Crackle U.S. 2.8x 4.3x 5.3x 6.6x 34%
Number of Ads Served (Monthly Average)
Flixela - 13.5 25.8 44.6 60.2 76.8 54%
Crackle LatAm 18.4 37.5 73.7 102.4 - - 77%
Crackle U.S. 125.8 256.1 368.0 535.8 - - 62%
Revenue (Annual)
Flixela - $2.1 $6.1 $10.1 $13.2 $16.3 68%
Crackle LatAm $3.6 $8.7 $17.6 $23.6 - - 87%
Crackle U.S. $20.1 $44.7 $67.2 $97.6 - - 69%
Movie Titles
Flixela - 130 132 151 151 173 7%
Crackle LatAm - 151 166 183 201 221 10%
Crackle U.S. 250 300 350 400 - -
TV Episodes
Flixela - - - - - -
Crackle LatAm - 605 666 732 805 886 10%
Crackle U.S. - 1000 1000 1000 1000 1000
Margin Comparison
14
Based on FY16 - Y5 of Plan Based on FY18 - Y5 of Plan
Crackle Flixela
2013 MRP 2013 MRP
Brazil Spanish Latam Brazil Mexico
Revenue 100% 100% 100% 100%
Sales Tax -14% 0% -14% 0%
Agency Incentive -15% -15% -15% -15%
Partner Rev Share -3% -3% -3% -3%
Ad Sales Commission -20% -20% -20% -20%
Subtotal 57% 66% 57% 66%
Bandwidth -10% -10% -6% -6%
Programming -19% -19% -16% -16%
Marketing -8% -8% -15% -15%
Variable Cost Margin 20% 29% 20% 29%
SSO / Product Development -15% -15% -4% -4%
SG&A/Overhead -17% -17% -9% -9%
EBIT Margin -12% -3% 7% 16%
Programming
15
• 21
• A Few Good Men
• A League of Their Own
• Across the Universe
• Almost Famous
• Blind Date
• Can't Hardly Wait
• Charlie's Angels
• Closer
• Da Vinci Code
• Exorcism of Emily Rose
• Flatliners
• Fun with Dick and Jane (2005)
• Groundhog Day
• Hitch
• Hook
• Jawbreaker
• Julie & Julia
• Kramer Vs Kramer
• Made of Honor
• Michael Jackson's This Is It
• Nick & Norah' Infinite Playlist
• Only You
• Panic Room
• Resident Evil
• RV
• Sex, Lies & Videotape
• Silent Hill
• Single White Female
• Sleepless in Seattle
• Spanglish
• Stomp the Yard
• The Big Chill
• The House Bunny
• The Messengers
• The Net
• The Prince of Tides
• The Quiet
• The Sweetest Thing
• The Ugly Truth
• To Die For
• Tootsie
• Underworld
• What Planet Are You
From?
Flixela Sample Programming List
• The women’s movie category is smaller and more targeted than
the general audience for Crackle
• Experience from Crackle LatAm suggests targeted
programming offering could drive significant streaming
volume. For Crackle LatAm, ~40% of content drives 80% of ad
starts
• ~50% of content is from third parties across the projection
period
Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5
FY2014E FY2015E FY2016E FY2017E FY2018E FY2014E FY2015E FY2016E FY2017E FY2018E
Annual and Monthly Titles
Titles per Year Average Monthly Titles
AAA 15 23 27 27 29 AAA 4 6 7 7 7
AA 14 21 26 26 28 AA 8 11 13 13 14
A 41 39 43 43 47 A 41 39 43 43 47
B/C 75 75 87 87 103 B/C 75 75 87 87 103
Drivers 15 23 24 24 25 Drivers 2 2 2 2 2
Total 160 181 206 206 231 Total 130 132 151 151 173
Flixela and Crackle LatAm Title Comparison
Flixela Crackle LatAm
Movie Titles 130 132 151 151 173 Movie Titles 151 166 183 201 221
Growth - 2% 14% 0% 15% Growth - 10% 10% 10% 10%
TV Episodes - - - - - TV Episodes 605 666 732 805 886
Growth - - - - - Growth - 10% 10% 10% 10%
Total 130 132 151 151 173 Total 756 832 915 1,006 1,107
Revenue
16 Notes: FX rates used in the projections: 2.04 Brazilian reals / $1 US, 12.88 Mexican pesos / $1 US, $4.72 Argentine pesos / $1 US, 1,800 Colombian pesos / $1 US
% Growth
Year 1 Year 2 Year 3 Year 4 Year 5 Year 2 Year 3 Year 4 Year 5 CAGR
FY 2014E FY 2015E FY 2016E FY 2017E FY 2018E FY 2015E FY 2016E FY 2017E FY 2018E FY'14-FY'18
Uniques (Monthly Average)
OTT 27,250 184,473 431,118 702,219 941,309 577% 134% 63% 34% 142%
Mobile 159,735 224,373 349,285 603,827 971,487 40% 56% 73% 61% 57%
Web 2,087,516 3,310,633 4,733,667 5,120,297 5,225,354 59% 43% 8% 2% 26%
Total 2,274,500 3,719,479 5,514,070 6,426,343 7,138,149 64% 48% 17% 11% 33%
Streams / Unique
OTT 2.5x 2.8x 3.0x 3.3x 3.7x 10% 10% 10% 10%
Mobile 1.5x 1.7x 1.8x 2.0x 2.2x 10% 10% 10% 10%
Web 2.1x 2.3x 2.5x 2.8x 3.1x 10% 10% 10% 10%
Total 2.1x 2.3x 2.5x 2.8x 3.0x 11% 11% 10% 9%
Content Streams (Monthly Average)
OTT 68,124 507,300 1,304,132 2,336,634 3,445,425 645% 157% 79% 47% 167%
Mobile 239,603 370,216 633,953 1,205,541 2,133,531 55% 71% 90% 77% 73%
Web 4,383,783 7,647,563 12,028,248 14,311,743 16,065,925 74% 57% 19% 12% 38%
Total 4,691,509 8,525,079 13,966,332 17,853,918 21,644,881 82% 64% 28% 21% 47%
Ad Streams (Monthly Average)
OTT 204,371 1,597,995 4,313,415 8,114,839 12,563,808 682% 170% 88% 55%
Mobile 718,808 1,166,179 2,096,799 4,186,692 7,779,960 62% 80% 100% 86%
Web 12,593,772 23,060,585 38,185,176 47,849,691 56,424,375 83% 66% 25% 18%
Total 13,516,952 25,824,759 44,595,390 60,151,222 76,768,144 91% 73% 35% 28%
Ads / Stream
OTT 3.0x 3.2x 3.3x 3.5x 3.6x 5% 5% 5% 5%
Mobile 3.0x 3.2x 3.3x 3.5x 3.6x 5% 5% 5% 5%
Web 2.9x 3.0x 3.2x 3.3x 3.5x 5% 5% 5% 5%
Total 2.9x 3.0x 3.2x 3.4x 3.5x 5% 5% 6% 5%
Revenue (Annual)
OTT $44,504 $538,212 $1,377,122 $2,460,937 $3,624,824 1,109% 156% 79% 47% 200%
Mobile 87,207 277,103 472,295 895,766 1,581,900 218% 70% 90% 77% 106%
Web 1,758,513 5,387,377 8,475,484 10,109,246 11,328,421 206% 57% 19% 12% 59%
Display/Sponsorships 320,460 247,504 421,846 565,384 703,799 (23%) 70% 34% 24% 22%
Total $2,210,683 $6,450,197 $10,746,747 $14,031,332 $17,238,945 192% 67% 31% 23% 67%
Revenue by Country
Brazil $1,092,222 $2,942,071 $4,784,847 $6,004,376 $7,006,430 169% 63% 25% 17% 59%
Mexico 753,462 2,275,814 3,708,117 4,962,298 6,329,477 202% 63% 34% 28% 70%
Pan Regional 345,000 773,881 1,222,142 1,663,799 2,114,108 124% 58% 36% 27% 57%
Argentina 0 180,659 459,951 622,291 795,415 N/A 155% 35% 28% N/A
Colombia 0 171,404 362,211 492,943 628,303 N/A 111% 36% 27% N/A
Other Countries 20,000 106,368 209,479 285,626 365,213 432% 97% 36% 28% 107%
Total $2,210,683 $6,450,197 $10,746,747 $14,031,332 $17,238,945 192% 67% 31% 23% 67%
Brazil Sales Tax (14.25%) $155,642 $392,513 $638,618 $801,770 $935,747
Net Revenue $2,055,042 $6,057,684 $10,108,129 $13,229,563 $16,303,198 195% 67% 31% 23% 68%
Growth % - 195% 67% 31% 23%
Marketing and Retention (in thousands)
17 (1) Traffic sources include Organic, Social Media, Agency, Production (Creative), Public Relations, Other (CRM, Customer Service)
• In Y5, 47% of traffic comes from marketing efforts
and organic traffic across all platforms(1)
• SEM Paid accounts for paid web traffic
• Retention rates assumptions:
– Growth of 37% year over year for each month
– Additional month of retention for each year
– Y1 is based on current US Crackle retention
rates as of October 2012
• Uniques generated from In-kind Marketing are in
“Other” and “Other Retained” in the Uniques
Summary
• Uniques generated from Other are in “Other” and
“Other Retained” in the Uniques Summary
FY 2014E FY 2015E FY 2016E FY 2017E FY 2018E
Marketing Budget
SEM Paid $1,053 $959 $972 $972 $1,056
Other 589 548 561 560 629
B2B/Trade 250 200 200 215 225
Total $1,892 $1,707 $1,733 $1,747 $1,910
In-kind Marketing
Syndication & Device Partners $541 $1,125 $1,181 $1,240 $1,302
SPT Pay TV Channels Cross Promote 180 375 394 413 434
Subtotal $721 $1,500 $1,575 $1,654 $1,736
Total Including In-Kind $2,613 $3,207 $3,308 $3,400 $3,647
Uniques Summary FY2014E FY2015E FY2016E FY2017E FY2018E
SEM Paid 1,662,500 1,403,646 1,421,875 1,421,875 1,545,833
SEM Retained 167,635 225,566 327,257 462,561 704,414
Other(1)
399,558 1,835,645 3,116,259 3,445,569 3,369,507
Other Retained(1)
44,807 254,622 648,679 1,096,338 1,518,395
Total Uniques 2,274,500 3,719,479 5,514,070 6,426,343 7,138,149
% Total Uniques
SEM Paid 73% 38% 26% 22% 22%
SEM Retained 7% 6% 6% 7% 10%
Other(1)
18% 49% 57% 54% 47%
Other Retained(1)
2% 7% 12% 17% 21%
Total 100% 100% 100% 100% 100%
Total Retained Uniques 9% 13% 18% 24% 31%
Retention Rates for SEM Retained and Other Retained
Month 2 7% 10% 13% 18% 25%
Month 3 2% 3% 4% 5% 7%
Month 4 1% 1% 2% 3% 4%
Month 5 1% 1% 2% 3% 4%
Month 6 0% 1% 1% 2% 3%
Month 7 0% 0% 1% 1% 2%
Month 8 0% 0% 0% 1% 1%
Month 9 0% 0% 0% 0% 1%
Month 10 0% 0% 0% 0% 0%
Month 11 0% 0% 0% 0% 0%
Month 12 0% 0% 0% 0% 0%
Headcount
18
Headcount Summary
Year 1 Year 2 Year 3 Year 4 Year 5
FY'2014 FY'2015 FY'2016 FY'2017 FY'2018
Brazil 1 2 2 2 2
Los Angeles 3 3 3 3 3
Mexico 0 2 2 2 2
Miami 4 6 8 8 8
Women's Channel Headcount 8 13 15 15 15
Los Angeles 1 1 1 1 1
Mexico 2 2 2 3 3
New York 2 3 4 4 4
Ad Sales Headcount 5 6 7 8 8
Los Angeles 1 1 1 2 2
Shared Services Headcount 1 1 1 2 2
Miami 1 1 1 2 2
Finance Headcount 1 1 1 2 2
Total Headcount 15 21 24 27 27
Note: Difference in headcount total are the two finance heads which are allocations
Headcount Summary by Position FY'15 (YEAR 2)
Title Location Start Date FY14 Salary
1 Community Manager Miami 04/01/13 $60
2 Marketing Manager Miami 04/01/13 70
3 Video Ops Specialist Los Angeles 04/01/13 70
4 Graphic Designer Los Angeles 04/01/13 75
5 Web Producer Los Angeles 04/01/13 70
6 Editor-In-Chief Miami 04/01/13 90
7 Editorial Specialist Brazil 04/01/13 55
8 Programming Specialist Miami 04/01/13 55
9 Community Specialist Brazil 04/01/14 0
10 Community Specialist Mexico 04/01/14 0
11 Editorial Specialist Mexico 04/01/14 0
12 Programming Specialist Miami 04/01/15 0
13 Marketing Manager Miami 04/01/15 0
14 Community Specialist Miami 04/01/16 0
15 Editorial Specialist Miami 04/01/16 0
16 Digital Sales Planner Mexico 07/01/13 20
17 Account Executive Mexico 05/01/13 52
18 Tech Ops Specialist Los Angeles 07/01/13 56
19 Ad Ops Specialist New York 07/01/13 56
20 Ad Ops Specialist New York 07/01/13 56
21 Ad Ops Specialist New York 04/01/14 0
22 Ad Ops Specialist New York 04/01/15 0
23 Digital Sales Planner Mexico 04/01/16 0
24 Account Analyst Miami 06/01/13 46
25 Account Analyst Miami 04/01/16 0
Total $831
Total including Fringe Benefits $1,056
LatAm Target Female Demographic
19 Source: TGI.net Y2010 Wave2 (2011), MRP Infographic
Online Video Female Demographic Data (Watchers in millions)
20 Source: ComScore Video Matrix, August 2012
Males Females Males % Females %
United States
Video Online Watchers 95 98 49% 51%
Videos/Viewer 313 180 63% 37%
Minutes/Viewer 1,846 820 69% 31%
Minutes/Video 6 5
Brazil
Video Online Watchers 22 22 50% 50%
Videos/Viewer 157 93 63% 37%
Minutes/Viewer 787 408 66% 34%
Minutes/Video 5 4
Mexico
Video Online Watchers 11 10 52% 48%
Videos/Viewer 204 121 63% 37%
Minutes/Viewer 1,153 603 66% 34%
Minutes/Video 6 5
Cost of Equity ($ in millions)
21
Company HQ
Levered
Beta Market Cap
Total
Debt
Debt to
Total
Capital
Debt
to
Equity
Marginal
Tax
Rate
Unlevered
Beta
Blanco y Negro S.A. Chile 0.28 $63 $0 0% 0% 17% 0.28
Blinkx USA 0.49 356 0 0% 0% 40% 0.49
Coinstar USA 0.90 1,429 373 21% 26% 40% 0.78
Grupo Clarín S.A. Argentina 1.01 432 745 63% 173% 35% 0.48
Grupo Radio Centro, S.A.B. de C.V. Mexico 1.18 147 5 3% 4% 28% 1.15
Netflix USA 0.70 3,209 400 11% 12% 40% 0.65
Average 0.76 0.64
Median 0.80 0.57
Assumptions
Unlevered Beta 0.57 Peer group median. (CapIQ)
Calculated Levered Beta 0.57 Levered Beta = Unlevered Beta * (1+[(1-Tax Rate) * Target Debt / Equity Value])
Risk-free rate 1.7% Yield of 10 year US Treasury Bond (WSJ, 10/16/12)
Market Premium 6.6% Long-horizon expected equity risk premium (Ibbotson's)
Company Size Premium 9.8% Decile 10b for companies with market caps between $1 million - $128 million (Ibbotson's)
Country Risk Premium 2.8% Weighted average risk premium based on revenue for key markets (Damodaran)
Tax EBIT at tax rate of 31.4% Weighted average risk premium based on revenue for key markets (Damodaran)
Equity as a Percentage of Total Capital 100.0%
Debt as a Percentage of Total Capital 0.0%
Cost of Equity 18.1%
Source: Capital IQ
Preliminary Valuation Overview ($ in millions)
22
Notes: Appendix includes detailed calculations
SPT View includes add-backs of after tax Commission to Ad Sales expense, Ad Sales staff expense less taxes, and incremental Licensing Revenue less 15% for talent residuals and
less taxes
METHODOLOGY IMPLIED VALUATION COMMENTS
DCF Channel View
(Exit Multiple)
■
■
WACC range: 17.1% - 19.1%
Conservative 9.0x - 11.0x terminal multiple
DCF Channel View
(Perpetuity Growth)
■
■
WACC range: 17.1% - 19.1%
Perpetuity growth: 2.0% - 4.0%
DCF SPT View
(Exit Multiple)
■
■
WACC range: 17.1% - 19.1%
Conservative 9.0x - 11.0x terminal multiple
DCF SPT View
(Perpetuity Growth)
■
■
WACC range: 17.1% - 19.1%
Perpetuity growth: 2.0% - 4.0%$7.9
$10.4
$1.5
$4.1
$10.7
$13.9
$3.8
$7.0
$0 $3 $6 $9 $12 $15
Enterprise Value
Discounted Cash Flow Analysis: Channel View ($ in thousands)
23
Valuation Summary
WACC 18.1%
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
FY'2014E FY'2015E FY'2016E FY'2017E FY'2018E FY2019E FY2020E FY2021E FY 2022E FY 2023E
Unlevered Free Cash Flow ($4,010) ($3,230) ($727) $785 $1,796 $2,237 $1,896 $2,370 $2,844 $3,271
PV of Free Cash Flow ($3,395) ($2,315) ($441) $403 $780 $823 $590 $625 $634 $618
Terminal Value Method
NPV of Cash Flows ($4,967) NPV
Terminal Year EBIT (FY 2018E) $2,403 Exit Multiple
Terminal Multiple 10.0x $5,477 8.0x 9.0x 10.0x 11.0x 12.0x
Terminal Value $24,032 16.1% $4,069 $5,206 $6,343 $7,481 $8,618
Present Value of Terminal Value $10,443 17.1% 3,718 4,808 5,898 6,987 8,077
% of Enterprise Value 190.7% 18.1% 3,388 4,432 5,477 6,521 7,565
NPV Combined $5,477 19.1% 3,076 4,077 5,078 6,079 7,081
IRR 42% 20.1% 2,781 3,741 4,701 5,662 6,622
NPV Combined as a Multiple of 2014E Revenue 2.7x
NPV Combined as a Multiple of 2015E Revenue 0.9x
Implied Perpetuity Growth Rate 9.9%
Perpetuity Growth Method
NPV of Cash Flows ($1,677) NPV
Terminal Year FCF (FY 2023E) $3,271 Perpetuity Growth Rate
Perpetuity Growth Rate 3.0% $2,525 1.0% 2.0% 3.0% 4.0% 5.0%
Terminal Value $22,252 16.1% $3,622 $4,020 $4,478 $5,011 $5,640
Present Value of Terminal Value $4,202 17.1% 2,727 3,050 3,418 3,842 4,335
% of Enterprise Value 166.4% 18.1% 1,963 2,226 2,525 2,866 3,259
NPV Combined $2,525 19.1% 1,305 1,523 1,767 2,044 2,360
IRR 24% 20.1% 737 918 1,119 1,346 1,603
NPV Combined as a Multiple of 2014E Revenue 1.2x
NPV Combined as a Multiple of 2015E Revenue 0.4x
Implied Terminal EBIT Multiple 4.0x
WA
CC
WA
CC
Discounted Cash Flow Analysis: SPT View ($ in thousands)
24
Valuation Summary
WACC 18.1%
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
FY'2014E FY'2015E FY'2016E FY'2017E FY'2018E FY2019E FY2020E FY2021E FY 2022E FY 2023E
Unlevered Free Cash Flow ($3,526) ($1,942) $438 $2,253 $3,705 $4,717 $5,151 $6,372 $2,844 $3,271
PV of Free Cash Flow ($2,985) ($1,392) $266 $1,156 $1,610 $1,735 $1,604 $1,679 $634 $618
Terminal Value Method
NPV of Cash Flows ($1,344) NPV
Terminal Year EBIT (FY 2018E) $2,403 Exit Multiple
Terminal Multiple 10.0x $12,079 8.0x 9.0x 10.0x 11.0x 12.0x
Terminal Value $24,032 16.1% $11,256 $12,393 $13,531 $14,668 $15,806
Present Value of Terminal Value $10,443 17.1% 10,605 11,695 12,784 13,874 14,963
% of Enterprise Value 86.5% 18.1% 9,991 11,035 12,079 13,124 14,168
PV of SPE Cash Flows (2019E-2021E) 2,980 19.1% 9,411 10,412 11,413 12,414 13,416
NPV Combined $12,079 20.1% 8,863 9,824 10,784 11,744 12,704
IRR 67%
NPV Combined as a Multiple of 2014E Revenue 5.9x
NPV Combined as a Multiple of 2015E Revenue 2.0x
Implied Perpetuity Growth Rate 2.4%
Perpetuity Growth Method
NPV of Cash Flows $4,926 NPV
Terminal Year FCF (FY 2023E) $3,271 Perpetuity Growth Rate
Perpetuity Growth Rate 3.0% $9,128 1.0% 2.0% 3.0% 4.0% 5.0%
Terminal Value $22,252 16.1% $10,810 $11,207 $11,665 $12,198 $12,828
Present Value of Terminal Value $4,202 17.1% 9,614 9,936 10,304 10,728 11,222
% of Enterprise Value 46.0% 18.1% 8,565 8,829 9,128 9,469 9,861
NPV Combined $9,128 19.1% 7,640 7,858 8,102 8,379 8,695
IRR 43% 20.1% 6,820 7,000 7,202 7,429 7,686
NPV Combined as a Multiple of 2014E Revenue 4.4x
NPV Combined as a Multiple of 2015E Revenue 1.5x
Implied Terminal EBIT Multiple 4.0x
WA
CC
WA
CC
Scenario Analysis ($ in thousands)
25
Year 1 Year 2 Year 3 Year 4 Year 5
FY'2014E FY'2015E FY'2016E FY'2017E FY'2018E Total
Case: Base
Total Uniques 2,274,500 3,719,479 5,514,070 6,426,343 7,138,149 25,072,543
Net Revenue $2,055 $6,058 $10,108 $13,230 $16,303 $47,754
EBIT ($4,012) ($2,530) $91 $1,400 $2,403 ($2,647)
Case: Uniques Decrease 5% Each Year
Total Uniques 2,160,775 3,533,505 5,238,367 6,105,026 6,781,242 23,818,915
Decrease in Number of Total Uniques (113,725) (185,974) (275,704) (321,317) (356,907) (1,253,627)
Net Revenue $1,952 $5,755 $9,603 $12,568 $15,488 $45,366
Cumulative Revenue Miss ($2,388)
EBIT ($4,059) ($2,673) ($222) $993 $1,904 ($4,057)
Case: Uniques Decrease 10% Each Year
Total Uniques 2,047,050 3,347,531 4,962,663 5,783,709 6,424,334 22,565,288
Decrease in Number of Total Uniques (227,450) (371,948) (551,407) (642,634) (713,815) (2,507,254)
Net Revenue $1,850 $5,452 $9,097 $11,907 $14,673 $42,978
Cumulative Revenue Miss ($4,775)
EBIT ($4,106) ($2,816) ($534) $585 $1,404 ($5,467)
Case: Uniques Decrease 15% Each Year
Total Uniques 1,933,325 3,161,557 4,686,960 5,462,392 6,067,427 21,311,661
Decrease in Number of Total Uniques (341,175) (557,922) (827,111) (963,952) (1,070,722) (3,760,881)
Net Revenue $1,747 $5,149 $8,592 $11,245 $13,858 $40,591
Cumulative Revenue Miss ($7,163)
EBIT ($4,153) ($2,958) ($847) $177 $905 ($6,876)
Case: Uniques Decrease 20% Each Year
Total Uniques 1,819,600 2,975,583 4,411,256 5,141,075 5,710,520 20,058,034
Decrease in Number of Total Uniques (454,900) (743,896) (1,102,814) (1,285,269) (1,427,630) (5,014,509)
Net Revenue $1,644 $4,846 $8,087 $10,584 $13,043 $38,203
Cumulative Revenue Miss ($9,551)
EBIT ($4,200) ($3,101) ($1,160) ($231) $405 ($8,286)
Net Revenue Miss by:
DCF Perpetuity Growth Method Scenario Analysis Base Case (5% ) (10% ) (15% ) (20% )
NPV of Cash Flows ($1,677) ($3,087) ($4,523) ($6,014) ($7,805)
NPV of TV $4,202 $2,954 $1,706 $458 ($275)
NPV Combined $2,525 ($133) ($2,817) ($5,555) ($8,080)
IRR 24% 18% 9% (6%) NA
DWM ($7,968) ($8,374) ($8,780) ($9,528) ($10,378)
NPV of Cash Flows $4,926 $3,212 $1,775 ($320) ($2,415)
NPV of TV $4,202 $2,954 $1,989 $458 ($275)
NPV Combined $9,128 $6,166 $3,764 $138 ($2,690)
IRR 43% 37% 29% 19% 2%
DWM ($5,469) ($5,686) ($6,111) ($6,651) ($7,191)
Ch
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nel
Vie
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SP
T
Vie
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Precedent Media Transactions Analysis ($ in millions)
26
PRECEDENT MEDIA TRANSACTIONS ANALYSIS
Enterprise Value /
Announced Target BuyerTarget
HeadquartersTarget Business Description
Enterpise
ValueRevenue EBIT
06/04/12 Grupo Clarín S.A. GS Unidos, L.L.C. Argentina
Operates a cable TV network that offers basic pay TV, premium video, pay per view, HD, as well as
broadband Internet services. Additional segments include Digital Content segment produces content
for the Internet and mobile digital platforms, Broadcasting and Programming $75.0 0.7x 4.2x
04/19/12 New Video Group Vistachiara Productions, Inc. USA
Operates as a distributor of independent films, documentaries, and television sports and kids
programming through DVD, Blu-ray, downloads, streaming platforms 20 1.6x -
01/31/11 LOVEFiLM Amazon.com UK Online Retail, Online Video 115 - -
01/25/11 Dailymotion SA France Telecom France Media technologies / Content delivery / Streaming media 80 6.7x -
01/07/11 Qik Skype USA Online Video, VoIP 150 - -
12/23/10 Sonic Solutions Rovi Corporation USA Online Video, Production Tools - Media 763 7.0x -
10/12/10 Ngmoco DeNa USA Mobility / Mobile content / Entertainment 400 13.3x -
09/28/10 5min Inc. AOL, Inc. USA Internet content & commerce / Video 65 - -
09/19/10 Locaweb Serviços de Internet S.A. Silver Lake Partners Brazil
Offers Internet solutions that include infrastructure for audio and video streaming, Web hosting,
domain registration 68 4.5x -
01/22/10 Dori Media Central Studios S.A. - Argentina
Operates as a television production company which offers production services and owns production
facilities and TV studios 19 0.4x 12.0x
12/04/09 La La Media Apple USA Media technologies / Content delivery / Streaming media 65 - -
10/30/09 The Orchard Enterprises, Inc. Dimensional Associates LLC USA Distributes digital music and video products 15 0.25 -
High $763 4.5x 12.0x
75th Percentile $124 1.6x 10.0x
Median $72 0.7x 8.1x
Mean $153 1.5x 8.1x
25th Percentile $54 0.4x 6.1x
Low $15 0.3x 4.2x
Latin America Public Media Comparables Analysis ($ in millions)
27
PUBLIC MEDIA COMPARABLES ANALYSIS
Enterprise Value as a Multiple of:
Market Enterprise Revenue EBITDA EBIT
Company Name Headquarters Description Value Value LTM LTM LTM
Blanco y Negro S.A. Chile
Engages in the organization, production, participation, and marketing of shows, and professional activities of
entertainment and leisure sporting activities $63 $68 2.4x 9.7x NA
Blinkx USA Provides video search and advertising services on the Internet worldwide 356 317 2.8x 24.7x 49.5x
Coinstar USA Provides automated retail solutions. Owns and operates Redbox Kiosks - expanding into OTT 1,429 1,480 0.7x 3.4x 5.5x
Grupo Clarín S.A. Argentina
Operates a cable TV network that offers basic pay TV, premium video, pay per view, HD, as well as
broadband Internet services. Additional segments include Digital Content segment produces content for the
Internet and mobile digital platforms, Broadcasting and Programming 432 1,203 0.5x 2.1x 3.2x
Grupo Radio Centro, S.A.B. de C.V. Mexico Engages in the production and broadcasting of music, entertainment, news, and special event programs 147 147 1.9x 8.4x 9.4x
Netflix USA Operates an Internet subscription services for TV shows and movies 3,209 2,796 0.8x 12.3x 15.4x
High $3,209 $2,796 2.8x 24.7x 49.5x
75th Percentile $1,179 $1,411 2.2x 11.6x 15.4x
Median $394 $760 1.3x 9.1x 9.4x
Mean $939 $1,002 1.5x 10.1x 16.6x
25th Percentile $199 $189 0.7x 4.7x 5.5x
Low $63 $68 0.5x 2.1x 3.2x