Top Banner
StereoType Des Moines [email protected] “StereoType, the one-stop-shop for live recording.”
28

StereoType Des Moines

Feb 25, 2016

Download

Documents

Mason

“StereoType, the one-stop- shop for live recording. ”. StereoType Des Moines. [email protected]. Why Do Artists Skip Iowa?. Iowa Colleges. Problem Is Ticket Price Doesn’t Equal Value. How do we offer the consumer low ticket prices? - PowerPoint PPT Presentation
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: StereoType Des Moines

StereoType Des Moines

[email protected]

“StereoType, the one-stop-shop for live recording.”

Page 2: StereoType Des Moines

Why Do Artists Skip Iowa?

Page 3: StereoType Des Moines

Iowa Colleges

Page 4: StereoType Des Moines

Problem Is Ticket Price Doesn’t Equal Value• How do we offer the consumer low

ticket prices?

• How do the Artists, Labels, Promoters still make a profit with low ticket prices?

• How do we make a profit?

Page 5: StereoType Des Moines

We partner with the Artists, Labels,

Promoters

Page 6: StereoType Des Moines

Provide the Resources to Record• Most bands can’t afford them– We have all resources in house

• Record in hi-def Audio / Video– Create entire product lines• Each product can yield revenue for decades

– Each a StereoType exclusive– Yields massive amounts of revenue

• Subsidize ticket prices – High energy yields a spectacular recording

Page 7: StereoType Des Moines

Business Model• Record/produce/broadcast– Increases profit margin

• Three main products– Audio downloads– Video downloads– Live streams• Physical attendance is not required to

enjoy the show

• Distribute digitally– No manufacturing expense– Minimal warehousing expenses– Establishes brand name status

Page 8: StereoType Des Moines

Additional Revenue Options• Lease the recordings– Video games– Commercials– Television / Movies

• Use facilities to– Stream our events to other venues– Stream live to awards shows– Lease our equipment to other venues– Host: Tradeshows , Weddings, Sporting

events, Gaming Tournaments, Proms

Page 9: StereoType Des Moines

Why will they let us record?

Page 10: StereoType Des Moines

Artists want two things…

Money + Exposure

Page 11: StereoType Des Moines

Profit sharing model• 40% gross to the artist• Artists own the recordings• We retain exclusive distribution rights– We cover ALL expenses• Marketing / Distribution / Manufacturing

• Artists choose– What products are created – Formats used– What distribution channels to use

Page 12: StereoType Des Moines

Year 2 Year 3

$383K $818K

1M 1.7M

211K 536K

Partnership = ProfitYear 4 Year 5

$1.3M $1.7M

2.7M 3.7M*

1M 1.8M

Year Year 1

Average Pay for Artists

$162K

Average # of Downloads Per

Month380K

Average # of Live Streams Per Month

55K

*Oct 24th,2011 iTunes sold its 16 Billionth songSell an average 11 Million songs per day

Page 13: StereoType Des Moines

One-of-a-kind venue• 6 venue spaces, capacities from 200 – 10K– Each has a top of the line

• Audio / Video systems• Full recording capabilities

• Complete entertainment facilities– Green rooms, retail spaces, work/live lofts– Restaurant, nightclub– Accommodate 10 semis/tour buses– 3/4 acre of solar panels

• Offset massive energy consumption/expense– Rooftop garden

• Marketing– Paid Internships + Iowa-based marketing

Page 14: StereoType Des Moines

Marketing and Sales• Perpetual social media campaign– Street team (marketing interns)• Directly engage our consumer base

– Cost effective two-way communication• Create viral ads– More unique = more media attention– Free to upload – YouTube, social media, etc.

• Hire marketing firm– Specialized campaigns

Page 15: StereoType Des Moines

Market• How many of you– Own a smart phone?– Use an online music service like iTunes?

• How many connected devices do you own?– DVD/Blu-Ray player, gaming consoles, tablets, etc.

• You are our potential consumer

Page 16: StereoType Des Moines

Online Market• Google, iTunes, Amazon, etc.– Proven online distribution model– Massive consumer base

• Sell the same products– Seek differentiation• Pay for exclusive products

• We only produce exclusive products– Gives leverage with negotiation

Page 17: StereoType Des Moines

Create an App• 4+ billion connected to Internet– No.1 device: smart phones

• Syncs communication channels– Consumers and social media profiles

• Each new multimedia device – Increases revenue potential• Customer engagement

• Links to our website

Page 18: StereoType Des Moines

Why hasn’t our competitiondone this?

• Napster – Artists want control of their music

• Lack of facilities– Most venues are converted buildings– Recording based on acoustics– Revenue based on recordings

• Cost is only barrier to enter market– Expensive retrofitting– Build from the ground up

Page 19: StereoType Des Moines

Startup Phases / Expenses

Phases Year # Expense $

Construction Pre-Start $51M

Parking Garage 3 $27M

Festival Grounds 4 $5M

Franchise 5 $80M

Page 20: StereoType Des Moines

Our Cash Flow ProjectionsYear 1 2 3 4 5 Totals

Receipts $88M $119M $305M $518M $780M $1.81B

Expenses $78M $69M $196M $278M $494M $1.16B

Taxes $1M $6M $14M $31M $37M $90M

Revenue $8M $43M $95M $209M $249M $604M

Stock $4M $22M $47M $104M $124M $302M

Profit $4M $22M $47M $104M $124M $302M

Page 21: StereoType Des Moines

Management Team• Ryan Lebo – Owner– 7 years of research• Model development• Product development

– Visionary who created StereoType• Pat Williams – C.O.O. – Seasoned playback / recording engineer– Over 10 years experience• Worked more than 3,000 concerts• On 5 continents

Page 22: StereoType Des Moines

Management Team cont.

• Channing Swanson – Architect– Neumann Monson Architectural Firm– Highly skilled – Award winning

• Scott Leighter – President of Public Relations – 20+ years combined experience• Public and private sectors

– City of Altoona

– Proven business and community leader

Page 23: StereoType Des Moines

The City of Altoona, Iowa

Page 24: StereoType Des Moines

Potential Investor Offerings*• Structured as an LLC– Leaves options for franchising

• Offer two classes of shares– Class A (voting rights)• 30 shares available• Full share $500K• Worth 1% of profits

– Class B (non-voting rights)• 200 shares available• Full share $50K• Worth .1% of profits

*Not an offering of securities

Page 25: StereoType Des Moines

Current Status• Build our team– C.F.O. or Financial Firm• Establish solid offerings package

• Market our model to promoters• Seek initial funding– 40% equity, 60% debt financing– Purchase land– Begin construction

Page 26: StereoType Des Moines

Altoona, Iowa

Page 27: StereoType Des Moines

Shoppes At Prairie Crossing

Page 28: StereoType Des Moines

We Have A solid business model An ever growing market Established distribution channels A skilled team A community that wants us Funding