The Mogul's Guide To TMT

THE MOGUL’S GUIDE TO TMTHELLO TECH, MEDIA, & TELECOM, MEET THE FUTURE

Joseph Mathew | J.D./M.B.A. University of Virginia

[email protected] | (706) 255-9793

April 10, 2023

Executive Level

TABLE OF CONTENTS

2

Black Box Breach

DragonRex 11

IceDragon 19

Investors Only 25

Empire Building 27

Appendix I: IceDragon Perspectives Analysis 41

Appendix II: Media Industry General Overview 44

Overview 3

6

3

OVERVIEW

THE MOGUL’S GUIDE: OVERVIEW

This guide is intended as a chart for intelligent media and technology chief executives o To be used in navigating the dark and choppy waters of the future

And also presents a few potential blueprints for significant market opportunities for those executives as well as investors

4

THE MOGUL’S GUIDE: SECTIONS

Black Box Breacho Paints the picture of the future living room

Provides key insights necessary in developing your company’s comprehensive strategy for the next decade

DragonRexo Articulates the devices that will own the living room of the future

IceDragono Furnishes a missing piece in the advertising technology arsenal for

media firms readying themselves for home entertainment dominated by the internet

Pantherao Global news gateway

Empire Buildingo Crystallizes and expands the franchise monetization model developed by

The Walt Disney Company

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6

BLACK BOX BREACH

BLACK BOX BREACH EXECUTIVE SUMMARY

Thesiso The contest over the future of your living room will be won, in the near

future, in decisive fashion By hardware, content, and services infused with the internet

throughout their D.N.A.

Rationaleo As Millennials’ & Emerging Markets’ voracious appetites for streaming

video steadily increases, o Telecommunications providers will eventually meet that need,

Creating a virtuous spiral for online media service creators and facilitators

7

SUPPORTING DATA

Internet data consumption skyrocketso Netflix accounts for about 1/3rd of peak period downstream traffic in North

America, while YouTube eats up 1/5th of mobile network traffic1

Jet speed internet approaches for landingo Google Fiber is turning up the pressure on entrenched internet providerso An Alcatel-Lucent and France Télécom-Orange test in February 2013

clocking speeds at a smoldering 400 gigabits-per-second2

Troublesome youtho Only 26% of Millennials watch more than 20 hours of television per week,

While 49% of non-Millennials do so o 42% of Millennials prefer to consume television content through their

computer through services such as Netflix, Amazon Prime, and Hulu, While only 18% of non-Millennials prefer the same3

Emerging market viewers’ aversion to cableo Viewers in Brazil and China prefer online video to television4

8

RAMIFICATIONS

Crown the interneto The average future living room, within two decades, will revolve entirely

around the internet

Go global or go homeo Global brands will completely dominate mere domestic players

À la carte is the futureo The available apps, of which there will be hundreds or even thousands,

will each represent branded channels and services

Deploy capital accordinglyo Former cash flow generators will depreciate faster than forecast

Television stations Cable distribution Satellite distribution

o Certain properties may be undervalued Regional wireless communications providers Entertainment intellectual property owners and generators

9

SOURCES

1. Sandvine Global Report: Internet Data Usage Up 120 Percent In North America, Sandvine (April 30, 2013), http://www.sandvine.com/news/pr_detail.asp?ID=394.

2. Bernhard Warner, Alcatel-Lucent Unveils World's Most Powerful Broadband Infrastructure, Bloomberg Businessweek (April 30, 2013), http://www.businessweek.com/articles/2013-02-15/alcatel-lucent-unveils-worlds-most-powerful-broadband-infrastructure.

3. Christine Barton, Chris Egan, Jeff Fromm, The Millennial Consumer Debunking Stereotypes, The Boston Consulting Group (April 30, 2013). http://www.brandchannel.com/images/papers/536_BCG_The_Millennial_Consumer_Apr_2012%20(3)_tcm80-103894.pdf .

4. Sam Gutelle, China and Brazil Leading Global Expansion Of Online Video, tubefilter (August 12, 2013), http://www.tubefilter.com/2013/07/02/edelman-study-entertainment-goes-global/#sthash.W826Wx6W.dpuf.

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11

DRAGONREX

WHAT DEVICES WILL RULE THIS FUTURE LIVING ROOM?

DragonRex: Media Dream Machineo XBox One/PS4 + Smart TV – Cable/Satellite Input + Necessity

Programming (for the Millennial viewer) = DragonRex = Media Portal

o Services A Media & Entertainment Portal Gaming, Movies, Channels (News/Live Events/Episodes), Indie

Headsets/Glasseso Virtual Reality (VR)

Oculus Rifto Augmented Reality (AR)

Google Glasso VR + AR

Microsoft’s Fortaleza

12

DRAGONREX OVERVIEW: PHASE I

DragonRex specso Ram - 32 GB, CPU Cores/Threads - 32/32, Storage - 2 TB, Motion

Control - Leap Motion, OS - Android, Data - Ethernet/WiFi/Bluetooth/HDMI Audio Output, Dimensions - 65” Diagonal/4 mm Edge, Design - Ellipse

Millennial Necessity Programming à la carte (MNP)o ESPN

Leverage - Fox Sports One, Tennis Channel, Golf Channel, MLB Network, NFL Network, NHL Network, NBA TV…

o HBO GO (minus the cable subscription) Leverage - Netflix, Prime, Showtime, DreamWorks Animation…

o Netflix &/or Amazon Prime Gaming beast

o EA, Activision Blizzard, Rockstar Games, Valve, Ubisoft… Leverage - Zynga, Gree, DeNA, Rovio, King…

Movies/Channels/Indieo Streaming (Netflix, Prime, Hulu, Crackle, YouTube…)o Download (Hard Disk, IceDragon)

13

DRAGONREX MEDIA NEGOTIATIONS: SECRET SAUCE

What do the major media players want?o Disney/Time Warner/21st Century Fox/Viacom desperately want 24/7

branded channels in China

What does the Chinese government want?o Their own Disney/Time Warner/21st Century Fox

Multiple media empires originating from China1

What will DragonRex have?o A media portal built specifically for the needs of emerging markets

Global Internet based Zero barriers to entry for channel distribution

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DRAGONREX MEDIA NEGOTIATING: PROPOSED DEAL

The major media players allow their content and apps on the DragonRex platform

In exchange, the Chinese government allows those players access to their market via the DragonRex platform

In exchange, DragonRex grants China’s emerging media firms (Xinhua News Agency, CCTV, Oriental DreamWorks…) Most Favored Channel statuso Prioritized placement on home screenso Advertisingo Global audienceo Advisory

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CHINA

DRAGONREXMEDIA FIRMS

partn

ersh

ips

mar

ket a

cces

s &

24/7

chan

nels

à la carte premium content

access to emerging markets & millennials

market access

most favored channels

HEADSETS/GLASSES INITIAL KILLER MARKETS

ARo Transport (Driving, Shipping, Aviation)o Military combat

360° vision+

• 360° cameras

• Drones+

• Satellites+

• Military intel+

• Unit, division, company intel+

• Orders+

VRo Hardcore gamingo Sports programmingo Military training

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VR + ARo Sports programmingo General gamingo Shoppingo Social interactions…

DRAGONREX & VR + AR GLASSES:THE FUTURE OF SPORTS PROGRAMMING DRAGONREX

o Traditional live sports displayed through the main media portal at the center of the living room

VR + AR Glasses

o VR Displays multiple additional angles of the action

• Premium subscription potential

o AR Displays additional data

• Commanded by voice, gesture, and device

• On players, teams, and plays

• Based on recognition of images displayed on the DragonRex portal

17

SOURCES

1. Joseph Mathew, Go For Launch: Disney’s Recipe For Successfully Piercing The Media Veil In China, (August 13, 2013), http://www.slideshare.net/codycostarica/disney-china-media-memo-joseph-mathew.

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ICEDRAGONADVERTISING SOLUTION TO FILL A GAP IN ONLINE MEDIA

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CONSUMER PRODUCT

COMPANIES

CONTENT

ADVERTISING AGENCIES

MEDIA FIRMS

DISTRIBUTION CHANNEL

DRAGONREX

CONSUMERS

ICEDRAGON

ICEDRAGON OVERVIEW

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CONSUMERICEDRAGON CLOUD

(Utilizing AWS)

A. Consumer Inputs Data (age/sex/etc. with fewer ads per data)B. Consumer Provides Ad Feedback (up/down votes, rankings, written)

IceDragon Package Delivered (Ads+Containers+Content)

Ad

Up

dat

es

AD

AD

CO

NT

EN

T

AD

CO

NT

EN

T

AD

CO

NTA

INE

R

Ads Segmented By Demographic

AD AGENCIES & CONSUMER PRODUCT COMPANIES

Ad

U

pd

ates

IceDragon Proprietary Binding Tech

DISTRIBUTION CHANNELS

ICEDRAGON CONCEPT

INTERNET DOWNLOAD

KEYHierarchy Of Importance To Millennials

TIER I = HIGH

TIER II = MEDIUM

TIER III = LOW22

MEDIA CONTENT LANDSCAPEMILLENIAL CONSUMER PERSPECTIVE

HIGH PRICE

INFLEXIBLE TIMING

DIGITAL VIDEO RECORDERS

VIDEO ON DEMAND

LOW PRICE TIER I

FLEXIBLE TIMINGTIER I

HIGH MOBILITYLOW MOBILITY

LOW QUALITY

HIGH QUALITY

TIER II

TIER II

CABLENETWORKS

SATELLITE

HIGH MOBILITYLOW MOBILITY

LOW QUALITY

HIGH QUALITY

HIGH MOBILITYLOW MOBILITY

LOW QUALITY

HIGH QUALITY

HIGH MOBILITYLOW MOBILITY

LOW QUALITY

HIGH QUALITY

DVD/BLU RAY

HIGH ADVERTISING

LOW ADVERTISING

HIGH OWNERSHIPLOW OWNERSHIP

TIER III

TIER III

ICEDRAGON

HIGH ADVERTISING

LOW ADVERTISING

HIGH OWNERSHIPLOW OWNERSHIP

INTERNETSTREAMING

MEDIA PLAYERS

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CONTENT VALUE CHAIN

OLD BRAND NEW

LOW PRODUCTION VALUE

HIGH PRODUCTION VALUE

NETWORK SERIESBRAND NEW

CABLE SERIESBRAND NEW

YOUTUBE INDIVIDUAL VIDEOS

BRAND NEW

SHORT MOVIESBRAND NEW

YOUTUBE CHANNEL VIDEOS

BRAND NEW

FEATURE FILMSBRAND NEW

ICEDRAGON APPSWEET SPOT

NETWORK SERIESRECENTLY AIRED

CABLE SERIESRECENTLY AIRED

YOUTUBE INDIVIDUAL VIDEOS

RECENT RELEASE

SHORT MOVIESRECENT RELEASE

YOUTUBE CHANNEL VIDEOS

RECENT RELEASE

FEATURE FILMSPOST-DVD RELEASE

NETWORK SERIESPOPULAR SERIES

CABLE SERIESPOPULAR SERIES

YOUTUBE INDIVIDUAL VIDEOS

OLD

SHORT MOVIESOLD

YOUTUBE CHANNEL VIDEOS

OLD

FEATURE FILMSCLASSICS

POPULAR MUSICBRAND NEW

POPULAR MUSICRECENT RELEASE

POPULAR MUSICOLD

AMATEUR MUSICBRAND NEW

AMATEUR MUSICRECENT RELEASE

AMATEUR MUSICOLD

MILLENNIAL CONTENT

MILLENNIAL CONTENT

MILLENNIAL CONTENT

MILLENNIAL CONTENT

MILLENNIAL CONTENT

MILLENNIAL CONTENT

MILLENNIAL CONTENT

MILLENNIAL CONTENT

ICEDRAGON BUSINESS MODEL

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CONSUMER PRODUCT

COMPANIES

CONTENT

ADVERTISING AGENCIES

MEDIA FIRMS

ICEDRAGON

$ UP FRONTFEES TO BIND ADS

$ FEE TO UPDATE ADS

$ FEE TO SEE DEMOGRAPHIC DATA

$ UP FRONTFEES TO BIND ADS

$ FEE TO UPDATE ADS

$ FEE TO SEE DEMOGRAPHIC DATA

IceDragon Package (Ads + Content) Delivered Via Internet

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INVESTORS ONLY

INVESTORS ONLY

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EMPIRE BUILDINGTHE FRANCHISE TEMPLATE FOR MEDIA CONGLOMERATES

OVERVIEW: THE STORY BRIDGE MODEL

The central elemento The most profitable franchises in media & entertainment have a common

core element: a timeless story

The story bridge modelo Six phaseso One continuous story

Data pointso Even with the evidence staring directly at them, no media firm has

completely implemented this model on an institutional basis

2. NOVEL

3. GRAPHIC NOVEL/

COMIC BOOK

4. VIDEO GAME (IMMERSIVE/SOCIAL)5. MOVIE

6. CONSUMER PRODUCTS +

THEME PARKS + ONLINE CONTENT

1. STORY

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CONSIDERATIONS

Non-Monetaryo Brand

Story Cross-generational fan base Immersive experience

o Sustained PR

Monetaryo Synergies across businesses

Novel Graphic Novel Video Game Movie Theme Park Consumer Products Online Content

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FR

AN

CH

ISE

PHASE I: FINDING THE STORY - RESEARCH & DEVELOPMENT

Research & Developmento Cast wide net initiallyo Initial emphasis on low cost distribution routes, before minting franchises

STORY

STORY

STORY

STORYSTORY

STORY

Creative Brainstorming

Treatments Short Stories Comic Books Graphic Novels

Novels Graphic Novels

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PHASE II: THE GRAPHIC NOVEL/COMIC BOOK SERIES

Potentialo Great novels can be turned into great graphic novels and comic books

Why Graphic Novelso Maximizes fan base

Engages all ages

• Kids through Fan Boys/Girlso Most valuable customers

Developing deeply loyal fan base ensure lifetime customers

Data Pointso Spiderman, Batman, Avengers…

Implicationso Future storylines can “test the water” by releasing a leather bound, digital

moving image enabled, graphic novel Before green lighting the screenplay

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PHASE III: THE NOVEL

Potentialo Great stories can be turned into great novels

Why Novelso Maximizes engagement level

Plot background Character development

o Customer segmentation By attacking every customer segment, a media firm builds value

exponentially Increases the number of potential people with emotional stakes in

any storylineo Creates potential for spinoffs of secondary characters and storylines

Data Pointso Harry Pottero The Lord Of The Rings

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PHASE IV: THE VIDEO GAME

Why Video Gameso Immersive

The experience is as immersive as technology allowso Social

Role Playing Games create vast social networkso Untapped Potential

Increase value by placing a video game’s story in an actual story sequence between the first and second novels

Data Pointo Halo

Over 40 M copies sold worldwide, generating more than $3 B in merchandise1

Arrogance in Microsoft’s initial foray into the film industry has delayed a movie deal2

Even amidst such neglect, fan fiction has propagated Rooster Teeth’s success with Red vs. Blue

2.1 M subscribers on YouTube

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PHASE V: THE MOVIE

Why Movieso PR

Press generated by summer event movieso Society

Mainstream society considers movies as the “ultimate” form of a storyo Reach

Allows casual fans to engage with story with limited price, time, and commitment

Potential for long term reengagement through television and digital sales

Data Pointso Star Warso Jurassic Park

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PHASE VI: CONSUMER PRODUCTS, THEME PARKS, ONLINE

Consumer Productso Increases reality for kids by connecting real life sensory experiences,

activating their imaginationso Data Point

Toy Story 3

• More than $1 B box office sales, but $7.3 B in retail sales3

Theme Parkso High CapEx places a barrier to entry for competing firmso Involves entire familyo Data Points

Pirates Of The Caribbean Harry Potter

Onlineo Potential to provide an additional story bridge between the movies and

video games o Data point: Pixar’s shorts

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MEDIA TOYS FOR THE FUTURE: THE STORY BRIDGE CONCEPT

By creating a seamless story that bridges from

Graphic novel to

Online episodes to

Movie to

Toy(s) to Theme parks and beyond!

A media firm multiplies the value generated by their elite intellectual property

Each phase, ideally, should represent a stand-alone chapter, of a continuing story line

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MEDIA TOYS FOR THE FUTURE: SMART TOYS

Toys should be as smart, or smarter than our phones and tablets

Once toys are infused with near artificial intelligence, the consumer products phase within the story bridge can be taken to another level

Implicationso Smart toys could lead their owner on an adventure, which is an integral

part of the franchise story line

o Major consumer product plot points could only occur with the combination of multiple toys together

Encouraging children to organize socially to complete plot points

37

THEME PARKS ARE NOT JUST FOR KIDS ANYMORE

Media-technology firms that tend to generate adult focused intellectual property o Have enormous monetization opportunities open to them in the form of

live entertainment parks

Adult theme parkso Military training and competitions (Call Of Duty)o Weapons training (Assassin’s Creed)o Science fiction adventures (Halo)o Racing (Forza Motorsport, Need For Speed)

Meeting live entertainment objectives could have virtual rewards

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ACQUISITION OPPORTUNITIES

Studioso DreamWorks Animationo MGM

Consumer Productso Hasbroo Mattel

Gamingo Electronic Artso Activision Blizzard

Franchise Potential Propertieso Haloo Hitchhiker’s Guide To The Galaxy (reboot)o Red Wallo Dune

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SOURCES

1. Erik Kain, New Halo 4 Details, Screenshots Emerge As 343 Industries Takes The Warthog's Wheel, Forbes (August 13, 2013)http://www.forbes.com/sites/erikkain/2012/03/05/halo-4-screenshots-details-revealed-new-multi-player-redesigned-master-chief-as-343-industries-takes-the-warthogs-wheel/.

2. Guest Blogger, Why the Halo Movie Failed to Launch, WIRED, (August 13, 2013) http://www.wired.com/gamelife/2012/04/halo-movie-generation-xbox/.

3. The Walt Disney Company Investor Conference 2011, (August 13, 2013)http://cdn.media.ir.thewaltdisneycompany.com/2011/events/ic/2011_Investor_Conference_Transcript_FINAL.pdf

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APPENDIX IICEDRAGON PERSPECTIVES ANALYSIS

ICEDRAGON PERSPECTIVES ANALYSIS – PART A

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HARD COPY STREAMING LIVE DVR/ON-DEMAND ICEDRAGON DOWNLOAD

DESCRIPTION Physically tangible Requires additional device to play

Streaming digitally directly onto device

Live broadcasts through specific devices (generally television)

Record onto a specific device (television)

May be subject to restrictions Satellite/Cable provided devices Third party devices (TiVo, Apple

TV…)

Record media onto any

TYPE DVD BluRay Flash Drive

Internet Satellite Cable

Internet Cable Satellite Network Satellite

Digital Video Recorders Video On Demand

Internet Cable Satellite

Drawbacks Benefits Drawbacks Benefits Drawbacks Benefits Drawbacks Benefits Drawbacks Benefits

CONSUMER’S PERSPECTIVE

Tied to physical location

Mobile Hyper-Unfriendly

Secure Portable Highest

Definition Skip

trailers/ads Flexible timing

Buffering is awful!

Often low quality

Limited connectivity across platforms

Why pay for permanent beta products?

Forced ads

Portable Mobile Friendly Flexible timing

Connectivity issues

Mobile unfriendly

Forced ads Inflexible timing

Fair quality Potential for an

“event” dynamic (Superbowl,

American Idol Finals)

Premier option when results matter (sports, competitions)

Connectivity issues

Limited hard drive space (depending on provider)

Not “live” Mobile

unfriendly

Flexible timing Skip ads High quality

Forced ads Not “live” Privacy (who

sees the data?)

Highest quality Mobile friendly Flexible timing

MEDIA FIRM’S PERSPECTIVE

Increasing digitization of society

Increasing ubiquity of mobile devices

Secure (less piracy)

Charge premium for ownership

Available only through internet (does not reach rural areas)

Secure Forced ads Lower quality

than live, so can argue for higher fees to distribution channels and consumer product companies

Mobile Friendly

Mobile unfriendly

Lower viewership depending on audience schedules

Enables high drama for specific episodes

Potential to drive social conversation

Angers advertisers, may drive lower prices paid

Increases viewership potential

Ownership by the consumer

Secure Forced ads Mobile friendly Maximizes

viewership

DISTRIBUTION FIRM’S PERSPECTIVE

Does not use media distribution channels except physical and online retail stores

Bandwidth strains

Technology not developed

Consumer complaints for purchases that have low quality

Flexible timing Can charge

premium pricing for in-home convenience

Potential bandwidth strains at big events

Potential to show multiple sources of content unavailable in any other format

Bandwidth strains

Technology not developed

Consumer complaints for purchases that have low quality

Flexible timing Can charge

premium pricing for in-home convenience

Chance for increased subscription fee

Potential to remove Cable/Satellite/Networks providers out of the equation for certain channels

Potential for fewer rentals

Reduce bandwidth strains and impending “bandwidth cliff” as consumption patterns evolve

Consumers can download outside of peak hours

ICEDRAGON PERSPECTIVES ANALYSIS – PART B

43

HARD COPY STREAMING LIVE RECORDER/ON DEMAND ICEDRAGON DOWNLOAD

DESCRIPTION Physically tangible Requires additional device to play

Streaming digitally directly onto device

Live broadcasts through specific devices (generally television)

Record onto a specific device (television)

May be subject to restrictions Satellite/Cable provided devices Third party devices (TiVo, Apple

TV…)

Record media onto any

TYPE DVD BluRay Flash Drive

Internet Satellite Cable

Internet Cable Satellite Network Satellite

Digital Video Recorders Video On Demand

Internet Cable Satellite

Drawbacks Benefits Drawbacks Benefits Drawbacks Benefits Drawbacks Benefits Drawbacks Benefits

CONSUMER PRODUCT COMPANY’S PERSPECTIVE

Consumers skip ads

Significant time delay potential for ads

Non-targeted ads

Poor ad quality Tendency of

consumers to shift attention to other screens and web pages and/or mute

Forced ads More targeted

Non-targeted High audience potential

PR potential

Ability to skip ads

Highly targeted ads

Ability to segment purchases by individual

Maximizes audience potential

Forced ad views

ADVERTISING AGENCIES’ PERSPECTIVE

Consumer may skip ads

Poorer quality leads to potential for fewer audience

Forced ads Poorer quality

leads to potential for fewer audience

Vague mandate due to limited targeting for large events

High audience potential

Ability to skip ads

IceDragon has leverage on ad placement

Potential for forcing to improve quality of ad

Potential for restrictions on timing (shorten or lengthen) to maximize audience viewership

Ability to target ads most specifically

Potential for increased number of types of ads by demographic segmentation

Potential for customer reviews of the advertisements

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APPENDIX IIMEDIA INDUSTRY GENERAL OVERVIEW

MEDIA INDUSTRY GENERAL OVERVIEW

CONTENTo Types

Film

• Kids

• Teens

• Adults Television

• Networks

• Cable Music Novels Comics Advertising

• Creative

• PR

• Media Advisoryo Production

Story Origination Talent Management Financing Technology

• Hardware

• Software

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DISTRIBUTIONo Interneto Cableo Satelliteo Cellularo Radioo Experience

Theme Parks Concerts Sports

• Professional

• Amateur Theater Gambling

45