Curm 201507
-
Upload
redchip-companies-inc -
Category
Business
-
view
234 -
download
3
Transcript of Curm 201507
2
FORWARD-LOOKING STATEMENT DISCLOSURE
Any and all statements contained in this presentation that are not statements of historical fact may be deemed “forward-looking
statements”. Terms such as “may,” “might,” “would,” “should,” “could,” “project,” “estimate,” “pro-forma,” “predict,” “potential,”
“strategy,” “anticipate,” “attempt,” “develop,” “plan,” “help,” “believe,” “continue,” “intend,” “expect,” “future,” and terms of
similar import (including the negative of any of the foregoing) may be intended to identify forward-looking statements. However,
not all forward-looking statements may contain one or more of these identifying terms. Forward-looking statements in this
presentation may include, without limitation, statements regarding (i) the plans and objectives of management for future
operations, including plans or objectives relating to completing the development and successfully launching the CÜR Music product,
(ii) a projection of income (including income/loss), earnings (including earnings/loss) per share, capital expenditures, dividends,
capital structure or other financial items, (iii) our future financial performance, and (iv) the assumptions underlying or relating to
any statement described in points (i), (ii), or (iii) above. The forward-looking statements are not meant to predict or guarantee
actual results, performance, events or circumstances and may not be realized because they are based upon our current projections,
plans, objectives, beliefs, expectations, estimates and assumptions and are subject to a number of risks and uncertainties and other
influences, many of which we have no control over. Actual results and the timing of certain events and circumstances may differ
materially from those described by the forward-looking statements as a result of these risks and uncertainties. Factors that may
influence or contribute to the accuracy of the forward-looking statements or cause actual results to differ materially from expected
or desired results may include, without limitation, our ability to obtain adequate financing, the length of time associated with
development of mobile applications and related insufficient cash flows and resulting illiquidity, our ability to expand our business,
government regulations, lack of diversification, our ability to penetrate the digital music streaming market, our ability to negotiate
and execute definitive and economically feasible agreements with the major and independent music labels and publisher rights
organizations, increased competition, results of any arbitration and litigation, stock volatility and illiquidity, and our ability to
implement our business plans or strategies. For a description of some of the risks and uncertainties that could cause our actual
results to differ materially from those described by the forward-looking statements in this presentation you should read the
information that we have filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the
fiscal year ended December 31, 2014, filed with the SEC on March 31, 2015, especially the risks discussed under the section
captioned “Risk Factors” in that filing, and similar sections that have been and will be provided in other filed reports. Readers are
cautioned not to place undue reliance on forward-looking statements because of the risks and uncertainties related to them and to
the risk factors. We disclaim any obligation to update the forward-looking statements contained in this presentation to reflect any
new information or future events or circumstances or otherwise.
3
Executive Summary
CÜR is designed to be a disruptive streaming music platform that expects to offer
the lowest cost mobile music streaming paid subscription service in the U.S., while
providing superior functionality, library depth, and social elements
CÜR Media is headquartered in South Glastonbury, CT and has 33 Employees
The Company has raised approximately $17 million to date
CÜR is in beta on iPhone, Android and Web platform
CÜR is currently negotiating agreements with the 3 Major Music Labels, which, if
finalized, will enable it to launch the lowest-priced music streaming service in the
U.S.
4
Investment Highlights
$7B Market transitioning from CDs/Downloads to streaming (1)
CÜR plans to have the lowest-priced offering
Accomplished management team Deep experience in entertainment and media
sector Chairman, John Lack, is the creator of MTV Vice Chairman, Bob Jamieson, is former CEO of
RCA records
Innovative product currently in beta Social music offering (Snapchat and Instagram
features + music) Expected library depth of 10 million songs at
launch (2)
FAST GROWING MARKET
ESTABLISHED MANAGEMENT
STRONG, SCALABLE PLATFORM
(1) 2014 RIAA Music Industry Shipment and Revenue Statistics(2) Assuming deals under negotiation with major labels, independent labels, and publishers are executed
5
JP Lespinasse, Chief Marketing Officer BET, NBA, Nokia, Old Navy, Gap
Jay Clark, Chief Content Officer EVP Programming, Sirius Satellite RadioAward-winning Radio Programmer
John Egazarian, Chief Operating OfficerSoftware Development Project ManagementTravelers, Wellpoint, Andersen Consulting
Mike Betts, Chief Technology Officer Artbox, Software Development Group
Kelly Sardo, Chief Financial OfficerDeloitte & Touch, Cigna, Blum Shapiro
Bill Campbell, Business Development *SVP Universal Music Group, SONY Music
*Campbell is a consultant to the Company
Tom Brophy, Founder & CEO Internet Entrepreneur & Executive, Several Exits, IPO, former CFO of Companies to 1st Mass-Distribute Smiley Emoticons and Search Toolbars
John A. Lack, Chairman Creator of MTV, Nickelodeon, ESPN2, The Movie Channel, Firebrand, VP/GM CBS Radio
Bob Jamieson, Vice Chairman CEO RCA Records, BMG, Signed Dave Matthews, Christina Aguilera, Foo Fighters, Kings of Leon
Management Team
6
Market Landscape
Streaming is on the rise U.S. Recorded Music Industry = $7B(1)
Streaming up 60.5%, CD sales down
20%, Digital Tracks down 13% (2)
Streaming is now >$1B in annual
revenue
160 million people in the U.S. stream
music(3)
Messaging is huge(4)
1.5B+ MAU
WhatsApp – 50B messages/day
Line - $338M in virtual goods revenue
SONY Music forecasts that the majority of future
recording industry revenue will come from
streaming
Pandora’s rates are likely increasing
Spotify’s successful $.99 special indicates price
elasticity
Artists unhappy with certain aspects of streaming
Free services are under fire
Users slow to adopt full on-demand subscription
services
Existing service price points seen as cost prohibitive
for younger demographic
Competing services offer limited social features
$4.99/Mth $9.99/Mth $19.99/Mth$3.99/MthFree
(1) 2014 RIAA Music Industry Shipment and Revenue Statistics(2) 2014 NIELSEN MUSIC U.S. REPORT(3) Statista(4) KPCB INTERNET TRENDS 2014 – CODE CONFERENCE
7
Next Generation Social Music Experience
CÜR Music’s Features Hybrid Music Streaming Platform
o Internet Radio
o Limited On-Demand
CÜR8 Musical Selfie
Share Music with photos and
videos
Social – Snapchat, Instagram +
Music
Activity Stream
Subscription Model
10
Key Differentiators*
Hybrid music streaming service that enables subscribers to share songs
The first CÜR8** musical “selfie”
The first “social” music streaming service that enables subscribers to integrate their music with photos and personal videos
The first “buttonless player” (mobile music player, operated with taps and swipes) available in the market
The lowest-priced music service in the U.S. approved by the major labels, offering superior features and functionality
Potential library size of 10 million songs***
*Expectations based on the product’s current design and functionality**Trademark registration sought but other companies have applied for similar protection***Assuming deals under negotiation with major labels, independent labels, and publishers are executed
11
Revenue Streams
Gold – Internet Radio, CÜR8, Social Platinum – Gold + More On-Demand, Lyrics, Offline Premium – Unlimited Everything
Display, Sponsorships Will Not Interrupt the Music
Purchase Songs Tickets(1)
Merchandise(1)
SUBSCRIPTIONS
ADVERTISING
IN-APP PURCHASES
(1) Planned post-launch
12
Scalable Business Model
USER
CONTENT COSTS
COMPANY
70%*
*Estimated based on pending agreements with music labels and publishers“
30%* Margin
13
Marketing Strategy
Marketing tactics: Paid Media
o New user acquisition Events
o Live eventso College campus events
Public Relationso Generate buzz / chatter (blogs,
web, etc.)o Collaborations
Influencero Partnerships
Social Mediao Foundation
Target Millennials with a vision of creating a brand more social, personal and accessible than any other music service in the market place
PAID MEDIA
EVENTS
SOCIAL MEDIA
PUBLIC RELATIONS
INFLUENCER
14
Potential Areas of Future Growth
OTHER
A-La-Carte Offer-ings*
Superfan* In-App Purchases* Video*
UK* Germany* South America*
India* Canada*
Automobiles* Home Audio*
Gaming consoles* Other mobile
platforms*
Data (Millennials/Music)
Concert Tickets Merchandise
PRODUCT
DISTRIBUTION PLATFORMS
ADDITIONAL TERRITORIES
* Potential post-launch opportunities; Licensing approvals from content owners will be necessary.
15
Capitalization
Capitalization History (millions)
Angel and Private Investment $4.4
Private Placement Offering 9.6
Warrant Exercise and Amendment 3.2
$17.2
Capitalization Table (millions)
Common Stock Outstanding 31.4
Investor and Broker Warrants 4.8
Employee Stock Options 4.2
Fully Diluted Common Stock Granted 40.4
Financings:Pre-APO - $4.4 million (high net worth individuals)
APO - $9.6 (January - March 2014)Warrant Exercise - $3.2 million (April 2015)Cash & Cash Equivalents: $4.27 million(1)
(1) Pro-forma, as of 3/31/2015
16
Investment Highlights
$7B Market transitioning from CDs/Downloads to streaming (1)
CÜR plans to have the lowest-priced offering
Accomplished management team Deep experience in entertainment and media
sector Chairman, John Lack, is the creator of MTV Vice Chairman, Bob Jamieson, is former CEO of
RCA records
Innovative product currently in beta Social music offering (Snapchat and Instagram
features + music) Expected library depth of 10 million songs at
launch (2)
FAST GROWING MARKET
ESTABLISHED MANAGEMENT
STRONG, SCALABLE PLATFORM
(1) 2014 RIAA Music Industry Shipment and Revenue Statistics(2) Assuming deals under negotiation with major labels, independent labels, and publishers are executed