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Ytinifni | Intelligent Subscriber Video On Demand

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BUBAFLIX.INC EXECUTIVE SUMMARY VIDEO ON DEMAND PROVIDER $1’800,000

The video on demand form of digital delivery of cinema and television provides for more than access to libraries of films and television entertainment. It provides a user experience that will extend the experience of watching television or going to the movies by using the combination of always-open access to programs of interest, social media tools that create communities around programs, electronic marketing that enables inexpensive but wide reaching interactive email and the personalization of media viewing and media responding. But most important of all, it enables the leveraging of data from quantized viewer behavior that can sustain both the VOD provider and the content provider. To begin, the user experience must remain the most important product to offer of this new entertainment service. To achieve this, the design of the internet browser-modeled website and the mobile device application, must simulate many aspects of the moving-going experience in the physical world, and also enhance that experience with features that are unique to a digital lifestyle. Here are some of those features. PRINCIPAL USER EXPERIENCE FEATURES Intelligent Database System First and foremost, the VOD provider must acquire a library with substantial variety of film and television genres, directors, actors, nationalities, historical periods, adapted works and current issues. A great library must have films that are indexed with each of these categories, and other categories as well. But simply providing a database with only these categories and titles is insufficient. Films must be cross-listed where all criteria of a film are indexed so that searches produce query responses for users where titles cross over to more than one category. Complex search algorithms must be employed so that viewers can freely associate their interests from one film to the next, or one category to the next, within a search system that enables endless connections among titles. But for each search, the database should retain the query responses that most often fulfilled the search. With artificial intelligence programmed into the query system, gradually the database can improve the quality of the search results for the community of subscribers, or for the individual subscribers. High-Definition Library Obviously, the compression quality must also be optimized for each viewing platform to create as close to a High Definition image and sound quality as possible. Targeting personal computers using wired, wireless and satellite connections is an old but necessary performance benchmark. Gameboxes (such as Playstation and Xbox), set-top boxes (such as Roku,


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AppleTV, Tivo and DVRs), smartphones and tablets are the principal new platforms where excellent compression must be tailored and revised as new protocols for these devices. These new devices enable new compression schemes and file formats frequently. Interface Design – Flexible Yet Standardized An elegant interface design is essential so that all features of the service are easy and enjoyable to use. Most important is that the interfaces reflect the cultural familiarity with the first generation of early users. However, a careful balance must be struck between maintaining standards that rigidly place buttons and data in precisely the same place, and a degree of flexibility, where buttons and data can be moved to where the user prefers. Example Interface Design: Cinema Style Design

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Example Interface Design: Magazine Style Design

REVENUE STREAMS AND QUANTIZATION OF VIEWER DATA On the business side of creating services, the success of the VOD brand depends on successful measurement of user behavior. Each of the possible transactions that a prospective viewer engages will fit their degree of brand loyalty for the stages most effective. at gaining trust in the provider with new and long-term subscribers. Three streams are effective (with variations), depending on the programming, and the prospective viewer’s relationship with the VOD provider. The viewer experience only describes front door transactions. At the back door enter data-collating procurers who provide information to clients who are the producers of entertainment media and advertisers. It is very important that every transaction with a subscriber or customer and every behavior onscreen be quantized for all the data that is commercially relevant. Pay-as-you-download Viewers For those who are infrequent visitors with no brand loyalty, a buy-or-rent-as-you go strategy allows a user to either purchase the permanent right to view the program, or the right to watch the program for a specific term. This user type will likely have many similar relationships with VOD providers (such as iTunes or Amazon), and may also tend to have less disposable income. This user might similarly own a pay-as-you-go cell phone, and hence strategies for keeping this kind of user coming back must differ from other types of viewers. However, membership without subscription fees is the model to provide. However, the content that this viewer downloads


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enables their ownership of an indefinite personal access to the program. The user behavior can be quantized by the titles purchased, number of viewings, the length of the viewing session, where in the program viewing stopped and started, the time of day and year of the viewing, geographic location of the viewing and by the IP address affiliation of the viewing (home, work, college dorm, etc). Program Update Viewers This viewer is looking for something closer to the television experience. For television programs and short serial “webisodes,” commercial advertisements can be cued and inserted on-the-fly as the viewer watches. The type of programs this viewer wants are one-time viewings to keep up with the progress of a serial program. In few cases, there may be nostalgic re-visits to episodes much like re-reruns attract viewers. User behavior can be quantized by the regularity of viewings of a program series, by the response to questions of relevance for ads that play during the program, by the geographic location of the viewing, by the IP address affiliation (home, work, smart device, etc), by the time of the day or year the program is accessed. This viewer’s income demographic is relevant in so far as it informs the advertisers. The quality of the viewing experience is less crucial as the program’s production values are usually also lower. Subscription Viewers These are the long-term viewers whose interests in film programs are an investment of time and enjoyment for their lifestyle enhancement. These viewers are likely to have disposable income with sophisticated video and audio playback devices in their homes, as well as on their physical person with tablets and smart phones. These are the viewers that make time to watch media they enjoy, and are willing to pay for it. Therefore, the primary focus to satisfy these viewers is to provide the highest quality video compression of film programs as quickly as possible after or during theatrical release. For programs that have no theatrical release, it is essential that the subscriber portal provide a festival/theater atmosphere where programs are advertised, where festival laurels are presented, where critical opinion and news from the media is presented, and where subscribers can comment and respond to critics and the program itself. The user behavior can be quantized by the titles purchased, number of viewings, the length of the viewing session, where in the program viewing stopped and started, the time of day and year of the viewing, geographic location of the viewing and by the IP address affiliation of the viewing (home, work, college dorm, etc). SUBSCRIBER ANCILLARY SERVICES The VOD site should function also as an entertainment experience portal, in addition to being a smart library of media. Customers and subscribers should be able to engage through text-based forums, with other members of the VOD. The following are some of the services that will enable user interaction beyond viewing films, videos and television programs. And, in their unique way, can be quantized. Program Reviews


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After each viewing, a form should invite the viewer to enter a response to what they have seen. However, the response can be more than the simple empty field with a 5-star rating. A series of specific questions tailored for the film can be presented to the viewer that will trigger responses that are more precise to the classification index of the film. For example, a science fiction film may specifically ask the viewer, “Would you like to comment on the alien world and its relation with the real world?” Or, a political thriller might ask, “Would like to comment on how this film’s political conflict resembles something familiar to you?” If every program is allowed three to five questions that are somewhat precise, then the answers, along with a free-form comment field can be data mined for quotable comments that would be useful to attract prospective viewers of programs they have never seen. This technique will improve the functionality of existing review systems that are mostly organized in chronology, rather than by content.

VOD Portal Design As more and more films skip theatrical and festival venues and opt to directly release to the public through a VOD provider, the portal of the VOD is the essential marketplace window where prospective customers and subscribers consider a transaction. To accomplish this migration from TV channel or Movie Theater successfully, the VOD portal must function like a television station and a movie theater combined, using the tools of the digital platform to bring in its audience. It must have a façade page where new releases are announced like a marquis, and where viewers can find out more about any new programs at a deeper web page. Likewise, the VOD provider must create custom trailers, like TV bumpers, for home viewing and mobile viewing. The VOD provider will create banner ads to online news outlets, email blasts and traditional television and print advertisements. Likewise, it should create live events where celebrity and its artistic product can be celebrated and displayed.


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Community Viewership and Subscriber Critics As more subscribers join, the more opinionated ones should be sought incorporated into the internal social media system of the VOD site. The VOD provider can offer incentives for subscribers to review programs. However, the reviews need to have quality comments that demonstrate a competence with language and critical thinking. Once a subscriber critic has been identified, the objective for the critic is to provide language that associates a film to a set of


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user interests and identity categories that define a community of viewers within the wider subscriber community. The subscriber critic can create a forum page where composed responses are submitted to VOD editors, where critic friends can join, read and comment on the program, and friends and random subscribers can respond to the critic’s opinion. Additionally, the subscriber critic has an incentive (free subscription for a month, perhaps) to get more viewers to respond in the forum. Forum response, unlike simply reading the forum, requires that the viewer has downloaded some or all of the film to be eligible to comment in the forum. Subscriber Critics and Independent Press Critics Critics are appointed leaders of viewing communities whose reputations are typically established through numerous reviews whose opinions reflect the values of a community of viewers who read them. To create a culture of independent reviewing, it is essential that both subscribers and independent critics engage in the launch of a film through its reviewing. A VOD provider should have independent critics who have no fiscal relationship with the service nor with subscribers. However, subscriber critics do have a fiscal relationship with the VOD provider, but are encouraged to focus their reviews around the interests of the communities they represent. Original or Sponsored Programming What a VOD provider has over all other media venues is that it can host original interactive content - programs that are not linear, whose content can change with time and viewer interaction, and where the experience may begin or end at different points. For these programs, viewer interaction quantization can be built directly into the program itself, and can therefore be used to attract advertisers and investors for the project who will use the data generated by viewers either in real time with targeted advertising, or after media consumption to determine the responsiveness of users to specific content.

PRINCIPAL CONTENT PROVIDER SERVICES Another transaction that occurs is between the provider of programs and the VOD service. At the beginning of a company launch, the objective must be to expand the library. The value of an acquisition must depend on the property’s likelihood of attracting an audience at the time of the transaction. It is a decision of the content provider to determine when should the content become publicly available. Obviously, the moment to provide it to the public is very shortly after the sizzle of any media interest peaks. During the first phase of the development of a new VOD provider, this responsibility must remain with the filmmaker or television producer because the cost to create publicity is exorbitant with great risk of not recuperating investment. However, once the VOD platform can acquire content with very recognizable talent, then the VOD provider might become the


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promoter, and not function as a passive librarian, by exploiting the name recognition of the talent in the acquired program. The questions are, who assumes the risk and when to assume it? And the answer is, how much of the gross receipts should the VOD provider keep for a program in its public run. The greater the risk (and need for promotion), the greater should be the percentage of gross returns. The less the risk, the lower the expected share of the return. A VOD provider must provide at least three models of revenue sharing with content providers. Last Window - End of Run Release This model invites the films and television programs who have had a theatrical, DVD, cable TV and/or free TV release (or any combination) to use the VOD provider as a final platform for release. The marketing materials would all be legacy products from other media forms, and the primary objective would be to give viewers who missed every other venue, or who are looking to see the program again, a place to find and view the program they desire. The level of promotional costs would likely be low while the viewership could be substantial. The risk to the VOD provider would be low because the promotion of the project would have been largely accomplished for other previous venues and platforms, paid for by the producer of the program or previous distribution entity.

Mid-term Window - Middle of Run Release This model encourages filmmakers and television producers to co-release to VOD. While a film or TV program might have limited theatrical or cable release, many regions may not have access to the program, or many viewers may not have subscriptions to the cable channel. In this model, the content provider must contractually navigate the restrictions of timed releases, and their contractually determined territories. Additionally, it should be expected that the VOD provider should share promotional costs of the program. Early Window - Beginning of Run Release This model will encourage filmmakers primarily who have had success in film festivals and who are looking to recoup their investment through VOD rather than, or in addition to other platforms, but without any coordination between platforms. This form of release requires substantial cost in promotion, and for the VOD to expect a significant share of the gross profits, there should be a promotional investment. Digital Delivery Only It is possible too, that filmmakers can choose to do all of their own promotions, and simply use the VOD provider as a service for delivery. In this model, the content provider takes a low share of the gross receipts, and provides no promotional service. Or, simply is paid a low service fee.


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TECHNOLOGIES AND MARKETING FOR START-UP AND MAINTENANCE To initiate business, the technologies and the marketing strategies must synchronize with one principal understanding - the first products within a library should address a target demographic, and the technologies employed to deliver this media must be selected and engineered to fit the culture of that target demographic. Once a viewer base has been clearly secured, then the demographic character of the viewer base can expand, as can the content of the library. Marketing and Engineering Personnel To accomplish this delicate balance, two key players must coincide: a market analyst and an information technologist. The market analyst must know how to quantize human behavior online, and must have intimate familiarity with the consumer behavior of the target demographic. The market analyst will need a support team who can implement statistical analysis tools so that viewer behavior can be monitored and strategic media acquisitions and promotional decisions can be made. As a partner, the information technologist must be masterful at engineering software for the many new and old devices where prospective viewers consume all forms of media. Likewise, this specialist needs an application development team to program the deviceend and server-end software and web page markup, bringing the VOD provider to a functional first version available to prospective subscribers and customers. Since this is a media program provider, there must be a director of acquisitions who will decide what projects should join the VOD provider, and what price to offer for them. And this director will eventually need a promotions director to create the interest and generate publicity so that the relevant public learns about the programs that most interests them. Advertising beyond the VOD platform itself can use external service providers - the ubiquitous advertising agency in its regionally specific location. But the promotions director should supervise these campaigns. Additionally, the VOD provider will need to collaborate with interface designers so that the system is visually stylized to the initial target demographic of viewers. A graphic designer will be needed to maintain a consistent look, as the web and application pages are modified week to week. A copy editor needs to write, read and re-write copy pages for both the web and device media. As the VOD provider expands, video editors will edit trailers for programs that need promotion. Technological Configurations – Cloud Media Storage and Databases, Protected Algorithm Applications Storing the media itself in a cloud configuration saves money and gives the task of server maintenance to those better positioned to provide this service. Therefore, all media programs should live in a ubiquitous repository managed by a cloud storage provider. Similarly, applying compression schemes to specific digital media files, based on the parameters of the file, its


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anticipated viewer platforms and the viewer expectations, should belong to a video compression service provider. However, the databases themselves, with their proprietary algorithms and query response organization, and with its proprietary mechanisms for quantizing and interpreting online user behavior, these might remain protected in a network of database servers within physical confines of the VOD. The following is a flow chart of processes through which any individual film or television program would proceed from the delivery of digital files from the content provider to the end viewer [see flow chart illustration below]. The flow chart indicates the structure of the revenue stream, and the structure of the data stream. Most important, it indicates how the data of each process informs and adjusts other processes. There will be a Library Acquisition Process, like all media distribution companies, of acquiring a library of media. In the case of a VOD provider, this will be serial television programs or single program videos and films [see (1)]. The Database Design Process must incorporate the relevant attributes, parameters and data types that must be classified and indexed for any TV program or film – the technical specifications and culturally relevant meta-data of the media [see (2)]. Likewise, databases must be designed to capture data on viewers and viewer behaviors (more later on the Quantization Process), and the queries that will be necessary to analyze viewers and viewer behaviors. Once the VOD provider has acquired a substantial library, the next step would be to propagate the database with the media and its meta-data. The Media Database Propagation Process will require an investment of human screeners who will watch the media and complete a content analysis survey for each film or television program [see (3)]. The screeners must be cinema literate respondents that can quantify a program’s characteristics so that the queries of future subscribers are best fulfilled by the query algorithms that deliver a recommendation list. (Later, viewers themselves will replenish the data as they watch and respond to the programs as described later in the Quantization Proces. But intelligent screeners are the first wave of metadata generation.) With marketing strategies implemented to attract customers to the service, viewers will elect a method of engagement: subscription, pay-per-download or free viewing with commercials. As viewers engage the VOD services, they initiate one of these three viewing transactions: commercial viewing, subscription viewing and/or download viewing. The three transactions types make the Transaction Process [see (5)]. All three create revenue for the VOD provider: from the viewer through the collection of subscriptions, from the viewer through the pay-perdownload purchase or from an advertiser through a pay-per-impression. Revenue will go back to the VOD provider in every case, and ultimately to the content provider as well.


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But before the viewer can watch any program, a membership must be created so that the VOD can aggregate viewer behavior for individual viewing session. With the creation of a membership, the VOD system expands with the Viewer Database Propagation Process [see (4)]. At this stage, the viewer as either as subscriber, downloader, or viewer of free-commercialladen programs, will provide data necessary to create a profile to associate each datagenerating viewing session. With each previous process in complete, the viewer engages media by interacting with the VOD website or mobile application, data will be collected on all relevant viewer behavior. The behavior is captured in real time, and initiates the Quantization Process of media viewing [see (6)]. From each viewing, data collected will feed back to the profiles of each viewer and each film or television program, and will alter the values of relevant fields of meta-data associated with the programs and the viewers, and will feed into the variables of query algorithms. In this final process, each individual viewing of a film or television program will change the potential query relevance of any record in the media database that represents that program. The resulting data gathered from live media viewing (the Quantization Process) would be used to inform the decision of acquiring new media to the library, and to suggest modifications to the databases. Data will also be available for sale to media producers to determine what new media products are more viable, and to which demographic of viewers in the subscriber base. My SQL Database Solution


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Java Server Page Solution

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VOD PROJECTIONS

One  of  the  fastest  growing  trends  in  Internet  use  today  -­‐  and  expected  to  grow  in  the  coming  years  -­‐  is  the   consumption  of  video  content.  For  example,  on  YouTube  alone,  over  2  billion  videos  are  viewed  daily  -­‐  and  the   popular  online  movie  service  Netflix  now  accounts  for  over  30%  of  total  US  internet  bandwidth  at  peak  hours.     BUBAFLIX.INC,  a  technology  company  led  by  a  team  with  a  proven  track  record  of  innovation  and  commercial   success,  has  the  solution  for  both  the  cost  and  the  video  congestion  challenges  caused  by  the  massive  adoption  of   video.      BUBAFLIX.INC  -­‐  The  Company     While  working  as  head  of  sales  and  business  development  in  one  of  the  THE  BIG  STRAWBERRY  group  companies,   David  L  SUAREZ  was  exposed  to  the  enormous  potential  of  video  delivery  via  the  Internet.  In  2012,  BUBAFLIX.INC   was  co-­‐founded  by  startup  veteran  David  L  SUAREZ  and  physics  and  mathematics  algorithm  expert  Sheldon   SCHIFFER   BUBAFLIX.INC  is  backed  by  an  experienced  Board  of  Directors  and  advisors.  These  include  some  of  the  most   accomplished  high  tech  and  media  veterans.   BUBAFLIX.INC  stands  out  in  its  dramatic  cost  reduction  efficiency  and  top  video  delivery  quality  by  significantly   reducing  re-­‐buffering  pauses  and  increasing  delivery  speed,  using  proprietary  algorithms.    BUBAFLIX.INC's  technology  guarantees  high  availability  and  smooth  viewing  experience  for  niche,  “long-­‐tail”   content  (the  audience  consumes  a  more  diverse  set  of  content),  as  well  as  highly  popular  blockbusters.   Based  on  the  proven  and  reliable  fully  distributed  cloud  technology,  where  content  is  delivere  from  multiple  cloud   peers  (other  network  members),  BUBAFLIX.INC  has  developed  a  superior  solution.  What  makes  BUBAFLIX.INC’s   solution  unique  are  the  encoded  format  of  its  data  as  well  as  the  a  synchronicity  of  its  streaming  protocol.  This   architecture  fosters  benefits  for  both  the  end-­‐user  and  the  content  provider.     Content  provider  benefits  include:       •  Higher  quality  video  streaming  increases  end-­‐user  stickiness  and  reduces  churn  (over  80%  of  users  who   encounter  re-­‐buffering  pauses  abandon  the  video  playback)   •  Dramatically  reduced  cost  –  massive  infrastructure  savings,  with  almost  no  reliance  on  CDN,  BUBAFLIX.INC’s  field  


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results  prove  over  50%  bottom  line  cost  savings   •  Infinite  scalability  –  as  the  number  of  video  consumers  grows,  the  network  capacity  grows  in  parallel,  with   unlimited  size  potential   •  Seamless  deployment  and  seamless  fallback  to  classical  CDN  or  origin  server  is  fully  automatic  and  guarantees   that  the  end-­‐user  experience  is  never  compromised       Benefits  for  the  end-­‐user  include:   •  Significantly  improved  streaming  reliability  and  end-­‐user  experience  -­‐  reducing  re-­‐buffering  events  by  50-­‐70%   •  Advanced  VoD-­‐focused  capabilities  -­‐  media  acceleration,  seek  forward  and  adaptive  streaming   •  End-­‐user  video  acceleration,  optimized  for  HD   •  Virtually  non-­‐disruptive  -­‐  only  uses  a  small  fraction  of  the  end-­‐user  upload  bandwidth,  typically  about  10%,   yielding  to  other  activities  on  the  user’s  device      

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Motivation to Buy Property in U.S China’s Purchasing Power vs. U.S. Real Estate Prices-Plunging property prices made U.S. a magnet for global buyers. Today's interest is growing as a rising yuan-up more than 8% since mid 2010-gives Chinese greater purchasing power. - Beneficial Currency exchange rate The Yuan’s exchange rate against the dollar has appreciated 4.92 percent in just one year. Since one Yuan can buy more dollars, Chinese are encouraged to buy property in US regardless of whether it is for a personal residence or business.

- Inflation in China With growing inflation in China, people are choosing to keep less cash on hand, so they are inclined to make investments. However, real estate prices in China are reaching prohibitive levels. Moreover the stock market volatility is a barrier to entry even for successful investors. One of the only ways to invest is to take advantage of the US economic downturn in real estate market.

- Strong expectations for US real estate


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Since real estate prices in US have declined dramatically, there are expectations that when the US economy bounces back, real estate prices will go up too. This creates more confidence for investors. - Members of the "echo boom" generation—children of the baby boomers—are "entering their peak household formation years of 25 to 44 with more than 5 million more members than the baby boomers had in the 1970s," Harvard researchers said in a June 2009 report. "The echo boomers will help keep demand strong for the next 10 years and beyond." - A more restricted flow of credit should prevent another housing bubble from forming anytime soon - The prices for Transaction Based Indexes of commercial property since 2010 are steadily increasing showing signs of appreciation.

http://www.frbsf.org/publications/economics/letter/2011/el2011-29.html

U.S. Real Estate More Favorable compared to other competitive markets- U.S. also compares favorably with other top markets for Chinese investment such as U.K., Australia, and Canada. Owning vs. Leasing -China’s restrictions on property purchases gives Chinese little freedom. Unlike property owners in U.S, they can only lease land, not own land.

Permanent Residency


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- Owning land in U.S. gives Chinese Permanent Residency-The Chinese money is also poised to flow into the city through a federal program that offers the possibility of permanent residency to foreigners who invest at least $500,000 in certain development projects. Under this program, known as EB-5 Forest City Ratner Companies has arranged for $249 million in loans from Chinese investors for residential and office towers at Atlantic Yards, the commercial and residential project in Brooklyn.

Huge RE Surplus -The U.S. has plenty of unsold homes to offer-3.6 million at the end of December 2011. Tax Leniency-RERA: -Taxes on commercial real estate gains undoubtedly impact the attractiveness of US investments. Because access to domestic capital is limited, Real Estate Revitalization Act of 2010 offers beneficial incentives to foreign investors and eliminates certain taxes that are part of Foreign Investment in Real Property Tax Act (FIRPA). RERA would change connected income and liquidating distributions of foreign investors into dividends. With the elimination of the USRPHC provisions, a foreign investor has the freedom to change or sell its interest in property and corporations. Investing in commercial real estate vs. residential real estate: Minimize your risks when investing in commercial property: A property with multiple tenants instead of single tenant spreads out the risk-In commercial real estate, you can lease units to multiple tentants. When a tenant terminates a lease, owner will potentially just lose a portion of the total income. It's also easy to find a tenant looking for a small 1000 SF unit. Commercial properties offer long term leases over month-to-month leases-Month to month tenants can move out with short notice when their businesses go down. Avoid having most leases expire at the same time with commercial property-With commercial property you can avoid having most of the leases expire at the same time. That way in the worst case, you will not have to face with a scenario that the whole building is vacant. With commercial property you have freedom to choose brand-name over no-brand tenants- Leases from brand-name companies like Walgreens, Subway, HR Block are sometimes guaranteed by the corporations. So when they shut down the store, the corporations will continue paying rents. According to statistics, brand name tenants are more likely to be in business next year than non-brand name tenants. With Commercial Property, you can offer triple net leases while tenant covers other expenses-Minimize property income fluctuations and losses by investing in triple-net leases that have the tenant pay for maintenance expenses that vary from year-to-year

Commercial Real Estate Still Offers a Highly Favorable Low Risk Return compared to


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ROI for Commercial Property

Commercial Real Estate Housing Prices continued to increase over the years compared to the residential housing market.


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Capitalization Rate: Cap rate for industrial spaces are likely to steadily decrease over the next two years which makes it a great time to buy or lease.

China Money Supply and High Inflation

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Investors in China are suffering from high prices of property on their mainland

Vacancy and Availabilty Rates of Commercial Property Single-tenant Industrial NNNs are proving to have a strong return. Real Capital Analytics (RCA) proclaims, “In the 12 months through the first quarter of 2011, single-tenant industrial properties have been trading at higher spreads to 10-year U.S. Treasuries.”

“U S Best Country to Invest in for Real Estate”. • Survey of the Association of Foreign Investors in Real Estate’s (AFIRE) members cited the U.S. as the top pick in 2012 for commercial real estate investors, according to Reuters. • The U.S. was said to have the most stable investment opportunities in commercial real estate. Investors surveyed also said that a foreign investment tax as well as boosted rent and occupancy


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rates were the major incentives for investing in U.S. real estate.

Reasons to Invest in the Entertainment Market of Real Estate Tax incentives for filming projects encourages the utilization of motion picture businesses and studio resources: • The American Jobs Creation Act Of 2004 and the 2004 enactment of Section 181, marked an unprecedented change in U.S. policy toward the phenomenon known as "Runaway Production" for the film industry. The government’s reaction was to include Section 181 within the American Jobs Creation Act of 2004. Section 181 offers tax incentives for investors in independent film and television productions produced within the United States. Here are some Film Investor broad strokes for the Section 181 Tax Deduction: • 100% of the motion picture costs are deductible in the same year of investment. • 75% of the motion picture must be shot in the US to qualify for Section 181. • There is a 15 to 20 million dollar budget cap. • There is no minimum film production budget cost. • TV pilots, TV episodes (up to 44), short films, music videos and feature films all qualify for Section 181. • Section 181 can be applied to active income or passive income. • Investors can be either individuals or businesses. • Section 181 is retroactive. • There is no expectation for film distribution or film completion. • The motion picture’s corporation issues Schedule K-1’s to the investors so they can take advantage of Section 181. Many film projects qualify for Tax Credit Rate which encourages filmmakers to demand studio services. A "qualified motion picture" can be one of the following: (Eligible for 20% Tax Credit): ● Feature Films ($1 million minimum - $75 million maximum production budget) ● Movies of the Week or Miniseries ($500,000 minimum production budget) ● New television series licensed for original distribution on basic cable ($1 million minimum budget; onehalf hour shows and other exclusions apply) (Eligible for 25% Tax Credit): • A television series, without regard to episode length, that filmed all of its prior seasons outside of California. • An "independent film" ($1 million total production budget - $10 million qualified expenditure budget that is produced by a company that is not publicly traded and that publicly traded companies do not own more that 25% of the producing company.) • 75% test (production days or total production budget) in California • Application must be submitted at least 30 days prior to commencement of principal photography • Once an application is approved, principal photography must begin within 180 days Sufficient funding is allocated to this program for filmmakers • $100 million annually beginning fiscal year 2009/2010 through fiscal year 2013/2014 • A minimum of $10 million of the annual funding is available for independent films each year


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Five Main Reasons to Invest in entertainment: High Possible Returns-If an entertainment product becomes a hit, it can produce returns that far outstrip less risky investments. January 1–April 9, 2012 Overall Gross: $2.834 billion Rank Distributor 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32

Universal Sony / Columbia Lionsgate Warner Bros. 20th Century Fox Paramount Buena Vista Relativity Weinstein Company Open Road Films CBS Films Summit Entertainment Fox Searchlight Focus Features Sony Classics Roadside Attractions Magnolia IFC Samuel Goldwyn Paramount Vantage Eros Shorts International UTV Communications Oscilloscope Pictures National Geographic Entertainment Millennium Ent. China Lion 3D Entertainment ATO Pictures IMAX Reliance Big Pictures Music Box Films

Market Share 16.0% 14.3% 13.2% 12.7% 10.5% 9.0% 6.6% 4.5% 2.7% 2.3% 2.1% 1.6% 1.6% 0.8% 0.6% 0.3% 0.2% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Total Gross* $453.2 $405.0 $373.2 $359.4 $299.0 $253.8 $185.7 $127.1 $76.7 $64.1 $58.9 $46.5 $46.3 $21.8 $16.9 $9.8 $6.0 $4.0 $3.6 $3.5 $3.5 $1.7 $1.6 $1.5 $1.2 $946k $797k $782k $737k $732k $728k $619k

Movies Tracked 7 10 4 16 8 10 8 4 7 2 2 4 3 3 12 3 12 14 2 2 3 1 4 1 1 2 5 1 1 4 1 7

2012 Movies** 6 4 4 4 4 3 3 3 4 2 2 2 0 1 4 2 8 13 2 1 3 1 4 0 0 2 5 0 1 0 0 1

Shared Risk is Possible• Entertainment industry mutual funds allow investors to participate without placing significant dollars in one “make or break” project. While the upside of returns is typically less, the downside risk is less as well. A Range of Investment Levels• mutual funds offer the opportunity for investment in the entertainment industry at a variety of levels. But beyond that, by investing in an independent film, the initial production of a musical or a new band’s first recording session, it is possible to participate in the industry for only a few hundred dollars. Possible Long Term Payoff-


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Like a top company that produces profits and pays dividends year after year, a successful entertainment industry offering can have a very long shelf life.

Advantages of Digital Technology Digital technology — a cheaper, faster, democratizing medium, a boon to both creator and distributor. Distributing movies digitally into theaters has been the holy grail of the studios," former Universal Pictures chairman Tom Pollock told Variety back in 2010. "They stand to eliminate billions of dollars in costs in coming years without spending very much." But when you're able to distribute a digital picture via satellite directly to a digital projector, the movie will be pristine no matter where it's shown and no matter the conditions. And that's going to develop the enthusiasm for movies in faraway places. A shed in rural China in Szechuan. -­‐ Howard Stringer, CEO of Sony Corporation

PROPERTIES NOW AVAILBLE TO BUY


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LAND TO BE PURCHASED NOW:

For Green Card Purposes Frazier Park, California, is a great option: 1H away form Los Angeles, a total of 2,348 people live in Frazier Park, of which 2,055 (87 percent) are white The median age for Frazier Park residents is 38 years compared with 35 for the nation as a whole. Frazier Park also has slightly more veterans than its share — 293, or 17 percent, compared to 13 percent around the country. It had a significantly higher percentage of disabled people than the rest of the nation — 36 percent against 19 percent. In contrast with the country at large, where 64 percent of the adults were working, Frazier Park had just 48 percent employed. Those who were working had to travel some 42 minutes to their jobs, compared to 25 minutes for most Americans. Frazier Park households had a lower median income than the nation as a whole — $46,857, compared to $50,046. There were 291 people (or 12 percent) below the poverty level in Frazier Park in 2000. That is the same proportion as the country as a whole. Almost a quarter of Frazier Park's 1,203 housing units (23 percent) were vacant when the census was taken in March 2000 — much higher than the national rate of 9 percent. This may be explained by the fact that many Frazier Park properties are second or seasonal homes. Property owners lived in about seven of every 10 occupied units, renters in the other three — just about the same as in the rest of the nation.


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-­‐  VIDEO  ON  DEMAND  SUMMARY  START  UP  BUDGET  -­‐    

 

 

 

 

 

 

 

Detail  

Rate  

Unit  

Quantity  

  Initial   Fee  

 

 

 

 

 

 

 

 

Content  Acquisition  

80  -­‐  120  minutes  

N/A  

films  

500  

 

  1  Year     $500,000    

 

 

 

 

 

 

 

 

 

Video  Encocing  and  Compression  

500  2hr  films  

15  

hour  

1000  

$15,000  

 

 

 

 

 

 

 

 

 

Replicated  Video  Storage  &  Streaming*    

 

 

 

 

 

  $6,000    

 

 

 

 

 

 

 

 

 

User  Interface  Application  Development  

Transactions,  Media  Player    

 

 

 

$5,000  

 

 

 

and  Social  Media  Database  

 

 

 

 

 

 

Advertising  and  Marketing  

Web,  Print  and  Cable  TV  

 

 

 

$125,000  

 

 

 

 

 

 

 

 

 

 

Online  Credit  Card  Transactions  

 

 

 

 

$250  

 

 

 

 

 

 

 

 

 

Web  Hosting†  

 

 

 

 

 

  $1,800    

 

 

 

 

 

 

 

 

 

Web  Design  and  Writing  

Assuming  custom  design  

 

 

 

$5,000  

 

 

 

 

 

 

 

 

 

 

Website  Programming  &  Setup  

Assuming  custom    behaviors  

 

 

 

$5,000  

 

 

 

 

 

 

 

 

 

 

Customer  Database  Programming  and  Setup  

 

 

 

 

$2,500  

 

 

 

 

 

 

 

 

 

 

 

 

 

$3,000    

   

Transaction  and  Royalty  Accounting   Real  State  Purchase  of  Land  and  Office  (we  own   water  supply  in  perpetuity)      

 

 

 

 

 

 

$300,000  

 

Office  Expenses  

 

 

 

 

 

$36,000    

 

 

 

 

 

 

 

 

10  Assistants  (Manufacture,  Quality  Control,   Acquisitions  Assistants,  Sales)  Salaries  (this  is   require  by  USA  Law)  

No  benefits  accounted  

$9  per  hour  (10H   per  Day)  X  340  Days   X  3  years        

       Accountant      

 

 

 

 

 

 

 

Acquisitions  Director   Finder  Fee  (if  any)  otherwise   it  goes  into  Content   Acquisition        Marketing  &  Sales  Director            Manager  Director    

 

   

   

   

$306,000  

   

   

   

                  $60,000  

 

 

 

 

$80,000    

 

 

 

 

$97,450  

 

 

 

 

$80,000     $80,000   $92,000    

   

   

   

   

 

 

 

 

Production  and  Business  IT   Director  

 

 

 

 

 

 

   

   

   

   

   

   

 

 

TOTAL  

 

 

 

$157,750  

$1’800,000    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*  Using  Brightcove  pricing  model.  Sea  Change  is  similar  option.   †  Includes  10  domain  names,  email  accounts,  backup  systems,database  hosting,  accounting  and  analytics.   After  profit  taxes  are  not  accounted.  These  are  only  expenses  for  startup  costs.    

 

 

 

 


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FLAVIA SILVA SCHIFFER 87 Peachtree ST. SW. #507 Atlanta, GA 30303 QUALIFICATIONS AND SKILLS ●

Experience administering the following immigration petitions: Form I-526, I-485 Adjustment of Status, I-751 Lift Conditions, I-765 Employment Authorization, I-360 VAWA petitions, I-918 UVisa, I-192 Entry Waiver, I-129F K-1 - Petition for Alien Fiance(e), and N-400 Naturalization petition, among others. Passed New York Bar Exam February 2012

EDUCATION The University of Georgia – School of Law, Athens, GA LL.M. 2011 – Focus in Immigration Law and International Law

Aug 2010 – May 2011

Emory University, Atlanta, GA Paralegal Certificate Program

Sep 2007 – Feb 2008

Green Card Through Investment Entrepreneurs (and their spouses and unmarried children under 21) who make an investment in a commercial enterprise in the United States and who plan to create or preserve ten permanent full time jobs for qualified United States workers, are eligible to apply for a green card (permanent residence). Up to 10,000 visas may be authorized each fiscal year for eligible entrepreneurs. You must invest $1,000,000, or at least $500,000 in a targeted employment area (high unemployment or rural area). In return, USCIS may grant conditional permanent residence to the individual. For more information, see Section 203(b)(5) of the Immigration and Nationality Act (INA) and 8 CFR 204.6 (see the “INA” link to the right). Eligibility Criteria You may be eligible to receive permanent residence based on investment if: • You have an approved Form I-526, Immigrant Petition by Alien Entrepreneur • You are admissible to the United States • An immigrant visa is immediately available • Application Process If You Are Living Outside the United States You can become a permanent resident through consular processing if you live outside the United States. Consular processing is when USCIS works with the Department of State to issue a visa on an approved Form I-526, Immigrant Petition by Alien Entrepreneur, petition when a visa is available. For more information on consular processing, see the “Consular Processing” link to the left under “Green Card Processes & Procedures.”


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If You Are Living in the United States You can become a conditional permanent resident through adjustment of status if you live inside the United States. Once the Form I-526 is approved and a visa number is available, you can apply for conditional permanent residence on Form I-485, Application to Register Permanent Residence or Adjust Status. For more information see the “Visa Availability & Priority Dates” and “Adjustment of Status” links to the left under “Green Card Processes & Procedures.” Supporting Evidence for Form I-485 You should submit the following evidence/documentation with your application: • Two passport-style photos • Form G-325A, Biographic Information, if you are between 14 and 79 years of age • Copy of government issued photo identification • Copy of birth certificate • Copy of passport page with nonimmigrant visa (if applicable) • Copy of passport page with admission (entry) or parole stamp (if applicable) • Form I-94, Arrival/ Departure Record (if applicable) • Certified copies of court records (if you have been arrested) • Form I-693, Report of Medical Examination and Vaccination Record • Applicable fees • The approval notice for Form I-526 (Form I-797) Family of Entrepreneurs Your spouse and unmarried children under the age of 21, (known as derivatives) may be included on your immigration petition. If they are residing in the US, they will each need to file a Form I-485. They are counted towards the annual cap of 10,000 visas. Work & Travel Authorization Generally, when you have a pending Form I-485, it is possible for you to apply for authorization to work in the United States and to seek advance parole (advance permission to travel and be admitted to the United States upon your return). For further information, see the “Work Authorization” and “Travel Documents” links to the left under “Green Card Processes & Procedures.”


VOD Platform/RealState/EB5