Contents
Clients: Media Producers and/or Distributors
Total Web Usage and E-Commerce
Mandate To Combine Educational Services With Commercial Applications
1.
MyTvQ or MovieQ Curriculum Resource Packages
2.
MyTvQ or MovieQ Students Guide
3.
PopRead or MovieQ Teacher’s Guide
Target Sales and Educational Usage
Marketing Strategies and Tactics
International Sales and Marketing
Distribution Through Existing Partnerships
University of California System Distribution for Out-Reach Programs
PopRead’s Professional Services via UCLA
Advertising and Marketing Advantages
Proposed Financing And Use Of Proceeds
Ownership, Liabilities & Capitalization
Phase One: Foundation & Expansion
Phase TWO: Expansion and Marketing
XI.
ASSUMPTIONS FOR FINANCING:
1.
PopRead Premiere Curriculum Packages:
2.
PopRead Curriculum Packages for Pre-Aired, Archived Video Content:
3.
PopRead Curriculum Packages for International Sales:
4.
OFF-Air Library Direct Sales:
7.
Content & Curriculum Server Fees
8.
Syndication Distribution Fees @ 30%
9.
B2B Direct Sales – future development
10.
PopStore Transaction Fees/Commissions (B2B and B2C)
11.
Professional Services Brokered for UCLA
The
Financing & Projected Valuation
PopRead, Inc. is positioned
to become a leading, global educational service that links educational
content to broadcast programming with teachers and students on all grade
levels.
PopRead provides
cutting-edge, popular media (pop-media) based curriculum packages designed
to integrate our clients’ compelling media with solid educational content in
math, science, social science, health, earth science, language arts, etc.
PopRead will provide these curriculum resource packages to teachers and
allied professionals on all levels via the Internet. The primary focus will
be on the K-12 educational levels. Some of PopRead's commercial proprietary
products, software and web applications include:
·
MyTvQ is a pre-broadcast marketing tool, a
curriculum-based, web-driven study guide and a life-long, added value
package for any television program.
·
MyNewsQ is an ON and OFF-Air library of current and
historical events (like, CNN/Newsroom.com), designed to offer services to
the mass news media and distributed through our outreach and other
distribution programs.
·
MyMovieQ is a pre-premiere marketing tool designed
to enhance ticket sales at the theaters, a curriculum-based, web-driven
study guide and a life-long, added value package for any movie.
·
MyRadioQ is designed to assist in larger radio
broadcast campaigns for any issue of educational value by providing a
curriculum package for teachers, students and long-long learner.
These pop-media system
products can easily be applied to post-secondary education,
E-training usage and the life-long learner. The power of this system is
derived from a combination of high-end content and the expertise of our
blue-ribbon panel of educators who will develop comprehensive, multi-level
curriculum resource packages for end-users (defined as students, teachers,
parents and lifelong learners).
The key to procuring a
strong, viable position in the education marketplace is developing and
providing total efficiency in serving specific markets. While the Internet
is the perfect portal to achieving this goal which requires a viable
marketplace, expert management with substantial related experience, solid
marketing and strategic platforms on which to build. PopRead is such a
company.
PopRead has the ability to
address the needs of both educational institutions and popular media. We can
create materials that provide:
1.
an entertaining and compelling learning experience
for the student,
2.
a high quality curriculum package for teachers and
other end and
3.
a pop-media, web based curriculum tie-in service
that will assist the media producer or distributor in retaining or building
audience share.
Our client base for the
production of the PopRead curriculum packages is composed mainly of media
producers and/or distributors of television, film, news, radio, print or
video programming, such as:
·
Major network
·
Cable channel
·
Public broadcast channel
·
Feature film or radio campaign
·
Business
·
University
·
Non-profit entity
·
Independent producer
Resource packages will be
attached for our clients to a specific broadcast entertainment or
informational form of content and made available to our subscriber base
(mainly, educators). The PopRead systems give content producers and
distributors the ability to assist in better marketing and evaluation of
their quality programs to the educators, K-12 teachers, students (and their
parents, thereby, increasing family viewership). Educators will be given
access to appealing materials indefinitely via the web, thereby enhancing
their teaching ability through popular media assignments.
The broadcast and
entertainment media industries are under pressure: 1. to retain market share
eroded by the Internet, 2. to provide more responsible content and 3. by a
governmental crackdown on the way they market to children. PopRead and its
media clients will cross-promote by, for example, adding a TV guide symbol
(our "PopRead Apple" logo) to aid viewers in instantly recognizing the
flagged broadcast as accompanied by a web tied and approved University of
California system curriculum package.
PopRead is working very
close with the University of California at Los Angeles/University of
California (UCLA/UC) systems outreach programs. Their global resources will
enable us to send emails to their database of K-12 and post secondary
educators 2-4 weeks prior to future broadcasts of our clients’ media.
PopRead promises to make learning more innovative, fun and exciting while
cross-promoting our products and the client’s programs to the front and
center of the American school and households.
PopRead, UCLA and the
University Health and Media Research Center (UHMRC), along with
other top PhD educators who specialize in the educational development
of specific grade levels, will build and approve the curriculum packages.
After approval is obtained, PopRead’s proprietary curriculum
systems will be distributed using our exclusively licensed state of the art
interactive software, a multimedia delivery tool. A simple email requiring
no plug-ins will contain a 45-second media promotional trailer. This email
marketing tool will be sent to and viewed by educators, teachers, concerned
parents, students, etc.
This promotional
interactive audio and video software will be a direct link to PopRead.com
for the custom curriculum package log in while also serving as a second link
to that media producer's web site. This additional direct link to the
content producer or distributor lets them choose their level of involvement.
For example, ABC can rent our software if they wish to participate and
support the “back end” or educational resources of testing, quizzes and
evaluation of their programs. The other option is PopRead will provide part
or all of these resources for an additional fee. Curriculum packages will
remain linked to the content programs indefinitely through sales of premiere
syndication, foreign, direct and rental video distribution.
Educators and other end
users will be subscribed and given a pass-code for access to our site. K-12
teachers who are subscribers can customize a curriculum package for their
individual needs and grade levels. We can provide a number of elements, such
as: optional video, special references, specific data, graphics and other
tools that will enable the packages to meet all their needs. For example, a
teacher could select items from a curriculum to use, adapt a quiz or even
add materials. When students have visited our cross-promoted sites and
logged on with that teacher’s pass-code, all their interactive information
can be compiled, graded or archived while being delivered to the appropriate
end-user via email.
Newly created (as well as
the associated original custom curriculum) packages will be made available
for other same grade level teachers visiting the PopRead site. This add-on
effect will enhance our ability to gain more content, as well as, create
feedback and loyalty from educators/end users.
PopRead plans to provide
new and exciting ways to assist the teachers, parents, students and others
with many related services including:
·
PopStore/PopCash - buy anything through the
PopStore and receive cash which may be used, for example, as fund raising
events or as the consumer otherwise directs:
1.
for Schools (buy anything through our store and
receive cash for your school), may be used for many fund raising events,
2.
for events, foundations and non-profit
organizations
·
Free PopRead email accounts for students, teachers
and parents which can be used for their school activities, parent, teacher,
student communications
·
PopTest Center with MyPopCard for national
scholarships, cash and prizes which can be accessed by any concerned
parents.
Basic academic competencies
in literacy, math, science, social sciences, health, ecology and language
arts are of particular focus in the PopRead system products. These
fundamentals are applied in two different ways:
1.
the PopRead systems provide resource packages
specifically designed to teach basic reading, writing and math skills for
grades in K–2; then. more differentiated subject matter competencies are
provided for grades 3-12
2.
Reading and writing skills are reinforced in all
PopRead resource packages, as well as, subject matter competencies for
post-secondary and the life long learner when requested.
In all cases, the visual
medium combines with the Internet to create a truly interactive, rich and
fulfilling learning experience that significantly increases retention of the
subject matter. We will be conducting scientific studies related
specifically to television and its neural loop***
effects. We feel PopRead’s MyTvQ package, within the script side
class cell (digitized shooting script for reading/writing exercises,
role-playing and public speaking) provided for broadcast television at home,
the PopTvQuiz (a live, sponsored, preprinted and distributed testing module)
could, in fact, change the way we receive and retain the broadcast
comprehension in a more positive way.
A basic premise of the
approach we are suggesting lies in the power of the pop-entertainment media
to teach (edu-tainment). Over the past two decades, there has been a
worldwide movement to increase the educational content and value of the
entertainment media. This movement has mainly taken place outside the United
States and its power and success has been well documented. Oftentimes,
educational content is effectively delivered within entertainment formats
when audiences are highly engaged in viewership. Only very recently in the
US entertainment culture have programs with educational value been seen to
be economically viable. In other words, “educational” media was relegated to
non profit status or PBS outlets.
With the advent of cable
programming (and now the Internet), those myths are currently being
overturned. The result is a radical reshaping of what is considered
commercially viable, as well as, the creating of mainstream entertainment
programming that does contain some educational content. In addition, there
is ongoing pressure from both governmental and non-governmental advocacy
groups to improve the communication of basic knowledge through the media.
Current FCC regulations mandate that television networks and cable satellite
stations broadcast at least three hours of educational content weekly.
Notably, cable is much more aligned with this directive than the major
networks and is complying on a daily basis.
PopRead will assist in
providing a viable means to assist media in their goal of making media
content more educationally valuable, as well as, increasing their bottom
line: family viewership. The Internet is undoubtedly the new frontier for
education and is rapidly becoming the mainstream of communications
worldwide. According to John Chambers, President and CEO of Cisco Systems,
Inc., “The biggest growth in the Internet, and the area that will prove to
be one of the biggest agents of change, will be in on-line training, or
e-learning.” (PC Week, November 18, 1999). Now is the optimum timing
for PopRead to enter the marketplace.
Services described will
first be offered to all content producers of media programming interested in
anchoring their media product with a lesson plan tie-in and testing module
designed for either K-12 students, post secondary, employee training or the
life-long learner. These products will be delivered via the Internet. Until
full bandwidth is achieved as a standard for all Internet users, the
Television set top box will remain the mainstay of broadcast and video
content. Regardless of the cost of the Internet's current video delivery
systems, PopRead will vigorously market to the producers of all Internet
content/web casts with lesson plan tie-in modules.
PopRead’s major audiences
are the students, parents and teachers of our nations K-12 schools.
PopRead’s major clients are the producers of broadcast television, film,
video and radio. The basic mechanism for linking these two groups within an
educational context is the creation of quality educational resource
materials while building PopRead’s Off -Air library. This library
complements the demand for selected television, film, video and or other
curriculum related-future programming broadcast at PopRead.TV. Our direct
sales department within the PopStore will handle custom orders.
Through outreach, mass marketing and cross-related prime time television promotions, clients producers will contract with PopRead for development and use of our web based tie-in materials and software. Upon completion of the quality program and its PopRead curriculum package, this information can be distributed through the UCLA/University of California systems nationwide via our non-profit partners at UCLA’s University Health and Media Research Center (UHMRC) and UCLA’s Out-Reach programs’ executive officers (most of whom are current members of PopRead’s Board of Advisors).
The curriculum, broadcast
date and time can be marketed and delivered directly to all the parents,
teachers, students and schools nationwide as a web free service to download.
PopRead will also cross-promote and translate the curriculum services for an
additional fee upon request from our major clients. This quality information
can be delivered to other educational K-12 outlets and post secondary
markets, as well as, the general public worldwide prior to the broadcast in
that country.
PopRead’s interactive
proprietary software applications will drive the Internet curriculum package
tie-ins during the Pre-air, On-Air and Off-Air broadcast program phases.
These packages include:
1.
PRE-AIR (available prior to airtime): the script
sides class, resources materials, study guides, Pop-Web links, reading and
writing exercises, homework, as well as, activities designed for both in and
out of class.
2.
ON-AIR (during and after broadcast): PopRead’s
PopTvQuiz and research activities (this curriculum cell is designed not to
disrupt sponsors’ messages).
3.
OFF-AIR (after initial airing): All quizzes, final
tests, class activities, surveys and evaluations will be graded and/or
compiled automatically and delivered to the appropriate end-users (teachers,
parents, school administrators, business and/or network) via email or other
appropriate means.
Each learning module can
stand-alone and can be customized for our client’s needs whether they are a
major network, cable channel, public broadcast channel, feature film or
radio campaign, business, university, non-profit entity or independent
producer. PopRead is positioned to become a leading, global educational
service that links educational content to broadcast programming with
teachers and students on all levels.
PopRead.com’s OFF-AIR Life
Science library will also have its own direct content available that can be
searched, clip-viewed and ordered with or without the lesson plan modules in
any language, matching programs worldwide. PopRead will also invest in
licensing a digital library of supplementary materials, as well as,
providing direct access to other archival material databases via the web
through our site.
PopRead’s agreement with
UCLA’s UHMRC has fostered development of a team of leading educators who
will assist in the production of the PopRead lesson plans, quizzes and other
materials for each targeted age group utilizing video programs as the
foundation (see Section VI: Production Partnership).
We see the potential demand
for the PopRead system modules as linked to the omnipresence of the
broadcast media in today’s culture. In the US alone, there are six major
broadcast networks, plus the Public Broadcasting Services and over a hundred
analog and digital cable/satellite networks and services. Virtually every
person has access to these broadcasts. Our programs are specifically
designed for each age group in the K-12 system.
As things stand now, K-2
levels are now targeted by programs such as: Arthur, Barney, Blue’s Clues
and the Big Comfy Couch, all of which appear in the morning (a pre-school
time period) and may collectively attract about 5% of the viewing audience.
Then, there are many entertainment programs for middle and older teens, such
as Dawson’s Creek, Moesha, MTV programming and so on.
There are few educational
programs designed specifically for middle school and high school audiences.
These age groups are commonly referred to as television’s “big black hole.”
Usually, the 13-18 year old audience migrates to programming such as
sitcoms, sports/action movies or teenage-based dramas that are designed for
older audiences. Notably, this group also finds topics of science,
adventure, history, wildlife, “how-to,” the arts and other related genres of
particular interest. Once viewed, however, these programs are easily and
quickly forgotten.
PopRead is designed to
inspire and retain their interest in our client’s media productions through
the PopRead tie-in system, thereby, retaining an audience share. In turn,
our primary market is linked to advertising rates and revenue, especially
for commercial television and film. PopRead will add great potential for an
increasing the life-span of advertising and direct sales revenue during all
phases of distribution. This retention is a major reason why our clients
will purchase PopRead’s services for their content.
Global E-commerce revenue will top USD 1.1 trillion by 2002, up from USD 15
billion in 1997, according to a recent estimates from Deloitte Consulting. (Source:
Forrester Research) The following figure charts the increasing
activity of the internet sector and projects continued acceleration in
growth over the next few years.
The US is expected to
generate the majority of the total Internet generated revenue, USD 842
billion. The rest of the world’s regions together would generate the
remaining USD 300 billion. The Asian market is predicted to generate USD 50
billion in revenue.
In addition, there are 92
million US and Canadian web surfers over the age of 16 and another 150
million people worldwide who actively use the Internet. Over 60 percent of
these surfers shop on-line. By the end of 2005, it is predicted the global
market will grow to over 300 million surfers of whom 225 million will shop
on-line. Nearly 70 percent of this Internet “universe” will be outside of
North America. (Source: The Computer Industry Almanac, December 1999)
PopRead proposes a unique
business-to-business (B2B) model that creates a service that can enhance
both quality and viewership for commercially based entertainment and
educational programming.
"The great untold story of
online commerce is that business-to-business sales have already eclipsed the
higher-profile business-to-consumer (B2C) market by a long shot. Annual B2B
e-commerce is projected to soar from $34 billion in 1998 to $1 trillion by
2003, according to Forrester Research, while the consumer market swells from
$7.8 billion to $108 billion in the same period." (Source: Business 2.0,
September 1999)
According to the Gartner
Group, 7% of the forecasted USD 15 trillion
total global sales transactions will be done through B2B e-commerce. Updated
figures by the Gartner Group on January 26, 2000 estimated the B2B market to
grow from USD 145 billion in 1999 to USD 7.29 trillion in 2004.
PopRead recognizes the
enormous opportunity the Internet is providing for education on many
different levels. The Internet’s education universe is highly active and
fast developing, giving rise to a growing number of sites serving B2B
and B2C markets. Quite simply, the
television industry is looking for new and innovative ways to extend and
balance the influence of the Internet and its acquisition of the television
industry’s target audiences.
The film and television
industry is using the Internet to aggressively market their programs and
products. However, this utilization of the Internet is primarily devoid of
any meaningful educational value. Yet, the Internet is a most ideal platform
for education. Industry exceptions to using the Internet as simply another
marketing tool include such cable networks as the Discovery Channel, History
Channel and Turner Networks who have actually built sites with curriculum
materials, student resources and so on. The major networks have yet to
implement such educational outreach services.
PopRead has developed an
innovative and exciting approach to utilize the strengths of both the
Internet and television media by delivering informative and promotional
educational packages free to our nation’s K-12 schools. Additionally,
PopRead software systems can be adopted and delivered in many formats around
the world. The University of California system, which supports this
approach, lends academic legitimacy to this endeavor.
While it could be argued
that networks could develop their own in-house software systems and
curriculum packages for outreach purposes, PopRead’s system would be more
comprehensive and more efficient, thus, much more competitive. PopRead will
be designed by a professional team, making it much more cost-effective and
quality controlled as an out-source service rather than a large and costly
in-house service.
The other issue today is
that the larger networks or production companies no longer produce a lot of
the entertainment media. In fact, these media are produced by thousands of
independent production companies who do not have the resources to create
these unique services. These companies sell product to larger distribution
outlets that are motivated to enhance their audience and distribution share.
Bud Grant, PopRead’s CEO
and former President of CBS Entertainment, believes that many network, cable
and satellite company presidents, could easily be motivated to buy this type
of value added packaging for their show line ups. "The PopRead systems can
increase viewership and the life span of their content worldwide."
The needs of teachers - and
the connecting of teachers with other teachers through innovative
communications services - are growing demands in the educational
marketplace. While there are many student curriculum support sites, there
are far fewer teacher support platforms that also consider the content being
used as both teaching and learning tools.
PopRead intricately weaves
the needs of teachers with the needs of students to create a well-defined
curriculum resource center that serves the needs of both. Simply stated,
teachers will be able to acquire and make available lesson plans, lecture
notes and support resources via PopRead.com. These items will be
downloadable through the PopRead’s digital library server.
Another achievable and
scaleable opportunity that PopRead will implement in the future is the
Teacher-to-Teacher Marketplace. PopRead recognizes that teachers must
continually maintain their level of expertise and teaching abilities through
reliable professional development methods and resources. To accomplish
upgrading, teachers must rely on other teachers, authoritative support
systems, experts and administrators to assist them with their professional
development goals, curriculum and classroom management.
Thus, service provider
PopRead, as an innovative curriculum production and distribution model,
utilizes:
·
the resources of leading institutions of higher
learning,
·
our veteran educational and television Members of
the Board,
·
TV, video and film marketing experts to provide
teachers with curriculum support packages based on a wide variety of
television programs, films and archived videos.
Educators in general are
beginning to turn to alliances with commercial entities to increase the
efficiency of the educational process both financially and operationally.
The commercial business model takes less time to implement programs, can
develop greater financial resources in a shorter period of time and will
ensure the educational process is able to meet the needs of the future. Many
other traditional non-profit organizations are developing in-house,
for-profit divisions for the same reason. For example, National Geographic
Society formed National Geographic Television, Inc. in the early 90’s to
more rapidly facilitate the use of its content in both education and
entertainment industries. Today, National Geographic Television is a
commercial partner with NBC and other major partners in a global
distribution now called National Geographic Channels Worldwide.
There are 116,910 public
and private schools with K-12 students in the United States alone, of which
89,508 are public. Virtually every public school is now connected to the
Internet. In the US alone, there are over 52 million K-12 school students
and 4.2 million K-12 teachers. USD 351 billion was expended on K-12
education in 1999 with an additional USD 232 billion spent on post secondary
education (not including vocational, specialty and professional development
training). (Source: National Center for Education Statistics)
It is also estimated that
schools write 25 million purchase orders in a year at a cost of between USD
100 and USD 150 above the actual cost of the product for each requisition.
(Source: Lamar Alexander, CEO of Simplexis.com, February 1, 2000).
PopRead will provide direct access to the best products and pricing
available worldwide, thereby, capturing the market through our media
popularity and increasing our share.
Within the context of this
proposed plan, this scholastic audience is a direct client of our clients:
the broadcast industry. Our services will be geared to enhance the appeal
and educational value of our clients’ programs within this vast audience.
While the initial business
plan is targeted to K-12 learner, over time, we could also feasibly focus on
the post-secondary or life-long learner. Television shows that appeal to a
more specialized or higher level audience interest include Law and Order,
ER, West Wing or cable content. 14.8 million students are enrolled within
public and private post-secondary institutions. (Source: National Center for
Education Statistics, December 1999) In addition, there are 953,000 senior
instructional staff teaching these students. (Source: US Department of
Education, 1999)
Although estimates vary,
there are approximately 104 million K-12 students and 6.4 million K-12
teachers outside of the US with Internet access. In addition, there are over
29.6 million students enrolled in institutions of higher learning and over
1.9 million senior instructional staff of post-secondary institutions with
access to the Internet.
Another much larger
audience, yet a less heralded one, is the life-long learner. An estimated
80% of the adult population in the US participates in continuing education,
professional development or self-enlightenment. (Source: US Department of
Education, 1999)
With global consideration,
PopRead will be tapping into a global marketplace of nearly 213 million
students and teachers who have access to the Internet. All projections are
that these numbers will continue to expand as the Internet continues to
expand its reach worldwide. This potential market serve as a strong base for
PopRead’s services. Leading Internet analysts project that this group will
constitute the most active new Internet users. (Note: The global marketplace
figure listed in this paragraph counts students with access to the Internet
and not the actual number of Internet users.)
PopRead will
have three methods of selling and distributing the learning modules. These
methods may be used singly or together.
1.
The first and most frequently used model is a
simple contract for producing the learning modules and future software
licensing for a specific content provider whereby they will maintain
ownership and distribution. A simple pricing model will be set for each unit
(for example: see MyTvQ module below).
PopRead's learning module and our proprietary software can be placed on the
content owners’ or distributor's website, customized with their logos and
advertising before the broadcast. PopRead.com will also provide
hosting/serving, if requested, for an additional fee. We will ask for
licensing rights to the program and learning module for future use by
PopRead Inc., a new educational binary hub business that solely focuses on
Internet Education.
2.
The second model will require a lower cost
investment by the content provider/broadcaster. After being provided with a
copy of the program and the shooting script, PopRead will produce the
learning modules appropriate for the program at 50% above cost. The learning
module will then be hosted on our consumer website for an additional fee at
www.PopRead.com and PopRead.TV. The content provider will be required to
cross-promote audiences to our website as well as theirs in order to take
advantage of the program and its value-added packages.
We will thereby enhance the online and mass marketing of PopRead's programs
and services by increasing their visibility using national television and
film programs. Over time, we plan to offer scholarships, awards and national
contests for students and lifelong learners. This model, either alone or in
combination with others, could be used for national promotion when needed.
3.
The third model will require a cost investment by
the content provider/ broadcaster. After being provided with a copy of the
program and the shooting script, PopRead will produce the learning modules
appropriate for the program at cost. The module will be hosted on our
consumer website for a fee at PopRead.com and PopRead.TV, as well as,
licensed for direct sales on our ON and OFF-Air life science library during
the client's broadcast.
In any given case, when we negotiate exclusive or non-exclusive rights for
distribution, we will only invest in high quality media that serves our
goals in global education. The content provider will be required to send
their audience to our website at www.Popread.com and PopRead.TV in order to
take advantage of the program packages and future distribution. We will
offer a limited amount of recognition to the content provider.
This model only makes sense when we are building a high quality library for
ancillary sales and the product will have broad base audience appeal. Some
programming may be so attractive to our OFF-Air life sciences library that
we may invest in a “no cost to the content owner” contract in return for
exclusive licensing rights world wide. We would later build a curriculum
package upon our own distribution/broadcast or build it when requested by a
teacher who may be viewing our OFF-Air library. Then, we would amortize and
market that property globally to all of the same grade level teachers where
it may apply.
Content providers of any
media programming will contract PopRead to develop learning modules for each
of their unique programs geared towards the K-12 audience and/or other
audiences. Each of the learning modules, therefore, will be as unique as the
program itself. Within the K-12 group, a learning module can be designed for
4 subgroup ages:
·
Kindergarten-Grade 1,
·
Grades 2-5,
·
Grades 6-8 and
·
Grades 9-12.
Because programs are not
always targeted for all ages, the content providers will chose the subgroups
for which the learning modules will be built. PopRead’s Teacher-to-Teacher
Marketplace will also make available, in an indexed and central area, all
the resource materials that are made available on a commercial basis usually
in catalog format. PopRead will license these materials and form strategic
alliances with current suppliers. These materials will include CD-ROMs, DVD,
VHS, brochures and displays.
PopRead's initial primary
revenues will be based on sales and support services of three basic packages
as outlined below. All package sales will include installation of PopRead's
proprietary interactive software and a custom designed link page to our
clients’ web sites as well. These examples are targeted for our television
and movie clients.
The Curriculum Resource
package includes a customized support web package for most media, including,
but not limited to: mini-series, movies of the week, feature films, radio
campaigns, specials and series content. Each Curriculum Resource package
consists of two to three activities of 20-25 minutes each taken from the
following list:
·
Script Side class (edited shooting script)
digitized for in-class activity: includes student
role-playing, public speaking, basic reading and writing assignments in
preparation for viewing the film or video.
·
Homework:
includes two out-of-class activities that students can do on their own in
preparation for quizzes and the telecast, film or video.
·
Resources and Links:
includes website links and other suggested reading related to the telecast,
film or video that could be accessed both in class and out of class.
·
Quiz Class:
includes 15-20 questions in preparation for the broadcast to be graded
automatically online or other - the results of the quiz will be delivered to
the teacher and/or end-user via email, fax or phone.
·
The PopTVQuiz: 10-15 broadcast tie-in
questions that can only be answered by viewing the program. During this
testing and evaluation research, UCLA and PopRead will be compiling the
effects of television’s neural loop and how
we may improve upon our concentration and retention of that program while
still enjoying it as usual. All results will be made available
and be graded automatically online. The results will be sent via
e-mail, fax or phone to the teacher, network or end-user.
Sales Price: USD 15,000.00-20,000.00, depending on the complexity (does not include
backend support needs or direct hosting).
Customized student support
package for most media, including, but not limited to: mini-series, movies
of the week, feature films, radio campaigns, specials and series content.
The Student Guide package is composed of four to six activities of 30-35
minutes duration each drawn from the following list:
·
Script Side class (edited shooting script)
digitized for in-class activity:
includes student
role-playing, public speaking, basic reading and writing assignments in
preparation for viewing the film or video.
·
Homework:
includes five to seven out-of-class activities in preparation for quizzes
and telecast/video/film tie-ins with direct interactivity via the Web, fax
or phone for input and results.
·
Synopses of Telecast/Video/Film:
includes the cast of characters, action, meaning
and significance to the subjects of mathematics, science, social science,
history and language arts.
·
Resources and Links:
includes website links and other suggested reading related to the telecast,
film or video.
·
Pre-Broadcast Quiz Class:
includes 20-25 questions in preparation for the broadcast which will be
graded automatically online. The results will be delivered to the teacher
and/or end-user via email, fax or phone.
·
PopTVQuiz:
15-20 broadcast tie-in questions that can only be answered by viewing the
program. During this testing and evaluation research, UCLA and PopRead will
be compiling the effects of television’s neural loop
and how we may improve upon our concentration and retention of that program
while still enjoying it as usual. All results will be made available and be
graded automatically online. The results will be sent via e-mail, fax or
phone to the teacher, network or end-user.
Sales Price: USD 20,000.00-25,000.00, depending on the complexity (does not include
backend support needs or direct hosting).
Customized teacher-support
package for mini-series, movies of the week, feature films, specials and
ongoing programs and series. Components in the Teacher’s Guide Package
include seven to nine in-class activities from 35-40 minutes each taken from
the following list:
·
Script Side class (edited shooting script)
digitized for in-class activity: includes student
role-playing, public speaking, basic reading and writing assignments in
preparation for viewing the film or video.
·
Lesson Plans:
include discussion guides, in-class activities, downloadable text, graphics
and related audio-visual materials and suggested test questions for a 45-60
minute sessions.
·
Homework:
includes seven to eight out-of-class activities in preparation for quizzes
and telecast tie-ins with direct interactivity via the Web, fax or phone for
input and results. Teachers may customize activities or quizzes as needed.
·
Bibliography/Synopses:
include lists of related reference sources and summaries of the cast of
characters, action, meaning and significance to the subjects of science,
health, mathematics, history and language arts.
·
Resources and Links:
include website links and other suggested reading related to the telecast,
film or video.
·
Pre-Broadcast Quiz:
includes 35-45 questions to be automatically graded online. The results
will be sent via e-mail, fax or phone to the teacher or end-user.
·
PopTVQuiz:
20-25 broadcast tie-in questions that can only be answered by viewing the
program. During this testing and evaluation research, UCLA and PopRead will
be compiling the effects of television’s neural loop
and how we may improve upon our concentration and retention of that program
while still enjoying it as usual. All results will be made available and be
graded automatically online. The results will be sent via e-mail, fax or
phone to the teacher, network or end-user.
Sales Price: USD 35,000.00-40,000.00, depending on the complexity (does not include
backend support needs or direct hosting).
These software/web
application learning modules will only be available using PopRead’s
proprietary and secure software design. For example, when ABC premieres a
PopRead based curriculum package with their program, they will be able to
use this curriculum tie-in service during their network broadcasts. If they
want to resell the program to another distributor, we will require a fee for
reloading which will most likely include a redesign of graphics, logos,
possible server fees and remarketing/distribution for the broadcast of the
next network/cable station, video rental or direct sale provider in line.
The PopRead system can be
loaded via the web and made available for use by conventional methods to our
B2B clients (for example, CBS, NBC, ABC, FOX, WB, Cable networks, Tri-Star
Pictures or small production company). A time and use fee will be applied to
drive PopRead's custom curriculum packages for client’s program tie-ins
hosted by our server.
PopRead’s curriculum
package tie-in services will follow and promote the program's life span from
premiere to syndication to foreign to rental to direct video sales.
Furthermore, PopRead will offer our B2B clients’ web sites worldwide content
language and curriculum translation for additional fees.
PopRead software will
provide an environment that is secure. For example, through the use of
passwords and other security systems, statistics from quizzes and tests for
a specific teacher or class will only be made available to authorized users.
Surveys and polls can be conducted in order to gather viewer feedback/ test
marketing as well as collect trends on social issues. The beneficiaries of
this information will be content providers, educators, school administrators
and the Department of Education, just to name a few.
PopRead proprietary
software could also provide the opportunity for teachers, parents and
students to directly interface with each other through chat rooms at
PopRead.com and our client’s site, on an as-needed basis, via real-time
meetings, scheduled sessions, bulletin board service and live auditoriums.
As a long-term project,
PopRead will consult with State experts and administrators in education in
an effort to provide an online conduit for their process of updating
teachers with current and progressive techniques. This endeavor will enable
PopRead to provide greater value for educators and further to establish the
Company as a primary education hub.
The primary portions of
PopRead’s operating revenues will initially be generated from sales of:
·
premiere curriculum packages,
·
syndication resales,
·
archived content and
·
service fees
in support of and created
for television, film, video and other media producers and providers and made
available to teachers, students and life long learners.
In year two, the ON and
OFF-AIR life science library will add substantially to the bottom line
through:
·
direct video sales,
·
related advertising, including corporate
sponsorships of PopRead’s educational programs,
·
PopTVQuizzes on television and the Internet and
·
joint grants with our non-profit partners at UCLA.
These revenues in years 1-2
pass-through sales of products and services within the PopRead Hub.
Our broader end-user
Internet sales and services become the primary revenue streams starting in
year three. PopRead’s B2B model, MyRedApple.com, is “The Warehouse” of the
Teacher to Teacher marketplace, as well as, a huge supplier of educational
business, including:
·
all school supplies,
·
equipment and technology and
·
low cost consumer products.
PopRead will also derive
substantial revenues from ancillary sales that cross both Business to
Business (B2B) and Business to Consumer (B2C) platforms, such as:
·
direct product sales through our PopStore
including:
·
“PopPro” accounts and
·
"PopCash” for schools
·
free email accounts for students and Teachers
subscriptions
·
product and technology license fees, both domestic
and international.
PopRead's initial primary
revenues will be based on the sales of three packages with increasing
component levels and service fees which will drive price. These services are
marketed and attached indefinitely to mini-series, movies of the week,
feature films, radio campaigns, news events, TV specials and television
series content, video rentals and so on. The three basic packages are (see
pages 8-9):
1.
PopRead Curriculum Basic
Resource Package: The CR package is a
customized support package for most media and includes: Script Side
Class, Homework, Resources and Links and quizzes/testing of students.
2.
PopRead Students Guide: Customized student-support package for most media
that includes: Script Side Class, Homework, Synopses of
Telecast/Video/Film, Resources and Links and quizzes/testing of students.
3.
PopRead Teacher’s Guide: Customized teacher-support package for most media
that includes: Script Sides, Lesson Plans, Homework assignments,
Bibliography/Synopses, Resources and Links and quizzes/testing of students.
Initially, PopRead
will target the K-12 audience due to the immediate interest in that market
by television, film, cable and other broadcast media. Within 9 months of
launch, PopRead will begin targeting the life-long learner and related
end-users. This group creates a constant demand for curricula that is not
limited by the subjects and topics in the K-12 group. It is estimated that
80% of the adult population in the United States participates in continuing
education, professional development or self-enlightenment.
Each year, US cable
television and networks alone produce or license over 312,000 hours of
original programming or an average of 2,000 hours per network. 156 networks
are regularly involved in original productions, i.e., the major broadcast
networks, History, A&E, HBO, Discovery, USA, TBS, TNT and other cable
networks. The archives of all broadcast and cable
networks are enormous and will provide extraordinary video sources.
PopRead estimates that it
would be able to create a minimum of 240 packages in the first year by
accessing these archives. These packages would then be marketed to K-12
school systems nationwide, as well as, through the Internet and standard
television distribution packages. The resource packages will be developed
for each video program and adapted for the age groups to be targeted.
These packages will be made
available on the Internet as a broadcast tie-in interactive module or may be
downloaded via a more conventional delivery method. Each package may be
customized to meet the teacher’s or other end-user’s specific requirements,
providing such elements as optional video, special references, specific
data, graphics and other tools. As K-12 teachers use the modules, all
interactive information will be graded or compiled and archived while being
delivered to the appropriate end-user via email.
PopRead will give content
producers the ability to assist the K-12 teachers in their goal of improving
literacy and general knowledge while making it entertaining and fun for the
students, thus, saving valuable time for teachers who now can do their jobs
more effectively. Additional applications are made for the lifelong learner
and continuing education.
Consideration will also be
given to programming currently being produced by local broadcast stations
and local cable systems. There are over 1,000 local broadcast stations
nationwide involved in local productions and about 11,000 local cable
systems which provide local and educational access television. Educational
access programming would highly benefit from PopRead services because of the
time and cost efficiency PopRead provides. Approximately 5,600 stations
nationwide have local origination capabilities, meaning they produce their
own local programs based on community interests. These programs are then
broadcast on a dedicated local origination channel.
A major trend developing in
local cable programming involves the creation of regional commercial
networks that are proprietary to specific cable operators. The Comcast
Network, for one, which launched in 1998, serves its 4.5 million subscribers
with programming of local interest. MediaOne, which is 5 million subscribers
strong, launched this year and provides similar programming. There are
others developing across the country from Cox to AT&T.
PopRead plans to work at
this level and complement the efforts that regional commercial cable
stations are already making with such listing services as Cable in the
Classroom. Cable in the Classroom currently lists broadcast programs
teachers can tape to assist them in the classroom. At this time, there are
only few curriculum resources attached to these free broad broadcast
services. Building curriculum packages to complement Cable in the Classroom
is an area PopRead will enter to expand our marketing and sales
opportunities (see below in “Competitive Environment” section for more
detail).
While television and
related production companies provide an unbounded and substantial source for
PopRead’s curriculum-based platform, there are over 5,000 video and
production companies in North America that provide material for release to
video only and other non-television outlets that would work well with
curriculum study support.
One outlet that is
particularly receptive to curriculum support is large format theaters such
as IMAX. IMAX operates over 200 theaters, with a backlog of over 80 theaters
due to open in the next few years. Over 140 films currently reside in their
library. Producers, such as, National Wildlife Federation, Smithsonian
Institution, Lockheed Martin, NASA, NOVA/WGBH, Nanouk Films and many others
provide IMAX films. IMAX is particularly attractive to PopRead because they
are involved in curriculum development themselves.
PopRead will seek to
aggressively establish a significant sales core based in the US before
branching out into international markets. The US prospects are staggering
given:
1.
the enormous availability of product,
2.
the wide open market for curriculum support package
sales and services for existing programs and
3.
the opportunities for creation of new video
packages combined with curriculum support guides for the rental and direct
sales markets.
All are offered schools,
parents and students for classroom use as well as for the life-long learner.
While the PopRead packages
are designed and distributed specifically for primary use by educators, our
sales strategy primarily targets three constituencies:
1.
Program and film producers/distributors,
2.
Television programmers and video retailers and
3.
Business/non-profits/governments.
While these constituencies
may overlap, the PopRead system is equally applicable to both the producers
and the distributors of media content. In many cases, the producer and
distributor are the same (i.e., HBO original films and programs).
We anticipate that
producing entities will find substantial value in applying the PopRead
system to its programs/films as a way to provide significant added value to
its product, thereby increasing sales potential and, more importantly,
higher sales pricing and sponsors’ impact.
The cost of the PopRead services is relatively small and quite affordable for a broad range of media productions of all budget levels.
Once PopRead modules are
implemented in a broad market, i.e., major networks, cable stations, films
and so on, we expect that these services could have a huge impact on our B2B
clients; broadcast programs and web sites ratings. Our expected results with
our B2B client’s media could have a huge impact on their stars, TVQ's,
Neilsons and web-hit ratings. This would allow PopRead to adjust pricing
upward in our first year of business accordingly to our added value market
share as it develops.
PopRead’s primary marketing
goal is concise and straightforward: sell the PopRead system to
producers and programmers (See “XI. Funding Assumptions #1” and ProForma
Income Instatement). The ultimate goal is to operate at maximum capacity
which will expand as the business grows. Each year, US cable television and
networks alone produce or license over 312,000 hours of original programming
or an average of 2,000 hours per network.
Primary marketing
strategies include:
·
Increase the value of PopRead among educators who
would be the end-users of the products.
·
Build the PopRead brand names MyTvQ, MyMovieQ among
families who have children in schools.
·
Increase the value of the PopRead’s systems and
products among local cable and broadcast television stations which are the
direct links between the programs and viewers.
·
Increase the value of PopRead among producers of
television, video and film;
·
Increase the value of the PopRead systems
among many educational trade unions and other related organizations.
The above strategies are
all intricately connected since the success in one strategy is directly
dependent on the success of the other strategies. Therefore, the marketing
tactics must be intricately connected and cross-supportive.
Primary marketing tactics
include:
·
Targeted public relations (press and media)
campaign aggressively positioning PopRead’s products and services in cable
and broadcast television trade publications (i.e., Cable World, Electronic
Media, Broadcasting & Cable), entertainment magazines (i.e., Entertainment
Weekly, Vanity Fair), parent magazines (i.e., Parent and Child) and
educational trades (i.e., NEA Today, Education Today). Business, lifestyle
and television sections of major daily national and local newspapers (i.e.,
USA Today, LA Times, Wall Street Journal, Washington Post) will also be
targeted.
·
Media ads will be used in a cross-supportive manner
with the public relations effort to support PopRead sales to producers and
programmers. A weekly media blitz will occur at the beginning of every
quarter for the first year followed with a rotating media campaign involving
a separate set of publications each month. Media targets will include the
cable and broadcast television trades (i.e., Multichannel News, The
Hollywood Reporter, Daily Variety).
·
Direct mail (with kits) to producers, programmers,
film studios, cable television headquarters and broadcast networks targeting
the President/CEO, heads of programming, marketing and educational relations
(where applicable).
·
Attendance at major television and educational
trade shows, i.e., NCTA National Show, annual meeting for the American
Association of School Administrators and the National Education Association,
National Association Television Program Executives and the Cable Television
Marketing Society’s annual summit. Trade show strategy will involve public
and private demonstrations of the PopRead products and system services, as
well as sales negotiations.
·
Road show presentations to major national
educational offices, i.e., the NEA in Washington, D.C and the American
Federation of Teachers in New York, Los Angeles and Chicago.
·
Web surveys and e-mail distribution, including Web
affiliations with major Internet Service Providers.
·
Constant travel by the sales team, pitching
producers, programmers and studios on the PopRead system.
Secondary sales markets,
which are also significant sources of revenue, include Blue chip advertisers
and video sales. Advertising/promotional opportunities will be included with
the PopRead website and accompanying PopRead curriculum packages.
The advertising policy will
comply with acceptable standards for educators in a manner that will be
beneficial to both the educational community and the advertiser, as well as,
complement the message being delivered by the producer, programmer or film
studio.
The marketing strategies
and tactics listed above for the primary market will significantly impact
advertising sales efforts. Both standard and customized advertising
opportunities will be provided.
Another secondary revenue
stream is the sale of videos acquired by PopRead which are packaged with
PopRead curriculum guides. These video packages will be sold direct to
teachers via the Web or the PopRead toll-free number, as well as, to leading
video retailers such as Blockbuster. Point of Purchase sales will be offered
for video retail distribution accompanied by customized local promotion
packages to attract teachers and families. These videos will also seek out a
secondary end-user constituency called the life-long learner. Not only will
the videos be of a compelling nature to the life-long learner, but also the
accompanying PopRead packages will be designed for their benefit as well.
Though the United States
will be PopRead’s initial, primary sales market for the first two years, the
Company will also engage in international services. The primary targets will
include producers (i.e., ITEL and Canal Plus) and major programmers (i.e.,
BBC, Televisa, TV Asahi and CNI Canal 40 of Mexico).
Primarily, the PopRead
system will be promoted via the international television and film trade
publications (i.e., Screen magazine), and attendance and related promotions
at MIP-TV (April) and MIP-COM TV (September/October).
PopRead has developed a
relationship with Ecology Communications/J-Net for the purpose of putting
its educational resources to maximum use through a combination with their
established, complementary business models.
Through this affiliation, PopRead will benefit from existing agreements that
place the company solidly within the education, television and Internet
marketplaces.
Ecology
Communications/J-Net has an established local cable station distribution
base that currently represents 12 million US households and is projected to
penetrate 35 million by mid-2002. This distribution network was established
in May 1997 and, in the year 2001, is increasing its distribution to 20
million homes. Such cable operators as MediaOne, Cox Communications, Time
Warner Cable, Comcast Communications and AT&T Cable Services make up the
bulk of Ecology Communications’ distribution.
Ecology Communications also
has established working relationships with a large number of educational
organizations and institutions of higher learning for the purpose of
supporting and providing authority for the development of content. Such
organizations include, among many others:
·
MIT Center for Environmental Initiatives,
·
Harvard University (Department of Biology),
·
National Wildlife Federation,
·
NASA,
·
Earth’s 911,
·
University of North Carolina at Wilmington,
·
Hubbs Sea World Institute,
·
National Wildlife Federation,
·
Ecosystems Management International,
·
American Rivers,
·
Jean-Michel Cousteau Institute,
·
National Water Research Institute,
·
American Institute of Architects,
·
New England Aquarium,
·
The Thoreau Institute,
·
US Fish and Wildlife Service.
Currently, Ecology
Communications has committed to PopRead curriculum packages for their up and
coming series on the Florida Gulf Coast entitled “Oceans and Human Health.”
This content will be distributed world wide to all educational systems and
will most likely premiere on a major network broadcast system. There is
already tremendous distribution interest from the PBS and National
Geographic network for obvious reasons.
Within California, PopRead
has an excellent opportunity to serve within the University of California
system outreach efforts providing technical assistance and curriculum
support to the California K-12 classrooms. Currently, one of the
University’s mandates is to improve access to new relevant and
groundbreaking information for California primary, middle and secondary
school teachers and students.
PopRead plans to provide
(assuming planned external resources are obtained), faxes, emails and/or
other information notifying California’s K-12 and post secondary teachers
about our clients’ quality programs that will air in the future. The
notification will provide access to a free PopRead curriculum package.
Teachers can then use this free information to provide new, fun and exciting
ways to better communicate with students. The California system outreach
model we are developing could be used as a blueprint to take nationwide and,
then later, as a global edu-tainment platform.
A primary marketing goal
of, and value-added enhancement for, PopRead is to have its emblem listed
next to programs using the PopRead system in the various television guides
and daily program listings in newspapers across the country. When a program
is listed with the PopRead emblem, then teachers - as well as ultimately all
viewers - will know that the program or film has a substantial curriculum
support package. Theatrical releases would list the PopRead symbol in a
leader (acknowledgment prior to the film) and/or trailer to the film.
VI. POPREAD’S PRODUCTION
PARTNERSHIP WITH UCLA
PopRead has reached an
agreement in principle with the University Health and Media Research Center
(UHMRC) of the University of California at Los Angeles (UCLA) to provide
full curriculum packages and development services. This agreement provides
PopRead with the full infrastructure necessary to originate, research,
develop, assemble and deliver an unlimited supply of curriculum tie-in
packages - on any level and in multiple languages - via the Web, CD-ROM,
DVD, VHS and standard print kits to meet the needs of educators worldwide.
UHMRC has direct access to
and is supported by the substantial educational content and technical
resources of UCLA and the University of California system. UCLA’s
educational relationships with other universities and related research
organizations in the United States and throughout the world extend deep into
the global educational marketplace. (See Appendix B)
Dr. Deborah Glik is the
Director and Founder of UHMRC. Along with James McNichol, she will directly
oversee UHMRC’s activities with PopRead. Essentially, she will function as
the Educational Director for PopRead. She is a tenured Associate Professor
for the UCLA School of Public Health. She also serves as the Co-Director of
the UCLA Technical Assistance Group (TAG) which specializes in the
assessment and evaluation of educational and community based projects.
PopRead is designed to grow
as aggressively as needed to capitalize on the marketplace opportunities
that are developed by management and are presented by strategic
partnerships. This design results in substantial strengthening of individual
operating divisions, streamlined operational management, effective fiscal
management and reduction of operational expenses.
Each PopRead product will
originate from the client’s product: a program deemed valuable enough to be
provided with accompanying educational support content. Once an agreement is
signed with program content owners and/or distributors, a project would be
assigned directly to a task force leader who will work directly with
PopRead’s research partners (i.e., UHMRC).
Each project is first
thoroughly researched to identify the areas of interest, determine important
facts, findings, questions, issues, themes or problems. Research is then
summarized for authoring the educational materials. Gathering this
information could include reviewing relevant literature, interviewing
experts, interviewing the target audience to check knowledge levels,
reviewing similar curricula, observing or interviewing persons who have been
affected by the issue or problem.
Once researched, a task
force leader creates the materials or curricula using the research
information. This process entails determining the scope and format of the
materials, the objective to be achieved and the focus or emphasis to be
followed. Outlining, writing and selection of graphics for the curriculum
packages follow. Quizzes and tests are created based on the resulting
materials.
For additional fees upon
the client’s request, the project is pre-tested (beta tested) and/or test
marketed with a representative target audience. If necessary, the materials
are adjusted based on feedback from the intended audience and expert review.
In all cases, when the
completed package is signed off by the project leader, it is presented to
the PopRead Educational Panel for final approval. All comments from the
panel are integrated by the task force leader and the PopRead Educational
Director, Dr. Deborah Glik, who will sign off on the project before being
submitted to PopRead’s Executive Committee for final approval.
Once a project receives
PopRead’s formal approval, it is then presented to the client and
marketed/distributed according to the initial agreement with the client.
Distributive pathways could include direct distribution by www. PopRead.com
and PopRead.TV, as well as, the client’s network or website plus direct
distribution to teachers in the client’s designated market areas.
PopRead is positioned to
offer pre-production, professional services to the entertainment industry.
Through our agreement with UCLA, we will broker evaluation, test-marketing
and script analysis services to writers and producers of various media. As
these services are normally outsourced and expensive, they can be
efficiently combined with our curriculum development services, saving time
and money for our clients and expanding on our own edu-tainment goals.
Serving on the Board of
Advisors as our Senior Educational Consultant. Dr. Deborah Glik (see page
30) will initially be joined by a distinctive panel of educators that will
ensure the educational integrity of all of PopRead’s curriculum products.
Called the PopRead Educational Panel, the initial members will include
faculty members from the UCLA Graduate School of Education and Information
Studies who specialize in curriculum development for K-12 students and
interactive learning systems. The Educational Panel will also include
faculty members from the UCLA School of Public Health who specialize in
consumer education and multi-media formats.
Dr. Glik will initially be
joined by a strong list of colleagues and PopRead's Board Member candidates,
including:
John D. McNeil,
PhD, Professor Emeritus, UCLA Graduate School of Education and Information
Studies, leading expert on curriculum development for grades 6-12,
Linda Rose,
PhD, Professor, UCLA Graduate School of Education and Information Studies.,
expert in elementary school education,
Gus Dalis,
EdD, Senior Project Director, Los Angeles County Department of Education,
expert on curriculum development for middle school grades,
Susan Millet,
MAT, Independent Educational Consultant, curriculum development for
elementary and middle school students.
Add UC outreach
team here?
This panel will interface
directly with the development and final production of each curriculum
project, thereby providing precisely crafted end-user packages for all
educational levels from elementary and middle schools to high schools and
post-secondary education. The panel, which will also be expanded to include
other seasoned educational experts and teachers, will also appoint a single
task force leader to each PopRead project. Each task force leader will
possess the exact skills and expertise required to see the project from the
beginning to end based on content and educational target level.
PopRead has established a
basic website at www.PopRead.com which will include a beta-test
video/curriculum model on which future sales and marketing activities will
be based. Ecology Communication has licensed to us one of their most highly
rated and award winning one hour environmental programs to use for the
curriculum tie-in beta-test package on the East and West Coasts. The
beta-test currently in pre-production will be shown to teachers, students,
parents and other national educational organizations. Upon completion of the
beta-test, we will take the feedback received through surveys and
evaluations to make any needed adjustments to finalize our product lines.
We presently have letters
of intent from Ecology Communications/J-Net for production of all their
purchases of our curriculum packages, including, programs produced for the
Outdoor Life Network and many other networks. In addition, with Ecology.com,
we have licensing agreement with their huge environmental video library of
over 1,500 hours of quality content for future distribution through
PopRead’s Off-Air life science library with enhanced already made or made to
order curriculum packages for direct sales around the world. (See Appendix
A)
Further, PopRead has an
agreement to produce all of Earth’s 911 curriculum content. Earth’s 911 is a
nationwide and global 1-800 clean-up hotline and interactive web site. As
our environment and Earth’s 911 “call to action plan” will affect all of us
in one way or another, PopRead is proud to be assisting them in their noble,
educational and environmental goals. (See Appendix C) Earth’s 911 is
sponsored by the following:
·
50 US states
·
Ford
·
AT&T
·
Microsoft
·
Union 76
PopRead is designed to grow
as aggressively as needed to capitalize on the marketplace opportunities
that are developed by management and presented by strategic partnerships.
This design results in substantial strengthening of the individual operating
divisions, streamlined operational management, effective fiscal management
and reduction of operational expenses. To accomplish this, PopRead has
established the following corporate management infrastructure: (See Appendix
***)
·
Bud Grant,
Chief Executive Officer (CEO), is distinguished as the longest serving
president of any television network, working under Bill Paley, founder of
CBS. Also known for his winning game at CBS entertainment, he was
responsible for many of the CBS Television hit programs during his term
(Magnum PI, Dallas and many others). He was also responsible for the launch
of "Teacher's Guide" for CBS. This successful program directly mailed CBS
specials and Movies of the Week shooting scripts to our nations K-12 schools
as a literacy and reading incentive tool.
·
James V. McNichol III,
President and Founder of PopRead, Inc., has been successfully involved in
developing relationships and ventures with various educational sources for
media-driven educational projects over the past 20 years. He and Professor
Deborah Glik (see below) are responsible for the alliance with the UCLA
Health and Media Research Center. After a successful 25 year career in the
entertainment industry (where he starred in numerous films, network
television series, Movies of the Week, specials and albums), Mr. McNichol
turned his energies and vision to education and multimedia development.
·
Eric McLamb,
Chief Operating Officer (COO), currently serves as Senior Vice President of
the J-Net Group, Inc. Prior to founding Ecology Communications in 1993,
McLamb served for over 11 years collectively with Turner Broadcasting
System, Inc. and Discovery Communications where he worked with the country's
leading cable television networks, including, CNN, The Discovery Channel,
The Learning Channel and Superstation TBS. He also played a key role in the
launch of both companies' educational services divisions and helped nurture
Discovery's relationships with schools and educational organizations across
the country. In 1993, he founded Ecology Communications, which was
subsequently combined with two sister companies to form The J-Net Group,
Inc.
·
Samantha Ims,
Chief Financial Officer (CFO), is currently the Manager of the Century City
Towers Location of City National Bank. ***
·
Mark Nicolas,
Chief Technology Officer (CTO), is working as a consultant in Los Angeles,
California. He specializes in Windows NT implementation, integration, and
management for non-profit medical clinics. He has worked on various
projects, from small clients to larger non-profit and governmental agencies,
such as, the Northeast Valley Health Corporation and the City of Pasadena.
Add experience with CHAIN and UCLA.
·
Mathew Schlueter,
Chief Information Officer (CIO) has been working over 19 years in the data
processing industry including extensive experience with the MAPPER subsystem
of Unisys 1100/2200 mainframe computers, UNIX, NT systems including MSW.NT
and UNIX administration, including a number of UNIX varieties such as SVR4,
Solaris, UnixWare and several Linux releases. Project Leader and Project
Manager positions. Held DOD security clearance level. Provide knowledge of
system software product installation, support and maintenance. Knowledge of
3GL and 4GL-application software support including database normalization
and management, applications development and support, system performance
tuning and capacity planning. Considerable experience with network
configuration, installation, and application programming and protocols
including FTP, HTTP, CGI, DNS, SMTP, RPC, SMB, MRI and others. Programming
languages include C, MASM, MAPPER, ECL, SSG, C++, Java (JBuilder, J++),
JavaScript, HTML, Cobol, SQL, BASIC, FORTH and others.
·
Zen Benefiel, MA, MBA,
Vice President Organizational Development has a
proven record in developing people, places and things as logistical
components of project management. He brings over 20 years of facilitaion
experience across aerospace, education, special events and more; leading
groups and organizations to achievements of goals through best practices
collaboration.
·
Jeffrey Baumann,
Vice President of Resources and Development
·
Renee Ebert, MPH,
Vice President of Sales and Marketing/US, is the Coordinator and Development
Director for the UCLA International Distance Learning Project. Ms. Ebert
acts as manager for grant writing. Her work includes research of foundations
and collaborative efforts with other staff members in grant writing and the
creation of a market for the Center’s services.
·
Happi McQuirk,
Vice President of International Development, is the President of McQuirk
Consulting Company, a computer reseller and consulting firm in Ireland. She
has thirty years experience with all creative aspects of computers, print
and web design, as well as, several decades experience in accounting and
finance. Her project activities span over half of the world with strong
interpersonal and writing skills.
·
Gerald Rome,
Vice President of Internal Affairs, ***
·
Michael Sunnywater,
Vice President of Research, ***
·
Dr. Deborah Glik, ScD,
Senior Educational Consulting Advisor, is Director of the UCLA Health and
Media Research Center, Associate Professor and Co-Director, Technical
Assistance Group, School of Public Health, University of California at Los
Angeles. She taught at the University of South Carolina and has over 20
years of experience in conducting research on health behavior change, health
communications, formative research and program evaluation in a variety of
settings.
Additional strategic
management team and Board members will consist of associates and colleagues
of the management team and the company’s strategic partners. Such members
would range from veteran educators in government, private organizations,
business and institutions of higher learning to key personnel in asset
management, marketing and sales, and corporate development and expansion.
The PopRead Board of Directors will consist of veteran professionals of the
highest caliber in the fields of Education, Internet Management, Finance and
Entertainment.
PopRead is entering an
entertainment universe that is rapidly evolving toward applying its product
to the educational process. This process includes providing context of
television programs and theatrical features for use by teachers, students
and the lifelong learner, nationally and worldwide.
The television marketplace,
particularly the cable industry, has clearly indicated its demand for
curriculum-based support materials to accompany its programming by
developing an alliance of programmers to serve the needs of K-12 audiences.
Cable in the Classroom (CIC) is an effort that organizes specific
programs offered by the cable networks into various time slots each day. At
its core, CIC is a public service initiative that joins local cable
operators and national programmers together to provide schools with free
basic cable television service and over 540 hours of commercial-free
educational programming each month.
These programs can be taped
and used free-of-charge by teachers for classroom study when it meets their
curriculum needs. CIC offers a monthly magazine that helps teachers navigate
these cable offerings, sorted by subject area. The individual networks are
responsible for providing study guides for their CIC-approved offerings. CIC
provides only copyright clearances, program highlights and curriculum
connections. Over the past ten years, 41 national cable networks and 8,500
local cable companies have spent over $2 million a week in this public
service.
Individual cable networks
provide their own curriculum packages and study guides from time to time for
specific programs, whether or not they are in affiliated CIC or other time
slots. Several networks have educational divisions that oversee this effort.
However, no network has a dedicated team designed for the purpose of
creating curriculum packages for the simple reason that it would be too
costly and inefficient. Instead, they work with different experts related to
the respective programming content being considered.
PopRead is designed to work
with the needs of each network and programmer in a behind-the-scenes
fashion, bringing its expert panel of educators together with each network’s
or production company’s producers and experts on the myriad subject matters
to create the required packages efficiently and cost-effectively. In so
doing, PopRead would be able to position itself as the primary curriculum
support provider for an ongoing series of programs indefinitely. PopRead
management is not aware of any single organization that provides this tie-in
broadcast services on an exclusive basis or that have direct distribution to
the K-12 outreach programs.
In addition to ongoing
series, PopRead would have the added advantage of offering curriculum
support for archived programs and series thereby pumping new life into
“retired” programs for the purpose of providing cutting-edge study guide
packages. This profit center would provide added revenue and marketing
opportunities for the program suppliers, as well as, additional business for
licensing and direct sales for PopRead’s OFF-Air library.
Similarly, PopRead would
seek to acquire rights to certain programs and series for the purpose of
presenting them in the national and international education market complete
with curriculum support. These packages would sell in much the same way
books and related material are sold. They would also be offer on the
Internet through cutting-edge video streaming and educational assessment
applications.
PopRead’s
strengths are derived from substantial knowledge and hard assets including,
among others:
·
Seasoned management at the Board level with
substantial multi-tasking experience in Internet technologies, content
development and production, educational program development, digital
technologies, cable and broadcast television business development and
related technologies, multimedia sales and marketing, and finance;
·
Exceptional chemistry and commitment among the
management group;
·
Strong Board of Directors, consisting of those with
PhD’s in education, strong and versatile Internet experience and fiscal
management.
·
Strong and established relationships and operating
agreements with institutions of higher learning, leading educators and
related educational advocacy organizations;
·
Strong relationships among non-profit and
for-profit educational and environmental organizations, including project
collaborations and creation of content;
·
Substantial experience in broadband video, Internet
and digital delivery industries, educational systems and technologies;
·
Strong connections within the entertainment
industry.
·
Substantial R&D capabilities;
·
Creative development and design pools.
PopRead combines the advantages of television and related media advertising
with the growing power of Internet advertising to create a significantly
valuable educational advertising and sponsorship package for Blue Chip
advertisers. With the power of the Internet, these advantages will apply
globally. According to the Internet Advertising Bureau (IAB), advertisers
are realizing that the Internet has become more of a mass medium. $4.4
billion was spent in on-line consumer advertising in 1999, with $50 billion
plus in on-line consumer advertising projected by 2003. “The industry's
growth shows no signs of slowing down,” says IAB Chairman Rich LeFurgy.
PopRead will also initiate
a unique rebate system for customers based on their level of patronage of
the PopRead system. Such disbursements will be made in a number of
different forms, based on the needs of the subscriber base, from
scholarships to cash rewards, prizes etc.
PopRead is seeking
$3 million in the first round funding to
expand current operations, including sales and marketing, technical
operations and content acquisition and repackaging. In this phase, PopRead
intends to market its curriculum products via
www.PopRead.com and other media ads. PopRead will acquire rights
to original programming and repackage the programming with PopRead
curriculum packages for further marketing to schools and direct to teachers
worldwide.
Initially, PopRead will
work with Ecology Communications/J-Net on a Fall 2001 launch of new
programming to cable systems nationwide where PopRead will own educational
distribution rights as well as a percentage of the overall distribution
rights to the programs along with Ecology Communications/J-Net.
The programs will air
before a national cable audience while www.PopRead.com simultaneously
provides Pre-Air, ON-Air and OFF-Air extended information and curriculum
support for the programs. A quiz on the program, which will post immediate
individual and total group results, will also be provided for each program.
Once the program has aired PopRead will continue to offer support for that
program world wide, as well as, offer the video to teachers to use in the
classroom, accompanied with the curriculum support package, for a fee. (Fees
are based on the program itself and length.)
In addition, PopRead will
begin to market its product directly to the television industry and
associated producers, specifically targeting broadcast and cable networks
and production companies. This market outreach will be accomplished, in
part, through use of strategically placed ads in broadcast and cable trade
publications, though primarily, through a well-executed public relations and
media effort.
Though PopRead will enter
into long term contracts with print media advertising which will
substantially reduce costs, this public relations effort will be more
cost-effective with continuous coverage of PopRead being generated
effectively costing a tenth of standard advertising rates on a column-inch
basis. Standard practice for branding a new company as a US household name
can cost up to USD 100 million. PopRead can accomplish this branding within
two years at a fraction of the cost through our exposure in cross-promoted,
national broadcast programs along with our educational package tie-ins.
Move to Market strategy.
Ecology Communication’s
programs will test the market on the East Coast whereas PopRead will test
them on the West Coast. PopRead will analyze the strengths among educators,
parents and students of the PopRead system to be launched along with the
Fall 2001 programming launch in conjunction with Ecology Communications.
Currently being considered as target areas for Ecology are: New England with
primary concentrations in Massachusetts, Maine, Connecticut, Vermont and New
Hampshire. PopRead will target the state of California through the
University of California system.
The seed round is projected
to last nine months to the second round of financing. The seed round will
support development of second round financing anticipated at $6-8
million for deployment to a global K-12 educational-media
marketplace.
PopRead is a clean business shell formed as a Nevada C Corporation to launch
a substantial business operation as an aggregate of its own proprietary
concepts, knowledge assets, business relationships and considerable
operational support systems. This format will allow PopRead to gain an
immediate competitive edge in the marketplace by providing services
immediately.
PopRead is currently free
of debts and liabilities of any nature. Initial expenses have been
capitalized by cash proceeds provided by the principals, commensurate with
their levels of ownership. The principals, management team and advisors
(including, UCLA/UHMRC) have committed significant funds and labor to the
development of the PopRead system. These expenses include incorporation and
legal fees, logo development, office furniture, computer equipment, office
rent, Research and Development, travel, web software and site development
and basic incidentals.
PopRead is seeking funds,
before making a possible public offering, for the launch of its operations
and to establish the foundation for future expansion as determined by the
Board. The goal is to capitalize on the surging momentum developing within
the web-based educational marketplace, PopRead associate businesses and
demand for a pure and user-friendly teacher-to-teacher and media service
portal to quickly garner significant market share.
($350,000; 1- 6 months)
PopRead is seeking
strategic funding for a seed round prior to launching Phase I of operations.
Such investment funds will be used specifically for:
·
Finalizing strategy for the Phase I launch of
PopRead; including further web site development, brochures and add
campaign
·
Formally convening all academic and entertainment
Board of Directors
·
Further developing strategic partnerships with
institutions of higher learning and other relationships that will enable
even greater positioning of PopRead in the Internet/cable TV/multimedia
marketplace with regards to education and business-to-business learning
systems
·
Completing the design and implementation of the
PopRead website, incorporating the initial combination of Eric McLamb’s
Ecology.com's current global school participation of over 250,000 downloads
per month
·
Hiring necessary personnel to facilitate
advancement of the current model, including more advanced lesson plan
development, researching new expanded content for curriculum package sales
and licensing opportunities, advancing our marketing service options to
major networks cable-to-schools-to-Internet and completing research and
development for all phases of companies operations for years 1-3
·
Launching of PopRead’s curriculum packages to the
pop-media industry
This pre-Phase I funding
opportunity is being offered for equity in the company plus stock options.
PopRead has authorized 25,000 shares of common stock of which 10,000 shares
(40%) are being offered for this investment opportunity at $1,000.00 per
share. Initially, PopRead is seeking a seed round in the amount of $350,000
and then raise the balance of $3 million (in exchange for 3,000 shares of
common stock) in the first year to formally market its nationwide
operations. Within 24 months thereafter, PopRead intends to sell as needed
the remaining 7,000 shares at a value of between $2,250.00 to $2,750.00 to
fund the aggressive expansion of its phase 2 operations including an
international Teacher-to-Teacher marketplace. The value will be set on
reaching set milestones, including national and international marketing of
its service and related sales.
MyREDApple, Inc.
is seeking strategic funding for a seed round prior to launching Phase I of
operations. Such investment funds will be used specifically for:
·
Assemble core management and basic
operations;
·
Finalize strategy for the phase I launch of MRA;
·
Formally convene the Board of Directors;
·
Further development of strategic partnerships with
institutions of higher learning and other relationships that will enable
even greater positioning of MyREDApple in the Internet/cable
TV/multimedia marketplace with regards to education and business-to-business
learning systems;
·
Completion of the design and implementation of
MyREDApple website, incorporating the initial combination of
AllEduNow.com and ecology.com;
·
Hiring necessary personnel to facilitate
advancement of the current working model, including lesson plan development,
research of new and expanded content, cable-to-schools-to-Internet
marketing, expansion of sales operations, and completing research and
development for all phases of company operations.
This pre-Phase I funding opportunity is being offered for equity in the
company plus stock options upon the successful completion of capitalization
for Phase I.
The term of this pre-Phase I funding period is 180 days days. The
amount sought is $3 million. The use of proceeds is broken down as
follows:
1.
Salaries: $494,500.00. Management - seven (7)
positions at $40,000.00 each for 180 days, plus benefits (15%) = $322,000.00
(represents approximately 33% of actual salaries); five (5) research,
marketing coordinators/managers at $30,000.00 each for 180 days, plus
benefits (15%) = $172,500.00.
2.
Senior Management
Consulting: $240,000.00. Four executive
management consultants for educational development, Internet technology
development, cable education marketing and senior executive management at
$60,000.00 each for the 180 days.
3.
Sales Rep: $75,000.00. Individual rep for 60 days, plus $15,000.00
for expenses.
4.
R&D: $80,000.00. Research and Development for Internet
systems development and establishing the educational research pool via UCLA,
UNC-Wilmington and other institutions of higher learning.
5.
Website Implementation:
$ 1,100,000.00. Creation of the
master website and combining with existing websites. (This should
be doable however we should include a 10 to 15% contingency)
6.
Content Development: $ 270,000.00. Content for cable
and Internet offerings to cover six, one-hour video programs at $40,000.00
each; research and develop new content for lesson planning and related
Internet-based information; video streaming on the Internet. This
delivery system will target teachers and market MyREDApple
curriculum support systems on an ongoing basis in local communities
nationwide.
7.
Media Relations: $
60,000.00: Trade and educational targets leading up to launch
of Phase I. Includes development of media kit for both media coverage
support and marketing support.
8.
Separate Test Market
Implementation: $200,000.00. Test market for
curriculum services converging cable television distribution and MRA
Internet sites to determine percentage of use of MRA curriculum support
platforms and to garner feedback from teachers and students about value of
the service.
9.
Development of Brands: $ 125,000.00. Development of
overall look for Internet and television presentations, including logos,
interstitial elements, and Internet design.
10.
Travel & Meetings:
$ 60,000.00. Executive travel to organize management pool,
meetings with strategic partners, i.e., institutions of higher learning and
related educational organizations, further development of content for
cable/Internet. Includes preparation of presentations and related
expenditures. (Web presentation covered under website development budget.)
11.
Office Operations: $ 90,000.00: Includes computer purchases,
supplies, mailing, express mail, overhead for 180 days.
12.
Continued Strategic
Development: $ 100,000.00.
Final assembly of the master plan for Phases I, including completion of
Internet package for presentations; presentations to potential strategic
partners (travel, support materials, etc.).
13.
Legal Fees:
$100,000.00. Oversight of contracts, corporate counsel,
licensing, and trademark and incorporation fees.
TOTAL: $2,994,500.00
The seed round funding will
ensure efficient transition to the fully combined operation of
MyREDApple, Inc. This is the phase that prepares for the full,
global launch of MyREDApple with high efficiency.
($30 M; Months 1-24)
·
Formally combine assets and establish
infrastructure, including management, and the subsequent combination
of all strategic assets and technologies essential to launching the MRA
Teacher-to-Teacher Marketplace;
·
Rollout and integrate all assets within he MRA
framework;
·
Negotiate and form all necessary technology
partners for website superstructure;
·
Build out business to business website and beta
test legacy systems;
·
Patent all new technologies and business models
necessary to launch of website;
·
Recruit, train and engage a national sales force;
·
Implement strategic marketing strategies;
·
Establish significant presence among educational
institutions, middle and high school teachers and students, and the general
public about MRA's offerings;
·
Aggressive approach to universities and related
institutions of higher learning, using virtual, full broadband video
streaming and interactive support systems, including one-on-one tutoring,
instantaneous evaluation (personal progress), etc.;
·
Expand on current businesses to grow the television
marketing base and drive deeper roots within the educational and Internet
marketplaces;
·
Launch full advertising and sponsorship sales
forces for television and Internet offerings.
(Projected $50 M or
possible IPO)
·
Subsequent to marketplace viability and management
direction;
·
Launch new business portals for education
pass-through sales;
·
Expand global marketing efforts;
·
Launch globally-compatible educational content
support sites (network or content-delivery sites, combined with expanded
information and user interface platforms) based on five genres of interest:
Earth Science and Ecology; History, Cultures & Trends; Health Sciences;
Language Arts & Literacy; and World Exploration. Based on MRA’s
existing content assets.
Sales of curriculum support packages to producers and program distributors
via www.PopRead.com will represent early revenues for the company. The
ultimate goal is to operate at maximum capacity, which will expand and the
business grows.
In the first year, PopRead’s goal is to produce and deliver 240 premiere
curriculum packages, priced between USD 15,000 and 40,000 per package. 65%
of those sales will consist of the Basic Curriculum, Student and Teacher
packages. The other 35% reflects our expectation of Custom versions of the
three types of package.
We expect to double sales in each of years 2 and 3 with a tripling of sales
in year 4 as we expand our UCLA curriculum teams to as many as 100 plus
employees, giving us the ability to penetrate more of the market and offer
more content, as well as, expected technology enhancements. Year 5 falls
back to a doubling of the prior year sales in expectation of increased
competition.
It should be noted, however, that this market is so huge (and becoming
larger everyday with more cable and satellite channels coming on line and
searching for content) that a reasonable amount of competition can be easily
accommodated. These revenues represent .66% of
the potential market. Please note that the above percentages are
based on the television and cable industries original programming only
with no archive content explored.
PopRead, within our world wide search to acquire video content licensing
deals, will offer to the content producer/distributor/owner our curriculum
package services. This added value tie-in service can bring a new dimension
of life to their media enhancing future syndication, foreign, video rentals,
direct sales, Internet web casts and other distribution outlets including
PopRead’s direct premiere ON-Air and OFF-Air opportunities. A small
investment and/or licensing deal with PopRead for the owners’ media can
produce powerful results to an otherwise shelved and non-viable product.
In the first year of our Archived On-Air and Off-Air direct sales, we will
review short synopses of some of the 25 million hours of the market content
available in the US alone. We feel only 25% would be of interest to contact,
thereby, equaling a total of 6.25 million hours to consider for our library.
PopRead projects to initially capture 1% of that market, seeking a 5 year
total of 62,500 license hours for our life science library. Curriculum
package sales of .50% will provide a grand total of 312 PopRead curriculum
units sold at prices from USD 15,000 to 40,000 per sale for a total of USD
7.8 million in gross sales by the end of year one.
Years 2 and 3, we expect sales of these archived materials to double each
year as we add staff and are able to expand our offerings substantially. By
year 4, sales should triple for the same reason. Year 5 shows a doubling
again of sales to reflect possible competitors entering the market.
Worldwide sales of our products and services are a core goal of PopRead. The
difficulties in establishing and working in a global education marketplace
must be acknowledged. For example, every country has a different school
system than those found in the US and Canada (even K-12 is usually not
applicable) with different needs, languages and expectations.
Exploring and resolving these issues will take some time in each country.
Once resolved, however, the sales possibilities are enormous and, just as
importantly, will perform a valuable service in rescuing and conserving
other countries’ archived materials for posterity, as well as, education.
Though we expect a small start in year 1, in years 2 and 3, we plan to
include offering PopRead services to an International market and quintuple
our annual gross sales each consecutive year until year 5 when we may be
facing competitors coming into the market.
This profit center contains curriculum and content package sales direct to
the teaching consumer. They are priced at an average of USD 89.95 for the
curriculum packages and USD 49.95 for the content packages. Sales in the
first year represent .1% of the total US market of approximately 5.9 million
teachers. These sales figures do not include possible sales to parents,
students and the life-long learner.
Teachers and students, both domestic and International, will have access to
our web site for an annual subscription of USD 50 for teachers, USD 10 for
students and USD 25 for international teachers (international students are
free). This web facility should be up and running by year 2. In the opening
year, we expect to attract .5% of 5.9 million teachers, .5% of 67 million
students with a 50% increase in subscriptions every year. In year 3, we make
the site available internationally, signing up .25% of 8.9 million foreign
teachers with access to the Internet. Again, we expect a 50% increase per
year.
Banner advertising will be sold for both the basic and expanded services at
the industry-accepted standard for start-ups of $.75 per regular visitor per
year (net of rep commissions). PopRead will tabulate its regular visitor
base as 15% of the number of its annual hits of 5 million. Thus, the revenue
formula is 750,000 x $.75 or $562,500 in year one.
From time to time, a client may request that we host the entire interactive
web experience for their content on our servers. PopRead will charge a fee
for hosting their media on our servers. We anticipate this hosting time to
last an average of six to eight weeks for Pre-, During and Post-Air per
broadcast.***
For the purposes of this plan, PopRead assumes that, in the third year of
operations, we will begin resale of our premier curriculum packages of
content being syndicated by the originator (such as, ABC reselling to Warner
Bros.). This re-licensing of our package includes reloading our software
application, repackaging graphics and artwork and remarketing. We plan to
charge a fee of 30% of the price of the premier packages.
Educational warehouse hub for wholesale goods and supplies – check
myredapple The Learning Tree
Our relationships have gotten so broad and so vast that people look to us.
This plan is primarily geared for media, distribution to schools and the
life long learner worldwide. PopRead’s future rollout for orders of employee
training for businesses will tap into our wideband resources through the
access of UCLA, the entire U.C. system and . PopRead will offer custom and
ready available curriculum support packages for appropriate business and
training applications worldwide, i.e., Paul Allen’s 3 billion dollar “Click
to Learn.com” and the smart owners of Emind.com.
We presently have access and support channels of PhD's and experts in most
fields of today’s businesses. We estimate that our B2B employee training
packages will range from $40,000 to $500,000 per curriculum package
depending on size and particular business requirements. We plan to offer
this feature once we have gained international ground during year 3 and 4.
When a consumer (teacher, parent, life-long
learner) visits our website, they will have a window to virtually anything
that is for sale: cars, air tickets and washing machines, for example. We
will offer them the best prices out there so that they will want to come to
our home page to use as a browser to shop. As consumers enter another
website from our home page, we will get a transaction fee when these
shoppers have bought anything.
PopRead will handle payment transactions and pass the proceeds, minus 5%, to
the provider who will also handle fulfillment. The purpose of this profit
center is to provide a basic service for our B2B clients, educators, parents
and students. This planned expanded service is
called the PopRead Marketplace. This is where the PopCash for
schools goes at a 60/40 split.
Teacher-to-Teacher Hub (24-Hour
Service): 3% (commission) x $300 average
expenditure per teacher x 4.1 million teachers ($9.00). Y1 (1% of
market) : 41,530 (US only) x $9.00 = $373,000.00. Y2 (2% of market US,
1% of global market) = 166,060 x $9 = $1,494,540.00. Y3 (3% of market
US, 2% of global market = 290,590 x $9.00 = $2,615,310).
This Direct Sales system allows other providers of goods and services to
sell their products directly to PopRead visitors and subscribers. The
hub model allows PopRead to market the sales of these goods and services --
including text books, supplies, equipment, study guides, audio/video
packages, subscriptions to magazines, educational field study tours and
virtually any good.
Hub sales will involve a 5% commission of all products sold by other sources
through PopRead. The attractiveness of this fee is that normal commissions
for such products average about 10 %. PopRead hub sales will allow greater
profit margins for the product provider. PopRead will handle the payment
transaction and pass the proceeds, minus 5%, to the provider who will also
handle fulfillment.
PopRead hub sales on the basic PopRead website are offered free of charge.
The purpose of the basic web site is to provide a basic service for our B2B
clients, educators, parents, and student’s etc. and allow them to sample the
future expanded service, called the PopRead Marketplace.
Services include script evaluation and analysis, script research and
development, evaluation/test marketing, training to producers, writers and
directors on how to build and develop more edu-tainment content in popular
media in prime time markets. Fees paid to UCLA would range from USD 15,000
to USD 500,000 or more depending on the complexity of the work involved.
PopRead would make a broker’s fee of 20% on each contract originating from
our contacts.
PopRead will be seeking an initial investment of
$3 million, to be followed in
approximately twenty four months by $12-15 million in a phase 2, expanded
launch round for our Teacher-to-Teacher global market place. The
initial investment is designed to expand
management, core operational strategies and revenue.
Phase I will include acquisition,
combination and operational implementation of all key assets, as directed by
management.
Future phases, to include
aggressive educational business-to-business marketing, and digital network
(content) services, will be designed commensurate with meeting Phase I
benchmarks and marketplace compatibility.
The Company’s
projected valuation by the end of Year Three of operations would be based on
projected gross revenues of approximately USD 87 million, with EBIT of
approximately USD 35 million.
The Company projects gross revenues of approximately $34.3
million by the end of year two, minus costs of approximately $30 million for
approximate EBIT of $4.3 million. Five year projections are
approximately $40 million EBIT on $95 million gross revenues.
The valuation of the company shall be based on five (5) times
projected EBIT for year five, or USD 1.061 Billion.
(See Appendix C:
Financial Information and assumptions).
University Health & Media Research Center
10920 Wiltshire Boulevard
Suite 1845
Los Angeles, California 90024
(310) 794-2886
Fax (310) 794-2679
June 6, 2000
James McNichol, Founder and
CEO
PopRead, Inc.
10920 Wilshire Boulevard,
Suite 1845
Los Angeles, California
90025
In re “PopRead, Inc.“
LETTER OF INTENT
To whom it may concern:
This letter will serve to
confirm that the UCLA Health and Media Research Center (“UHMRC”) has agreed
to provide PopRead, Inc. with consultation and technical support as regards
to the development of curricular materials, content for health and science
educational products, research, script reviewing, as well as outreach
materials and evaluation design.
The UCLA Health & Media
Research Center (UHMRC) is a non-profit Center affiliated with UCLA and its
School of Public Health, directed by University faculty, dedicated to
helping create health, environmental, and science content for communications
campaigns, educational websites and/or television and feature film
productions. In the future, this could also include curriculum design for
business, training, etc. and could be delivered globally. The UHMRC can also
do a full range of health communications research including formative and
pre-testing research for television programs, curricula, and health
promotion campaigns and outreach programs.
We are excited about the
possibility that PopRead, Inc. can have a real impact on the educational
value of all media programming, when it is enriched by current scientific
content, and well designed curricular materials when extended through the
development of internet links via PopRead’s Internet Software Services and
their B2B entertainment clients.
We are ready to act in a
consultative relationship with PopRead, Inc. to identify important sources
of information and technical advice about the development of learning
materials that make a difference. We may further assist in the dissemination
of this curriculum materials and media presentations through the UC systems
K-12 outreach programs. They are always looking for new and exciting ways to
receive and deliver educational content free of charge and sponsors. The
power of this application just within the Television industry alone brings
huge possibilities of social and media change.
In this capacity, we will
help to identify sources of expertise both internal and external to the UC
system. We are fortunate to have at UCLA faculty in a number of disciplines
besides Public Health including Education, Psychology, Social Work, and
Medicine, where faculty have a specialization in curriculum design,
adolescence, health and environmental issues, many of whom are nationally
prominent. It is our intention to engage many of these faculties as experts
for the review of materials as they are developed. As well, there are a
number of persons who we have worked with in the greater Los Angeles
community who have expertise in curriculum development. For example, here
are some of the curriculum experts we have worked with in the past. They may
possibly be interested in MyTvQ as board members:
John D McNeil PhD. Professor Emeritus, UCLA Graduate School of
Education and Information Studies. Leading expert on curriculum development
for grades 6-12.
Linda Rose PHD Professor, UCLA Graduate School of Education and Information
Studies. Expertise in elementary school education.
Gus Dalis EdD , Senior Project Director, Center for Health Education, Los
Angeles County Department of Education. Expert on curriculum development for
the middle grades.
Susan Millet, MAT Educational consultant. Curriculum development for
elementary and middle school students.
Johanna Chase, MS , Center for Health Education, Los Angeles County
Department of Education, Health Curriculum development for grades 7-12.
Yael Falicov MPH UCLA Office of Labor, Occupation, Safety
and Health. Environmental Health Curriculum for Grades 9-12.
These are only some the
persons we plan to work with to facilitate this project. We at the
UCLA Media Center are particularly excited about the possibilities of this
project, and are looking forward to working with “PopRead, Inc.“ in seeking
to bring well designed, factually accurate curricula to the public and
especially young people via the internet.
Yours very truly,
Deborah Glik, Sc.D.,
Director, Health & Media
Research Center
UCLA School of Public
Health
ecology communications
A Member of The J-Net Group, Inc.
Maryland Office: P.O. Box 1944 … Ellicott City,
MD 21041 … 410-465-0480 … (Fax) 410-461-5840
Internet Services: Home Page -
http://ecology.com, On-Line Shopping - http://EcoMart.com
Eric McLamb
Senior Vice President
The J-Net Group, Inc.
January 19, 2000
James V. McNichol
President
PopRead™
Internet Services, Inc.
10920 Wilshire Boulevard
Suite 1845
Los Angeles, CA 90024
Dear James:
In response to our recent
discussions regarding the licensing of the current Ecology Communications
library archives of video programs and additional video footage to
PopRead Internet Services, Inc., I am pleased to offer PopRead
the opportunity to acquire licensing rights to the library. The
library archives, which consists of nearly 1,500 hours of finished programs
and related supplemental source video and B-roll, will be offered to
PopRead.com at volume discount rates on possible exclusive
and non-exclusive basis.
However, Ecology will
provide PopRead with exclusive rights to the library for the
production of educational lesson plans and related curriculum support
packages that would be further used for commercial/educational applications.
In other words, we would be willing to agree that no other lesson-planning
service, if they develop, would receive such educational rights to the
Ecology library. You will be notified of any exceptions or
pre-existing conditions that would not allow the assignment of such
exclusive rights prior to the licensing of the respective video programs or
related footage for PopRead’s Off-Air life sciences Library
sales.
Following is how I propose
we negotiate licensing of the Ecology library archives to PopRead
Inc:
Ecology has full ownership
or exclusive rights to series and programs of which will be presented to
PopRead for licensing. They are as follows:
·
EcoView, 40 x 60;
·
EcoView, 6 x 30;
·
Eco Forum, 26 x 30;
·
Visitor from the Future, 4 x 60 (mini-series);
·
Good Green Earth, 70 x 30;
·
Russian Wildlife Classics, 21 x 60.
With regard to these
completed programs, we can set a base license fee that will cover the entire
group at a significant discount. Masters will be sent to you for
further duplication and use within 10 days upon completion of the licensing
transaction.
The vast bulk of Ecology’s
library comes from extensive interview footage and B-Roll which were not
used in original productions due to time limits. For instance, an
interview with Dr. Jane Goodall gave us 45 minutes of outstanding material,
but only about 4 minutes was used in a half-hour production. There is
also extensive footage of interviews with other experts, politicians (i.e.,
Senator Kerry of MA, Secretary Bruce Babbitt, et.al.) and
scientists/educators, as well as B-roll footage of environmental topics and
phenomena such as the Colorado River and its dams, the Middle East, seal
rescues, water conservation, environmental technologies, etc. One
example of footage in our library not yet used in a television production is
about 50 minutes on the Komsomolets. This video reel includes
declassified Soviet footage of the Russian nuclear submarine Komsomolets
which sank off the coast of Iceland in1989. This footage -- which
includes the submarine’s construction and sea trials, plus interviews with
survivors -- is only available through Ecology in all non-Russian speaking
countries in perpetuity.
What I recommend is that we
provide you access to license any portion of this library on a per hour (or
portion thereof) basis. These hours would be combined with the
completed programs to form a single licensing package, and would thus be
subject to the same significant volume discounts aforementioned. There
are two ways to accomplish this: 1) You may screen our library on site
in Boston to select the material you wish to license, or 2) We can make
available Beta-SP dubs of the material we feel would be of most interest to
you at the cost of dubbing, and provide you with the license to use the
video at your discretion ... in perpetuity.
Finally, we will commit to
offering PopRead a right of first refusal to all educational
rights on all new programming (field interviews, B-roll, etc.) we produce in
the future to which we will retain full ownership. When we film on
location, we will also make sure to capture additional footage specifically
with PopRead,s usage in mind.
Please let me know how you
wish to proceed on this, or if you have any other thoughts or questions.
Again, we are very much looking forward to a long and fruitful relationship
with PopRead.com
With sincere best wishes,
ecology communications
A Member of The J-Net Group, Inc.
Maryland Office: P.O. Box 1944 … Ellicott City,
MD 21041 … 410-465-0480 … (Fax) 410-461-5840 ... http://ecology.com
Eric McLamb
Senior Vice President
The J-Net Group, Inc.
April 19, 2000
James V. McNichol
President
PopRead™
Internet Services, Inc.
10920 Wilshire Boulevard
Suite 1845
Los Angeles, CA
90024
Dear James:
On behalf of Ecology
Communications and our parent, The J-Net Group, Inc.,
I would like to state our extreme excitement and pleasure to be working with
PopRead Internet Services, Inc. By way of this letter, I
am formally committing that Ecology/J-Net intends to provide PopRead
with the exclusive license to prepare lesson planning and related
curriculum-support packages for all programming to be produced for The
Ecology Cable Service, specifically the ecology.com.TV
series which launches in February. For future programs, we intend to
make PopRead our exclusive provider of web-based lesson
planning and curriculum support packages. This will include further
outsourcing to our production clients (i.e., Outdoor Life Network) in
addition to our own proprietary programs presented via our own proprietary
distribution channels including ecology.com and The Ecology Cable Service
distributed to over 12 million homes nationwide. We are currently
negotiating with several interested investors in the cable industry to
expand our service as part of their new digital cable pod reaching over 50
million homes in four hour rotation blocks.
Future programs of special
interest will include: Life with out light: the edge of the gulf, a 26
part series. The pilot will be shot this October 2000 in the gulf over 3,000
meters below the sea. The Spirit of the Salmon, a three-part series
about the legacy of the Pacific Northwest Native Americans and their
cultures which heavily reflect their respect for the salmon; Wolf Rescue,
a half-hour expose about the lives of wolves, the cultural misnomers that
surround them, and steps people today are taking to protect them from
extinction; The Politically Endangered Agenda, a close look at where
the environment stands on Capitol Hill, what’s important, what’s not and
what will “slip” through the cracks; The Global Economy and Ecology,
a gutsy look at how the booming economic progress of the global stock
markets is burying true environmental disasters in the making and why it is
this way; Personal Ecology, a look at how people increase the quality
of their lives in business, health and pleasure by how they live; The Sun
Also Rises, a general look at what makes the Earth tick and what Earth’s
future holds... with or without humans.
I look forward to
discussing specific rights and financial arrangements with PopRead,
based on discounted volume rates. As you know, Ecology continues to
add new programming to its current library of nearly 1,500 hours of video
content each year. I look forward to working out a licensing deal for
these programs with PopRead on a long-term basis, to be
addressed in a separate letter. Please feel free to contact me
directly with any questions or comments. Again, I look forward to
working with PopRead with confident expectation.
With best wishes,
This list does not include such networks as Cartoon Network and TV Land as
most of its programming would not be applicable to PopRead service
offerings. These networks, however, do offer special opportunities for
lesson plan and curriculum development that encompasses their genre of
programming. For instance, Cartoon Network provides an opportunity for study
in 2-D and 3-D animation, voicing and cartoon history. TV Land - which airs
programs from the early days of television - provides study
opportunities in the history of television, character development and early
television production methods.
US cable television and networks alone produce or license over 312,000 hours
of original programming per year or an average of 2,000 hours per network.
156 networks are regularly involved in original productions, i.e., the major
broadcast networks, History, A&E, HBO, Discovery, USA, TBS, TNT and other
related cable networks.