Comfy 2011
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Company Overview ● 2003 - Founded by private investors and acquired the Comfy brand and Intellectual Property. ● 2007 - Dov Moran founder of M-systems (sold to SanDisk for $1.65B ) invested in Comfy
● 2008 - launched an entertainment centers business unit. ● 2009 - opened a NJ based USA subsidiary. ● 2011 - launched it’s a new media & gaming business unit targeting the streamers, consoles, tablets & connected TV market. ● partnership with strategic CE providers utilizing its gamepad &content localized into 23 different languages. ● Becoming the hub for Israeli based innovation into the global edutainment market.
Main Share Holders Mr. Shachar Erez – Chairman Managing partner in Evergreen, one of Israel's largest VCs. Former President & CEO of Nur Macroprinters (NASDAQ: Nurm)
Mr. Dov Moran Founder of Modu, Founder and former president of Msystems and the inventor of the flash memory. The company was acquired by Scandisk in a 1.55 Billion USD deal in 2006.
Mr. Yoav (Hillel, & Naftaly) Merari Well-established entrepreneurs, first investor in Comfy
Mr. Shahal Shai – Founder & CEO
The Opportunity ● Early education is perceived as a key success factor in life. ● Toddlers are exposed to interactive environment in their day to day life, and are extremely curious about it. This latent learning motivation is a great tutoring resource!
● Adjusting Consumer electronics “adult” user interface to the need and capabilities of children can turn this curiosity into an effective learning tool.
How we operate We leverage our core assets into Three synergic business units;
Consumer Products
Digital Content,
Pedagogical research,
Products
New media
Edutainment Centres
Pedagogical Concept
Curiosity A child is born with natural curiosity.
Challenge We Provide the child with age/developmental appropriate rich and fun content.
Confidence Acquiring the sense of control improves the child's confidence and self-esteem.
Our Target Market Prime target market ● “First time mom” ● Involved in raising their kids ● Positive attitude to technology and daily access to PC at home
● Competitive moms ● Middle & upper class
Secondary target market ● Dads (gadget fans, “guilty daddy toy buyers”) ● Grandparents ● Relatives and care givers ● Other vertical target markets (special needs, kindergartens, Family Entertainment Centers)
Our product lines
Consumer products business unit
Toy & games Market & Trends ●
$138B market in 2009 worldwide (including the video game market).
● Toy specialties (e.g. Toys R Us) are competing with general mass through differentiation by adding entertainment or educational experience on top of their larger assortment. ● Fast growing video game market is chasing toy dollars and surpluses the US traditional Toy & games market already in 2008 ● Learning platforms are displacing stand alone toys. ● Kids are getting older younger, & moving to gaming; Total spending on gaming**
2011
2013
2015
Hardware
$17.8B
$24.6B
$27.3B
software
$44.7B
$51.1B
$56.5B
online
$11.7B
$21.4B
$28.3B
total
$74.4B
$97.1B
$112.1B
*Source : NPD, report , April 10 ** Source: Gartner
Easy PC Learning System ● Enable kids to interact effectively with mom & dad PC from age 12 months.
● Game console type recurring revenue model, Hardware and 13 different software titles, in 10-21 different languages embedded into the system.
● A Huge success story in its local market.
● 17 educational & international awards including PC magazine hottest kids friendly gadgets.
PLUG ’n PLAY PHONE ● Toddlers PC-Phone learning system ● Develops communication & listening skills ● On-screen characters react to your child’s voice
iMote – Child’s Remote Control Rubber Grips for Child’s hands
Volume limits and On/off delay
Walled garden Content with on site & on line reprogramming ability Transparent buttons For visual navigation
Child’s independency With parent gadget
Sealed battery door To meet Toy safety standard
iCam FETURES ● ● ● ● ●
Specially designed magic wands for Edu-Physical learning Learn spelling and Math while moving and having fun! Multi-level activities – progress at your own pace 10 educational and fun activities additional games available to download from the internet
INCLUDES ● Two magic wands for one or two players,
● magic driving wheel, ● PC webcam, ● "Move & Groove“ CD & parent guide
(No Batteries Required)
Point of Sale display
Comfy Edutainment Centers Business Unit
Product & Market ● A 70 sq. meter indoor educational playground for toddlers. ● Launched in 2007 and won industry’s best product of the year. ● Over 100 Installations around the world in five continents. ● an estimated $40 billion market divided into 3 major segments: ● Destination parks (more then 2 days average stay) ● Regional parks (200 miles region).
● Local entertainment centers in shopping malls, museums, daycare centers, gym complexes, family resorts, etc**.
*Source: PWC: global entertainment and media outlook ** 23 billion include destination and regional parks only
Comfy Retail-tainment solutions Enhancing the specialty retail buying experience with educational entertainment - watch movie
New media business unit - Comfy 2.0 Connected TV, Game portals, Mobile & Tablets, cloud gaming
groundbreaking changes in the toy, games & TV industry • Free apps, online casual & social games are “eating” the traditional toys & console based video game industry’s lunch!* • Netflix became the largest TV operator in the USA (23M subs) about 75% of the customers use their game consoles as their TV streamers
*“iPhone/ iPad have great kids Apps but at some point Mummy will want her iPhone/ iPad back. so we see the Apps world not only as a great business, but also as an appetizer for our console business”.
New & exciting distribution channels provide new opportunities
Comfy 2.0 content configuration & new channels Roadmap Content configuration
CD ROM
Open browser Streaming content
INTOeTV
API compatiable streaming/ DLC content
Pre-loaded or downloaded Apps
Hardware Device UI
Comfy UI
“3 foot” UI (Keyboard & mouse)
Tangible Keyboard
“10 foot” UI (HTPC/ streamers)
“3 foot” UI PC Keyboard & mouse (desktop/ laptop)
Retail
when
current
Retail & HTPC partnerships
Tangible W/L Keyboard (IR/RF according to cost)
“10 foot” UI dedicated RF based controllers
2011 Retail & game portals/ ISP’s partnerships Retail & game consoles partnerships
2012
Retail & connected TV vendors partnerships
10 foot UI (connected TV/ smart TV) 3 foot “touch” UI (4', 7', 10' smartphone/ tablets)
Sales channels
Touch navigation
Mobile App stores cellular carriers partnerships
2012
2012
Comfy 2.0 – what's new? •
New hardware enabling devices •
•
New content business model • •
•
subscription, pre installed App or in-App sales biz models New content coming soon
New distribution channels •
•
streamers, tablets, connected TV, game consoles
CE retail, video game retailers, game portals, MSO’s
New potential strategic partners, •
streamers, consoles, & connected TVs, HW manufacturers, MSO & cellular operators
• New home entertainment location •
•
from PC environment to the living room TV & handheld environments
Brand re-positioning •
new media toddler Edutainment
Comfy – the “Netflix” of toddlers interactive entertainment •
Netflix is larger then Comcast with 23M subscribers! & 30% of the internet downstream the USA!*
•
Netflix is multiplatform compatible working with all major hardware devices
•
Netflix is being watched mainly with game consoles (66%) with PS3 (30%) Xbox (25%) and Wii (11%)* and just 20% with PC
* Source: Sandive
Two parallel product lines ! current
Bundle with 1 CD game, USB cord, PC & Mac only compatibility
2011 – 2012 addition
Lower retail price with one week free subscription, wireless USB, multi device compatibility
Thank you!