We have been redefining movie making and viewing for over twenty years.
FOR THE FIRST TIME IN CINEMATIC HISTORY
AN INDUSTRY RIPE FOR CHANGE Although technologies have reshaped distribution, movie making has remained unchanged for 110 years, applying worn-out formulas and processes. Movie stars have proven to be the one consistent factor in sales, yet the process of making films and then marketing the stars to their audiences has followed the same workflow. New social media and internet technologies offer new opportunities to radically alter the ways movies are made, the way audiences bond with actors, and the way audiences engage with the buying and renting of movies.
EMERGING PARADIGM
FANS CAST IT will use technologies and social media to revolutionize the casting process and the relationship between audiences and the most important aspect of movies to most: the Cast. FANS CAST IT will combine the power of movie stars, access to emerging talents and technologies, and unique social media engagement programs to build participatory audiences. FANS CAST IT will create participatory fans, dynamically engage fans though the exciting process of major motion picture making from casting to premiere.
OVERVIEW CINEQUEST: a dynamic company with a two decade track record of profitability holds the strategic position of successfully integrating the worlds of creativity and technological innovation to transform lives. CINEQUEST Film Festival: experience Maverick cinema, discover leading media innovations, and connect with diverse, inspirational communities. CINEQUEST Mavericks Studio (CMS): producing and distributing innovative movies and audience activation programs of transformative impact. CINEQUEST state-of-the-art FANS CAST IT will use technologies and social media to revolutionize the casting process and the relationship between audiences and the most important aspect of movies to most: the cast. FANS CAST IT will also produce the first movie run through the platform: TO THE DOGS and ANGLES.
SUCCESSFUL FIRSTS
CINEQUEST consistently pioneers in new ventures. Some firsts include:
• • • • • • • • • •
First film comprehensive distribution solution for festival films – encompassing DVD, Internet, and Internet-TV; First to engage in direct Internet-to-TV distribution; First to enable DVD/HD-quality online downloads of feature films; First to present coinciding live and online festival experiences; First to bring films to handheld mobile devices; First to showcase 24P workflow and cameras ; First to showcase solid-state filmmaking technology; First festival to accept all digital film formats with digital projection on all screens; First festival to showcase QuickTime media capabilities; First to create and to implement its own server system for digital content.
KEY BOARD MEMBERS CINEQUEST’s 25 Member Board of Directors includes: • • • • • • • • • • • • •
Gilles BianRosa Satjiv Chahil Joel Coler Jeff Colvin William Randolph Hearst III Lila Ibrahim Ellen McGirt Carlos Montalvo Hosain Rahman Christine Storey Lewis N. Wolff Steve Wozniak Jed York
CEO, Vuze SVP Hewlett-Packard Retired Fox Studio Executive EVP Comerica Bank Hearst Foundations Kleiner Perkins Caufield Byers Fast Company Magazine VP Marketing, Hewlett-Packard Founder & CEO, Aliph Founder, Midnite Express Owner Oakland A's Co-Founder of Apple President, SF 49ers
Steve Wozniak, Founder of Apple with CQ Co-Founder Kathleen Powell
Vivienne Tam HP Digital models surround HP exec Carlos Montalvo.
MANAGEMENT TEAM “Strength comes from the people involved and how great their passion and skills are. The leaders of CINEQUEST have both of those. That’s why it’s been with us for some time and will still be here long into the future.” ~ Steve Wozniak, Co-Founder, Apple Inc
Halfdan Hussey, CEO and Co-Founder, CINEQUEST • Summa Cum Laude, English Lit, University of Colorado • Named one of the top 25 most influential leaders in Silicon Valley over past 25 years by Metro Newspaper • Renowned novelist, writer and film director. Kathleen J. Powell, President and Co-Founder, CINEQUEST • Former VP Worldwide Programming Jaman and Technology Manager, HP and Agilent Technologies • Masters, Computer Science, University of Colorado • Named one of the top 25 most influential leaders in Silicon Valley over past 25 years by Metro Newspaper Alexandra Townsend, Executive Producing Partner CINEQUEST • Owner, Townsend Entertainment Group • Principal, Point Nine-O Productions • Executive Producer, Producer
HOW THE PLATFORM CASTS FANS CAST IT debut motion pictures will transform the traditional means of choosing talent, trusting in the joint collaboration of producers and audiences. Fans will access two types of actors: Star and Discovery. STAR ROLES: Through the FANS CAST IT site, producers will present approved wish-lists of potential name actors for the star roles. Fans will be asked to provide feedback via Twitter discourse and site voting/ ranking mechanisms. Producers will interact with fans via Twitter and videos engaging them in the exciting process of star deal making and casting. DISCOVERY ROLES: Fans will gain access to audition videos (live and taped) and voice their perspectives on Twitter and the site voting. Fans participation will continue, through ongoing engagement with cast via site videos and Twitter through all the insider processes of making and premiering a movie.
AUDIENCE ENGAGEMENTS FANS CAST IT platform will engage audience participation in three primary ways: Twitter Discourse and Insider Video and Voting/ranking. TWITTER DISCOURSE: Fans, producers as well as celebrity guests will actively discourse via Tweets about their thoughts and feelings concerning casting ideas, competitions, progress, and cast insider videos. INSIDER VIDEO: Fans will gain access to the casting and acting workflow (from casting to premiere) in unique, personal ways through videos showcasing the processes normally reserved for the insider worlds of producers and actors. VOTING/RANKING: Fans will rank potential cast members through text, online and/or Twitter voting.
IMPACT ON MOVIES FANS CAST IT platform will have unique, disruptive and beneficial impact on movie making, marketing and sales: REDUCED COST OF AUDIENCE ACQUISITION: Traditional means of acquiring audience / movie consumers has traditionally consisted primarily of expensive television and print ad buys. FANS CAST IT leverages social media technologies and proven audience behaviors (desire to know more about actors) to build audiences in a much more cost effective way. ENHANCED AUDIENCE HUNGER FOR FINAL PRODUCT: By creating participatory rather than passive audiences, the hunger for the theatrical and home entertainment releases will enhance. Consumers who feel a form or ownership , identification and loyalty with a brand are much more likely to recommend and consume brand products. DISRUPTION OF TALENT GATEKEEPERS: FANS CAST IT will disrupt the traditional behind-closed-doors means of casting talent, opening the worlds to the audience members cast eventually serves. This will make visible the activities and decisions of gatekeepers who attempt to shield their clients as well as making gatekeepers aware of large community desire for an actor to be in a quality movie.
PLATFORM’S FIRST MOVIES CINEQUEST will produce the first two films run through the FANS CAST IT platform: TO THE DOGS and ANGLES . 1. TO THE DOGS is an Irish, Mexican crime movie about true power set in 1950 Northern California. Comp Movie: L.A. CONFIDENTIAL Crime Drama (Period piece) Kim Bassinger; Russell Crow; Guy Pierce Director Curtis Hanson – Well respected director, not famous.
Theatrical Revenues: US $62 million, International $63 million (box) 2. ANGLES: the effects of a mysterious murder ripple through the lives of six inhabitants to a startling conclusion. Comp Movie: THE USUAL SUSPECTS Murder Mystery Kevin Spacy; Gabriel Byrne; Other cast members – unknown. 2nd time Director Bryan Singer Theatrical Revenues: US $23 million, International $28 million (box)
MARKET AND REVENUE PROJECTIONS See attached Market/Revenues analysis of budget, market penetration, revenues and ROI. •
Film - Net Income Projection Revenue (US) in millions Theater DVD Internet TV Net Revenue (International) Total Revenue (ALL)
Traditional 57.1 49.6 2.5 1.5 3.5 68.8 125.9
Fans Cast It 57.1 49.6 2.5 1.5 3.5 68.8 125.9
Costs Film Production P&A Total Costs
10.0 30.0 40.0
10.0 16.5 26.5
Net Profit NPM %
85.9 125%
99.4 144%
EARLY CUSTOMERS AND MARKET Early customer commitments: CINEQUEST can seed the FANS CAST IT audience acquisition through its loyal email and customer base of 110,000 film lovers and film makers. Size of Domestic and Global market: • • • • • •
Domestic (US/Canada) theatrical box office MARKET was $10B in 2010 (up 8% from 2009) Domestic home entertainment (movie) revenues were $19B in 2010 Domestic cable/TV (movie) revenues were $10B in 2010 71% of all Americans watch at least one movie per year. Thus 163M Americans are active movie watchers. Domestic accounts for 40-45% of total film revenues, international for 55-60%. Int’l revenues increased 13% in 2009
Target market for FANS CAST IT Round A platform movies TO THE DOGS and ANGLES: 18-39 year old mass market film consumers. 43% of all frequent movie goers fall into this age. This age group most actively engages in movie star media, social sites and TO THE DOGS + ANGLES cast age and genre align with this demographic.
OPPORTUNITY ROUND A Round A* $7,000,000 OFFERING will raise equity in conjunction with CINEQUEST MAVERICKS STUDIO, LLC (CMS) acting as the management team to fund, manage and exploit FANS CAST IT and the platform’s beta feature-length motion pictures TO THE DOGS (part I) and ANGLES. 1. First $8.4M Net Revenues on film sales will go to Round A investors 2. Next revenues will go to reimburse any deferred fees, up to $3M. 3. Split of additional Net Revenues: •
40%*
Round A investors
•
60%
Controlled by CMS and to be allocated to producers, cast, partners, P&A investors
CINEQUEST Point of Contact: Paul Adams New Planet Group Corp. paul.adams@newplanetgroup.co 818-333-8262