investment opportunity update october [5], 2012 dramatic... · ― adtv is a basic tier channel...
TRANSCRIPT
Investment Opportunity Update
October [5], 2012
DRAFT
Executive Summary
• SPT has an opportunity to transfer Asia Dramatic TV (ADTV) from sister SONY company, So-net Entertainment Inc.
― ADTV is a basic tier channel with programming from Korea, Taiwan and China― ADTV was effectively launched in July 2003 and currently has 2.0m subscribers on
SkyPerfecTV 124/128, cable and IPTV― ADTV has projected revenue of $8.8m and EBIT of $1.3m for FY13― ADTV is an attractive channel that can serve as a platform for an expanded Korean/Asia
channel business in Japan
• ADTV is currently a wholly-owned subsidiary of So-net― SONY owns 58% of So-net which is publicly listed― SONY recently completed a tender offer for the remaining 42% of shares in So-net that it
does not already own for an offer price of about $766m and expects to get regulatory approval to acquire the remaining shares by January 2013
• SPT proposes to transfer ADTV from So-net at a mutually agreed valuation― So-net has indicated they may be willing to transfer ADTV at its book value of $2 - $4m― So-net has provided limited financial information to SPT until due diligence commences ― We will seek to complete the transfer at the lowest value
2
Strategic Benefit to SPT
3
• ADTV provides a good platform to build a stronger basic Asian-Korean drama channel in Japan
― Korean dramas are popular in Japan with steadily increasing interest from pay-TV subscribers
• SPT will leverage its infrastructure and relationships for its existing three Japan channels’ to increase distribution of ADTV
― ADTV is currently not on the SkyPerfecTV CS110, J:COM or KDDI (au Hikari) platforms
• Opportunity to use ADTV as a platform to launch a new premium Korean general entertainment channel in Japan
• ADTV would complement our successful Asian-Korean drama channel, SET ONE
• Strengthens SPT’s relationships with Korean partners― SPT Networks Asia currently has an output deal with SBS for SET ONE in Southeast Asia
Korean TV Market in Japan
4
• Korean TV channels have become more popular in Japan reflecting increasing interest in Asia in Korean music and youth culture
• Korean content is one of the top drivers of Japanese pay TV viewership• Korean channels have had steadily increasing ratings and subscribers
0% 10% 20% 30% 40% 50% 60% 70% 80%
Classic foreign movies
Classic Japanese movies
Latest foreign dramas
Latest Korean movies
Latest Korean dramas
Classic Korean dramas
Latest Japanese movies
Reasons for Watching Pay TV in Japan
Source: Ministry of Public Management, Home Affairs, Post & Telecoms
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12
Subscribers
SkyPerfecTV Korean Drama Set vs. Drama Set
Korean Drama Set HD Drama Set TotalSkyPerfecTV SD a la Carte monthly fee (Yen)
SD HDPremium Korean ChannelsKNTV 3,150 3,780 DATV 2,500 2,625 Mnet 1,890 1,890
Basic Korean Channels (Basic Pack)KBS World 735 735 Asia Dramatic TV 630 630
Korean Drama Set (HD)(KBS World HD +KNTV HD+Mnet HD) 5,670
Drama Channels with Some KoreanLaLa TV 525 630 Home Drama Channel 578 630 Eisei Gekijo 1,890 2,000
Financial Summary – So-net Plan
5
• So-net has provided a very basic preliminary financial projection through FY16• So-net’s business plan holds programming spending flat and includes no expansion of distribution• So-net holds advertising revenue flat from FY14 to FY16 due to no increase in the programming budget• Broadcast operations expense decreases in FY16 due to elimination of the transponder fee for SD service on SPTV
FY13 FY14 FY15 FY16 FY13 - FY16
USD 000's FX: JYP/USD 80.43 So-net Budget Year 1 Year 2 Year 3 TOTAL
REVENUES
Subscriber Revenue 5,883$ 5,867$ 5,529$ 5,478$ 22,757$
Net Advertising Revenue 2,884 3,173 3,173 3,173 12,403
TOTAL REVENUES 8,768 9,040 8,702 8,651 35,160
Growth Rate 3.1% -3.7% -0.6%
EXPENSES
Programming 2,952$ 2,952$ 2,952$ 2,952$ 11,809$
Sales & Marketing 373 373 373 373 1,492
Broadcast Operations 2,818 2,818 2,818 1,900 10,355
Personnel 977 1,007 1,037 1,068 4,088
General & Administrative 382 393 405 417 1,597
TOTAL OPERATING EXPENSES 7,502$ 7,543$ 7,585$ 6,711$ 29,341$
EBIT 1,265$ 1,497$ 1,117$ 1,940$ 5,820$
As % of Revenue 14.4% 16.6% 12.8% 22.4% 16.6%
HEADCOUNT 7 7 7 7
Financial Summary – SPT Plan Key Assumptions
6
• SPT has prepared an internal business plan based on its own estimates prior to performing due diligence on ADTV
Distribution Assumptions
• Distribution is expected to start on J:COM and KDDI beginning in January 2014 and April 2014, respectively and will drive a significant revenue increase in FY15 subscriber revenue
• FY16 subscriber revenue declines due to SPTV’s termination of SD service on March 31, 2015 and a resulting reduction in DTH revenue
Ad Sales Assumptions
• Beginning in FY16, ADTV’s ad sales is benchmarked at 65% of AXN Mystery Channel reflecting its proportion of total subscribers
• SPT has used So-net’s ad rate assumption of 225,000 yen/hour for this business plan
• Based on SPT’s preliminary market survey of ad agencies, 180,000 yen/hour is more appropriate for ADTV
• The ad sales assumptions will be validated during due diligence, but currently creates 50m – 75m of risk in ad sales revenue
Programming and Operations Assumptions
• Programming expense increases as the programming offering is strengthened with an investment in additional Korean drama series
• Broadcast operations expense decreases in FY16 due to elimination of the transponder fee for SD service on SPTV
• Personnel expense reflects the addition of a Marketing Manager beginning in FY14
Financial Summary – SPT Plan
7
FY13 FY14 FY15 FY16 FY17 FY18 FY14 - FY18
USD 000's FX: JYP/USD 80.43 So-net Budget Year 1 Year 2 Year 3 Year 4 Year 5 TOTAL
REVENUES
Subscriber Revenue 5,883$ 5,558$ 6,654$ 6,490$ 6,966$ 7,367$ 33,036$
Net Advertising Revenue 2,884 3,089 3,398 3,942 4,257 4,598 19,283
TOTAL REVENUES 8,768 8,648 10,052 10,432 11,223 11,965 52,319
Growth Rate -1.4% 16.2% 3.8% 7.6% 6.6%
EXPENSES
Programming 2,952$ 3,350$ 4,115$ 4,238$ 4,365$ 4,496$ 20,564$
Sales & Marketing 373 688 791 822 882 938 4,120
Broadcast Operations 2,818 2,602 2,613 1,257 1,268 1,312 9,052
Personnel 977 1,301 1,340 1,380 1,421 1,464 6,905
General & Administrative 382 674 694 715 736 758 3,577
TOTAL OPERATING EXPENSES 7,502$ 8,615$ 9,552$ 8,411$ 8,672$ 8,968$ 44,218$
EBIT 1,265$ 33$ 500$ 2,020$ 2,551$ 2,997$ 8,101$
As % of Revenue 14.4% 0.4% 5.0% 19.4% 22.7% 25.0% 15.5%
INCOME TAX - 13 204 822 1,038 1,220 3,297
NET INCOME 1,265$ 19$ 297$ 1,198$ 1,513$ 1,777$ 4,804$
HEADCOUNT 7 8 8 8 8 8
Subscribers – SPT Expansion Plan
8
• ADTV’s total subscribers projected to increase from 2.1m in FY13 to 4.5m in FY14• Distribution on J:COM is expected to start in January 2014 adding 2.4m subs• Distribution on KDDI is expected to start in April 2014 and will add 137k subs on this fast
growing platform
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
FY13 [So-net Budget]
FY14 Y15 FY16 FY17 FY18
Subscribers
ADTV Subscribers
DTH Cable IPTV
Programming Overview
9
• So-net has provided limited information regarding ADTV’s programming library
• Current library has about 1,000 hours with older programs primarily from Korea, China and Taiwan
• No localization expense required since ADTV acquires the programs already localizedADTV Programming SummaryCurrent Annual Programming Spending - FY13
Source Program Type Titles Episodes Hours Yen USD Yen 000's USD 000'sKorean New Dramas (First Basic Pay TV Window) 14 252 315 390,000 4,849$ 98,280 1,222$ Korean Dramas (Library) 14 280 350 145,000 1,803$ 40,600 505$ Korean Variety 4 104 104 170,000 2,114$ 17,680 220$ Korean Other 1 130 65 100,000 1,243$ 13,000 162$ Korean Events and Entertainment 3 3 3 1,500,000 18,650$ 4,500 56$ Korean Movies 1 12 24 500,000 6,217$ 6,000 75$ Taiwan Dramas and Variety 6 152 135 253,158 3,148$ 38,480 478$ China Dramas 2 80 67 135,000 1,678$ 10,800 134$ Other Other 9 22 28 368,182 4,578$ 8,100 101$
Total 54 1,035 1,091 229,411 2,852$ 237,440 2,952$
Avg Cost per Epiode Total Cost
• To secure additional distribution, SPT will invest in 4 new Korean dramas each year beginning in FY14, 6 new Korean dramas each year beginning in FY15 and 9 original programs each year beginning in FY15
• Plan to launch 2 new Korean drama series per month to promote the J:COM launch beginning in January 2014ADTV Programming SummaryAdditional Programming Spending - FY15
Source Program Type Titles Episodes Hours Yen USD Yen 000's USD 000'sKorean New Dramas (First Basic Pay TV Window) 10 200 250 400,000 4,973$ 80,000 995$ Korean Events and Entertainment 9 9 9 1,500,000 18,650$ 13,500 168$
Total 19 209 259 447,368 5,562$ 93,500 1,163$
Avg Cost per Epiode Total Cost
Proposed Timeline
10
Date Activity
September 20, 2012 End of tender offer period for SONY to acquire the remaining 42% of shares in So-net it doesn’t already own for about 60 billion yen ($765.7m)
September 2012 – January 2013
So-net to prepare revised financial projections during its FY14 budget process
January 2013 SONY to get approval from SEC to hold 100% of So-net stock
January 2013 So-net and SPT to negotiate preliminary valuation and transaction based on revised projections
End of January 2013 SPT to perform due diligence on So-net
February 2013 SPT to revise financial projections and valuation based on due diligence findings
February 2013 SPT and So-net to agree financial projections and valuation, structure transaction and prepare draft agreements. Obtain final approval from So-net and SPEJ Boards of Directors
February 2013 So-net to provide legal notice to creditors regarding ADTV transfer
April 2013 Close and transfer operations for ADTV to SPT
AppendixBusiness Plan Assumptions
11
Financial Summary – SPT Plan (Yen)
12
FY13 FY14 FY15 FY16 FY17 FY18 FY14 - FY18
(Yen 000s) So-Net Budget Year 1 Year 2 Year 3 Year 4 Year 5 TOTAL
REVENUES
Subscriber Revenue 473,176 447,069 535,180 521,988 560,286 592,548 2,657,070
Growth Rate -5.5% 19.7% -2.5% 7.3% 5.8%
Net Advertising Revenue 232,000 248,454 273,299 317,027 342,389 369,781 1,550,951
Growth Rate 7.1% 10.0% 16.0% 8.0% 8.0%
TOTAL REVENUES 705,176 695,523 808,480 839,015 902,675 962,328 4,208,021
Growth Rate -1.4% 16.2% 3.8% 7.6% 6.6%
EXPENSES
Programming 237,440 269,440 330,940 340,868 351,094 361,627 1,653,970
As % of Revenue 33.7% 38.7% 40.9% 40.6% 38.9% 37.6%
Sales & Marketing 30,000 55,354 63,594 66,081 70,905 75,467 331,401
Broadcast Operations 226,657 209,314 210,167 101,119 101,969 105,501 728,071
Personnel 78,600 104,600 107,738 110,970 114,299 117,728 555,336
General & Administrative 30,700 54,192 55,818 57,492 59,217 60,994 287,713
TOTAL OPERATING EXPENSES 603,397 692,899 768,257 676,531 697,485 721,317 3,556,490
Growth Rate 14.8% 10.9% -11.9% 3.1% 3.4%
EBIT 101,780 2,624 40,223 162,483 205,190 241,011 651,532
As % of Revenue 14.4% 0.4% 5.0% 19.4% 22.7% 25.0% 15.5%
INCOME TAX - 1,068 16,371 66,131 83,512 98,092 265,173
NET INCOME 101,780 1,556 23,852 96,353 121,678 142,920 386,358
Subscribers
13
• ADTV’s total subscribers projected to increase from 2.1m in FY13 to 4.5m in FY14
• Distribution on J:COM is expected to start in January 2014 adding 2.4m subs
• Distribution on KDDI is expected to start in April 2014 and will add 137k subs on this fast growing platform
Ending Subscribers FY13 FY14 FY15 FY16 FY17 FY18
So-Net Budget Year 1 Year 2 Year 3 Year 4 Year 5DTH
SkyPerfecTV SD 169,946 105,866 65,701 - - -
SkyPerfecTV HD 246,279 298,903 335,361 365,898 375,189 384,480
Total DTH 416,225 404,769 401,062 365,898 375,189 384,480
Growth Rate -2.8% -0.9% -8.8% 2.5% 2.5%
Cable
J:COM - 2,418,444 2,398,444 2,378,444 2,358,444 2,358,444
Other 878,010 826,060 850,842 876,367 902,658 929,738
Total Cable 878,010 3,244,504 3,249,286 3,254,811 3,261,102 3,288,182
Growth Rate 269.5% 0.1% 0.2% 0.2% 0.8%
IPTV
Hikari TV 758,337 851,398 905,398 947,398 977,398 977,398
KDDI - - 137,325 157,725 176,925 176,925
Total IPTV 758,337 851,398 1,042,723 1,105,123 1,154,323 1,154,323
Growth Rate 12.3% 22.5% 6.0% 4.5% 0.0%
Total Subscribers 2,052,572 4,500,671 4,693,071 4,725,831 4,790,614 4,826,985
Growth Rate 119.3% 4.3% 0.7% 1.4% 0.8%
Subscriber Revenue
14
• Subscriber revenue declines in FY14 due to decline in SPTV platform• Distribution is expected to start on J:COM and KDDI beginning in January 2014 and April
2014, respectively and will drive a significant revenue increase in FY15 subscriber revenue
• FY16 subscriber revenue declines due to SPTV’s termination of SD service on March 31, 2015 and a resulting reduction in DTH revenue
FY13 FY14 FY15 FY16 FY17 FY18YEN 000's So-Net Budget Year 1 Year 2 Year 3 Year 4 Year 5DTH
SkyPerfecTV SD 160,204 99,503 63,197 - - -
SkyPerfecTV HD 107,622 134,094 162,741 183,261 192,556 198,410
Total DTH 267,826 233,597 225,938 183,261 192,556 198,410
Growth Rate -12.8% -3.3% -18.9% 5.1% 3.0%
Cable
J:COM - 12,697 77,976 90,678 104,073 118,190
Other 111,800 102,568 110,676 119,177 128,090 137,430
Total Cable 111,800 115,265 188,651 209,856 232,163 255,619
Growth Rate 3.1% 63.7% 11.2% 10.6% 10.1%
IPTV
Hikari TV 93,549 98,208 105,408 111,168 115,488 117,288
KDDI - - 15,183 17,703 20,079 21,231
Total IPTV 93,549 98,208 120,591 128,871 135,567 138,519
Growth Rate 5.0% 22.8% 6.9% 5.2% 2.2%
Total Subscriber Revenue 473,175 447,069 535,180 521,988 560,286 592,548
Growth Rate -5.5% 19.7% -2.5% 7.3% 5.8%
DTH Subscriber Assumptions
15
• SPTV universe assumptions consistent with the recent MRP assumptions for AXN/Animax/AXN Mystery
• ADTV will continue to have distribution only on the 124/128 platform• SD service on SPTV will terminate on March 31, 2015• SPTV 124/128 subscribers are expected to decline through FY16 but HD conversion will reduce
subscriber migrationFY13 FY14 FY15 FY16 FY17 FY18
So-Net Budget Year 1 Year 2 Year 3 Year 4 Year 5Subscriber Universe
SkyPerfecTV SD 820,228 531,365 254,559 - - -
SkyPerfecTV HD 934,941 1,173,037 1,420,534 1,437,103 1,452,602 1,468,101
Total Universe 1,755,169 1,704,402 1,675,093 1,437,103 1,452,602 1,468,101
Growth Rate -2.9% -1.7% -14.2% 1.1% 1.1%
Subscribers (Ending)
SkyPerfecTV SD 169,946 105,866 65,701 - - -
SkyPerfecTV HD 246,279 298,903 335,361 365,898 375,189 384,480
Total Subscribers 416,225 404,769 401,062 365,898 375,189 384,480
Growth Rate -2.8% -0.9% -8.8% 2.5% 2.5%
Penetration
SkyPerfecTV SD 20.7% 19.9% 25.8% - - -
SkyPerfecTV HD 26.3% 25.5% 23.6% 25.5% 25.8% 26.2%
Average Monthly Net CPS
SkyPerfecTV SD YEN 79 78 80 - - -
SkyPerfecTV HD YEN 36 37 40 42 43 43
Revenue
SkyPerfecTV SD YEN 000's 160,204 99,503 63,197 - - -
SkyPerfecTV HD YEN 000's 107,622 134,094 162,741 183,261 192,556 198,410
Total Revenue 267,826 233,597 225,938 183,261 192,556 198,410
Growth Rate -12.8% -3.3% -18.9% 5.1% 3.0%
CATV Subscriber Assumptions
16
• CATV universe assumptions consistent with the recent MRP assumptions for AXN/Animax/AXN Mystery
• Distribution on J:COM expected to start in January 2014 and will more than double ADTV’s subscribers
• CATV universe expected to have low to declining growth • J:COM CPS starts at 7 yen but will increase with additional investment in programming
FY13 FY14 FY15 FY16 FY17 FY18
So-Net Budget Year 1 Year 2 Year 3 Year 4 Year 5Subscriber Universe
J:COM 2,438,444 2,418,444 2,398,444 2,378,444 2,358,444 2,358,444
Other 3,789,797 3,754,797 3,844,319 3,844,319 3,844,319 3,844,319
Total Universe 6,228,241 6,173,241 6,242,762 6,222,762 6,202,762 6,202,762
Growth Rate -0.9% 1.1% -0.3% -0.3% 0.0%
Subscribers (Ending)
J:COM - 2,418,444 2,398,444 2,378,444 2,358,444 2,358,444
Other 878,010 826,060 850,842 876,367 902,658 929,738
Total Subscribers 878,010 3,244,504 3,249,286 3,254,811 3,261,102 3,288,182
Growth Rate 269.5% 0.1% 0.2% 0.2% 0.8%
Penetration
J:COM 0.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Other 23.2% 22.0% 22.1% 22.8% 23.5% 24.2%
Overall CATV Penetration 14.1% 52.6% 52.0% 52.3% 52.6% 53.0%
Average Monthly Net CPS
J:COM YEN - 7.0 8.0 9.0 10.0 11.0
Other YEN 10.0 10.5 11.0 11.5 12.0 12.5
Revenue
J:COM YEN 000's - 12,697 77,976 90,678 104,073 118,190
Other YEN 000's 111,800 102,568 110,676 119,177 128,090 137,430
Total Revenue YEN 000's 111,800 115,265 188,651 209,856 232,163 255,619
Growth Rate 3.1% 63.7% 11.2% 10.6% 10.1%
IPTV Subscriber Assumptions
17
• IPTV universe assumptions consistent with the recent MRP assumptions for AXN/Animax/AXN Mystery
• Distribution on KDDI (au Hikari) expected to start in April 2014• IPTV universe expected to continue to have good future growth FY13 FY14 FY15 FY16 FY17 FY18
So-Net Budget Year 1 Year 2 Year 3 Year 4 Year 5Subscriber Universe
Hikari TV 785,398 851,398 905,398 947,398 977,398 977,398
KDDI 92,925 115,725 137,325 157,725 176,925 176,925
BBTV 9,682 82 - - - -
Opticast 83,849 86,849 89,249 91,049 92,249 92,249
Total Universe 971,854 1,054,054 1,131,972 1,196,172 1,246,572 1,246,572
Growth Rate 8.5% 7.4% 5.7% 4.2% 0.0%
Subscribers (Ending)
Hikari TV 758,337 851,398 905,398 947,398 977,398 977,398
KDDI - - 137,325 157,725 176,925 176,925
BBTV - - - - - -
Opticast - - - - - -
Total Subscribers 758,337 851,398 1,042,723 1,105,123 1,154,323 1,154,323
Growth Rate 12.3% 22.5% 6.0% 4.5% 0.0%
Penetration
Hikari TV 96.6% 100.0% 100.0% 100.0% 100.0% 100.0%
KDDI 0.0% 0.0% 100.0% 100.0% 100.0% 100.0%
BBTV 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Opticast 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Overall IPTV Penetration 78.0% 80.8% 92.1% 92.4% 92.6% 92.6%
Average Monthly Net CPS
Hikari TV YEN 10.0 10.0 10.0 10.0 10.0 10.0
KDDI YEN - 10.0 10.0 10.0 10.0 10.0
Revenue
Hikari TV YEN 000's 93,549 98,208 105,408 111,168 115,488 117,288
KDDI YEN 000's - - 15,183 17,703 20,079 21,231
Total Revenue YEN 000's 93,549 98,208 120,591 128,871 135,567 138,519
Growth Rate 5.0% 22.8% 6.9% 5.2% 2.2%
Ad Sales Assumptions
18
• ADTV focuses on direct response ad sales revenue• Beginning in FY16, ADTV’s ad sales is benchmarked at 65% of AXN Mystery Channel reflecting its
proportion of total subscribers• SPT has used So-net’s ad rate assumption of 225,000 yen/hour for this business plan• Based on SPT’s preliminary market survey of ad agencies, 180,000 yen/hour is more appropriate for ADTV• The ad sales assumptions will be validated during due diligence, but currently creates 50m – 75m of risk in
ad sales revenue
FY13 FY14 FY15 FY16 FY17 FY18YEN 000's So-Net Budget Year 1 Year 2 Year 3 Year 4 Year 5
Inventory (Direct Response) Hours 1,290 1,290 1,290 1,290 1,290 1,290
Advertising Revenue Based on ADTV Rate
Advertising Rate Yen 000's/Hr 225 241 265 307 332 358
Gross Advertising Revenue 290,250 310,568 341,624 396,284 427,987 462,226
Commission 20% (58,050) (62,114) (68,325) (79,257) (85,597) (92,445)
Net Advertising Revenue 232,200 248,454 273,299 317,027 342,389 369,781
Advertising Revenue Based on SPEJ Research
Advertising Rate Yen 000's/Hr 180 193 212 246 265 287
Gross Advertising Revenue 232,200 248,454 273,299 317,027 342,389 369,781
Commission 20% (46,440) (49,691) (54,660) (63,405) (68,478) (73,956)
Net Advertising Revenue 185,760 198,763 218,640 253,622 273,912 295,825
Risk (46,440) (49,691) (54,660) (63,405) (68,478) (73,956)
Programming Assumptions
19
• So-net has provided limited information regarding ADTV’s programming library• Current library has about 1,000 hours with older programs primarily from Korea, China and Taiwan• To secure additional distribution, SPT will invest in 4 new Korean dramas each year beginning in FY14, 6 new Korean
dramas each year beginning in FY15 and 9 original programs each year beginning in FY15• Plan to launch 2 new Korean drama series per month to promote the J:COM launch beginning in January 2014• No localization expense required since ADTV acquires the programs already localized
FY13 FY14 FY15 FY16 FY17 FY18YEN 000's So-Net Budget Year 1 Year 2 Year 3 Year 4 Year 5
Existing Programming Library
Hours 1,071 1,071 1,071 1,071 1,071 1,071
Average Cost/Hour YEN 000's 222 222 222 228 235 242
Total Annual Expense YEN 000's 237,440 237,440 237,440 244,563 251,900 259,457
Additional Programming Investment - Phase 1
New Korean Drama Series 4 4 4 4 4
Episodes per Series 20 20 20 20 20
Cost/Episode YEN 000's 400 400 412 424 437
Annual Incremental Programming Investment - Phase 1 YEN 000's 32,000 32,000 32,960 33,949 34,967
Additional Programming Investment - Phase 2
New Korean Drama Series 6 6 6 6
Episodes per Series 20 20 20 20
Cost/Episode YEN 000's 400 412 424 437
Annual Incremental Programming Investment - Phase 2 YEN 000's 48,000 49,440 50,923 52,451
New Origial Programs 9 9 9 9
Episodes per Series 1 1 1 1
Cost/Episode YEN 000's 1,500 1,545 1,591 1,639
Annual Incremental Programming Investment - Phase 2 YEN 000's 13,500 13,905 14,322 14,752
Total Annual Incremental Programming Investment - Phase 2 YEN 000's 61,500 63,345 65,245 67,203
Total Annual Programming Expense YEN 000's 237,440 269,440 330,940 340,868 351,094 361,627
Programming Schedule – Current
20
Mon day Tue s d ay We dn e s d ay Th u rs d ay Frid ay S at u rday S u nd ay
5 00 00 00
6 00 00
7
30 30
830 30 30
930 30
10 00 00 Kore an Ne w t it le 3 00 Kore an Ne w t it le 3
x 5 e ps . x 5 e ps .
11
12 00
1
2 00
3
4 00
5
6 00 00 00
7
8 00 00 00
9 00 00
00 30 Kore an Ne w5 <1s t Run> 30 Kore an Ne w 5 <1s t Run>
10
1130 30 30
0
1
30 45
230 30 30
3 15
30
4 00
55 Informat ion
Kore an MovieKore an Library 2 (Re pe at ) 5e ps .
Kore an Ne w t it le 2 <2nd Run>
Kore an Varie t y 2 (Re pe at )
Kore an Varie ty 1 (Re pe at )
Chine s e Drama 1 (Re pe at)
Kore an MovieTaiwan Drama 1
Kore an Library 3 (Re pe at )
Taiwan Drama2 (Re pe at)Chine s e Drama 1(Re pe at)
Taiwan Drama2
Kore an Library 4
Informat ion
Kore an Ne w t it le 1 <1s t Run>
Informat ion
Chine s e Drama 1Kore an Ne w4
<2nd Run>
Kore an Varie t y 1 Taiwan Varie t y 1 (Re pe at )
Taiwan Drama 1 (Re pe at ) Taiwan Varie t y 1 (Re pe at )
Kore an Libraly 1 (Re pe at )
Informat ion Informat ion
Taiwan Drama 2 (Re pe at )
Kore an Ne w t it le 4 <2nd Run> (Re pe at )
Kore an Varie t y 2Taiwan Varie t y 1Kore an Library 2
Informat ion
Kore an Ne w t it le 2 <2nd Run> (Re pe at )
Informat ion
Kore an Library 3
Kore an Library 1
Kore an Ne w t it le 1 <1s t Run> (Re pe at )
Programming Schedule – SPT Proposal
21
Mon da y Tu e s d ay We d n e s da y Th u rs d ay Frid ay S atu rd ay S u n d ay
5 00 00 00
6 00 00
7
30 30
830 30 30
930 30
10 00 00 00
11
12 00
1 00
2
3
4 00
5
6 30 30 30
7 00
8 00 00
9 00 00
30 Kore an Ne w5 <1s t Run> 30 Kore an Ne w 5 <1s t Run>
10
1130 30
0 00 00 00
1
45
2 00
00
3 15
30
4 00
55 Informat ionKore an Varie ty 2 (Re pe at )
Kore an Ne w t it le 1 <1s t Run>
BEEF- UP Kore an Ne w Title 6 <1s t Run>
Info rmat ionMo vie
Taiwan Drama 1
Kore an Library 3
Kore an Varie ty 1 (Re pe at )
Chine s e Drama 1 (Re pe at)
Informat ion
Kore an MovieKore an Library 2 (Re pe at ) 5e ps .
Kore an Library 1
Chine s e Drama 1
Kore an Varie ty 1 Taiwan Varie ty 1 (Re pe at )
Taiwan Drama2Kore an Ne w4
<2nd Run>
Chine s e Drama 1(Re pe at) Taiwan Drama2 (Re pe at)
Kore an Ne w t it le 2 <2nd Run> (Re pe at )
Informat ion Informat ion
Kore an Library 2 Taiwan Varie ty 1 Kore an Varie ty 2
Informat ion Informat ion
Kore an Ne w t it le 1 <1 s t Run> (Re pe at )
Kore an Ne w Tit le 3 <2nd Run> x 5 e ps .
Kore an Ne w Tit le 3 <2nd Run> x 5 e ps .
Kore an Library 4
Kore an Ne w t it le 2 <2nd Run>
BEEF- UP Kore an Ne w Title 6 <1s t Run> (Re pe at)
Taiwan Varie ty 1 (Re pe at ) Taiwan Drama 2 (Re pe at )
Kore an Library 1 (Re pe at )
Taiwan Drama 1 (Re pe at )
Kore an Ne w t it le 4 <2nd Run> (Re pe at )
General Manager
Programming Manager
Programming Staff
Network Sales Staff
Operations Manager
Operations Staff
Ad Sales Manager
Ad Sales Staff [Temp]
Ad Sales Staff [Temp]
Marketing Manager
[New]
Staffing Assumptions
22
• ADTV currently operates with 7 Permanent and 2 Temp Staff• To provide proper marketing support, the SPT business plan adds one Marketing Manager
General Manager●Programming Manager
HEADCOUNTPermanent Staff: 8.0Temp Staff: 2.0