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DAMTVPhone: 876-895-8849

Email: [email protected]: http://damtv-

damproductions.yolasite.com/

“Enforcing Youthful Innovation”

Business Plan

Overview

DAMTV is a newly illustrated Digital Television Station. A digital TV station is a physical or

virtual point of origin, or broadcaster, of digital television programming. Typically, a digital TV

receiver of some kind is required to view these transmissions on a television. This digital format

was selected under the guise that DAMTV will be transmitting using traditional means, as well

mailto:[email protected]

http://www.wisegeek.com/what-is-digital-tv.htm

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as by means of the internet. The letters DAM are acrymonous of the terms: Determination,

Advancement and Motivation. It is with these templates in mind that DAMTV strives to be the

best sporting network in the world.DAMTV was created under the conception of being a sports

oriented station. However, DAMTV is not limited to only sports orientation, it is a new

innovation that seeks to satisfy viewers’ thirst for comedy, news, enjoyment (in the form of

cartoons, animes and music videos, movies), as well as realism (documentaries). DAMTV is

open to almost all programming, but there is an ethical line that cannot and will not be crossed.

The airing of pornographic material, and the like, is highly prohibited. Also any material that

breaches the copyright act or the intellectual property rights act is highly prohibited. DAMTV is

meant to be a overall family friendly station, so most of the content will contain features that the

entire family can enjoy. Despite this, all programs will have program advisories prior to the

program. This is to ensure that parents and guardians are completely knowledgeable, if there are

programs that their children should not be viewing.

In relation to quality, DAMTV is very keen on bringing excellent quality programs to the

audience. Excellent quality leads to an excellent television station. In keeping this in mind,

almost all programs are of High Definition quality or better. If it is found that any program falls

below High Definition quality, steps will be made to correct the quality of the programs, i.e. they

will be taken off air and rectified. All of the above is in reference to the values and standards that

DAMTV holds. They are very high standards, but they will be met, because DAMTV is not just


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a television station, it is the wave of the future, and as its tag line states, It is a medium that will

be “Enforcing Youthful Innovation”.

One of the most interesting things about DAMTV is the fact that DAMTV seeks to infiltrate

Jamaica and reveal its beauty, athleticism and creativity to the world via the internet. Jamaica has

a very cultural and downright “sporty” country. This fact is constantly taken for granted and not

appreciated. DAMTV in revealing these qualities to the world will denote and spark appreciation

for Jamaican creativity, culture, sports and by extension Jamaica.

Still maintaining all of this in mind, DAMTV’s first year activities will be a lot more subdued. In

that for the first year of activity, DAMTV will go under the name of DAM Productions. DAM

Productions will be mainly geared towards the creation and sale of footage (sports,

documentaries etc.). Though creation and sale of footage will be the main priority of DAM

Productions, streaming via the net will also be commenced. The reason for this is that, the

management is seeking to create a reputation as a top quality firm in the media industry before

expanding into full scale streaming operations. After the first year, DAM Productions will then

expand into a full scale transmission and streaming.


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Executive Summary

The Purpose of DAMTV is to bring high quality television programming to Jamaica and the

world. DAMTV, as stated earlier, is a primarily sports oriented digital television station. In that

most of the programs that will be aired on DAMTV will be either directly or indirectly related to

sports. DAMTV will seek to exploit traditional as well as non-traditional means of transmission,

in that, DAMTV will be a web based in addition to local cable station. This will both increase the

reach of DAMTV along with meet the growing revolution called the “www syndrome”.

Naturally among its plans DAMTV will be embarking upon a major marketing and promotional

campaign. Various mediums will be used to increase and ensure the success of DAMTV. Among

these are Blogs and Blog sites, Print media, Social Networks etc. The measures to be employed


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and there expected results will be further detailed below.

Mission Statement

DAMTV seeks to expose and empower Jamaica’s wide sporting assets. This exposure and

empowerment will come through the utilization of never before seen quality, determination,

innovation and hard work. These templates will be employed, to ensure the success of not only

DAMTV, but also the untapped sporting genius of Jamaicans.

SWOT Analysis

Strengths

The first High Quality, informative, digital and Internet based Sports channel in Jamaica

Dedicated team of professionals

Wide range of services provided

Management is very wary of cost

Weaknesses

Limited marketing expertise

Location of Company is not close to many major sporting locations

New companies are usually judged harshly


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Why Use The Internet?

There have been several investigations done. Below are diagrams which represent what was

found:

INTERNET USAGE STATISTICSThe Internet Big Picture

World Internet Users and Population Stats

WORLD INTERNET USAGE AND POPULATION STATISTICS

Opportunities

There is an increased development and reliance on the internet market

The Sports Television market in the Caribbean is very lacking and likewise has no real competition or quality programming.

Threats

Competitors have superior access to channels of distribution.

Competitors have more access to equipment.


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World Regions Population( 2009 Est.)

Internet UsersDec. 31, 2000

Internet UsersLatest Data

Penetration(% Population)

Growth2000-2009

Users %of Table

Africa 991,002,342 4,514,400 67,371,700 6.8 % 1,392.4 % 3.9 %Asia 3,808,070,503 114,304,000 738,257,230 19.4 % 545.9 % 42.6 %Europe 803,850,858 105,096,093 418,029,796 52.0 % 297.8 % 24.1 %Middle East 202,687,005 3,284,800 57,425,046 28.3 % 1,648.2 % 3.3 %North America 340,831,831 108,096,800 252,908,000 74.2 % 134.0 % 14.6 %Latin America/Caribbean 586,662,468 18,068,919 179,031,479 30.5 % 890.8 % 10.3 %Oceania / Australia 34,700,201 7,620,480 20,970,490 60.4 % 175.2 % 1.2 %WORLD TOTAL 6,767,805,208 360,985,492 1,733,993,741 25.6 % 380.3 % 100.0 %


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Latin American Internet UsageLATIN AMERICA

COUNTRIES / REGIONSPopulation( Est. 2009 )

Internet Users, Latest Data

% Population( Penetration )

User Growth( 2000-2009 )

% Usersin Table

Argentina 40,913,584 20,000,000 48.9 % 700.0 % 11.4 %Bolivia 9,775,246 1,000,000 10.2 % 733.3 % 0.6 %Brazil 198,739,269 67,510,400 34.0 % 1,250.2 % 38.6 %Chile 16,601,707 8,368,036 50.4 % 376.2 % 4.8 %Colombia 43,677,372 19,792,718 45.3 % 2,154.3 % 11.3 %Costa Rica 4,253,877 1,460,000 34.3 % 500.0 % 0.8 %Cuba 11,451,652 1,450,000 12.7 % 2,316.7 % 0.8 %Dominican Republic 9,650,054 3,000,000 31.1 % 5,354.5 % 1.7 %Ecuador 14,573,101 1,759,472 12.1 % 877.5 % 1.0 %El Salvador 7,185,218 826,000 11.5 % 1,965.0 % 0.5 %Guatemala 13,276,517 1,960,000 14.8 % 2,915.4 % 1.1 %Honduras 7,833,696 658,500 8.4 % 1.546.3 % 0.4 %Mexico 111,211,789 27,600,000 24.8 % 917.5 % 15.8 %Nicaragua 5,891,199 185,000 3.1 % 270.0 % 0.1 %Panama 3,360,474 934,500 27.8 % 1,976.7 % 0.5 %Paraguay 6,995,655 894,200 12.8 % 4,371.0 % 0.5 %Peru 29,546,963 7,636,400 25.8 % 205.5 % 4.4 %Puerto Rico 3,966,213 1,000,000 25.2 % 400.0 % 0.6 %Uruguay 3,494,382 1,340,000 38.3 % 262.2 % 0.8 %Venezuela 26,814,843 7,552,570 28.2 % 695.0 % 4.3 %TOTAL 569,212,811 174,928,796 30.7 % 883.1 % 100.0 %


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Internet Usage and Population Statistics for the CaribbeanCARIBBEAN Population

( 2009 Est. )% Pop.Carib.

Internet Usage,Latest Data

% Population(Penetration)

User Growth( 2000-2009 )

% UsersCarib.

Anguilla 14,436 0.0 % 4,500 31.2 % 389.7 % 0.0 %Antigua & Barbuda 85,632 0.2 % 65,000 75.9 % 1,200.0 % 0.7 %Aruba 103,065 0.3 % 24,000 23.3 % 500.0 % 0.3 %Bahamas 307,552 0.8 % 142,000 46.2 % 984.0 % 1.5 %Barbados 284,589 0.7 % 188,000 66.1 % 3,033.3 % 2.0 %British Virgin Islands 24,491 0.1 % 4,000 16.3 % 0.0 % n/a %Cayman Islands 49,035 0.1 % 23,000 46.9 % 194.9 % 0.2 %Cuba 11,451,652 28.1 % 1,450,000 12.7 % 2,316.7 % 15.7 %Dominica 72,660 0.2 % 27,500 37.8 % 1,275.0 % 0.3 %Dominican Republic 9,650,054 23.7 % 3,000,000 31.1 % 5,354.5 % 32.6 %Grenada 90,739 0.2 % 24,000 26.4 % 485.4 % 0.3 %Guadeloupe 441,838 1.1 % 103,000 23.3 % 1,187.5 % 1.1 %Haiti 9,035,536 22.2 % 1,000,000 11.1 % 16,566.7 % 10.9 %Jamaica 2,825,928 6.9 % 1,540,000 54.5 % 2,466.7 % 16.7 %Martinique 403,857 1.0 % 160,000 39.6 % 3,100.0 % 1.7 %Monserrat 5,097 0.0 % 1,200 23.5 % 0.0 % n/a %Netherlands Antilles 227,049 0.6 % 2,000 0.9 % 0.0 % n/a %Puerto Rico 3,966,213 9.7 % 1,000,000 25.2 % 400.0 % 10.9 %St. Barthélemy (FR) 7,448 0.0 % - - n/a 0.0 % n/a St. Kitts & Nevis 40,131 0.1 % 16,000 39.9 % 700.0 % 0.2 %Saint Lucia 160,267 0.4 % 110,000 68.6 % 3,566.7 % 1.2 %St. Martin (FR) 29,820 0.0 % - - n/a 0.0 % n/a St. Vincent & Grenadines 104,574 0.3 % 66,000 63.1 % 1,785.7 % 0.7 %Trinidad & Tobago 1,229,953 3.0 % 227.000 18.5 % 127.0 % 2.5 %Turks & Caicos 22,942 0.1 % n/a 0.0 % 0.0 % n/a %US Virgin Islands 109,825 0.3 % 30,000 27.3 % 150.0 % 0.3 %TOTAL CARIBBEAN 40,744,383 100.0 % 9,207,200 22.6 % 1,545.9 % 100.0 %

Jamaica Internet Usage and Population Statistics:

YEAR Users Population % Pen. GDP p.c.* Usage Source2000 60,000 2,597,100 2.3 % US$ 3,056 ITU2002 600,000 2,675,504 22.4 % US$ 3,229 ITU


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2006 1,067,000 2,692,569 39.6 % US$ 2,900 ITU2008 1,500,000 2,804,332 53.5 % US$ 3,710 ITU

Why Use The Internet?

As can easily be noted in the statistics above, the internet is becoming more and more popular

among persons in Jamaica, the Caribbean and even beyond. The internet is a like an online

community and shopping mall. But it is not a physical community or shopping mall, where you

walk around (expending energy and expend resources like fuel etc.) and search for items and

hang out. The internet is a virtual replica of everyday life. It encompasses Finance, politics,

media, socializing among other things; and its transmission rate is beyond anything that has ever

been recorded in history. In short, the internet is a high tech, all encompassing, attractive,

efficient and elevated transmitting network, which caters for all. These qualities, according to

marketing professionals, have led to the growing popularity of Internet Television Stations. Even

though traditional forms of television transmission are not obsolete, their popularity is

decreasing, and in the wake of the decreasing popularity of traditional television, there is an

increase in programs that are being watched online. One reason for this is, internet television is

cheaper on post production. The post production cost of using the internet is greatly reduced

because of the time that is taken to upload files as well as the amount of man power and

resources needed. Also, internet television can and does encompass a greater audience. The reach

of the internet is infinite. In that no one can really measure how far internet transmissions do or


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can go. With that, a typical internet based program will reach a larger audience. There are many

other reasons why the internet can be seen as a excellent point of transmission. Nonetheless, only

one more will be raised. Internet television gives a lot of flexibility and by extension control to

broadcasters and viewers alike. A broadcaster can control what happens on his television station

easier and from anywhere. All a broadcaster really needs is a Computer system and he can

navigate and edit his programming. In the case of the viewers, they can control more adequately

what is shown on the screen, as well as they can see what is going on on the television

irrespective of where they are. Typical a local television station cannot expend its countries

boundaries, but this is not the case of an internet television station.

Conversely, the internet is not merely full of positives; there are a variety of negatives that

surround internet television. They are listed below:

Unrelated links in the members section Broken links Links to Internet TV companies who ask for more money Unresponsive "Contact Us" forms No support

These negatives are easily combated and DAMTV will seek to do so. A few strategies that will

be used to overcome and surpass the listed negatives will be revealed subsequently.

When asked in a recent poll, how often you watch videos, news etc on the internet, the response

was stated as the following:

Less than Half an hour per day


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17%

Less than an hour 23%

1-3 hours 50%

more than 3 hours 10%

DAMTV Services

A series of services will be presented by DAMTV. At the onset, DAMTV will be producing/

creating and developing programs for other media houses to use as well as for the personal use of

DAMTV. DAMTV is first and foremost a media house, and production will be primary on its

agenda. In accordance with its purpose, mainly sports productions will be created by DAMTV;


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but other programs will not be exempt. Documentaries, advertisements, and short films will also

be on the production agenda for DAMTV.

DAMTV will also serve as a mean of filming and presenting functions and events on a

contractual basis. Any institution, federation, association or otherwise group or individual that

does not override or contradict the ethics and principles of DAMTV will be able to hire DAMTV

on a contractual basis to do independent filming.

Music videos are an imperative part of music development in modern society. Various

statistical models have shown this. For this reason, DAMTV is also directed at creating quality

music videos, and by extension improving the overall class of Jamaican music videos.

DAMTV is all for development and in light of this, it will seek to cover as much sporting

events as possible, and present it in a high quality manner. It has been noted that currently sports

broadcast and general recording is not given very high priority. For this reason, among others,

sporting coverage is very lacking in quality and professionalism. DAMTV seeks to correct this.

Marketing Strategies

As was stated previously, there will be an influx of advertising mediums used. Each medium of advertising will be listed below and there Advantages and draw backs listed.

Newspaper


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Advantages

Allows you to reach a huge number of people in a given geographic area You have the flexibility in deciding the ad size and placement within the newspaper Your ad can be as large as necessary to communicate as much of a story as you care to

tell Exposure to your ad is not limited; readers can go back to your message again and again

if so desired. Free help in creating and producing ad copy is usually available Quick turn-around helps your ad reflect the changing market conditions. The ad you

decide to run today can be in your customers' hands in one to two days.

Disadvantages

Ad space can be expensive Poor photo reproduction limits creativity Expect your ad to have a short shelf life, as newspapers are usually read once and then

discarded. Newspapers are a highly visible medium, so your competitors can quickly react to your

prices With the increasing popularity of the Internet, newspapers face declining readership and

market penetration. A growing number of readers now skip the print version of the newspaper (and hence the print ads) and instead read the online version of the publication.

Blogs and Blog Sites

Advantages and Disadvantages

The richness of keywords in automatic posts makes them SEO-friendly (search engine optimization). The keywords and tags imbedded in your posts attract online traffic. A site that best matches searched keywords gets the top rank.

Another great benefit of automated blogs is that they can be updated automatically.


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Automatic updates would occur at a fixed time and date even if you are nowhere near your computer. It also allows for multiple blog updates all at once. With this setting, your updates are sure to be on-time always.

Automatic blog posts also help you build an extensive and reputable blog and site. The more important information that your blog contains, the more it shows you know about a certain industry, niche, product and so on. A daily dose of additional information makes your consumers eventually trust your site. Since it is now easier to generate content for your blog, daily updates become a hassle-free task. The more updated the information and the useful amounts of it will show consumers that you really do know the business that you are in and that you are someone that they can do business with and ultimately trust.

As mentioned, automatic blog posts can be updated automatically at certain times on certain dates and contain certain and specific information. Having these automatic updates keeps your site frequently updated so your site and blog are always updated with the most important and pertinent information. You want to maintain a blog that is organized and contains information for consumers and people of interest everyday or at least once a week to keep them interested. These simple components may not seem much but they can do a great deal for you.

Radio

Advantages

Radio is a universal medium enjoyed by people at one time or another during the day, at home, at work, and even in the car.

The vast array of radio program formats offers to efficiently target your advertising dollars to narrowly defined segments of consumers most likely to respond to your offer.


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Gives your business personality through the creation of campaigns using sounds and voices

Free creative help is often available Rates can generally be negotiated During the past ten years, radio rates have seen less inflation than those for other media

Disadvantages

Because radio listeners are spread over many stations, you may have to advertise simultaneously on several stations to reach your target audience

Listeners cannot go back to your ads to go over important points Ads are an interruption in the entertainment. Because of this, a radio ad may require

multiple exposure to break through the listener's "tune-out" factor and ensure message retention

Radio is a background medium. Most listeners are doing something else while listening, which means that your ad has to work hard to get their attention

Telemarketing Telephone sales, or telemarketing, are an effective system for introducing a company to a prospect.

Advantages


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It's cost-effective compared to direct sales. Results are highly measurable. You can get a lot of information across if your script is properly structured. If outsourcing, set-up cost is minimal Increased efficiency since you can reach many more prospects by phone than you can

with in-person sales calls. Great tool to improve relationship and maintain contact with existing customers, as well

as to introduce new products to them Makes it easy to expand sales territory as the phone allows you to call local, national and

even global prospects. There is an increase the amount of persons who are using mobile phones, thus the reach

of the script will be extensive Not many businesses use telemarketing

Disadvantages

An increasing number of people have become averse to telemarketing. May need to hire a professional to prepare a well-crafted and effective script. May be very expensive.

Specialty Advertising

This kind of advertising entails the use of imprinted, useful, or decorative products called advertising specialties, such as key chains, computer mouse, mugs, etc. These articles are distributed for free; recipients need not purchase or make a contribution to receive these items.

Advantages


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Flexibility of use High selectivity factor as these items can be distributed only to the target market. If done well, target audience may decide to keep the items, hence promoting long

retention and constant exposure Availability of wide range of inexpensive items that can be purchased at a low price. They can create instant awareness. They can generate goodwill in receiver The items can be used to supplement other promotional efforts and media (e.g.

distributed during trade shows).

Disadvantages

Targeting your market is difficult. This can be an inappropriate medium for some businesses. It is difficult to find items that are appropriate for certain businesses Longer lead time in developing the message and promotional product Possibility of saturation in some items and audiences Wrong choice of product or poor creative may cheapen the image of advertiser

Tactical Programs

Target market

The proposed target audience is: both male and females between the ages of 14 and 35. Race and


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country of origin will not be a factor, as all races and countries will be included. This is in

keeping with Jamaica’s Motto, Out of Many One People.

Pricing

The pricing system is varied depending on the job and extent of the job. All prices are

negotiable; however, use of resources and man power must and will be taken into consideration.

Other Considerations

A key consideration of DAMTV is communication. For this reason a great deal of emphasis will

be placed on communicating with the audience. This will be done through the Company’s main

website. Other communication will take the form of phone calls and media research.


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Disclaimer

Figures stated in the attached report are derived based on assumptions and information provided

by upon market projections. These assumptions and information will change over time. Some of

the information presented is based on current tax and legislation which are subject to change.

Information provided in the attached report is general in nature and should NOT be construed as

providing legal, accounting and/or tax misconceptions.

Executive Summary

The aim is to make DAMTV profitable within its first year. As relayed earlier, the first few

months of operations for DAMTV will be geared towards production development and creation

and distribution of footage. These productions will generate the bulk of the revenue for the first

year of DAMTV’s existence. Extensive employment of marketing strategies will attract clients

and sponsors. With this, the basis of DAMTV the digital sports station will increase in

development.

The following figures and statistics are mainly assumptive, but they are based on realistic and


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active statistics:

According to statistics, most entertainment and sporting activities are executed during the

summer period beginning July (Statistical institute of Jamaica). There are no definite figures, but

researches done have proven this. With this increase in activities, it is without a doubt that there

will be growth in the revenue sector of DAMTV. There will be an estimated minimum of 30%

increase in revenue and sales. This revenue increase coincides with the market research that has

been conducted. Estimates for sales revenue and growth are intentionally low, while anticipated

expenses are exaggerated to the high side to illustrate a worst case scenario.

Net sales were evenly derived from services and product sales (footage sale). All costs were

included in the cost of sales area of the profit and loss table. Product sales are very important to

the overall revenue.

A base sum of $20,000 was used to represent revenue expected via sponsors and investors; an

estimated increase figure of 21.9%, per month for the first year, was used to represent revenue to

be derived from sponsors and grants. Outside of Sponsors and grants, there is an expectation that

the sale of footage will yield revenue from various organizations and associations. This is

expected to be a high income earner; however, to be on the safe side a low ball approach was

taken. An base influx of $25,000 is estimated per month. An average increase of 18.6% is also

expected. In the way of being hired for functions and events (services), there is an estimated

income of $15,000 per month being projected. This is a miniscule amount to what is being

expected. But considering the status of the company, this is a realistic sum.An average increase


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of 9.4% is being expected for this area. Quality music videos are on the demand in Jamaica

(according to market research), in loght of this an estimated base figure of $30,000 is being

expected from the creation and sale of music videos. A average increase of 14.6% per month is

expected for music videos. The creation of advertisements are also wxpected to be a key income

earner. However, advertisements will not be taken into the repetoire of DAMTV until a series of

promotional activities are undertaken. When advertisement construction is undertaken, a base

amout of $30,000 is expected.The projected growth is unsteady and very unsure, for this reason,

it will not be listed. Lastly, short Films and Features will also be developed for sale and some

personal use. As withadvertisements, this will take place after promotional activities and the

projected growth is too uncertain to be adequately displayed.

To assure the start-up funds lender that the owners are financially stable, a personal financial

statement is enclosed illustrating other sources of income that include interest and dividend

income from investments, salary income, and commission income.

What should also be noted is that there are funds being laid away for reimbursement of

long term debt. This is listed as depreciation.

Competitive Comparison

Having heard all that has been said, the question arises, what makes DAMTV different

from traditional sporting stations in the region? The answer is quite simple, QUALITY!!!


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DAMTV seeks to supersede all present sporting networks in quality. This improvement in

quality will be directly related to the amount of professional man power and equipment that will

be assigned to each shoot. Also DAMTV is dedicated to the airing of more live sporting footage

than has ever been seen in the region. All of this coupled with a high level of consideration for

what the audience wants to see, will equal to a new innovation in sporting television in the region

and maybe even the world.

Management Team

The management team consists of the following persons:

Dwayne Gayle: CEO/Owner: Mr. Gayle has been in the media industry for a collective period of

four (4) years. He has worked as a freelance writer for the Jamaica Observer, he has also worked

at Juice TV in various capacities (mainly camera operation), and Northern Caribbean

University’s Media Services (again in various capacities: producer, audio engineer, camera

operation, editor). These combined years of experience have yielded what can now be know as a

very rounded media person.

Personnel Plan


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For the early stages of the company, a large amount of persons is not necessary. At

maximum only five (5) persons are truly necessary. As expansion takes flight, personnel will

also increase, but at present only 5 persons are necessary. The positions that these persons will

take, is as follows. A receptionist will be hired to greet persons and take calls and the like.

Outside of a receptionist, there will be two camera operators/ reporters, one audio engineer and

an editor.

The editor, receptionist and audio engineer will be hired as contract workers, while the remainder

of the personnel will be paid on a sliding commission scale based on the amount of revenue

being created.

Below is a table which details the personnel plan (all figures are monthly):

Year 2010 2011 2012 2013Receptionist $0 $201,600 $211,680 $235,200Editor $192, 000 $276,000 $289,800 $304,290Onscreen Personnel $0 $276,000 $289,800 $304,290Others $192,000 $264,000 $277,200 $291,060Total Payroll $427,200 $1,008,000 $1,057,800 $1,111,320

NB.: The above is the maximum payables; it is not necessarily the official figures for personnel.

Profit/Loss Analysis

Twelve-month profit and loss projection

IND. % Mar-10

% B/A Apr-10 % May-10 % Jun-10 % Jul-10 %

Revenue (Sales)

Services 15,000 16.7 15,000 13.0 15,000 6.7 25,000 10.6 25,000 9.4


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Sports Footage 25,000 27.8 30,000 26.1 50,000 22.2 50,000 21.3 60,000 22.6

Advertisements 0 0 30,000 6.8 30,000 6.8 30,000 6.8

Music Videos 30,000 33.3 30,000 26.1 30,000 13.3 30,000 12.8 50,000 18.9

Short Films/ Features 0 0.0 0 0.0 60,000 26.7 60,000 25.5 60,000 22.6

Grants and Sponsors 20,000 22.2 40,000 34.8 40,000 17.8 40,000 17.0 40,000 15.1

Total Revenue (Sales) 90,000 100.0

115,000

100.0

225,000 93.5 235,00

0 94.0 265,000

95.5

Cost of Sales

Services 6,000 40.0 6,000 60.0 6,000 40.0 16,000 64.0 16,000 64.0

Sports Footage 10,000 40.0 12,000 40.0 18,000 36.0 20,000 40.0 20,000 33.3

Advertisements 0 6.7 0 6.7 15,000 6.7 15,000 6.7 20,000 8.9

Music Videos 12,000 40.0 12,000 40.0 14,000 46.7 16,000 53.3 16,000 32.0

Short Films 0 - 0 - 0 0.0 0 0.0 0 0.0

Grant and Sponsors 5,000 25.0 5,000 12.5 5,000 12.5 5,000 12.5 5,000 12.5

Total Cost of Sales 33,000 36.7 35,000 30.4 58,000 25.8 72,000 30.6 77,000 29.1

Gross Profit 57,000 63.3 80,000 69.6 167,000 74.2 163,00

0 69.4 188,000

70.9

Expenses

Payroll expenses 35,600 39.6 35,600 31.0 35,600 15.8 35,600 15.1 35,600 13.4

Supplies (office and operating) 7,000 7.8 7,000 6.1 7,000 3.1 8,000 3.4 8,000 3.0

Repairs and maintenance 10,000 11.1 10,000 8.7 10,000 4.4 12,000 5.1 12,000 4.5

Advertising & Promotion 20,000 22.2 20,000 17.4 30,000 13.3 30,000 12.8 30,000 11.

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Car, delivery and travel 30,000 33.3 30,000 26.1 30,000 13.3 32,000 13.6 32,000 12.1

Lease 28,000 31.1 28,000 24.3 28,000 12.4 28,000 11.9 28,000 10.6

Telephone 3,000 3.3 3,000 2.6 3,000 1.3 3,500 1.5 3,500 1.3

Utilities 40,000 44.4 40,000 34.8 45,000 20.0 47,000 20.0 47,000 17.7

Insurance 5,000 5.6 5,000 4.3 5,000 2.2 5,000 2.1 5,000 1.9

Taxes 8,750 9.7 8,750 7.6 8,750 3.9 10,000 4.3 10,000 3.8


26




Depreciation 25,000 27.8 25,000 21.7 25,000 11.1 25,000 10.6 25,000 9.4

Misc. (unspecified) 20,000 22.2 20,000 17.4 20,000 8.9 20,000 8.5 20,000 7.5

Total Expenses 232,350

258.2

232,350

202.0

247,350

109.9

256,100

109.0

256,100

96.6

Net Profit -

175,350

-194.

8

-152,35

0

-132.

5-80,350 -35.7 -93,100 -39.6 -68,100

-25.

7

IND. % Aug-10 % Sep-10 % Oct-10 % Nov-10 % Dec-10 %

Revenue (Sales)

Services 28,000 10.1 30,000 10.

0 30,000 11.1 32,000 10.3 32,000 10.3

Sports Footage 60,000 21.6 60,000 20.

0 50,000 18.5 50,000 16.0 50,000 16.0

Advertisements 30,000 6.8 50,000 11.4 50,000 11.4 50,000 11.

4 50,000 11.4

Music Videos 50,000 18.0 50,000 16.

7 30,000 11.1 40,000 12.8 40,000 12.8

Short Films/ Features 60,000 21.6 60,000 20.

0 60,000 22.2 60,000 19.2 60,000 19.2

Grants and Sponsors 50,000 18.0 50,000 16.

7 50,000 18.5 80,000 25.6 80,000 25.6

Total Revenue (Sales) 278,000 96.0 300,000 94.

7 270,000 92.9 312,000 95.4 312,000 95.4

Cost of Sales

Services 16,000 57.1 20,000 66.

7 20,000 66.7 24,000 75.0 16,000 50.0

Sports Footage 20,000 33.3 22,000 36.

7 22,000 44.0 25,000 50.0 23,000 46.0

Advertisements 20,000 8.9 20,000 8.9 20,000 8.9 20,000 8.9 20,000 8.9

Music Videos 18,000 36.0 14,000 28.

0 16,000 53.3 16,000 40.0 18,000 45.0

Short Films 25,000 41.7 25,000 41.

7 25,000 41.7 25,000 41.7 20,000 33.3

Grant and Sponsors 5,000 10.0 5,000 10.

0 5,000 10.0 5,000 6.3 5,000 6.3

Total Cost of Sales 104,000 37.4 106,000 35.

3 108,000 40.0 115,000 36.9 102,000 32.7


27




Gross Profit 174,000 62.6 194,000 64.

7 162,000 60.0 197,000 63.1 210,000 67.3

Expenses

Payroll expenses 35,600 12.8 35,600 11.

9 35,600 13.2 35,600 11.4 35,600 11.4

Supplies (office and operating) 9,000 3.2 10,000 3.3 9,000 3.3 10,000 3.2 10,000 3.2

Repairs and maintenance 14,000 5.0 16,000 5.3 16,000 5.9 18,000 5.8 18,000 5.8

Advertising & Promotion 35,000 12.

6 35,000 11.7 35,000 13.0 35,000 11.

2 30,000 9.6

Car, delivery and travel 32,000 11.5 32,000 10.

7 30,000 11.1 30,000 9.6 30,000 9.6

Lease 28,000 10.1 28,000 9.3 28,000 10.4 28,000 9.0 28,000 9.0

Telephone 4,000 1.4 4,000 1.3 4,000 1.5 4,000 1.3 5,000 1.6

Utilities 47,000 16.9 50,000 16.

7 50,000 18.5 52,000 16.7 52,000 16.7

Insurance 5,000 1.8 5,000 1.7 5,000 1.9 5,000 1.6 5,000 1.6

Taxes 10,000 3.6 13,000 4.3 13,000 4.8 13,000 4.2 13,000 4.2

Depreciation 25,000 9.0 25,000 8.3 25,000 9.3 25,000 8.0 25,000 8.0

Misc. (unspecified) 20,000 7.2 20,000 6.7 20,000 7.4 20,000 6.4 20,000 6.4

Total Expenses 264,600 95.2 273,600 91.

2 270,600 100.2 275,600 88.3 271,600 87.1

Net Profit -90,600-

32.6

-79,600-

26.5

-108,600 -40.2 -78,600

-25.

2-61,600 -

19.7

Jan-11 % Feb-11 % YEARLY %Revenue (Sales)

Services 25,000 6.7 25,000 6.7 297,000 9.4

Sports Footage 50,000 13.3 50,000 13.3 585,000 18.6

Advertisements 60,000 13.6 60,000 13.6 440,000

Music Videos 40,000 10.7 40,000 10.7 460,000 14.6

Short Films/ Features 100,000 26.7 100,000 26.7 680,000 21.6


28




Grants and Sponsors 100,000 26.7 100,000 26.7 690,000 21.9

Total Revenue (Sales) 375,000 97.6 375,000 97.6

3,152,000 86.0

Cost of Sales

Services 16,000 64.0 18,000 72.0 180,000 60.6

Sports Footage 22,000 44.0 22,000 44.0 236,000 40.3

Advertisements 22,000 9.8 22,000 9.8 209,000

Music Videos 16,000 40.0 16,000 40.0 184,000 40.0

Short Films 0 0.0 0 0.0 115,000 16.9

Grant and Sponsors 5,000 5.0 5,000 5.0 60,000 8.7

Total Cost of Sales 81,000 21.6 83,000 22.1 984,000 31.2

Gross Profit 294,000 78.4 292,000 77.9

2,168,000 68.8

Expenses

Payroll expenses 35,600 9.5 35,600 9.5 427,200 13.6

Supplies (office and operating) 9,000 2.4 9,000 2.4 103,000 3.3

Repairs and maintenance 20,000 5.3 20,000 5.3 176,000 5.6

Advertising & Promotion 20,000 5.3 20,000 5.3 340,000 10.8

Car, delivery and travel 35,000 9.3 35,000 9.3 374,000 11.9

Lease 28,000 7.5 28,000 7.5 336,000 10.7

Telephone 5,000 1.3 5,000 1.3 110,000 3.5

Utilities 60,000 16.0 60,000 16.0 210,000 6.7

Insurance 7,000 1.9 7,000 1.9 64,000 2.0

Taxes 13,000 3.5 13,000 3.5 134,250 4.3

Depreciation 25,000 6.7 25,000 6.7 300,000 9.5

Misc. (unspecified) 20,000 5.3 20,000 5.3 240,000 7.6

Total Expenses 277,600 74.0 277,600 74.0

2,814,450 89.3

Net Profit 16,400 4.4 14,400 3.8 -646,450 -20.5


29




Break-Even Analysis [DAMTV][Media House]

For the Period: March 8, 2010 - Feb 28, 2011

Selling Price (P): $ 12.00

Break-Even Units (X): -11 units

Break-Even Sales (S):

$ (122.72)

[42]

Fixed Costs

Advertising $ 340,000.00

Accounting, Legal $ -

Depreciation $ 200,400.00

Interest Expense $ -

Insurance $ 64,000.00

Manufacturing $ 374,000.00

Payroll $ 427,200.00

Rent $ 336,000.00

Supplies $ 103,000.00

Taxes (real estate, etc.) $ 134,250.00


30




Utilities $ 210,000.00

Other (specify) $ -

Total Fixed Costs (TFC) $ 2,188,850.00

Variable Costs Variables Costs based on Dollar Amount per Unit

Cost of Goods Sold

$ 108,600.00 per unit

Direct Labor $ 85,440.00 per unit

Overhead $ 20,000.00 per unit

Other (specify) $ - per unit

Sum: $ 214,040.00

Variables Costs based on PercentageCommissions 7.50% per unitOther (specify) 0.00% per unit

Sum: 7.50%

Total Variable Cost per Unit (V) $ 214,040.90

Contribution Margin per unit (CM) = P - V $ (214,028.90)

Contribution Margin Ratio (CMR) = 1 - V / P = CM / P -1783574.2%

Break-Even Point Break-Even Units (X) X = TFC / (P - V) -11 units

Break-Even Sales (S) S = X * P = TFC / CMR $ (122.72)

Targeted Net Income

Targeted Net Income Before Taxes (NIBT) $ 3,152,000.00

Units required to reach targeted NIBT, X = (TFC + NIBT) / (P-V) -25 units

Sales required to reach targeted NIBT, S = (TFC + NIBT) / CMR $ (299.45)

Rate of return on sales before taxes = NIBT / S -1052608.8%

Tax Rate (T) 34%Net Income After Taxes (NIAT) = (1-T)*NIBT $


31




2,080,320.00 Rate of return on sales after taxes = NIAT / S -694721.8%

ChartUnits (X) Fixed Cost Total Cost Total Revenue Profit (Loss)

0 2,188,850.00 2,188,850.00 - (2,188,850.00)

-1.1 1,953,405.01 (1,953,418.21)

-25 -20 -15 -10 -5 0

$(3,000,000)

$(2,000,000)

$(1,000,000)

$-

$1,000,000

$2,000,000

$3,000,000

BEP

Profit (Loss)

Total Revenue

Total Cost

Break-Even Point

Total Cost

Total Revenue

Profit (Loss)

Units (X)


32




2,188,850.00 (13.20)

-2.2 2,188,850.00 1,717,960.02

(26.40) (1,717,986.42)

-3.3 2,188,850.00 1,482,515.03

(39.60) (1,482,554.63)

-4.4 2,188,850.00 1,247,070.04

(52.80) (1,247,122.84)

-5.5 2,188,850.00 1,011,625.05

(66.00) (1,011,691.05)

-6.6 2,188,850.00 776,180.06

(79.20) (776,259.26)

-7.7 2,188,850.00 540,735.07

(92.40) (540,827.47)

-8.8 2,188,850.00 305,290.08

(105.60) (305,395.68)

-9.9 2,188,850.00 69,845.09

(118.80) (69,963.89)

-11 2,188,850.00 (165,599.90)

(132.00) 165,467.90

-12.1 2,188,850.00 (401,044.89)

(145.20) 400,899.69

-13.2 2,188,850.00 (636,489.88)

(158.40) 636,331.48

-14.3 2,188,850.00 (871,934.87)

(171.60) 871,763.27

-15.4 2,188,850.00 (1,107,379.86)

(184.80) 1,107,195.06

-16.5 2,188,850.00 (1,342,824.85)

(198.00) 1,342,626.85

-17.6 2,188,850.00 (1,578,269.84)

(211.20) 1,578,058.64

-18.7 2,188,850.00 (1,813,714.83)

(224.40) 1,813,490.43

-19.8 2,188,850.00 (2,049,159.82)

(237.60) 2,048,922.22

-20.9 2,188,850.00 (2,284,604.81)

(250.80) 2,284,354.01

-22 2,188,850.00 (2,520,049.80)

(264.00) 2,519,785.80


33




Balance sheet

March 2010 Projection

Assets

DV Camera (HVR-HD 1000U) = 200,000

Tripod and Dolly= 100,000

Computer= 80,000

Laptop= 90,000

Scanner/ Printer= 50,000

Vehicle= 350,000


34




Lights= 200,000

Software= $20,000

Services= $15,000

Sports Footage= $25,000

Music Videos= $30,000

Sponsors and Grants= $20,000

Total= 1,810,000

Liabilities

Telephone= $3,000

Utilities= $40,000

Lease= $28,000

Car, Travel and Delivery= $30,000

Payroll Expenses= $35,600

Miscellaneous= $20,000

Supplies= $7,000

Repairs and Maintenance= $10,000

Advertising= $20,000

Taxes= $8750

Depreciation= $25,000

Long Term debt= 1,000,000

Total= 1,224,050


35




Assets Liabilities and Owner’s Equity

Current assets= $110,000 Current Liabilities= $224,050

Net Fixed Assets= 1,700,000 Long Term Debt= 1,000,000

Total Assets= 1,810,000 Owner’s Equity= 585950

Total Liabilities and Owner’s Equity= 1,810,000

Net Working Capital= -$114,050

June 2010 Projection

Assets



Computer= 80,000

Laptop= 90,000



36




Vehicle= 350,000

Lights= 200,000

Software= $20,000

Services= $25,000





Total= 1,935,000

Liabilities

Telephone= $3,500

Utilities= $47,000

Lease= $28,000




Supplies= $7,000



Taxes= $10,000



37




Long Term debt= 933,200

Total= 1,181,000



Net Fixed Assets= 1,700,000 Long Term Debt= 933,200

Total Assets= 1,935,000 Owner’s Equity= 754,000


Net Working Capital= -$12,800

September 2010 Projection

Assets



Computer= 75,000


38




Laptop= 75,000


Vehicle= 350,000

Lights= 200,000

Software= $20,000

Services= $30,000





Short Films= $60,000

Total= $1,340,000

Liabilities

Telephone= $4,000

Utilities= $50,000

Lease= $28,000




Supplies= $10,000



39





Taxes= $13,000


Insurance= $5,000


Total= 1,123,600






Net Working Capital= $26,400

December 2010 Projection

Assets



40





Computer= 75,000

Laptop= 75,000


Vehicle= 350,000

Lights= 200,000

Software= $20,000

Services= $32,000





Short Films= $60,000

Total= $1,352,000

Liabilities

Telephone= $5,000

Utilities= $52,000

Lease= $28,000





41




Supplies= $10,000



Taxes= $13,000


Insurance= $5,000


Total= 1,046,600







February 2010 Projection

Assets



42





Computer= 70,000

Laptop= 70,000


Vehicle= 330,000

Lights= 180,000

Software= $20,000

Services= $25,000





Short Films/ Features $100,000

Total= $1,352,000

Liabilities

Telephone= $5,000

Utilities= $52,000

Lease= $28,000





43




Supplies= $10,000



Taxes= $13,000


Insurance= $5,000


Total= 1,105,100



Net Fixed Assets= 965,000 Long Term Debt= 827,500




Notice of Confidentiality:==============================


44




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