SWOT

Validation and Traction - WatchMojo.com generates 5M streams/month and reaches 20M consumers/month in OOH space. WatchMojo.com Property Growth on Network (Distribution Partners) - All-time streams over 60M videos - Over 50% of revenue is recurring licensing fees from media companies. - No outside investors. Monthly All-Time SWOT - Strengths - Library of nearly 5,000 evergreen, short form professional videos. - Distribution across the Web and out of home digital networks (20M consumers). - Clients include 10 media companies who pay recurring licensing fees. - Signed syndication partnerships in place with leading aggregators. - Have generated 65M streams since 2006 (with WatchMojo.com brand featured in all videos) but views are not driven by hits or specific talent. - Managed to scale content production on low capital to date (less than $1.5M after 3.5 years of operations) - Montreal has a low cost base, government provides R&D tax credits, and company has a lean team of 12 people. - Founder helped build and sell a media company (AskMen to News Corp.) - Content is not a zero-sum game unlike technology. Large content library is defensive asset, it takes time to duplicate asset, unlike technology. SWOT - Weaknesses - Lack owned-and-operated distribution (WatchMojo.com does 100,000 uniques and accounts for 5% of streams), which creates challenges closing advertising agency business, even though we offer more reach across the Web. - Lack management superstars on the team, so to speak. - Montreal is not a media hub, company is Canadian Federal Company, not yet incorporated in USA. - Global reach but no global physical presence, company lacks: a) nationwide sales team and b) content producers around the world. - Brand is recognized by some (all videos bear WatchMojo brand) but unknown by many. - Not only under-funded, but outright un-funded (founder provided seed, clients fund operations) - 5M streams per month is admirable, but not large enough yet to command massive agency interest. OOH is interesting, not yet leading to cross-platform buys. - With no VC, company does not have “floor price” in M&A talks. SWOT - Opportunities - Marketers have rejected UGC as advertise-able, prefer premium content. - Branded content is next “billion dollar opportunity” (quote: Ron Conway). - Can leverage WatchMojo.com brand and develop verticals to continue to grow licensing business (ArcadeMojo, DriveMojo, WorldMojo, EscapeMojo, etc.). - Media companies now favoring “buying” content (be it licensing or M&A) over “building” from within. - Competitors such as Mania TV and Ripe Entertainment have shut down, existing competitors starting to collaborate with us on content, distribution and sales. - Online video is where search was in 2001, a big part of the web ecosystem just morphing a business model. - Clean capital structure with no outside investors, strategic options bountiful. - Company’s losses are tiny, break-even in second half of 2009. SWOT - Threats - Explosion of UGC might make professional video harder to monetize (too much supply of inventory). - There remain a couple of better funded competitors who might outlast us (but who might shut down or forced to scale back by their VCs). - Running out of funds is always a possibility, no matter how low the burn rate. - Cash flow challenges: big A/R and even bigger R&D tax credit receivables. - Online video monetization remains a big challenge. - Online video is fragmented but dominant player in industry (YouTube) sets the rules of engagement. - Media companies might one day totally open up distribution on the Web, this has pros and cons for WatchMojo. - With no owned and operated distribution, monetization might prove futile. Funded Comparables Professional Content Ripe.tv (shut down) Heavy TV Next New Networks Mania TV (shut down) On Networks FunnyorDie DECA MyDamnChannel Revision3 Podtech (shut down) Fora.tv Generate EQAL WatchMojo.com Wallstrip (acquired CBS) LX.tv (acquired NBC) $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Funding 45,000,000 23,000,000 23,000,000 22,000,000 16,000,000 18,000,000 15,000,000 9,000,000 9,000,000 8,000,000 8,000,000 6,000,000 5,000,000 1,000,000 500,000 $ ? $ Exits 5,000,000 10,000,000