L3 video content protection distribution monetization
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L3 Video Content Protection, Distribution & Monetization. “L3”. Scenario Today. MPAA (Motion Picture Association of America ) says Hollywood loses 40% of revenue ($4 billion) to Piracy And Piracy is on the rise – a rock-solid solution is required

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L3 Video Content Protection, Distribution & Monetization

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L3 video content protection distribution monetization

L3

Video Content Protection, Distribution & Monetization


L3 video content protection distribution monetization

“L3”


Scenario today

Scenario Today

  • MPAA (Motion Picture Association of America) says Hollywood loses 40% of revenue ($4 billion) to Piracy

  • And Piracy is on the rise – a rock-solid solution is required

  • Content-Owners give their content to intermediaries losing up to 80% of potential revenue

  • Most try YouTube distribution – sometimes coupled with physicalDVD shipping

  • Premium content (e.g. new movies and eLearning) limited to Ad-supported streaming sites (including YouTube) – No Pricing Power

  • Those who try to self-distribute spend significant amounts on bandwidth, servers and custom DRM solutions


Market friction

Market Friction


Market friction1

Market Friction

In simple terms

  • Video rights owners have to either

    • Accept piracy of their content (from DVDs, YouTube, Tivo etc.)

    • Spend lots of money on Servers, CDNs, and eCommerce (> $5,000 per month)

    • Sell out to Netflix, Hulu and other such aggregators (and sacrifice their own brand)

      OR

    • Use “L3”


The l3 solution

The L3 Solution

L3 Content

  • The mission of Layer 3 Media’s (L3) is to smoothen the movie/video distribution chain through disruptive innovation

    • Protect content owner’s interest

      • Piracy-proof the content

      • Enable content monetization

    • Easy Content Accessibility to audiences globally

      • “Viral”/”Social” distribution (Build on current eco-system)

      • Computers, tablets, Mobile phones, TV – All devices

      • Enable value added services such as sub-titles to enable intermediaries

      • Watch content free with relevant ads

    • Address ground realities of infrastructure

      • Download & Play orStreaming orTorrent orPhysical distribution

L3 is the world’s first LEGAL TORRENT system

Other Devices

Desktop Software

Cable TV/DTH

Cellular Network

ePVR (Enhanced Personal Video Recorder)

Enhanced Cell Phone


More on l3

More on L3

  • Viral distribution/Content Marketing

  • Rock solid copy-protection

  • Easy Payment methods for end customers (including “free-with-ads”)

  • A Cross-platform solution

  • Scalable platform to address Global demand of content

  • Control for Content Owners


How it works

+

How it works

+ L3 =

or

Owner

L3

MobileTV Desktop


Customers

Customers

  • Market Segments in order of focus

    • Independent Film and documentary makers

    • Small Studios and distribution companies in India and other countries

    • How-To video makers (Cooking, Musical Instruments, Exercise videos etc.)

    • Other Semi-Professional content (migrate from YouTube)

    • Music Videos

    • Large Film Distribution companies (including Netflix, Hulu…)

    • Formal eLearning distributors/creators

    • Large Studios (Sony, Disney...)


Industry market

Industry/Market

  • Global market estimated at almost $1 trillion (TAM) and can be grown by this platform

  • Video creation and consumption rising due to lowered technology barriers

  • Recent SOPA and PIPA bills in the US Congress attest to how seriously business and government are taking threat of Piracy

  • Without protection, unfettered distribution cannot happen


Addressable market

Addressable Market

  • Entertainment Piracy alone accounts for at least $6 billion worldwide ($4B Hollywood)

  • We can reduce this by 25% over 5-7 years giving us…

  • Expected share of market in 5-7 years of $2 billion (top-line collections) giving $200MM in revenue with margins over 75%

  • Long term, as this platform becomes mainstream, we can capture much more

  • Growth can only be explosive as adoption will be viral


Management background

Management Background

  • Anil Gupte

    • IIT Kharagpur alumnus

    • Ran a Computer Aided Design Training and Consulting business from 1989 to 1993 with Fortune 100 clients

    • Founded iCinema – one of the first streaming video sites ever (1997)

    • Morphed above into maxNetwork – a service oriented business model with better revenue/profit

    • Grew above business 680% from 2000 to 2004 then sold it

    • Introduced the first Personal Video Recorder in India (2006)

    • 4 US Patents received + 1 more in pipeline


Management background1

Management Background

  • Amit Abhyankar

    • IIM Lucknow Alumnus

    • 12 years of experience in Media and Entertainment

    • As MD of Outreach Motion Pictures has experience of distribution across all platforms - Theatrical, Digital, Satellite and Home Video

    • Has worked as Executive Producer/Director and many other roles in all aspects of Film-making

    • As Founder/Director Outreach Media Services specialized in Management of Brands for Companies and Image for Individuals

    • Most recent film – “Jana GanaMana” (Producer/Director) received Best Director and Best Film (Rural) in India (Maharashtra)


L3 external validation

L3 – External validation

  • Wipro Wharton Global Innovation Challenge – Category Winner

  • DST-Lockheed Martin India Innovation Growth – Winner

  • Economic Times Power of Ideas Competition – Winner (~$40,000 seed investment by CIIE, IIM Ahmedabad)

  • 4 US Patents issued, 1 pending


Competition direct

Competition (Direct)


L3 competitive advantage

L3 – Competitive Advantage

  • L3 is the only secure, multi-pricing, download-cum-streaming-cum-torrent distribution model for video

  • Almost all our competitors can also become our customers

  • Fundamental differentiation – L3 content is protected before it leaves the content-owner’s hands

  • L3 is the only platform where ads can be dynamically inserted into content in online as well as offline mode


Projected financials

Projected Financials


Projected financials summary

Projected Financials (Summary)


Deal summary

Deal Summary

  • Equity funding of ~$1.1 Million needed

  • 20% equity offered

  • Estimated Year 5 PAT~$45 Million

  • Estimated Company valuation in year 5 $900 Million (PE = 20) or higher

  • Investors ROI estimated to be 180X in five years (earlier exit possible)


Contact anil gupte ag@layer3media com 91 9370131365

Contact:

Anil Gupte

[email protected]

+91 9370131365

Thank You!


Appendix

Appendix

(Additional Details)


L3 technology

L3 Technology

L3 Video File

  • Distribution on DVD, Internet and other media in a single format

  • No need for separate process or format for Internet distribution, Broadcast or DVD/CD

  • “Morphing” copy-protection

    • A unique key & algorithm required on each machine, so that even if one “pirate” cracks the encryption, the “crack” cannot be reused

    • Also, algorithms and keys keep changing to create a moving target for pirates

    • Patented technology

Peers

Physical Media

Cable TV/DTH

Internet

ePVR (Enhanced Personal Video Recorder)

Servers


Value added services

Value added services

  • Content owners or anyone else can add value to the L3 content

    • Example: Subtitles in any language can be added to the L3 file

      • Expands the market exponentially

      • Incremental revenue for such value added service is tracked separately and goes back to the entity that built the value-added feature

= Opportunity

+

And we will have a little house with big windows


Benefit to the content owner 1 3

Benefit to the content owner… 1/3

  • Monetize content

    • Extra revenue with not much incremental cost

    • Significantly lower risk of piracy

  • Global customer reach

    • Access established, new and uncharted geographies

  • A vibrant distribution channel

    • More efficient than all existing distribution networks

    • Most cost efficient

    • Peer to peer virally distributable

    • Through any media

    • Can also be hosted on L3 owned sites


Benefit to the content owner 2 3

Benefit to the content owner… 2/3

  • Content ownership remains with owner

    • Don’t have to sell the internet rights

    • Owner can place it on any medium and send it anywhere

  • Secure the content before its distributed

    • Superior encryption with L3 patented technology

  • Gives complete pricing flexibility to content owners

    • Maximize returns through dynamic pricing

      • Content not selling well in one market can be re-priced to make more attractive

    • Complete control on pricing

      • Expands the market by creative pricing

    • Can block any geography


Benefit to the content owner 3 3

Benefit to the content owner… 3/3

  • Assured collection

    • Payments received through Credit Cards, Net Banking, PayPal

  • L3 is no extra cost for content owners

    • Owner uses the “free” L3 software to encrypt and distribute content from any source

    • Users/audience pay a transaction fee to L3

  • “Not new” content can also be monetized

    • If broadcast rights sold, one can still earn money from Internet or DVD distribution

  • No lawyers and accountants involved

  • Save cost and time


Benefit to the consumers

Benefit to the consumers

  • Increased availability and access to content

  • End customer finally has the ability to decide what kind of experience he/she wants

    • Choice of watching on computer or TV

      • Internet downloaded content can be watched on TV or computer

    • Choice of watching with ads or without ads

    • Choice of paying or not paying

      • No ads or with ads

    • Choice of how much violence/sex to be shown

    • Choice of passing on the download to others without piracy guilt

      • Torrent, USB, CD, DVD etc.


Benefit to advertisers

Benefit to advertisers

  • Pay only if Ads play

  • Micro-targeted advertisements

    • Age

    • Sex

    • Geography

    • Time of the year/day

  • New ads on re-runs

  • Detailed reporting


Benefit to the industry

Benefit to the industry

  • Wider distribution and quicker break-even

    • Encourages Content-creators to experiment

  • Good content once produced will continue to accrue rewards perpetually

  • More expression of art

  • Reduced dependence on distribution channels


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