KICKING ASS FOR LIVE MUSIC!
EXECUTIVE SUMMARYOverviewFAST FWD Interactive Publishing (“FAST FWDâ€) offers a revolutionary means of entertaining and informing a worldwide audience. FAST FWD has an interactive platform using an encoded compact disc to compete with targeted segments of traditionally paper format magazines.Imagine a paper magazine that at every page turn, the articles sprang to life. Full motion, sounds, graphic effects . . . the words literally leap off the page. Paper magazines cannot do that but a DVD-ROM magazine with the right layout and programming can. What’s more is that you become part of the experience. Much like thumbing through a paper magazine searching for interesting articles, your mouse and keyboard enable you to explore deeper into areas of the magazine. The experience is incredible. You have the ability to sample new videos and singles and can purchase them for your “ipod†for before they are released to the masses.Can you imagine the cover personality, perhaps Jonathan Davis of Korn, saying “What up from Korn! Do you want to see clips from our latest tour available nowhere else?†You’re now at their concert with backstage access, interviews, MP3 downloads and live music videos.The underlying software programming is in effect a “template†that can be adapted to other magazine forums including sports, cars, boats, health and virtually any other subject imaginable. Understandably, FAST FWD’s goal is to be one of the top publishers in the world within five to ten years attaining a “category killer†status unparalleled in the publishing industry.Market OpportunityWe estimate the size of the multimedia advertising market to easily reach into the tens of billions on a worldwide basis. As people become more integrated with technology through computers and the Internet, the need to create a new forum for communication has never been greater. FAST FWD will cover a myriad of different subjects with these modern, virtual magazines. Taking advantage of enhanced DVD-ROM technology, FAST FWD will become the paramount of publishing for the new millennium.Consumers will be able to purchase our product for the same price as a conventional magazine and view it on their computer. Advertising tie-ins will keep costs low and directly involve the user, as he or she will be able to learn more about the product with just a mouse click. Unique tie-ins to the Internet will enable consumers to seamlessly access an advertiser’s website and later return to the magazine.Business ModelWe plan to distribute the magazine nationwide through concert venues at no cost to the recipients. We will accomplish this through strategic alliances with venues and concert promotion companies (example: AEG Live). With a guaranteed distribution of 250,000 copies per month being handed out to the concert attendees the magazine only needs the income from advertising to sustain adequate profit margins. A fee will only be charged for those who choose to purchase a year’s subscription.Once accessed the magazine allows e-commerce access to music and merchandise for advertisers and musicians. We will host our own music site for the download of music from unsigned bands featured in the magazine each month.FAST FWD will develop highly interactive content as well as full motion advertising. The layout, content, and especially advertising will be of Superbowl quality. In marketing terms, they’ll have a high “WOW!†factor.Much like a traditional magazine, revenues are generated primarily through advertising, wholesale magazine sales, and subscription sales. This is where the similarities end. FAST FWD will take advantage of several other income streams including: multimedia advertising production, e-Commerce, metrics reporting, data mining, and promotional item fulfillment.Risk Factors(a) The Company is a start-up and has no operating history. (b) The Company does not have profits (c) The Company has an uncertain financial position (d) Risk factors for products (e) The Company will be competing with traditional print media. (f) The Company has the potential of becoming insolvent or bankrupt. (g) This is a speculative investment which involve a high degree of risk.Investment PriceThe investment of $2,000,000 represents a 30% equity stake in the company. The overall value of the company has been set arbitrarily by the Company. At this investment level, the company is valued at $6,666,666. This calculation includes a combination of capital needed for launch and a multiple of seven times projected first year after tax earnings. The publishing industry trades at an average of 21.4 of forward earnings. Management chose a multiple of seven (7) in order to take a conservative route and keep the earnings estimates as realistic as possible.SustainabilityFAST FWD’s strategy for growth and survival is based upon attaining two goals: advertising commitments and subscribership.Meeting and exceeding an advertiser’s expectations creates a barrier to entry that copycat publications will find almost insurmountable. Once a company commits to a multi-month/year advertising contract with FAST FWD, its budget has less available funds for additional expenditures. Through its various publications, FAST FWD will do everything it can to absorb the multimedia advertising budget of every client it encounters.Subscribership is paramount to FAST FWD’s success. The reader must experience something he has not and cannot get from any other medium. This experience creates value. Once that value is established, an inexpensive impulse buy offer is made to the reader which locks him into a prepaid one-year subscription. At this point, any similar competitive products are little more than indicators of FAST FWD’s success.CompetitorsProducing informative CD-ROMs is neither new nor unique to the market. Companies have distributed millions of CD-ROMs and have seen little or no consumer acceptance. Market research has indicated that strictly advertising-oriented multimedia products are of limited value to the consumer. Although a CD-ROM is capable of being interactive, the entertainment experience for the viewer is far less than that of even a traditional paper magazine. Most corporate CD-ROMs are little more than a rehash of a stale website originally used to describe the company’s business. Magazines are informative but aside from technical journals, most magazines are mainly sold for their entertainment value. Artistically blending entertaining content complemented by advertising will be a first for this medium. Additionally, the unique packaging further enhances market appeal. Roll-Out Strategy1,000,000 copies would be a monumental accomplishment. If executed properly, it would set the stage for media blitz no one could ignore. It also requires substantial investment capital and production costs. FAST FWD has therefore scaled back its objectives to meet its advertiser’s needs and contain its budget.The first milestone is to bring to market a magazine in a relatively limited quantity to prove the concept. Producing a top-rate first issue in a quantity of 250,000 or more establishes the enterprise as a credible media outlet which will drive additional advertising and magazine sales revenues. Once these are in place, spring-boarding to 1,000,000 copies would be the next logical step and certainly attainable in short order.A two-stage launch delays the anticipated revenues by roughly 3 to 4 months. The net effect on projected revenues is less than 10% and well within tolerances of the projected forecasts.The current plan is to blend the two stages into one. Distributing 250,000 complete packages with three additional discs provides a total population of 1,000,000 discs. The content will be compelling enough for viewers to want to share the experience with friends and family. The viewer doesn’t even have to copy the disc or loan his out. He simply gives one of the extras away. The psychology behind this is well thought out. The extra discs will most likely only go to people the original viewer thought might like to see it. Basically, they pass a screening process.With a population of 1,000,000, major advertisers can participate at only 2.5 cents per copy ($25,000). In addition, a mere 5% subscribership yields 50,000 equating to subscriber revenue of $750,000 in the first month alone.Financial AnalysisFAST FWD’s business model is highly capital efficient and offers an attractive investment opportunity. The company will only produce the quantities of magazines predetermined necessary for each channel of distribution. Thus, it will carry no long-term inventory. Management anticipates a positive cash flow within the first year of operation. If necessary, funds will be raised to support additional magazines during their roll-out phase. Each magazine is expected to support its own growth through advertising commitments, joint ventures, and subscribership.FAST FWD is currently developing advertising relationships which will significantly reduce the need for investment capital. Cash flow considerations factor heavily in any company. Investment capital is important as it encourages quicker, more stable growth.Invested CapitalMr. Mayr and Mr. Prante have personally financed the development of the Company. They have personally spent over $250,000 in expenses to cover market research, R&D, beta test analysis, and producing a working model of the interactive magazine. With their use of funds, the company carries absolutely no debt moving forward. The sole assets are the intellectual properties that have been developed and accredited to Mr. Mayr and Mr. Prante. This investment will allow the company to begin production of the first magazine with distribution three to four months after funding.Use of ProceedsThe company fully intends to operate profitably and attain liquidity within six to nine months. Investment funds will be used for:(a) Filing and legal fees to convert the Partnership into an LLC (b) Filing and legal fees for patent and trademark protection (c) Working capital for the development of the first magazine (d) Expansion capital for the second and third magazines (e) Lessen the dependency on receivable financingCurrent Ownership50% - Christopher Prante 50% - Oliver MayrOwnership after Investment26% - Christopher Prante 26% - Oliver Mayr 30% - $2,000,000 Investor 18% - Available to Incoming StaffIncome DistributionThe Company will maintain a capital account for each of the three Partners. Upon profitability, the company will make tax payments to the Partners, based upon ownership percentages, at the rate of 35% of income. Additional income distributions will be made to the Partners at the determination of the Board and in accordance with the Operating Agreement of the Company.Income and Exit Strategy for Investor of $2,000,000The Company will pay to the Investor $120,000 or his portion of Partner Distribution, whichever is higher on an annual basis. In the 24th month of operation, Fast Forward Interactive Publishing will re-purchase the Units at the price of $1,000 per unit. This purchase price yields a total amount of $4,000,000 to an investor of $2,000,000.LegalVal Cronin - Smith, Underwood & Perkins Two Lincoln Center 5420 LBJ Freeway Dallas, TX 75240 972.661.5114Accounting & AuditLori Orta - Lane, Gorman & Trubitt 2626 Howell, 7th Floor Dallas, TX 75204 214.871.7500Tax & ConsultingMelody Jackson - PriceWaterhouseCoopers 2001 Ross Avenue, Suite 1800 Dallas, TX 75201 214.756.1589InsuranceJulie Joseph - Northwestern Mutual Financial Network 12221 Merit Drive Dallas, TX 75251 972.663.7377BankerLouis Edwards - Comerica Bank 8850 Boedeker St., 4th Floor Dallas, TX 75225 214.890.5186
Our musical tastes lean towards the heavier side. However, we are not opposed to anything that is of high quality from other genres. Our hearts are in the sweaty small clubs with great music banging every weekend.
We are always searching for fresh talent in world of photography and videography.
We will be conducting a talent search in the Spring for VJ's!!
Free lance writers welcome. Contact us and we'll look your work over.
HELLYEAHPDHMSTATE OF INSOMNIASOCIETY 1FIVE FINGER DEATH PUNCHSICKS DEEPSOILDAREDEVIL JANE