2. Legal disclaimer
and safe harbor
This Investor Presentation has been prepared by StationDigital Corporation
(“SDIG”) for investors, solely for informational purposes.
3. Safe Harbor
StationDigital corporation 2014
This Investor Presentation has been prepared by StationDigital Corporation
(“SDIG”) for investors, solely for informational purposes.
The securities contemplated to be sold by the Company will not be
registered or qualified under the U.S. Securities Act of 1933, as amended,
nor under any state securities laws, nor under the laws of any other country
or jurisdiction. The U.S. Securities and Exchange Commission has not
approved or disapproved of these securities. Further, it has not determined
that this document is accurate or complete, and any investment carries
with it risks. Any representation to the contrary is a criminal offense
Forward Looking Statements: This document includes certain forward-
looking statements concerning, among other things, StationDigital’s future
operations, products, services, plans, and anticipated future performance.
Forward-looking statements can be identified by the use of words such as
“believes,” “expects,” “may,” “will,” “intends,” “anticipates,” “should,” or
comparable terminology, or by discussions of strategy. Such statements are
subject to risks and uncertainties that could cause actual results to differ
materially from those projected in the forward-looking statements.
Forward looking statements are based on a number of assumptions and
estimates that are inherently subject to significant uncertainties and
contingencies, many of which are beyond StationDigital’s control, and
reflect future business decisions, which are subject to change. Statements
about future revenues or financial performance are forward-looking
statements that reflect significant assumptions and subjective judgments by
StationDigital’s management concerning anticipated results, and those
assumptions and judgments may not prove to be correct, and there can be
no assurance that such results are attainable or will be realized. Actual
results could differ materially from those anticipated in these forward-
looking statements as a result of various factors, and StationDigital
undertakes no obligations to update these forward-looking statements for
any reason. Neither StationDigital nor its officers and directors assume any
responsibility for the accuracy of any projections and other forward-looking
statements
The information contained herein has been prepared to assist prospective
investors in making their own evaluation of the Company and does not
purport to be all-inclusive or to contain all of the information a prospective
or existing investor may desire. In all cases, interested parties should
conduct their own investigation and analysis of the Company and the data
set forth in this information. SDIG makes no representation or warranty as
to the accuracy or completeness of this information and shall not have any
liability for any representations (expressed or implied) regarding
information contained in, or for any omissions from, this information or any
other written or oral communications transmitted to the recipient in the
course of its evaluation of the Company.
This Information includes certain statements and estimates provided by the
Company with respect to the projected future performance of the
Company. Such statements, estimates and projections reflect various
assumptions by management concerning possible anticipated results, which
assumptions may or may not be correct. No representations are made as to
the accuracy of such statements, estimates or projections. Prospective
investors will be expected to have conducted their own due diligence
investigation regarding these and all other matters pertinent to investment
in the Company.
This presentation may contain statements that are not historical facts,
referred to as “forward looking statements.” The corporation’s actual
future results may differ materially from those suggested by such
statements, depending on various factors including those described in
filings made with the SEC.
StationDigital is a high risk investment and is reliant on funding to continue
operations. The company will not survive without outside capitalization and
is not able to sustain operations in the event it cannot achieve its capital
needs from outside investors. Many of the assumptions in the presentation
require capital to achieve the timelines and if delayed or not met could
substantially change the financial projections and development cycles. Any
investment in StationDigital could be lost and has a high degree of
uncertainty.
4. CONFIDENTIAL | ALL RIGHTS RESERVED | StationDigital Corporation 2014
• 22% rise in Digital Ad Spending on Internet Radio in 2014
• Traditional Ad Supremacy Wanes, Marketers Give Greater
Attention to Digital Ad Spend
• 63% of marketing leaders say they will double down on digital ad
• ABI Research estimates $5 Billion was spent on Streaming
Services in 2014, $46 billion by 2018
• “2013 was the first year that digital sales had ever declined,
signaling that the reign of iTunes might be ending”
– Digital Music News.
• Digital tracks are down by 12.5% while digital albums are down
by 14.2%, but streaming systems (Pandora and Spotify, for
example) have increased streams by almost 9 billion within a year
- meaning that the growth of consumption via stream is increasing
at a faster rate than the speed at which digital downloads are
decreasing. *
Why Build This Platform?
* Quote from Hypertrak.com on Soundscan Data
5. CONFIDENTIAL | ALL RIGHTS RESERVED | StationDigital Corporation 2014
• “The era of huge subscriber gains in the U.S. pay-TV
market is over,” said Jim O’Neill, research analyst at
Parks Associates.
• Cord Cutters are Everywhere! 1/5th of cable
subscribers aren’t buying TV but only purchasing
broadband internet
• Over-the-top (OTT) revenue will quadruple to $32
billion by 2017, up from the expected $8.2 billion in
2012, according to a new report from ABI Research.
• The number of online video viewers worldwide is
expected to eclipse 1.3 billion by 2016, growing from
a current 2010 base of just over 780 million
according to ABI Research
• Nearly 90 percent of millennial-aged adults (18-34)
said they stream video, with reports of regular weekly
usage rising to 72 percent from 52 percent in one
year (2013 to 2014).
• http://www.fiercecable.com/story/magid-survey-83-percent-us-consumers-now-stream-tv/2014-10-
30?utm_campaign=AddThis&utm_medium=AddThis&utm_source=email#.VOedeoDvS60.email
Why Build This Platform?
6. 2What is StationDigital?
Coming soon to SDIG:
• On Demand Music (Like Spotify)
• Streaming and On Demand Music Videos (like Vevo)
• Ad Supported and On Demand Television
Programming (Like Hulu and Netflix)
• Ad Supported and On Demand Movies (Like Netflix)
• eCommerce Platform (Like Amazon)
• Live Broadcast TV in the Cloud (like your Cable)
• Live Pay Per View Events
EXCELLENCE
DELIGHT
USERS
WITH THE
BEST MUSIC
OFFERINGS
B U S I N E S S
The newest and most compelling Internet broadcasting
platform in the marketplace currently providing ad
supported streaming music which is completely free to
consumers. (Like Pandora)
8. StationDigital
mission
Build
Continually improve an easy to
use platform.
1 Stream or Access
Users may stream or
access any media.
2 Purchase
Digital and physical goods.
3
From anywhere, at anytime and on any device
9. How will we
Make money
Metrics Worldwide Reach Music Sharing User Profiles Properties
Ad Supported Discovery
Digital Media Station
• Sponsorships and Featured Placements
• Banner and Display Ads
• Interstitial Ads
• Rich Media / Audio & Video Ads
• Full Page Takeover Ads
• Upgraded Membership: Ad Removal and Higher
Bit Rates
• B2B Powered by Channel Partner White Labeled
Solution
Premium Memberships
• No Commercial Interruptions
• Exclusive Content
• Higher Bit Rate and Resolution
eCommerce Platform
• Direct Sale Catalog of 50mm physical
and digital goods
• Movie and TV Rental
• Video Game Subscriptions
CONFIDENTIAL | ALL RIGHTS RESERVED | StationDigital Corporation 2014
11. Stationdigital’s disruptive model offering
Loyalty and Rewards Program
• Increase loyalty and
Retention
• Viral growth which will
decrease customer
acquisition costs.
• Drive users to eCommerce
Platform
• Coupon/Reward System
yields a higher demographic
of consumers.
• Points paid through profit of
purchase
Rewarding Consumers
FREE Music
Discovery
30 Million
Songs
Earn Rewards
Listen, watch,
invite friends
Available on iOS,
iTunes, Droid and
Goggle Play
12. Competitiveadvantages
Automated Play listing and Merchandising Systems
More Robust Catalog of Ad Supported Goods -
Music (30 million songs), Music Videos, Movies,
TV, eBooks, audiobooks
Combined eCommerce System for conversion
to direct sale, rental or subscription.
HTML5/JAVA based – Device Agnostic
Entry to market timing allows for reduced costs
by leveraging other SaaS tools which enables us
to spend less on technology and more on
porting to many devices, catalog and customer
acquisition
Loyalty and Rewards Program, Social
Integration, Viral Marketing
Enormous catalog of 50mm Skus bookending
physical and digital goods allows for increase
profits
13. Social mediaadvantages
Registered users can share music and stations on
Facebook
Post Stations to Registered users timeline for
followers
Write posts on a timeline for followers
Create a friend list with shared music
interests
Share a station and create a post for your friend
lists
Follow other users with shared music
interests and post to their timeline
Enormous social features
14. Build your Own Library
Listen to the Music YOU
Want When YOU Want it!
Build your Own Playlist
On demand
Music service
16. NiFTy TV
Patented Technology
PATENTED – Fourteen Patents issued (#7,035,933;
#7,512,676; #7,536,472; #7,543,074; #7,664,840;
#7,818,407; #7,843,855; #7,895,324; #7,925,726;
#8,103,750; #8,219,659; #8,266,318; #8,873,432 and
#8,892,770). Two additional patent pending.
SCALABLE – Designed to enable ‘Television Style’
broadcasting on the Internet; very large audiences
watching concurrently.
RELIABLE – NiFTy has produced over three thousand
live broadcasts with over one million total viewing
sessions.
17. NiFTy TV
Patented Technology
• Every user requires a stream of
essentially identical content and
information.
• Large audiences = High Avg Cost
Per User, Large server footprint,
High bandwidth costs.
• All costs increase linearly with
audience size.
• Scaling the CDN network by
adding additional servers is cost
prohibitive and strains existing
infrastructure.
CDN Streaming Model
Broadcaster pays for EVERY
concurrent connection.
Summary: CDN broadcasting is poorly suited for online ‘television style’
broadcasting; long play content viewed concurrently by large audiences.
The Limits of Current CDN Broadcasting
18. NiFTy TV
Patented Technology
NiFTy uses the concept of a Balanced
Binary Tree. The stream is directly fed
to a small number of viewers –
specifically no more than two - and
those viewers propagate the signal to
other viewers, who in turn propagate
the signal on to yet more viewers.
The diagram illustrates the distributed
portion of a NiFTy network. The server
directly feeds two nodes; these in turn
each feed two nodes; and each of
these nodes feed two more.
Repeat capable nodes are shown with
green screens. Non repeat capable are
shown with red screens.
Distributed Broadcasting within the Internet ‘Cloud’
19. NiFTy TV
Patented Technology
• NiFTy Technology
dramatically lowers the
server farm footprint and
Average Power Per User.
• NiFTy technology routinely
saves 70% or more of
bandwidth costs.
21. Ad supported
content
Ad supported content with select media and music features are free to
consumer. Users enjoy the ability to collect reward points to spend at the
exclusive online store.
26. Key
management
Lou Rossi
Chief Executive Officer
Steve Marr
Chief Financial Officer
Ed Storm
Chief Operating
Officer
Key Management has over 100 years of Infrastructure, Hosting, Software, Music and
Video Games Industry, Digital Media, Digital Advertising, Accounting, Finance,
Operations and Technology Seasoned Business Experts, with over 40 years in public
companies.
Jacob
Morris
Chief Advertising
Officer
28. Development
Team
Innovation
Los Angeles Incubator
Team
Superstar A+ Rated Coders from
eBay, Google, and more
Robert McMillian
Head of Development
Over 20 years experience
working in application
development
In House St. Louis
Team
10 Deep Development
TEAM with over 10 years
experience each in Java,
HTML5, Droid, IOS, Audio
&Video Streaming, and
Database Administration
29. Development
Team
Ruse Technologies
LA Incubation Team
Ben Gleitzman – Lead Architect
Immersive Development Strategy
Shorter Product Development
5 Super Star Coders Hand Picked from Google,
Yahoo, and More
Will lead 6 Months Living Together
PROVEN METHODOLOGY
Click Link Below
http://www.businessinsider.com/explaining-ebays-turnaround-2014-2
30. Development
Team
Ben Gleitzman
Incubator Lead
MIT Graduate Computer Science
Original Employee of Hunch
Hunch was sold to eBay for $80 Million
Participated in eBay incubator that transformed eBay
31. Development
Timeline
All in One Broadcasting SystemOctober, 2015
Los Angeles
Incubator Team
St. Louis
Development Team
Timeline
On Demand Streaming Service
Ad Supported and Premium
Video Platform
Version 2 Launch
Music Discovery Platform
Social Features Launch
Integrated Social Features
Cable in the Cloud
Video Social Integration
March 20th, 2015
July 15th, 2015
September, 2015
33. CONFIDENTIAL | ALL RIGHTS RESERVED | StationDigital Corporation 2014
TOTAL 2015
% of Total
Expenses
2015 TOTAL 2016
% of Total
Expenses
2016
EXPENSES / BILLS / OUTGOING COSTS
CAC - User Acquisition Expense $5,280,000 20.61% $5,580,000 16.28%
COS - CATALOG and METADATA PROVIDERS / PLAYLISTING $246,923 0.96% $1,169,164 3.41%
COS - SERVICE PROVIDERS FOR SD SERVICE - (Infrastructure, Tools,
Developers, Testing, Software) $1,704,810 6.65% $615,503 1.80%
COS - ANALYTICS / SEO $247,555 0.97% $99,360 0.29%
COS - DIRECT LICENSING / COMPLIANCE $5,527,439 21.58% $19,059,626 55.62%
SGA - PAYROLL $2,033,595 7.94% $2,228,587 6.50%
COS - DEVELOPMENT PAYROLL $2,387,730 9.32% $2,790,354 8.14%
SGA - COMPLIANCE / OPERATIONAL COSTS $642,185 2.51% $806,500 2.35%
SGA - INVESTOR RELATIONS / IR / FINANCE / PR $548,788 2.14% $767,188 2.24%
SGA - MARKETING - CUSTOMER ACQUSTION ONLINE (Trade Payable) $2,392,634 9.34% $- 0.00%
SGA - TRADITIONAL MARKETING $450,565 1.76% $415,500 1.21%
SGA - OFFICE AND ADMIN EXPENSE $436,597 1.70% $597,244 1.74%
CAPX - Equipment $114,000 0.44% $141,000 0.41%
LOAN REPAYMENT $3,605,394 14.07% $- 0.00%
100% 100%
Stationdigitalcash flow
and operating plan outbound
34. CONFIDENTIAL | ALL RIGHTS RESERVED | StationDigital Corporation 2014
USERBASE and MARKET CAP
TOTAL NEW MOBILE AND DESKTOP USERS and VIRAL 6,843,799 CY 2015 7,645,544 CY2016
Monthly Active Users - Desktop (Pandora has 42% retention rate) 1,149,752 12/31/15 2,400,265 12/31/16
Monthly Active Users - Mobile (Pandora has 42% retention rate) 1,248,322 12/31/15 2,543,775 12/31/16
TOTAL MONTHLY ACTIVE USERS MOBILE AND DESKTOP 2,398,074 12/31/15 4,944,040 12/31/16
Market Cap Projection (Pandora gets $42 per MAU) $211,030,492 $435,075,516
REVENUES, STOCK SALES AND LOANS
BANNER AD REVENUE - DESKTOP $809,660 17.69% $12,822,583 25.11%
BANNER AD REVENUE - MOBILE $1,077,174 23.54% $17,236,805 33.76%
Revenue - Desktop Video Ads $558,719 12.21% $3,892,629 7.62%
Revenue - Mobile Interstitial Ads $44,882 0.98% $718,200 1.41%
Revenue - Mobile Audio Ads $74,804 1.63% $874,834 1.71%
Music Subscriptions ($2.70 per month from 9.99 subscription) $1,206,222 26.36% $8,182,754 16.03%
Video Subscriptions 1-3% Upgrade $8.99 $353,317 7.72% $4,682,421 9.17%
Triple Play Revenue ($15 retail price, $4.50 Gross Revenue to StationDigital) $248,815 5.44% $1,948,275 3.82%
Ecommerce Sales Splits (20% Net Revenue split) $62,944 1.38% $483,240 0.95%
StationDigital "Powered By" Revenue $140,000 3.06% $215,000 0.42%
TOTAL REVENUES $4,576,538 100.00% $51,056,742 100.00%
ARPU - Average Revenue Per User $0.47 12/31/15 $1.51 12/31/16
Stationdigitalcash flow
and operating plan inbound
TOTAL 2015 TOTAL 2016
35. CONFIDENTIAL | ALL RIGHTS RESERVED | StationDigital Corporation 2014
Projecting market
capitalization?
Netflix
Spotify
Pandora
57.4 Million
60 Million
76.5 Million
25.2 Billion
7 Billion
3.3 Billion
$439
$117
$43
Company
Total Monthly
Active Users
Market Cap
as of January 2015
Market Value
per active Monthly user
StationDigital 2.5 Million Projected
Monthly Active Users by end of 2015!
36. 01 Everything is moving
to Streaming
02 Meteoric Market
Growth
03 eCommerce is
explosive
04Valuable User Base
Why invest
CONFIDENTIAL | ALL RIGHTS RESERVED | StationDigital Corporation 2014
05 Highly Attractive
Return on Investment
