The Overall Vision
The management have set out to define our vision of what a dynamic, new, Focused News Media Network should look like. Our research has presented two choices – The launch of AVTN – Aviation Television News, a News Channel focused on a single market, with 3.8 billion and growing stakeholders worldwide; or NewsNet247, which will leverage the opportunities presented by multiple markets which collectively demonstrate significant stakeholder demographics through a cross-sector approach. Whichever prospect is backed for the launch channel, the infrastructure, personnel and Budget allocations remain the same. We would also highlight the strategic choice of pursuing the Business & Consumer News Markets over the generic Mainstream News Market. It is our considered opinion that the former presents a more profitable market.
The Network’s launch channel, will enable our project to lead the way in establishing a Media Network on the basis of Focused News offerings, operating in a dynamic marketplace which continues to see growth, representing an attractive prospect for investment. AVTN and NewsNet247 or any future offerings will be well placed to take advantage of the development potential for services in the Media, Aviation and alternative markets, without the restrictions of legacy that restrain established Broadcasting Corporations.
The connected world represents greater opportunity to attract and engage the audience, not only through television services, but in the audience’s daily lives through personal devices and OTT (Over-the-Top) services. The greater the potential demographic is, the greater the opportunity to convert a percentage to audience base, and so into advertising and revenues.
The services laid out within our proposal represent research and development on-going since July 2010. It is now time to create a team of experienced and capable people to deliver either AVTN or NewsNet247 as a launch channel, and to add channels and services in the future. The personnel allocations in the project are based on building a dedicated team fully invested in delivery of these exciting new opportunities, and budget allocation is made to recruit the best possible personnel. The investment is now required to move the project forward through construction of infrastructure to delivery of services. As a corporation operating on a multi-national basis, we intend to operate as a responsible business and make a positive contribution within global society. Our business practices will be consistent and represent best practice and standards of the highest calibre wherever we operate.
It is now recognised in Commercial Aviation and Travel that the Passenger Experience begins from the decision to travel, and doesn’t end until arrival at the final destination. This gives AVTN broad scope and the ability to address Business, Passenger and Consumer issues, and their relationship to one another within the sector, while significant opportunity exists for OTT services. NewsNet247 has equal opportunity to carve a niche in news promoting independent views on a broader spectrum of world news with a Business, and Consumer focus in multiple markets with significant demographics.
The Market for TV represents a global industry estimated to be valued at £365b, while Business data and information services represent a £11.8b industry and both are growing; at the same time the Consumer is seen as prepared to commit an increasing proportion of its disposable income on travel, entertainment and personal interests. Interest in World affairs is at its strongest for decades. Shareholdings as a personal investment are also growing despite market fluctuations, with crypto-currencies adding additional interest. In this dynamic environment, our strategy is to deliver multi-lingual, market leading content with a broad appeal.
The Network has already been offered significant opportunity for the future of AVTN, and options for NewsNet247 and other alternative markets are also coming forward. Whether in our chosen launch market or future sector offerings, the opportunities for diversification represent a wide range of potential services which will bring value to the Network and our brands, increasing awareness, revenues, and delivering benefits across the board from client to consumer and ultimately our investors.
AVTN and NewsNet247 both represent easily implemented Channel offerings. Network diversification into other sectors will be the product of a profitable and successful implementation of our chosen launch channel and other initial services. The identification of other potential high yield demographics that fall outside of the traditional definitions of TV market interest is a key factor in any Network strategy moving forward. The ability to implement such a strategy is primarily due to growth in a variety of technologies, an increasingly connected audience by personal device, allowing access to previously overlooked or unrealisable markets.
In terms of content, we intend to deliver high quality editorial and audiovisual content, representative of a flagship News Outlet. This commitment to quality is underlined by our intent to offer UHD service, and our goal to provide access through multiple platforms and mediums: TV, Online, OTT, Radio, and Digital Print Media, meeting the demands for flexible access by our audience. In the case of AVTN, Air show coverage is seen as a key area where innovative production techniques can deliver dynamism to the audience experience.
As a 21st Century Broadcast and Digital Media Network, our long-term goal is the Triple Crown of Broadcasting, achieving Global Reach, Regional representation of the News, and a physical Regional presence. However, in light of current global political, regulatory, financial and investment market trends, our tiered approach offers a flexible range of options for investment.
Our approach is fiscally conservative in both expectation of revenue and expenditure, and is based on the need to achieve 0.8% of audience conversion from household reach at regional average CPTs in order to succeed. It is felt that exceeding expectation and projections is considerably more desirable than failure to meet un-realistic targets comparable to those of long established competitors while the business is establishing itself within the market. At the same time, every effort has been taken in forward planning to mitigate risk to the investment, from infrastructure capabilities to consideration of industrial action, and acts of God, War and Terrorism.
Our transmission plans for each Tier from multi-format delivery across cable and satellite transponder regions to IPTV, OTT and IP Radio capabilities is intended to facilitate reach to 541 million households. Significant growth is foreseeable in OTT services, though we have again been conservative in our projections.
Conducting our Business
A cornerstone of our commitment to delivering quality content and information to our audience and customer base, and a return to the investor, is the need to deliver a business with a long term vision. To this end, how we are perceived to conduct ourselves as a global business is as important as our service offerings. Investment in our people and their ability to develop, acquiring new skills within the Network is of key importance. We will be a corporation of opportunity not restriction, with an intelligent and culturally diverse cross-section of people.
We also recognise our place as a leader in society. Trust in confidentiality and use of consumer data is a subject that has been brought into focus in the last year, and so it appears important to underline our commitment to offering secure, trustworthy services, and securing personal data worldwide.
In terms of the potential to use our position for the benefit of other individuals and the planet as a whole, we subsequently plan to develop our support of projects that benefit those less fortunate as we grow, from charities to the wider international community. As an emerging corporation striving to succeed, we expect to make a growing contribution to the nations in which we operate and serve both economically and socially, and intend to do this responsibly and without courting controversy. AVTN, NewsNet247 and other subsequent channel offerings will result in hundreds of jobs created world-wide and indirect employment of hundreds more. In the long-term we see the privilege of success as generating opportunity for further investment in people and services. Therefore our corporate commitment and that of our employees will be to behave responsibly in all that we do, and the maintenance of high standards is seen as paramount to our success.
It is somewhat hard to discuss corporate performance before it has been achieved, and so it is probably more important to speak of expectation. AVTN, NewsNet247 and our future offerings represent the road to establishing an entirely new News Media Network exploring opportunities which we believe have been overlooked or not fully developed by legacy outlets. The media space has changed dramatically of late and while disruptors have come to market, new offerings have concentrated on bringing dynamism to existing broadcast markets, though none have addressed the issue of what is not to be found on the TVs of the world – The pursuit of these markets is our prime objective. Therefore, we are to one degree or another entering an unknown, though potentially huge market. We have monitored a decade of growth in the Broadcast market, and the changes that have occurred in that time. Following the removal of abnormal growth spikes for product and service roll-outs we observe that the average revenue growth, according to available figures, is 6.49%. It is felt that this is a reasonable target for a new dynamic and growing content provider with global reach to aim to achieve. Advertising revenues are seen as coming from TV, IP Radio, Online placements and OTT services. Potential for 3.5% inflation of costs across the Network is also considered.
Conservative expectation of potential revenues has been applied across all Tiers and Options, and the budgets modified to remain within those projections. A dividend of 6% of Profit before Tax is calculated for the first year of Transmission, and deferred to to M1 Q2 of TX 2 for cash flow; with Dividends thereafter have been calculated on a 30% return on profits from the 2nd year of Transmission. However, given the cautious outlook applied in the basis of calculation, projections are seen as likely to be exceeded. It is our hope that by adopting restraint in our approach to the expectation of revenues and expenditure, the dye has been cast for a profitable future, which will allow us to take full advantage of the growth opportunities available.
The ability to easily calculate alternate investment tiers; and options within each tier for elements incorporating Funding Fees, Leases, and Credit Facilities remain project strengths as demonstrated within the proposal. Protection of the investment and generation of strong financial returns continue to be of key consideration.
In development of the proposal, every effort has been made to answer the many and varied questions that come from investors and their advisors. All that it remains for us to say is that the Network, and its AVTN and NewsNet247 projects, undoubtedly have the potential to be heralded as the most dynamic Media launches of their time — particularly in the case of AVTN, with the potential to become one of the most significant contributions to the public face of global Aviation for decades. Opportunity, for our future employees and shareholders, is there to be taken.