State of the Business Deck

April 13th, 2014

info@stationdigital.com

(877) 482-9585

5042 Wilshire Blvd | #26900 | Los Angeles, CA | 90036

StationDigital Mission Statement

StationDigital’s mission is to create the Internet’s most content rich, consumer essential, and experientially trendsetting digital media broadcasting platform – one that delivers the most consistent, robust, and seamless experience across every device, for every customer, at any time.

Core Components of the

StationDigital Platform Vision Internet Broadcasting Company for Music, Music Videos, TV and Movies

Ad Supported Free to Consumer combined with a Direct Sale, Rental and Subscription E-commerce Cloud Locker System

Provides a more user rich experience to consumers with more metadata surrounding content then other providers

Highly curated playlists and recommendation & merchandising systems

Device agnostic and ubiquitous

Competitive Ad Publishing and bidding Platform for increased Ad Publishing CPM rates

Digital Content controls a Massive Audience with the most time spent watching and listening which allows SD to sell valuable ad real-estate or merchandise products to them for increased profitability

GEO-IP Advertising

New Features like: Co-shopping with friends, Listen While you Shop, Social Sharing/Recommendations

Loyalty and Rewards Program – Allows Users to earn rewards just for listening or watching which can then be redeemed for discounts in the online store or for exchanging virtual currency with other partner apps or stores.

Executive Summary

u  StationDigital is a digital media broadcast platform, changing the way consumers access and enjoy digital media

u  StationDigital pioneered an industry first unique value proposition - its SD Listener Rewards program

u  StationDigital’s platform offers free music, music videos, movies, and TV - and will soon offer eBooks and video games.

u  Digital and physical merchandise in our superstore, with over 50 million items available - books, music, shirts, hats, posters and more.

u  Device agnostic and global - available on the web and also as an iOS and Android app, covering 90% of the mobile market.

u  Ad supported, free-to-consumer content, cloud locker with subscription, rental and direct sales

u  Enterprise class architecture with PCI compliance

Company Overview

u  StationDigital launched in September, 2013

u  Has already surpassed 5M unique listeners and 700,000 mobile installs, primarily in iOS devices.

u  Social media presence: 290,000 Facebook Likes, 242,000 Twitter Followers

u  User acquisition focused primarily on SD mobile apps on iOS and Android mobile devices, and planning to expand our presence into the emerging markets of connected living rooms and cars.

u  Development contracts proceeding in 2014 with Apple TV, Chromecast, Western Digital, Roku, Xbox, PlayStation, Ford and Chrysler, and others.

A Newer, Better Platform

u  Consumers are looking for a platform that is all encompassing, and provides more than just music.

u  Current market leaders are structurally restricted by their outdated systems.

u  StationDigital is designed to be free from limitations, and versatile enough to capitalize on growth opportunities and capture market share and brand equity.

Milestones

u  Over 700,000 mobile installs in just 4 months in Android and iOS

u  Over 4.2 million unique listeners since launch

u  In Top 5 Internet radio stations in iTunes in March and April 2014

u  55th cumulative worldwide most downloaded app

u  Already ranked #5 most downloaded free music app on iTunes

Market Overview u  It’s a Great Time to Enter the Internet Broadcasting Market

u  Part One -

u  Content Acquisition

u  Customer Acquisition Costs are Low while the appreciation of user value continues to climb.

u  Viral and Organic Growth continues to increase with internet social sharing reducing acquisition costs

u  Ad Publishing

u  Interactive Advertising is worth much more than non-interactive legacy terrestrial systems due to user’s integrating and multi-tasking while using online content distribution system.

u  CPM Rates Continue to Climb for Interactive Advertising

u  Licensing

u  DMCA compliance is paving the way to allow increased profits for internet broadcasting and allowing artists to make much more money

u  Licensing Rights are now widely available for global coverage for digital content

u  Diminishing Advances and Minimum Guarantees for Digital Content Licensing

u  Artists and Content Owners opt to publish direct to the internet to reduce costs and profitability

Market Overview u  It’s a Great Time to Enter the Internet Broadcasting Market

u  Part Two -

u  Technology – The stars have finally aligned to create an agnostic platform.

u  HTML5 and Java have paved the way for a device agnostic global platform.

u  Technology has sufficiently matured to allow for a truly “device agnostic” global platform - with better curation, reduced overhead, and increased profitability.

u  Infrastructure and broadband connections continue to be more widely available and at lower costs - allowing for increased audience and lower cost of acquisition.

u  Merchandising

u  Ability to gather intelligence on users to dynamically change the user experience based on user demographics and analytical data. Therefore you increase the stickiness, retention and revenue per user since they are more engaged.

u  Competitors

u  Fragmented offerings are not what today’s multi-device consumer wants. Consumers want complete portability of their content.

u  It is highly resource and time consuming for our competitors to make changes to legacy infrastructure and code with existing large user bases.

u  Our competitors are penalized for change and innovation due to their user’s inherent resistance to change in experience. Every change creates user loss through attrition and conflicts with their primary objective of increasing user retention quarter by quarter.

Competition

Station Digital competes for listeners with other content providers based on the following:

u Overall Quality of Experience

u Content Relevance and Diversity

u Ease of Use

u Price

u Accessibility

u Perceptions of Advertising Load •  We compete for listeners based on brand awareness, reputation,

value proposition, and visibility compared to other Internet radio platforms and mobile consumer entertainment providers.

Competitors u  Other Radio Providers

•  Ex: Clear Channel, CBS, Sirius XM

u  Other Internet Audio Content Providers

•  Ex: iTunes, RDIO, Spotify

u  Other Media/Entertainment Platforms

•  Ex: Netfilx, Hulu, Vevo, YouTube

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Competitors u  Top ranked iTunes free music apps, by number of downloads, in order,

as of April 2014 - with some competitor’s public market cap valuations.

•  Pandora – $5.89B

•  Spotify – $7B

•  Soundcloud – $700mm

•  Shazam – $500mm

•  StationDigital - 55mm

•  iHeart Radio

•  Tunein Radio

•  Rdio

•  Songza

•  Slacker

All of these companies are between 4 and 10 years older than StationDigital

Advertisers u  StationDigital competes for advertisers’ marketing budgets on the

basis of:

u  Perceived return on investment

u  Effectiveness and relevance of our advertising products

u  Pricing structure

u  Ability to deliver either large volumes or precisely targeted ads.

u  Competition for Advertisers •  Other Internet Companies

u  Ex: Facebook, Google, Yahoo!

•  Traditional Broadcast Radio u  Ex: Clear Channel, Cumulus, CBS

•  Other Traditional Media Platforms u  Ex: Television (ABC, NBC, FOX),

u  Print (New York Times, WSJ, FT)

Competitive Advantages u  StationDigital stands out from the competition by providing the

richest user experience, offering a unique combination of capabilities from a single provider. •  User defined listening

•  Playlists built based on similar artists

•  Live radio station broadcasting over the Internet

•  Purchase of physical and digital goods together in our online store

•  Music, movies, video games, software, eBooks, TV offered on StationDigital

u  In addition, StationDigital offers, to all its registered users, a Listener Rewards program. •  This is our preeminent value proposition and competitive advantage - with

which we attract and retain customers, not only from the overall user population for Internet radio, but specifically from the former users of our competitors services

•  We reward our subscribers with “rewards points” for every hour they spend listening to StationDigital and for every friend or co-worker they bring into the StationDigital customer base

•  These rewards points can be used to buy attractive, music-centric merchandise and apparel in our StationDigital online superstore

The Opportunity

u  Total revenues generated by Internet radio services in 2013 are currently estimated in excess of $1 Billion, and are forecast to be 3 times that by 2015

u  Total advertising revenue generated in Internet radio increased by 56% during the fiscal year ended January 31, 2013

u  Advertising revenue in Internet radio on mobile and other connected devices increased by 99% in 2013

*Measured in hundreds of millions of listener hours

For the past four years, ending in 2013, the Internet radio market has grown at triple digit rates.* This rate is widely forecasted to increase through next three years. The top 15 Internet radio services all grew substantially, in both user numbers and revenues, in 2013:

Pandora total rev. for 2011 = $137.8 Million Pandora Total rev. for 2013 = $427.1 Million

The Opportunity u  StationDigital believes it has an opportunity to

compete for significant market share in this wide open and expanding market

u  Previous new entrants into this market have done very well in terms of capturing market share u  Clear Channel’s iHeartRadio, the second national brand

to achieve pre-eminent market share, surpassed 30 million registered users in less than two years after the launch of its current version

u  Spotify, SoundCloud, Rdio, Tune-in, Slacker, and Sound Hound have all achieved prominent brand awareness, large user bases, and high enterprise values

u  StationDigital has risen into the top national tier of Internet Radio stations in one tenth the time it took any of those others to do so, and has already surpassed all but three in mobile app downloads in 2014.

Vision

u  There’s a growing behavioral preference among advertisers for Internet radio over traditional broadcast radio - as interactive v. non-interactive advertising is showing greater retention and action among listeners.

u  Internet radio holds a demonstrated higher ceiling for brand and message retention, consumer awareness, and marketing ROI.

u  Internet radio offers an evolved customer engagement platform with a superior value proposition for advertisers.

Internet radio ROI

How We’ll Grow u  Marketing partnership with Google drove over 4M unique

visitors in first months after launch.

u  Marketing focus in 2014 is primarily on mobile device listeners.

Marketing approaches: !  Direct Digital

Marketing !  Channel Partner

Marketing !  Viral and Organic

Growth !  Sponsorships,

Events and Indie Artist Promotion

Management Team

Timothy Roberts – CEO & Chairman

Ed Storm – COO

Terrance Taylor - CFO (Interim) & Controller

David LaFrench – CTO

Lucky Romero - VP, Business Development

    

Infrastructure, Hosting, Software, Music Industry and Digital Media, Finance, Accounting, Finance

and Technology Seasoned Experts.

Advisory Board

Kevin Bachus, Co-Creator of Xbox, Dave & Busters

John W. Fanning, Founder of Napster, NetMovies, NetGames, NetCapital

Brian Altounian, CEO of Wowio

THANKS… AND STAY TUNED!