SPT Networks GAMES
FY2014 BUDGET
12.18.12
Distribution & Business Development
• Set up entity – Sony Pictures Television Networks Games – and implemented new licensing structure
• Expanded distribution• Created and greenlit 3
new WOF/JEP brand extensions
• Created and greenlit first original IP game, Blackjack
• Licensed WOF Slots to GSN
• Closed talent deal
Product & Operations
• Launched new WOF game
• Maintained WOF/JEP Legacy products
• Conceptualized and started development on 4 new games (WOF/JEP extensions, Blackjack)
• Migrated server storage to the cloud
• Hired 2 producers
Marketing & PR
• Launched first on-air promo campaign
• Launched comprehensive campaign for WOF launch including press
• Analyzed and optimized pricing for JEP
Games FY13 Highlights
Per MRP, SPT Networks Games maintained WOF/JEP as premiere digital properties and expanded the business by developing homegrown IP
Distribution & Business Development
●Created and greenlit 3 new WOF/JEP brand extensions●Created and greenlit first original IP game, Blackjack●Closed talent deal●Set up entity – Sony Pictures Television Networks Games – and implemented new licensing structure●Licensed WOF Slots to GSN●Expanded distribution
Product & Operations● Maintained WOF/JEP Legacy products● Hired 2 producers● Launched new WOF game● Migrated server storage to the cloud● Conceptualized and started development on 4 new games (WOF/JEP extensions, Blackjack)Marketing & PR●Launched first on-air promo campaign●Analyzed and optimized pricing for JEP●Launched comprehensive campaign for WOF launch including press
2
Games FY13 Q3 Forecast
WOF timing issue
New license deal with GSN
Reinvesting into new
products (Jep 30/Sports Jep)
Cloud storage savings
Reinvesting into new products
3
($000's)
Q3 Fcst FY13 BUDGET Variance
REVENUEWheel of Fortune 2,604 3,500 (896) Jeopardy! 1,006 1,000 6 Licensing 2,189 2,189
TOTAL REVENUE 5,800 4,500 1,300
COST OF REVENUESProduction & Content (1,429) (993) (436) Testing (22) (23) 1 License Fees (2,200) (2,200) (0) Music Royalty (206) (206) TOTAL COGS (3,857) (3,216) (641)
OPERATING EXPENSESTechnology
Hosting/Bandwidth (53) (120) 67 Data Management (90) (90) - Sub-Total Technology (143) (210) 67
Sales and Marketing (600) (350) (250)
General and Admin. (700) (665) (35)
TOTAL OP. EXPENSES (1,443) (1,225) (218) -
EBIT 500$ 60$ 440$
Headcount 5 5 -
Cashflow 900$ (400)$ 1,301$
Beat budget by $440K
SPT EBIT is forecasted to be
$2.7m, up from $2.2m in budget
Expand Distribution
Platforms
OEMs
International
Deepen Partnerships
Distribution
Publishers / Licensees
Vendors
Diversify Product
WOF/JEP Brand
Extensions
Blackjack / Original IP
Licensing
Increase Marketing
Preloads / Placements
Product Updates
PR / Media
Streamline Operations
QA / Customer Service
Back-end Systems
Maintenance
Expand and diversify through platform expansion, strategic partnerships and the launch of new IP
Expand Distribution● Platforms● OEMs● International● Distribution● Publishers / Licensees● Vendors● WOF/JEP Brand Extensions● Blackjack / Original IP● Licensing● Preloads / Placements● Product Updates● PR / Media● QA / Customer Service● Back-end Systems● Maintenance
4
FY14 Distribution, Marketing & Product
* Android includes Google Play, Amazon and Nook storefronts
Diversify portfolio by leveraging tent pole franchises and developing new IP
5
Title % of
RevenueLaunch
DateLaunch
Platforms Q1 Q2 Q3 Q4
WOF/JEP Legacy 4% LiveiOS, Android,
Windows, Roku
WOF Slots 16% Live iOS, Android
WOF 15% Live iOS, Android
WOF Cubed 14% May 2013 iOS
Blackjack the Knight
10% Jun 2013 iOS, Android
Sports Jeopardy! 18% Aug 2013 iOS, Android
WOF Kids 7% Sep 2013 iOS
Jeopardy! 30 7% Nov 2013 iOS, Android
TBD Title 9% Nov 2013 iOS
Launch
Launch
Launch
Launch
Launch
Launch
ProductUpdate
ProductUpdate
PlatformExpansio
n
ProductUpdate
ProductUpdate
ProductUpdate
ProductUpdate
Live
Live
FY14 Product Roadmap
Pro
du
cer Design new games
Create and maintain game design docs
Manage vendors, deadlines and approvals
Oversee QA
Plan updates
Support marketing team
Ass
oc.
Pro
du
cer Lead QA
Maintain and customize bug-tracking
Create test plans
Assist Producer and Manager
Prepare and present status reports
FY14 Headcount
Hire 2 additional product heads to allow for continued product expansion; one producer/assoc. producer team per 2-3 projects
Producer●Plan updates●Support marketing team●Design new games●Create and maintain game design docs●Manage vendors, deadlines and approvals●Oversee QA
Assoc. Producer
●Assist Producer and Manager●Maintain and customize bug-tracking●Create test plans●Prepare and present status reports●Lead QA
6
Games FY14 Budget
7
Increase in y-o-y revenue due to WOF/JEP brand
extensions, Original IP and
licensing
Increase in y-o-y expenses due to reinvesting into new products,
updates, maintenance and
marketing
($000's)
FY13 FY14 FY14 VarianceQ3 Fcst MRP BUDGET vs. MRP vs. Last Year
REVENUEWheel of Fortune 2,604$ 3,100$ 3,365$ 265$ 761$ Jeopardy! 1,006$ 2,600$ 2,600$ 0$ 1,594$ Original IP- Black Jack 1,100$ 967$ (133)$ 967$ Original IP- TBD 500$ 797$ 297$ 797$ Licensing 2,189$ 1,526$ 1,526$ (663)$
TOTAL REVENUE 5,800$ 7,300$ 9,256$ 1,957$ 3,456$
COST OF REVENUESProduction & Content (1,429)$ (2,263)$ (3,620)$ (1,357)$ (2,191)$ Testing (22)$ (21)$ (21)$ -$ 0$ License Fees (2,200)$ (2,400)$ (2,500)$ (100)$ (300)$
Music Royalty (206)$ -$ -$ 206$ TOTAL COST OF REVENUES (3,857)$ (4,684)$ (6,141)$ (1,457)$ (2,285)$
OPERATING EXPENSESHosting/Bandwidth (53)$ (279)$ (279)$ (0)$ (226)$ Data Management (90)$ (90)$ (90)$ -$ -$
Sub-Total Technology (143)$ (369)$ (369)$ (0)$ (226)$
Sales and Marketing (600)$ (799)$ (1,049)$ (250)$ (449)$
General and Admin. (700)$ (947)$ (947)$ (0)$ (247)$
TOTAL OP. EXPENSES (1,443)$ (2,115)$ (2,365)$ (250)$ (922)$
OP. INCOME BEFORE CONT. 500$ 500$ 750$ 250$ 250$
EBIT 500 500 750 250 250
Headcount 5 7 7 - 2
Cashflow 900$ (200)$ (200)$ 0$ (1,100)$
50% y-o-y increase in
EBIT
SPT EBIT increases $550K y-o-y to $3.25m
Appendix - Blackjack the KnightPlay Black Jack with Fantasy Role Playing twist in this game based on
original IP developed in-house
Launch: June 2013, iOS, AndroidPrice Point: $0.99 with In-App PurchasesTarget Audience: Card/Strategy gamersKey Features:
• Progression-based story mode for single players – defend against an evil Joker who has captured all the Kings and Queens
• Travel through the world and fight enemies with easy to pick up and play Black Jack rules
• Customizable Player Avatars gives each individual a unique playing style
• Play against your friends through FB Connect with an asynchronous turn-based mode
In-Game Monetization:• In-game currency allows the player to purchase “Gold” in bulk to
spend on virtual Items• Virtual items include additional weapons, strength, power ups
etc.
Appendix - Wheel of Fortune Cubed
9
Launch: May 2013Platforms: iOSPrice Point: $0.99 with In-App purchaseTarget Audience: Casual/social gamers
Key Features:• Combines Wheel of Fortune with Crossword Puzzles• Fun and addictive like Sudoku• Play against your friends online, asynchronous, or live• Have multiple games going on with different friends• Play different modes – solitaire, speed round,
multiplayerIn-Game Monetization:
• Additional Puzzles and Power Ups
Combine the rules of Wheel of Fortune with the cleverness of a Crossword
Appendix – FY13 Q3 Forecast
10
($000's)
Q3 Fcst Q2 Fcst Variance FY13 BUDGET Variance
REVENUEWheel of Fortune 2,604 3,105 (500) 3,500 (896) Jeopardy! 1,006 1,021 (15) 1,000 6 Licensing 2,189 374 1,815 2,189
TOTAL REVENUE 5,800 4,500 1,300 4,500 1,300
COST OF REVENUESProduction & Content (1,429) (1,071) (358) (993) (436) Testing (22) (22) 0 (23) 1 License Fees (2,200) (2,200) - (2,200) (0) Music Royalty (206) - (206) TOTAL COGS (3,857) (3,293) (564) (3,216) (641)
OPERATING EXPENSESTechnology
Hosting/Bandwidth (53) (61) 8 (120) 67 Data Management (90) (90) - (90) - Sub-Total Technology (143) (151) 8 (210) 67
Sales and Marketing (600) (350) (250) (350) (250)
General and Admin. (700) (646) (54) (665) (35)
TOTAL OP. EXPENSES (1,443) (1,147) (296) (1,225) (218) - -
EBIT 500$ 60$ 441$ 60$ 440$
Headcount 5 5 - 5 -
Cashflow 900$ (400)$ 1,300$ (400)$ 1,301$