U-SOPHIA MUSIC-CENTRIC COMMUNITY WHERE

MUSICIANS AND MUSIC LOVERS ENGAGE, INSPIRE AND SHARE

Prepared by Dan Shorer Chairman and CCO dan.shorer@u-sophia.com

For a live demo, please contact: Dan Shorer Skype: danshorer

Problem or rather – opportunity!

•  prohibitive for most Price &

Logistics

•  Performers and audience don’t meet, bypassing the human element

Music streaming sites

•  Costly shows, greedy ticket-agents = compromised standards. Limited exposure Musicians*

*Musicians – orchestras, ensembles, individual musicians, bands etc.

The Market Music streaming is a huge and expanding market that is not yet penetrated by social community networking

2010

2011

2012

2013

2014

2015

2016

2017

2018

Users 970 1,220 1,400 1,590 1,790 1,960 2,130 2,290 2,440

0 500

1,000 1,500 2,000 2,500 3,000

In m

illio

ns

Social NetworkUsers

2010 2011 2012 2013 2014

N. Subscribers 8,000 11,000 19,000 30,000 41,000

0 10,000 20,000 30,000 40,000 50,000

Subs

crib

ers

*1,0

00

N. Subscribers (*000)

2010$ 2011$ 2012$ 2013$ 2014$Revenue$ $330,000$ $462,000$ $753,060$ $1,167,243$ $1,622,468$

$0$$200,000$$400,000$$600,000$$800,000$

$1,000,000$$1,200,000$$1,400,000$$1,600,000$$1,800,000$

Revenu

e&*1000&

Revenue&

* Source: eMarketer; American Marketing Association

Market trends

•  3,200,000,000 people connected

Internet connection 40% connected

•  1,900,000,000 72% are active in Social networking

•  $1,600,000,000 generated

Music subscriptions 41 Mn subscribers

• Musicians top all social media platforms

Video streaming prevails

* Source: eMarketer; American Marketing Association

Here is where we come in

Social media

Music industry

Intimate experiences

evoking emotions

Unique

U-Sophia experience

The team

Dr. Dan Shorer •  Chairman & Chief Content Officer •  Career: Director for screen and

stage; Lecturer; musician; poet; CEO and founder of the Profit People

•  Education: PhD in Philosophy; MBA • Mission: To bridge over differences

with art

The team (Continued)

Nira Amit • CEO & CTO • Career: Software development manager (Cisco Systems); painter • Education: BA in Philosophy and Psychology • Mission: To guarantee the bridge we build, is sturdy

Advisor – Pauline Couture

¨  Pauline Couture has been a strategic advisor to many C-suite executives in publicly traded companies and universities, as well as to entrepreneurs and technology startups. She has also been a governance leader in civic society and cultural endeavours, as a director and a board chair. She is passionate about start-ups, particularly those which promise to enhance quality of life and support art and beauty in all their forms.

U-Sophia’s proposition

Engaged and highly rewarded partners

Inspiring and committed

team

Solid business model

generating high revenue

Defensible and win-win execution strategy

High future

valuation and ROI

* Source – IFPI www.ifpi.org/downloads/Digital-Music-Report-2015.pdf

Why U-Sophia

addresses all players’ needs

Low cost for users

Added Revenue for

partners

First mover advantage

U-Sophia, where content reigns

An online home for

musicians and music lovers

•  Blogs •  Posts •  Forums

U-Sophia’s exclusive

productions:

•  Artist at home – live conversations

•  U-Sophia’s house party

•  Celeb. Goes classical

Selected music events and festivals

•  Cinematically narrated Live Stream & VOD of selected music events

Links to watch: Empowering music: https://www.youtube.com/watch?v=9LK0FgUDxcE Artist at home: http://tinyurl.com/artist-at-home Ravello Festival on U-Sophia: https://vimeo.com/channels/ravellofestival/70256992

The Product

Content Price $

Freemium one free Artists in slippers, one free standard event, free VOD package

Free

Pay per view Grants a one time viewing (Regular event)

7

Pay per view - special

Grants a one time viewing (special event)

15

Silver 5 events plus 50% on one special

19

Gold 10 events plus 50% on two special

29

Platinum 25 events plus 50% on one special

59

Premium One year all included 99

Choose

•  Live or VOD •  By date/category/type

By type:

•  Director’s cut •  House Party •  Artist in slippers •  Thematic series

Subscribe

•  Pay per view •  Silver/gold/platinum

package •  Premium

Join •  Click to join event

U-Sophia offers the easiest and most inspiring way to experience musical events on any device

HOW WE MAKE MONEY

Single Pay-Per-View,

or Multiple Entry Ticket

No time-related commitment

Single PPV$7-15,

Multiple Entry Ticket from

$19.00

Business model

•  Content driven marketing efforts combined with those of our partners

Anonymous users are attracted to U-Sophia

•  The base of our community – a consistent 25% conversion Anonymous to

Freemium •  Consistent average 15% conversion rate •  Freemium users’ churn – calculated at

30% Freemium to paying

•  At 2,3 Mn paying users our revenue is $36Mn in year three. $36Mn

Competition

Feature/Benefit Medici.tv Spotify Berliner Youtube

U-Sophia

Social interactivity, Intimate conversations with musicians

None None None Chat with peers

Yes

Musicians’ Revenue sharing None Per Click None Per Click 30% of income

Profile-driven offering to partners

No partner program

No partner program

No Partner program

No partner program

Yes

Branded Auditorium No No Yes Possible Yes

Profile generated Personal creative space

No No No Yes Yes

Subscription $ 20/month 10/moth 20/month Freemium Event based ($5)

Video stream Live/VOD Only VOD

Live/VOD Mainly VOD Live/VOD

Exclusive productions No No Yes No Yes

Financials

Year 1 Year 2 Year 3 Total

Revenue 2,084,529 15,163,570 36,514,275 53,762,374

COGS 930,769 6,683,231 15,215,197 22,829,196

Gross profit 1,153,760 8,480,339 21,299,079 30,933,178

Operating costs 1,650,689 3,018,873 4,708,956 9,378,518 Profit/Loss (before tax) (496,929) 5,461,466 16,590,123 21,554,659

  Year 1 Year 2 Year 3 Registered users 262,000 2,827,429 6,417,429 Paying users 91,700 989,600 2,246,100

Users

Where we are now

September, 2011–to

date

•  Launched U-Sophia, where minds meet online

•  over 100 sessions of Artists at home

•  over 30 Thematic series.

March 21st, 2013

•  Live-streamed 19 concerts contemporaneously – over 11,000 viewers worldwide

June-September,

2013

•  Hosted and live-streamed the Ravello Festival 2013 – total viewers over 30,000

October, 2013– to

date

•  Introduced “Director’s Cut (reduced version)

•  partnered with the Jerusalem Symphony Orchestra, Concerto Copenhagen and Echi Lontani Cagliari, Italy

Ask: $ 750,000

85K 15K 50K 350K 180K 70K

U-Sophia needs $750K dollars that will be used to:

Redesign and test drive the

site

85K

Produce an MVP

15K

Team and

General

350K

2 stream-

kits

50K

Travel

70K

Events’ Direct costs

180K