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Corporate Profile
Multinet International Corp., Inc. (OTC BB: MNIL)
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Multinet International Corp., Inc. dba
Showintel Networks, Inc. Executive Summary
Address: 574 Greentree Cove, Suite 101, Collierville TN 38017
Exec. Contact: David Lott, President, Kelly Lefkowitz, Acting CF
Industry: Entertainment Advertising, Video-On Demand, Database
Marketing
Business Overview
Showintel Networks, Inc. (“Showintel”) increases consumption of entertainment
by creating a system that interacts with the “entertainment life-cycle.”
Combining theater-based advertising, innovative loyalty programs, and
video-on-demand (VOD) access to pay-per-view (PPV) and subscription services,
ShowEnTel can increase loyalty and revenue to a chain of theaters, increase
purchases of ancillary products (soundtracks, DVDs, videos, merchandise), and
create a pinpoint targeted direct marketing connection with entertainment
consumers to stimulate rentals and PPV. In addition, some of the
infrastructure investment can generate incremental revenue through strategic
relationships with local ISP and wireless network operators.
In-theater advertising: Showintel is placing interactive displays in theaters
that will offer advertising and coming attractions that theater patron can
watch passively or interactively. We have an exclusive agreement with
See/Saw Communications, Inc. See/Saw was created in part by the principals
of Toolbox Productions Inc., to sell the advertising space on our displays.
Toolbox is a full service company, uniquely qualified to sell, produce,
write, edit and mix audio/video promotional campaigns and sales
presentations. Toolbox was founded in 1995 as the exclusive on-air promotion
facility for the United Paramount Network (UPN). Clients include MGM, ABC,
Sony, Paramount and Studios USA.
Loyalty Program: As a reward for interacting with the advertising displays,
theater patrons will be offered the opportunity the sign up for a loyalty
program that offers them discounts on future tickets as well as discounted or
free offers from sponsors of the loyalty program.
E-mail Marketing: Once a part of the loyalty program, Showintel will collect
data on the movies seen. This will allow us to market merchandise directly
related to the films seen as well as creating offers for entertainment of a
similar genre.
VOD Infrastructure: As entertainment properties continue along the
entertainment lifecycle, Showintel will offer PPV and subscription services
to the residential and hospitality markets.
Wireless Infrastructure: Showintel has a relationship with Truespeed
Wireless, Inc. a provider of 802.11b wireless systems that provide
subscribers with 11Mb of bandwidth. Since Showintel requires high bandwidth
to provide this system, it will be cost effective to erect wireless towers
rather than pay for dedicated bandwidth. The extra capacity can be used by
Truespeed or offered to local operators to resell. Showintel is currently
in negotiations with Truespeed regarding Showintel receiving a portion of
those subscriber fees.
Information: Once Showintel knows which films a theater patron has seen, we
will create online conversations with them designed to obtain feedback on the
shows they have seen. This will be valuable to film producers and
advertisers. It will give us an advantage in targeting future entertainment
opportunities to the consumer.
The Showintel Advantage: The Entertainment Lifecycle
Unlike any other system available, Showintel gets involved with the entire
entertainment lifecycle. Over the first year, viewers can choose to pay a
premium to see a show early in the lifecycle or wait to save money. This may
be from buying a soundtrack, renting the video, or watching it on broadcast
TV. Normally, each stage of the cycle centers around independent contact and
interaction. With a combination of in-theater contact and an on-line VOD
system, Showintel will have the opportunity to profit from several of the
following lifecycle stages rather than just one.
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Benefits to Customer Groups
Showintel has multiple customer groups. Theater owners benefit from
in-theater displays and loyalty programs. Entertainment consumers benefit
from loyalty programs and Showintel’s life-cycle approach to entertainment.
Entertainment producers get better feedback and additional sales
opportunities. Advertisers and sponsors receive sales and branding
opportunities.
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Market Opportunity
The foundation of Showintel market expansion is derived from three primary
factors:
Growth of VOD/PPV Market. The VOD market alone is expected to grow from its
current annual size of $30 million to $2.6 Billion in 2005. Analysts
predict there will be as many as 44.4 million homes using VOD by 2010, making
the market worth anywhere from $2 billion to $6 billion a year. Video over
DSL will have 23 million subscribers by 2005. The combined market revenue
potential for Internet and video-on-demand to be $28 billion through to 2004.
Increased Penetration into Theater Chains. As of the end of 1999, there were
36,448 theater screens housed in 7,031 sites. Independent theaters/chains
account for 2800 sites.
Better Information to Interact with Entertainment Consumers. Research shows
that the average theater viewer will interact with the same piece of
entertainment an additional 2.1 times. Knowing which films they have seen
will allow us to target offers to them based on.
Growth of Location-based (Kiosk) Advertising. Dubbed “the vending machine of
the Internet Age”, location based displays are growing at a 20% compounded
annual rate. Revenues of $3.23 trillion are expected by 2006. Up from 400,000
units today, there should be 1 million units by 2005, a 150% increase. The
interactive display market is growing at a slightly faster (24% compounded
annual) rate.
Competition
Movie Theater Advertising
NCN: National Cinema Network was the first to introduce media and promotions
in movie theatres. NCN has onscreen presence in 10,000 theaters, however
their reach in in-theater displays is much smaller. They are partially owned
by AMC.
Showintel Advantage over other Theater-based Advertisers – We offer
continuing contact focusing on the entertainment lifecycle whereas they focus
only on in-theater. We also offer a comprehensive loyalty program
Residential VOD
Moviefly: Moviefly is a venture formed in August 2001 by MGM, Sony,
Paramount, Universal and Warner Bros. to distribute movies on demand over the
Web. Moviefly hopes to launch with 100 titles and will need at least 1
million customers to make a profit. Moviefly isn't using streaming video.
Instead, it will require viewers to download movies in their entirety before
watching.
Movies.com: Walt Disney Co. and News Corp. are launching Movies.com, which
will also be offered through cable television companies will offer movies for
download and viewing on personal computers. New movies and older titles will
be offered from Disney’s News Corp.'s film libraries. Disney and Fox will
offer new feature films soon after they are available for rental and before
they are shown on traditional pay-per-view services. The other studios,
including Sony Pictures Entertainment, Universal Studios, Paramount Pictures,
Metro-Goldwyn-Mayer and Warner Bros., will provide their films to their
video-on-demand service on a non-exclusive basis.
In Demand: iN DEMAND delivers television premieres of movies, the NBA, NHL®,
ESPN® FULL COURTtm college basketball, plus championship boxing, mega-event
wrestling and exclusive originals.Universal and Columbia, have announced
separate deals to provide films to In Demand. Comcast, Time Warner
Entertainment, Cox Communications Holdings Inc., MediaOne of Delaware Inc.
and TCI Communications Inc. (an AT&T subsidiary) hold stakes in iNDEMAND,
which provides pay-per-view movies and events to multichannel video
programming distributors
Intertainer: Delivery: Delivered to home computers and televisions through
high-speed telephone (DSL) or cable connections (cable modems or digital
set-top boxes). Investors: Comcast, Intel, Microsoft, NBC, Sony and Qwest
Distribution: Service has completed technical and consumer trials. Commercial
deployments currently in progress. Pricing: Intertainer has multiple pricing
options including pay-per-view selections, and premium program package
offers. Programming: Current movies and film favorites, television shows,
concerts, music videos, children's programming, documentaries, enhanced TV
programs and shopping. Content Providers: Include Universal Pictures, Warner
Bros., Dreamworks SKG, Twentieth Century Fox, New Line Cinema, A&E Networks,
Discovery Channel, ESPN, PBS, NBC, Warner Music Group, EMI Music and many
others.
Showintel Advantage over other Residential VOD Systems – We already have
knowledge of the shows seen by subscribers before they are released to VOD
systems. This allows us to target our online promotions to a group of ready,
willing, and interested buyers.
Hospitality VOD
On Command: On Command Corporation annually serves 250 million guests through
950,000 rooms in approximately 3,450 hotel properties. (NASDAQ: ONCO)
Lodgenet: LodgeNet covers 5,300 lodging properties, representing 870,000
hotel rooms. (NASDAQ: LNET)
Showintel Advantage over other Hospitality VOD Systems – we offerfaster speed
connections and a larger library.
Sales and Marketing Strategy
Aggressive direct-sales effort. Our immediate goal is the sign-up and
integration of 9.7% of the theater plants in the US (24.4% of the independent
theaters), expanding internationally by 2004.
Low-barrier network entry Showintel is eliminating all barriers to sign-up by
initially offering low-cost integration to theater owners. This is a virtual
'land-grab' strategy that will place ShowEnTel in a dominant market position.
Back-end attack on competition. To avoid the rush for e-merchant sign-up,
Showintel will concentrate on and integrate with the ‘back-end' becoming the
network for bulk-mover warehouses in the e-marketplace.
Strategic partnering. Showintel will partner with merchandise fulfillment
companies to facilitate e-commerce, with local ISPs to market excess
bandwidth capacity on our wireless connections, and with
Viral market penetration. By integrating points of aggregation, Showintel
offers trading partners the most efficient, logical and convenient
integration method and easy-to-use, intelligent transaction fulfillment.
Revenue
Revenues are derived from in-theater advertising, loyalty program
sponsorship, hospitality VOD PPV payments, residential VOD PPV and
subscription payments, merchandise sales, research report sales, and resale
of excess capacity on our wireless equipment to local internet service
providers.
Status
Showintel has recently completed a reverse merger into a public shell (NASDAQ
Symbol: MNIL.OB). We are live with our first customer, Malco Theaters, Inc.,
the 23rd largest theater group headquartered in Tennessee. We are in final
stages of negotiations to reach 10% of the independent film market by
December 2001. Our sole restriction will be the capital to install the
hardware in the theaters we sign up. In concert with Truespeed, Showintel
intends to test its hospitality VOD system (in development) with a major
hotel in Las Vegas.
Performance Metrics and Financial Projections
Using industry averages and internal assumptions, Showintel l should achieve
the following performance goals.
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Showintel, by achieving the above business goals expects to generate these
financial results:
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The Showintel Team
Showintel employs highly skilled and experienced employees with proven
backgrounds, led by the following management team:
David Lott, Founder & CEO. Mr. Lott has 20 years experience in business
development and management. In addition to his responsibility to SHOWINTEL
NETWORKS, Mr. Lott is President and founder of Daody Management, Inc (DMI).
DMI is a warehousing and storage management company in the Greater Memphis
area of Tennessee and encompasses properties in several locales of southern
Texas. Properties under his management include the Canon Computer
Distribution Warehouse and PanAm Flight Training Academy. Mr. Lott developed
this large real estate, storage and management company from the ground up. In
1982 he founded and operated Landscapes Unlimited, Inc. as its President.
Landscapes Unlimited, Inc. was a top 50 company in commercial landscape
contracting and management. He orchestrated the company’s sale to industry
leader Orkin International in 1994. Mr. Lott brings to SHOWINTEL NETWORKS
his broad entrepreneurial and practical experience in all facets of corporate
development and management.
Kelly Lefkowitz, CFO Mr. Lefkowitz has 17 years experience in strategy,
planning, finance, implementation, and interim management including 10 years
experience with entertainment, promotions, technology and web-centric
businesses. Lefkowitz has a talent for balancing visionary leadership and
executive management roles to maintain strategic and tactical focus
simultaneously. His experience includes consulting and/or interim management
engagements for NBC Entertainment division of General Electric Inc. (NYSE:
GE), Internet music giant ARTISTdirect, Inc. (NASDAQ: ARTD), Hughes
Electronics Corp. (NYSE: GMH), MK division of Computer Associates, Inc.
(NYSE: CA), Affinity Media, Inc., ClickPLAY, Inc., CyberActive Network, Inc.,
Digital Entertainment Network, Inc., Lone Wolf, Inc., Making the Turn, LLC,
and MetaWire, Inc. Lefkowitz holds a BS in Business Administration from
Boston University School of Management and an MBA from the University of
Southern California where he has also taught strategy and planning in the
School of Entrepreneurship’s Business Expansion Network. Lefkowitz is
performing services for Showintel as part of a consulting agreement with
ClickPLAY, Inc. He has agreed to accept the full time position when needed.
Alan Josef Kaplan, Executive VP Business Development – Music and
computer-industry veteran Alan Josef Kaplan is the founder and former chief
executive officer of the $18 million music publishing and record label
company Music West. In 1990 he received his 2nd consecutive Label of the Year
award from Billboard magazine and was named one of the top 40 entrepreneurs
under 40 by Entrepreneur Magazine. Kaplan worked with the first national
retailer of PCs, ComputerLand. He helped launch the IBM XT and AT as well as
Apple’s IIc and Macintosh computers. He served as an adviser to management of
Gold Circle Entertainment (music), PackageNet (online package delivery),
Headspace (now Beatnik, music on the Internet), MissionStudios (video games)
and Motorola Interactive Media Festival (conference on new media and the
Internet). As the founder and chairman of ClickPLAY, Inc., Kaplan created
and led the development of a media-based software that took a radical new
position in the industry, insuring the complete experience everytime. This
core technology will be incorporating into Showintel’s systems. Kaplan is
performing services for Showintel as part of a long term contract with
ClickPLAY, Inc.
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Wall Street Web Inc.(Hotticker.com) is an independent research firm. This
report contains forward-looking statements. Pastperformance does not
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may, or may not be the opinion of Wall Street WebInc.,(Hotticker.com), but
relies on information supplied believed to be reasonable. WSW has been
retained by Showintel Networks, Inc., and has received350,000 restricted
shares of stock. WSW, Inc and/or individuals thereof may have positions in
securities referred to herein and may make purchases or sales at any time.
The information contained in this report is for information purposes only and
should not be construed as an offer or solicitation to buy or sell any
security. Investors should consult with an investment professional before
investing any monies. Copyright2001 WSW Inc. All Rights Reserved.
Wall Street Web Inc.
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