Gramarye pitch deck 1 9 - leave behind

The Cross-Media Story Franchise Incubator

GRAMARYE MEDIA LEADERSHIP TEAM: INNOVATION

GRAMARYE MEDIA LEADERSHIP TEAM: BUSINESS

John Adcox, Chief Executive Officer20+ years in Digital and Integrated Media Creative Direction, Strategy, and UX with VP and C-level titles Novels coming from “Big 5” Publisher Award-winning optioned television and screenwriter

Irtaza Barlas, Chief Technology Officer Former Lead investigator of DARPA Self Awareness Program (The world’s preeminent center for Artificial Intelligence) Inventor and Engineer with numerous patents on his work Georgia Tech PhD

Don Dudenhoeffer, Chief Creative OfficerAward-winning Creative Director and Technologist Winner of the first-ever Primetime Emmy Award for Interactive Television(HBO’s Band of Brothers) Serial Entrepreneur

Previous: Studio lead, COO, and CFO Managed project financing for motion pictures ranging in budget from $2 million to $100 million, totaling one half a billion dollars, including some of the largest independently financed pictures including Terminator 2 and Cliffhanger

Alice Neuhauser, President Jon Wroblewski, CFOFilm Fund Manager and Independent Film Producer VP, Development at FuelD Films, a Forbes Fastest Growing Company VP Production Co-founder, first Chinese/US Joint Film Fund

Audience Building for Risk MitigationA Graduate of Georgia Tech’s Flashpoint start-up accelerator, Gramarye employs

cross-disciplinary expert mentors and a proprietary technology/social media platform to discover, incubate, and vet the next great story franchises.

+ +

CREATE HIGH-VALUE, MULTI-CHANNEL FRANCHISES

Select unreleased stories with the

fundamental structure requirements for

franchise success

Add value to the story at every stage of the incubation process to

develop franchise potential

Invest in and build the single most critical element needed for franchise success:

A BUILT-IN AUDIENCE

BIGTHE BUSINESS OF STORY IS

ANNUALLY MORE THAN $1,000,000,000,000

COUNTING MOVIES, BOOKS, TV, GAMES, THEME PARKS, ETC

RISKYTHE BUSINESS OF STORY IS

THEY ARE PERCEIVED AS SAFER, BUT…

STUDIOS MITIGATE RISK WITH SEQUELS AND REMAKES

“PLAYED OUT”Without exception, the executives

we talked to agreed with J.P. Morgan financial analyst Vasily Karasyov:

“The cycle of sequels and remakes has played out," and

"presents a growing risk to film industry profitability.”

A SYSTEMIC PROBLEMStudios have become “hunters and gatherers,”

seeking established franchise IPs.

Predictive, reliable, and unbiased analytics in entertainment media don’t exist today

Sales figures for books and comics are undependable. These figures indicate store purchases, not consumer purchases

Core elements of a story that inspire audience passion and loyalty are often lost in translation when adapted across media channels

A vision for a cross-media franchise is often missing in the early stages of story development

WITH BUDGETS SOARING AND COMPETITION FOR SCREENS GETTING MORE FIERCE, RISK MITIGATION IS CRITICAL.

NEED BETTER DATA UNCLEAR AUDIENCE BASE ADAPTATION CHALLENGES NO PLAN FOR SUCCESS

Gramarye shifts the “hunters and gatherers,” paradigm

to an “agricultural” model, farming stories with blockbuster DNA.

OPPORTUNITYDiscover unestablished stories

with franchise potential

Nurture and develop the asset into a known brand

Build an engaged audience

Control cross-media development rights

UniteS…cross-disciplinary communities of storytellers, producers, artists, technologists, and investors … because there will always be a need

for the core, generational stories that unite us.

WHAT DOES A STORY FRANCHISE INCUBATOR DO?

DISCOVERS…diversified slates of stories in their infancy because

every media franchise begins with the written word.


INCUBATES…potential story franchises … just like a business or technology incubator launches companies. It’s the Silicon Valley approach applied to storytelling.


VETS…every story through direct interactions with the audience.

Because passionate fan bases = brand awareness = success.


MAXIMIZES…the ones that have traction after proving the one key

element studios demand: a built-in audience.


A MODEL FOR IDENTIFYING AND MAXIMIZING

developing

world-class

athletes

We treat potential blockbuster story franchises the same way.

Building

blockbuster

franchises

=


“RAW MATERIALS” CONTROLLABLE FACTORS: TRAINING CONTROLLABLE FACTORS: SPECIAL ATTENTION

Athlete • Raw Talent • Character • IQ • Genetics • Resilience • Coachability

• Skills development • Practice • Strength training • Agility training • Endurance training • Year round focus on a single sport

• Coaching • Schools • Club sports • Specific skill development • Competition • Nutrition

Story Creator

• Talent • Creativity • IQ • Life Experiences • Coach-ability

Storytelling skills development • Characters • Structure • Tone

Audience identification, understanding & development • Researching skills • Proper use of Social media Blogging

Attention to detail. Continuous improvement and editing • Collaborative orientation • Acceptance of feedback Resilience • Encouragement • Humility

Coaching and mentoring by experienced professionals

Input from: • Rock star editors • Multi media Marketing experts • Successful authors • Marketing Professionals • Producer

Networking

Platform development expertise

Funding and investment in the asset

Potential pro athletes increase the odds of success by participating in “travel ball” leagues and attending elite training academies … before they even reach high school.

• Health behavior • Psychology development • Confidence • Financial resources

• World Building • Genre

EXAMPLE: PRO BASEBALL


Odds of Success < 1%

Play in high school

Avg high school team coach (that’s probably also a geology teacher)

Best may make minors or play in college.

Play in Major League Increased Odds of Success

Training academy identifiespotential elite athletes sooner

Dedicated strength coach, agility coach, skills coach, etc.

More attractive to scouts and major league

Play in Major League

“NEW WORLD”

Gramarye Media is unique in systematically employing incubation methods to identify elite intellectual properties and working with story creators early in the lifecycle to influence controllable factors. The process ultimately increases the odds of success and add significant value to the IP asset.

Today, talent is a commodity. Systematic efforts using controllable factors are employed to improve the chances of success.

“OLD WORLD”Historically, athletes developed through high school athletics programs,

the best advancing through college to professional careers

EXAMPLE: PRO BASEBALL

The Incubation Process:DevelopING Stories as Businesses

The Incubation Process:

DISCOVER

Building a Gramarye Slate

STORIES WITH AUDIENCES THAT ALREADY CONGREGATEBegin with Genre Specific Stories


Engage Panel of Industry ExpertsUSING 40+ POINT PROPRIETARY RATING SCALE


Identify 10 -12 Best-Fit StoriesTHE ONES THAT HAVE BLOCKBUSTER FRANCHISE DNA


THESE ARE THE ONES WE INCUBATE AND VETAcquire Rights to the Chosen Few


INCUBATE

EDITING/ACQUISITIONS TEAMChristopher Golden, Development Editor

NYT Best-selling Author Editor Executive Producer and Screenwriter Comic Book and Game Writer

Juliet Ulman, Editor in Chief

Editor in Chief, Pugilist Press Senior Editor, Random House Shortlisted for the Hugo Award for Best Professional Editor three times

Peter Miller

Literary and Screen Agent, Executive Producer

Chris Soth

Screenwriter (Firestorm) Author, Filmmaker, Screenwriting Consultant, WGAw MFA from USC

Lou Aronica

Founded Spectra at Bantam Books Publisher at Berkley & Avon Founded The Story Plant Award-winning Author/Editor

James A. Moore

NYT Best-selling Author, Game Writer, and Comic Book Writer

Candice Alger

Founder/CEO, Giant Studios Executive Producer of Motion Capture Effects on Avatar, The Lord of the Rings, Warcraft, and more

Paul Jenkins

Novelist, award-winning comic writer, editor, screenwriter, television writer, game writer, and educator

INCUBATION MENTORS


VET

Utilize proprietary digital technology to publish each story in our slates as stand-alone “eBook 2.0” apps for tablets and smartphones Sold as individual apps through the Apple, Google, and Amazon marketplaces

Brand Awareness spreads via a proprietary social media platform

Rich multimedia interactivity enhances the story and engages audiences

DEPLOY STORIES AS ENHANCED “PILOTS”

Combine text, video, music, games, interactive maps, audio book narration, character bios, special effects, social media, and more surprises to make a beautiful and engaging reading experience

Pull the user into a story with integrated Augmented Reality and explorable 3D story/community spaces

Adapt the experience in real time

Stretch the capabilities of a tablet or smart phone to create an entirely new kind of story experience

GRAMARYE TECHNOLOGY: WELCOME TO EBOOK 2.0

CLICK TO VIEW DEMO

http://www.gramaryemedia.com/video-demo/

PLATFORM

Opus

Story Opulet Generator

Multimedia Assets

Graphics/ Animation

Page Flip Renderer

Story-Awareness

Ribbon Manager

Multi-Reader Profiler

Persistence Manager

To Be Developed

Page Renderer

FIT/FAT Tag Parsers

Awards Manager

Random Effects

Manager

Device Manager

Dynamic Content

Manager

Thread Manager

Event Manager

Opulet Manager

FIT/FAT Tag Generator

Gramarye Function Generator

Gramarye Generator UI

Three-Page State Machine

Loader SplashScreen Handler Unloader

Opulet N

Opulet 2

Opulet 1

Opulet TOC

Opulet Setting

Story Opulets: Encodes the main narrative of the story

Encapsulates tags for ‘story-awareness’ Shows multimedia (video/audio) elements

Opulet Game N

Interactive Opulets: Use ‘story-awareness’ to depict characters

‘Within-the-book’ Interactive activities

Configuration Opulets: Common Configuration Functions

Table of Contents Reader Information

...

Opulet Game 2

Opulet Map

Physics Engine

Look & Feel (CSS3)

Fonts Graphics Animations

Video Clips Audio Clips 3D Models

ASSETS

ENTE

R

UTIL

IZES

INTE

RACT

S

MAIN MODULES

INPUT

Reusable Components

Partially Developed

EVENTS

...

A GRAMARYE TITLE

GENE

RATE

S

Social Media Integration

GATHER ANALYTICS THROUGH OBSERVATION

Reduce bias and unreliability of traditional analytics

The best tests are primary and involve direct observation

Mine audience preference data across socioeconomic and geographic sectors

Interactions are custom tailored to gain specific insights about story elements

Direct observation of reactions to the actual story – not a comp

COMMUNITIES FORM AROUND STORIES USERS HAVE MULTIPLE OPPORTUNITIES TO SHARE WITH FRIENDS WITHIN THE EXPERIENCE

We empower readers to form and expand thriving fan communities.

From within the book apps, users can earn rewards and incentives by sharing via email, text, Facebook, Twitter, and GoodReads.

Share Quotes and Passages

Unique Invitations (e.g. Fortune game)

Share Game Results and Scores

Join Integrated Community Forums

Send Video Book Trailer

Communities form around stories … for evidence, look at Comic Con and DragonCon, or the Harry Potter and Star Wars pub crawls. Friends share with people they consider “like them.” Story is a key factor in “tribal identity.”

TRACKED AND MEASURED SHARES = BRAND AWARENESS AND AUDIENCE

Favorite passage shared….

The average Facebook user has 245 friends. Users are incented to share multiple times.

On average, 7.5% will see the shares, and 10% will click through.

The result is additional sales … and more Social Media shares.

The key benefit is the viral and trackable spread of brand awareness.

Market-proven Proprietary Social Media Platform

Gramarye apps inspire, empower, and incent users to share

We track viral spread of brand awareness

Social opportunities are built directly into the application experience

Thriving fan communities develop and prove audience size and passion

A BUILT-IN AUDIENCE

Audience Aggregation Establishes Franchise Value


MAXIMIZE

Unit Sales Social Shares Community Data MiningFrequency, Share Types,

Tags, Relationship Dynamics

Depth, Frequency of Participation and

Aggregation

User Choices, Insights Gained,

Clarity of Viability

Direct Sales, Referral Sales, App and Story

Reviews

Picking the WinnersSuccess is measured by audience response:

WE PARTNER TO DEVELOP HITS ASFRANCHISES

FILM

VIRTUAL REALITY

TOYS & MERCH

GAMES LOCATION BASED

TELEVISION

Cross-media franchises are worth $billions

Each channel supports and promotes the others

Each channel generates revenue

Investors participate in every exploitation across all channels in perpetuity

4: MAXIMIZE1: DISCOVER 2: INCUBATE

IP Potential • Review by “A List” industry experts • 44-point checklist

to evaluate franchise viability • Requires identifiable, measurable

audience that congregates

• $50k plus additional value offered to engage author and secure rights

• Author Advance ($25k) • IP Option fee ($25k) • Long term financial focus • Forward collaboration • Author actively engaged

• Unique approach in the industry • Attractive opportunity to authors

Author Potential • Raw talent • Coachable • Entrepreneurial • Collaborative

• Development notes from Senior Editor • Polish details with mentors/coaches • Develop cross-media treatment(s)

• Blogging and Social Media • Identify and interact with audience • Establish author/IP brand identity • Capitalize on Facebook, Twitter, etc. • Build fan base and Seed advocacy • Active dialog with customer • Media training • Event planning and training

• Collaboration Coaching • Work with mentor and/or screenwriter • Work with Artists/Designers on Character

Designs, World Designs, Map, Video Sequence Design, Game Design, etc.

• Build Asset Experience utilizing interactive application

• Book App • Social Media Platform • Games • Video segments • Music, Sound Effects • Internal forums/community

• App Launch and Marketing Push • Marketing spend ($100k to $250k) • Apps sold in Google Play, Apple, and

Amazon markets for around $14.95 • Expected Revenue Net >$500k per title

• Community/viral brand awareness tracked

• Audience Preference data mined • Audience validated

• Franchise “Business Plan” • Product lifecycle • Comprehensive media opportunity • Preparation of Product for Development • Resource Plan • Talent Attachments • Audience development plan • Feedback processing and incorporation • Marketing to agents and managers • Ready to Greenlight on Day 1

• Cross-channel Revenue Generation • Films • Television • Animation • Games • Location-based

Each channel supports and promotes the others Each channel generates revenue. Investors own a piece of every exploitation through every channel in perpetuity.

EVALUATE IP / AUTHOR

OFFER / ACQUIRE RIGHTS

MATURE THE ASSET

PUBLICITY MENTORSHIP

PREPARE FOR ADAPTATION

3: VET

BUILD APPLICATION

LAUNCH / MINE DATA& GENERATE REVENUE

CROSS-MEDIA FRANCHISE PLAN

PARTNER TO DEVELOP

THE GRAMARYE INCUBATION PROCESS RECAPStarting early in the life cycle and working with a cross-disciplinary team to develop world class story franchises.

REVENUE GENERATIONApp Sales and Cross-Media Development

EARNS REVENUETHE INCUBATION METHODOLOGY

12

MAY FAIL

We researched traditional publishing, games, and film/television returns.

4-5

BREAK EVEN / PROFIT7-8

1 OR 2 = BREAKOUT HITS

PROJECTED APP SALES IN SLATE

ONE TITLEPROJECTED APP SALES

Units Sold 200,000

Unit Price $14.95

Gross Revenue $2,990,000

Costs of Goods/Sale $2,290,000*

Net Margin $700,000

*Includes cost of production and marketing, and liability to author and sales channel (Amazon, Apple App Store, Google Play, etc.)

LOW END


Units Sold 500,000

Unit Price $14.95



Net Margin $3,111,250


MEDIAN


Units Sold 5,000,000

Unit Price $14.95



Net Margin $40,112,500


BREAKOUT

EXTENDING ASSET LIFECYCLE, INCREASING VALUE

The Gramarye process establishes an intellectual property’s cross-media franchise potential and then

extends and enhances its monetization lifecycle.

IP LIFECYCLE MANAGEMENT

GRAMARYE BOOK

MEDIA

MEDIA CHANNEL 2

MEDIA CHANNEL 3

SUPPORTS & RENEWS PREVIOUS CHANNEL

SUPPORTS & RENEWS PREVIOUS CHANNEL

Expanding Beyond Entertainment to Address Critical Community IssuesFUTURE VISION: EDUCATION

According to the National Assessment of Educational Progress and the National Center for Education Statistics, learning to read by the end of third grade is crucial. That’s when children start reading to learn other subjects.

Those who are proficient in reading by the end of third grade are much more likely to graduate from high school, and to be economically successful as adults.

About two-thirds of students in fourth grade don’t meet

reading proficiency standards.

IMPACTING EDUCATION CHALLENGES

FUTURE VISION

Our research identified 15 reasons why kids stop reading before the fourth grade.

While more research is required, we believe that our “eBook 2.0” technology can address them all.

In addition, content created for education can be developed as cross-media franchises.

IMPACTING EDUCATION CHALLENGES

FUTURE VISION

Next StepsInitial Investment and Development Phases

Initial Investment and Use of Funds:

This is the only investment round that will dilute Gramarye Media, Inc.

Additional investment will be in annual content slates, following the Hollywood studio model.

$3 MILLION YIELDS: 2 MARKETED APPS & PUBLISHING PLATFORM Platform

Development and Operations

Manuscripts (Advance/Option)

Video/Game/ Art/Music

App Marketing

GRAMARYE MEDIA — PHASE 1

YEAR 1 YEAR 2 YEAR 3 YEAR 4

GRAMARYE INVESTMENT, PLATFORM DEVELOPMENT, DEPLOY APPS 1 & 2

ONGOING MARKETING, ANALYTICS

CROSS-MEDIA EXPLOITATION

DIRECT GRAMARYE COMPANY/TECHNOLOGY DEVELOPMENT

Initial $3M Investment

YEAR 1 YEAR 2 YEAR 3 YEAR 4

GRAMARYE INVESTMENT, PLATFORM DEVELOPMENT, DEPLOY APPS 1 & 2



LEVERAGE PLATFORM TO DEVELOP ANNUAL CONTENT SLATES

BEGIN RAISE FOR SLATE 1, DISCOVER & ACQUIRE UP TO 10 TITLES

INCUBATE SLATE 1, STAGGERED DEVELOPMENT OF EACH STORY CREATIVE & APPS, DEPLOY

BEGIN RAISE FOR SLATE 2, DISCOVER & ACQUIRE UP TO 12 TITLES

INCUBATE SLATE 2, STAGGERED DEVELOPMENT OF EACH STORY CREATIVE & APPS, DEPLOY

EDUCATION OPPORTUNITY INVESTIGATED





Annual “Slate” Investment

GRAMARYE MEDIA — PHASE 2

means magic or secret knowledge. Gramarye (Gram-uh-ree)

It is the root word for glamour, grammar, and the French word grimoire, which means a book of magic spells.

404.759.6069John Adcox

For more information, contact:

[email protected]

Don Dudenhoeffer

[email protected]

mailto:[email protected]?subject=

mailto:[email protected]?subject=

Investor Relations

Gramarye pitch deck 1 9 - leave behind