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Home , Animax, Jormungand (manga), Vampire Knight

Animax SVOD UK

Business Plan

1 DNA

POSITIONING: ANIMAX is the destination for the ultimate experience

ATTRIBUTES: ... Loud ... Colourful ... Unconventional ... Authentic ... Cheeky

ANIMAX is a digital platform for the best in anime

2 ANIMAX Target Audience

Primary: 18 - 29 years, Secondary: 15 - 45 years Real time, multi-media consumption lies at the core of our viewers’ lifestyle. ANIMAX VIEWERS • Early adopters with relatively high discretionary income • Pop culture fanatics in search of what’s new…now • Multi-tasking consumers of cross-platform content • Aware of global trends and engaged in global issues • They want to watch TV on-line and on their mobile phones • They’re gamers and they own either a Play station or -Box

3 What you get with ANIMAX

ANIMAX features hit anime series, movies and exclusive material such as behind-the-scenes interviews and music footage. ANIMAX provides….

• Unlimited access to content • Subscription = ad free • Phase 1: available on iOS, Android, and PS3; Phase 2: available on other connected devices • – latest shows from

ANIMAX strives to offer its devoted fan base dedicated content tailored to a dedicated platform. World-class production values and first look, high-profile+ titles. +

4 ANIMAX PROGRAM STRATEGY

ANIMAX aims to bring the whole world of anime to a much wider public with programming that includes:

• Box Sets – a catalog of complete full seasons • Movies (the competition doesn’t offer movies on their service) • Simulcast series from Japan • First they’ll air on anime-on-demand • Once we have the ANIMAX service they’ll air for 2 weeks in a free window and then move to the pay window • ANIMAX Music concert (from Japan and ) • Anime Song Grand Prix (similar to Idol) • Studio Musix’s – each month follow a local artist • Behind the scenes interviews with anime creators (footage provided by ANIMAX Japan)

5 ANIMAX - Simulcast Highlights

8-10 new titles every season available day and date with Japanese broadcast

Autumn simulcast titles highlights:

K Project (12 eps) There’s a ton of buzz on the internet as the storyline is shrouded in mystery around this brand-new original anime that will begin airing in October. Psycho-Pass (24 eps) In the not-too-distant future, a special team of law enforcement officers enact justice based an persons state of mind. Robotics;Notes (24 eps) Set in a world in the use of Augmented Reality technology is increasing, a group of AR fanatics unearth a sinister conspiracy that could shake the world’s foundations. Jormungand (12 eps) An arms dealer and her young ward travel the world selling weapons while seeking vengeance for those that have wronged them.

6 ANIMAX - Box Set Highlights

Exclusive to ANIMAX!

Death Note (37 eps)

• When a teenage boy unearths a mysterious notebook, he finds that it possess special powers that allows him to kill anyone he chooses.

• has sold over 26 million copies in Japan.

• As well as the anime and manga, the franchise has been expanded as a live action film series and video game.

Vampire Knight (13 eps)

• When Yuki was a little girl she was attacked by one vampire but saved by another. A decade later, she becomes guardian of the vampire race.

• The manga continues to be published in Japan.

• Like , the franchise has been expanded as a video game and radio serial.

7 ANIMAX - Box Set Highlights

Bleach (366 eps)

• Possessing the power to see ghosts, a teenage boy and his friends use their gifts to solves mysteries involving the spirit world.

• Volumes of the manga have sold more than 72 million copies in Japan, and is one of the most sold in the United States.

• The anime adaptation has been similarly received; it was rated as the fourth most popular anime television series in Japan in 2006 and held a position amongst the top ten anime in the United States from 2006 to 2008.

• In 2011, Bleach was ranked 8th for top selling manga in Japan.

Honey and Clover (26 eps) (EXCLUSIVE TO ANIMAX)

• The story of three college students and their hilarious adventures.

• A manga, live-action film, the series and video game make this a popular series among fans.

From Vampires to Samurai’s all the favourite and top genres are covered with over Over 20 complete Box Sets at launch.

8 ANIMAX CUSTOMER PROPOSITION SUMMARY

PREMIUM AD SUPPORTED Video Selection Simulcast Simulcast (2 week window) Catalogue box sets Movies Exclusive behind the scenes/interviews Animax Music

Language Original language audio Original language audio English Subtitling English Subtitling English (boxsets)

Video quality SD and HD SD only

Devices Phase 1 - PC, iOS, Android, PS3/PS Vita Phase 1 - PC, iOS, Android, PS3/PS Vita Phase 2 – other connected devices Phase 2 – other connected devices Adverts No adverts Pre and mid roll adverts

Costs £5.99 per month No cost 14 day free trial

9 10

TRANSITION STRATEGY: ANIME-ON-DEMAND TO ANIMAX

For customers to positively embrace the transition to Animax, they need to see tangible benefits equal to or better than they were receiving with Anime-On-Demand. Efforts should be made to offset the Animax UK price increase.

SUGGESTED OFFER BENEFITS

- Early Adopter Discounts lock in the equivalent of almost 2 CURRENT EARLY ADOPTER DISCOUNTS (1 month months or over 5 months of Animax revenue before the site before launch) AND even launches. Examples: - Offers real cost benefit to users while shifting possible negative PROSPECTIV - 3 month season pass for the Anime-On- perceptions of the Animax price increases to a positive E Demand price of £9.99 (~45% off Animax perception of Animax’s incentive promotion. CUSTOMERS pricing). - Regular pricing will kick in as the default action once the - 1 year annual pass for the Anime-On- promotional period ends. Studies show consumers will likely Demand price of £34.99 (~50% off Animax accept the new higher default pricing; “consumers favor the pricing). quick, easy, default choice supporting natural human inertia.”* *(a study by Eric J. Johnson, professor at Columbia; “Nudge” by Richard H. Thaler, economist at University of Chicago; “Predictably Irrational” by Dan Ariely, behavioral economist at Duke and MIT.) ANIMAX Our Competition

# of Free Sub/ SVOD TVOD Format Titles Anime Simulcast Trial Dub Ad Supported Platforms

>600 at Sub and Animax UK £5.99/mo. £0.99 HD/SD Y Y 14 Day Y-Free PC/ iOS/ Android/ PS3 launch Dub £34.99/yr. Anime On £9.99/3 mo. N HD/SD <200 Y Y 14 Day Sub only Y-Free PC/ iOS/ Android Demand £1.5/wk.

PC/ iOS/ Android/ £8.99/mo for Windows/ PS3 (not in full UK)/ Roku / Boxee/ WD subscription N HD/SD >4000 Y Y 14 Day Sub only Y-Free TV Live/ Google TV/ (£4.99 for Samsung & Vizio Smart anime only) TVs

PC/ iOS/ Android/ PS3/ >10,000 Xbox/ Wii/ Roku/ Boxee/ £5.99/mo. N HD/SD (anime is Y N 30 Day Dub only N Apple TV/ Google TV/ <100) Smart TVs/ Blu-rays/ Tablets

£3.49/ Y - PC/ iOS/ PS3/ Xbox/ Wii/ Love Film £4.99/mo. HD/SD >7,500 N 30 Day Dub only N £2.49 minimal DS/ Tablets

11 ANIMAX Launch Plan

October Month 1 of Launch

•Simulcast episodes only •Full Animax service launches •Captures anime fans from start of new •Promotional catalogue episodes on simulcast season •Once Animax has been approved add pre- •Leverage linear branded block and Crackle roll teaser “Brought to you by Animax” to to cross-promote and up-sell to premium each video service •Transition existing Anime-On-Demand audience and subscribers to Animax (AOD then closes)

12 ANIMAX Promotional Road Map

ANIMAX VOD service Simulcast begins on Anime-On- launches on PC and PS3 Demand. Pre-roll will build up ANIMAX transition (i.e. “Brought to you by ANIMAX”). ANIMAX block begins on SPT UK ANIMAX VOD service launches Channel on iOS and Android 1 Month Pre-Launch Launch PC and PS3 Launch iOS and Android

Promo message on Anime-On- B2B trade release to announce Begin Google Adwords and Facebook Demand homepage and dedicated launch of channel Ad Campaign directing traffic to landing page; build anticipation, offer ANIMAX and pushing a 14 Days Free incentives, explain offer. why/benefits/differences, etc. Playstation newsletter to 4.5 mil Email customers of upcoming Presence at conventions and film subscribers to announce Animax change with Call-To-Action to learn festivals (see next slide) launch and push the 14 Days more and sign-up for incentive Free offer. programs. Start working with consumer trade- Use social media to create buzz. cheap ads or barter in anime mags Launch Animax Facebook page by about 14 Days Free offer. taking over Anime-On-Demand and rebrand. Work with iOS and Android stores for placement. 13 ANIMAX PROMOTIONAL IDEAS FOR AFTER LAUNCH

PLAYSTATION • Quarterly newsletter and ads on .com • UI promotional areas – what’s new when you turn on PlayStation • DVD sleeves and inserts for all VIZ Media and other content partner titles (incl , Manga, MVM) Home Entertainment • ANIMAX logo is already on anime DVD’s – raise profile- promote 14 Days Free offer. SOCIAL • eBlast/highlights to fans and anime press • Website banners promoting 14 Days Free offer. • Social (Facebook/Twitter/blogs) – hire somebody to write information about world of anime and our series on a weekly basis Facebook+Twitter/ANIMAX All Access Giveaway/ VIRAL - Promo Seeding • Referral-based. The user that introduces the most friends to the service will win a special, unlimited pass to the service. Three month initiative. Syndicate trailers for programming highlights on YouTube, Facebook, Twitter. Offer to Anime Fansites

14 ANIMAX EVENT PARTICIPATION

Anime fans love events and the UK has plenty of them. These are targeted to our consumers and a cost effective way to reach our audience

• London MCM Expo • Eirtakon • Happens twice a year in April and October. • November 9-11, 2012 The Helix

• Biggest Anime event in UK at the ExCeL Convention Centre, Royal Victoria Dock • Dublin, (Attendees: 1,550) (Attendees: 125,000) • Hyper Japan Christmas • Shared booth space with VIZ and SONY Playstation • November 23-25, 2012 Earls Court

• Alcon • London, UK (Attendees: 25,000) • Midlands Anime and Manga Fan Event • September 6-9, 2012 • December 8, 2012 Burton Town Hall • De Montfort University Leicester, UK • Burton-on-Trent, Staffordshire, UK • J-Con • We Love Animation • September 14-15, 2012 The Riverside Centre • Glasgow/Edinburgh/Leeds/Cardiff/Dublin/Belfast • Derby, UK (Attendees: 1000) (Attendees >10,000) • SunnyCon • The Entertainment Media Show • March 23-24, 2013 Seaburn Centre • September 29-30, 2012 Olympia Grand Hall • Sunderland, UK (Attendees: 900) • London, UK (Attendees: 25,000)

• Scotland Loves Animation

• Glasgow: 12-14 Year One we’ll be trying to get new

• October/Edinburgh: 19-21 October users at all events to sign up for our 14 Days Free offer.

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