Meshcast

1
Meshcast

• Making Internet Radio Viable.

2
Mission

• Establish Meshcast as a new Internet standard for
  transmitting audio.
• Establish Meshcast the place to go for listening
  to internet radio.
• Establish the Meshcast brand name through joint
  ventures and co-branding partnerships.
• Position the Meshcast technology as THE platform
  for audio streaming.

3
Innovative Technology

• Meshcast is based on a proprietary hybrid
  peer-to-peer technology that supports multicast
  and Unicast as well. This will eliminate all
  bandwidth cost that have been the limiting factor
  in the success of internet radio.

4
Innovative Strategy

• Meshcast plan it to create a major broadcast
  network with over 10 million listeners
  constantly. This is done by allowing 10s of
  thousands of amateurs and professionals to
  broadcast using our network. Advertising will
  generate revenue as well as charging clients to
  eliminate the advertising.

5
Management Team

• John Sokol, CEO - One of the pioneers of
  streaming Audio in 1986. And Video in 1991
• Niranjana Balasundaram, CMO Co-founder and
  Chief Marketing Officer of Simutest Design
  Systems
• Jesse Rendleman, CFO 13 years of experience in
  software development and management.
• Shankar Kuppuswamy, CTO - 6 years of experience
  in development, currently a Senior Software
  Engineer

6
Ownership

• Meshcast total issued shares 10,000,000
• John Sokol, CEO 3,000,000 30
• Niran Jana, CMO 600,000 6 
• Jesse Rendleman, CFO 600,000 6 
• Shankar Kuppuswamy, CTO 600,000 6 
• ---------------------------------------------- T
  otal 48
• Reserved for investors 3,200,000 32
• Reserved for employees 2,000,000 20

7
Meshcast

• THE TECHNOLOGY

8
Challenge

• Streaming high quality audio over the internet

ECONOMICAL
SECURE
SCALABLE
9
Existing Solutions

• Internet Streaming / Unicast
• Not scalalable.
• Distributed / Edge Serving
• Huge transmission costs
• Limited scalability.

10
Comparitive Analysis
11
Network Topology
12
Highlights

• Low Bandwidth costs
• Unlimited scalability
• Dynamic
• Self healing
• Adaptive Rate Multi-serving
• Distributed intelligence
• Unique fault correction

13
Uniqueness

• Quick channel surfing
• Massive scalability
• Negligible transmission costs
• Demographics accumulation

14
Patents

• Distributed database
• Meshed Data Distribution Mechanism
• Error correction codes

15
RD Roadmap
PHASES Time Frame Headcount
Setup phase Jan 2002 Outsourced
Development phase Jan 2002 Jun 2002 11
Enhancement / Support phase Jul 2002 Jul 2006 22
16
Definition

• The targeted markets are Streaming audio over
  Internet for both, Enterprise and Entertainment
  sectors.

17
Meshcast

• The Market

18
Market Trends

• Broadband listener growth from 2 million to 8.5
  million in 3 years (1998 - 2001).
• Predicted market for broadband users in 2005 is
  85 million.
• Business week suggests that listeners spend about
  31/2 hrs listening to streaming audio.

19
Market Trends
20
Market Trends
21
Market Trends

• 6000 hrs worth of streaming program is created
  every week.
• 70,000 streaming pages have been created so far.
• To assert the growth of web-casting Yahoo!
  Acquired Broadcast.com for nearly 6 billion, it
  added 8.5 million unique users to the web traffic.

22
Market Segments

• Media Radio streaming.
• Corporate streaming.
• Internet advertisement market.
• Individual content generators.

23
Market Growth
24
Listener growth
25
Listener Growth(cont)
26
Online Radio Stations Growth
27
Corporate Streaming
28
Corporate Streaming

• CCBN an investors specialist company, started
  offering conference calls using streaming audio
  now has 3000 customers.
• In corporate segments, streaming media could be
  used in the following areas
• Executive addresses
• Employee Education
• Sales training

29
Corporate Streaming

• Intra company meetings
• Product launches
• Customer training
• Customer service
• Earning announcements

30
Online Advertisement market
31
Clarifications

• Internet radio alone the market is
• 60 million in 2001. It is projected to grow to
• 90 million in 2003.

32
Meshcasts role in the market!!

• Today online radio is suffering partly because it
  has to shoulder unique burdens. Each listener
  requires an individual audio stream, which means
  bandwidth costs rise for the online broadcaster
  with each new fan. NetRadio's Wise estimates that
  the bandwidth necessary to stream online
  transmission costs 0.05 to 0.10 per hour per
  listener.

33
Meshcast

• Problem is eliminated with Meshcasts underlying
  peer2peer technology.

34
Available Market
35
Meshcast

• The competitors mentioned above differ from
  Meshcast either in the underlying technology or
  in the target market. The market share is shown
  in the direct areas Meshcast is directly
  competing with them.
• Total numbers of radio stations are 17,000. Among
  which 10 1,700 is already captured by the
  competitors. 85 of the Market is open for
  webcasting using peer2peer.

36
TAM for Ad in streaming audio
37
Action...
38
Meshcast

• Meshcast is planning to capture
• 9 160 radio stations of the shared available
  market SOM by 2006.
• 11 of the 300 million Internet Ad revenues by
  2005.
• 10 of the 616 million Internet radio revenue by
  2007.
• 3 of the 3.7 billion Enterprise streaming by
  2007.

39
Visibility...

• Promotional offers to the listeners.
• Alliances with Internet radio tuners to increase
  listener base.
• Trade shows.
• OEM opportunity for the media companies.
• Technical patents and articles.
• Technical Demo to the media and corporate.

40
Cash Cow Segments
41
Contigency

• If the Internet Ad revenues does not yield to the
  sales, Meshcast marketing will change to address
  the Enterprise Segment.

42
Sales Forecast
43
Meshcast

• The Financials

44
Income

• Sales increase exponentially due to market
• Cost of goods sold is only about 5
• Operating expenses level off after 2 years
• Income of 30 million/year by 2006

45
Income Statements
46
Assets and Liabilities

• No liabilities
• Rent or lease space and equipment
• Pay cash for expenses
• Accounts Receivable 10 of sales
• 58 million in cash by 2006

47
Balance Sheets
48
Cash Flow
49
Break-Even Analysis
50
Return on Investment

• IPO after 8 quarters profitable Q4 of 2005
• 12.5 million/year income at IPO
• Given a 10/1 PE ratio, market cap 125M
• With 10M shares, IPO _at_ 12.50/share
• Investment of 4M for 3.2M shares worth 40M
• 10/1 ROI in 4 years!