TUFF TV Investor Pitch Deck

July 16, 2016 | Author: TUFTV | Category: N/A
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TUFF TV Network, LLC Investor Pitch Deck...

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TUFFTV.COM

FORWARD-LOOKING STATEMENTS This presentation may contain certain “forward-looking statements” within the meaning of  the Private Securities Litigation Reform Act of 1995, such as statements relating to financial results and plans for future business development activities, and are thus prospective, and which involve risks and uncertainties. These forward-looking statements, which are usually accompanied or indicated by words such as “may”, “might”, “will”, “should”, “could”, “intends”, “estimates”, “predicts”, “potential”,  “continue”, “believes”, “anticipates”, “plans”, and “expects”, relate to, without limitation, statements about the market opportunities, the Company’s strategy, its competition, projected revenue and expense levels, and the adequacy of cash resources. This presentation also contains forward-looking statements attributed to third parties. These statements are only predictions. Investors should not place undue reliance on these forward-looking statements, which are only as of the date of this presentation. The Company’s actual results could differ materially from those expressed or implied by these forward-looking statements as a result of various factors, including the risk factors described in this presentation. The Company does not guarantee future results, performance or achievements. The Company is under no duty or obligation to update any of the forwardlooking statements contained in this presentation after the date hereof to conform them to actual results or changes in the Company’s expectations.

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OVERVIEW TUFF TV is a proven and established digital broadcast television network targeted at men and the specific pursuits, interests and hobbies that guys are passionate about. TUFF TV is the nation’s first and only multi-genre digital broadcast network to offer original programming targeted at males. Launched in 2009, TUFF TV reaches approximately 38 million U.S. TV households, and is ranked amongst the top 20 digital broadcast television networks in America.  

TUFF TV was created by Lou Seals, founder of Seals Entertainment Company, LLC (Sealsco) in 1984, who has produced and sold over 2,000 sports, entertainment and lifestyle programs appearing on networks such as ABC, ESPN, ESPN2, USA, SPIKE TV, TNN, Fox Sports Net, Discovery Wings, Speed Channel, and Outdoor Life. Mr. Seals is widely regarded as an expert at producing enthusiast-driven, advertisersupported television programming.

TUFF TV includes a unique and synergistic combination of seven programming genres aimed at men ages 18 to 54. TUFF TV provides a first-ever mix of these genres on one network, offering a multimedia platform anchored by digital broadcasting. Programming content consists of the following:

SPORTS

DRAMA

TALK

LIFESTYLE

REALITY

SPECIALS

MOVIES

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TUFF TV is the world’s first digital broadcast television network offering original programming targeted at men, featuring a unique and synergistic combination of genres aimed at the male demographic.

TUFF TV provides the first-ever mix of these specific genres on a single network. The channel’s programming content consists of SPORTS, LIFESTYLE, DRAMA, REALITY, TALK, SPECIALS & MOVIES. TUFF TV content includes NCAA Division II Sports, XFC MMA, TCW Wrestling, STIHL Timbersports, Music Mix USA, The Border, Cold Squad, Auto Wars, Woodwalkers, Dog The Bounty Hunter, and TUFF Originals – produced exclusively for TUFF TV.

PROGRAMMING TUFF TV offers an extensive line-up of shows that are interesting, entertaining and fresh! With a variety of content featuring SPORTS, LIFESTYLE, DRAMA, REALITY, TALK, SPECIALS & MOVIES, TUFF TV provides targeted programming that appeals to viewers and advertisers alike including the following shows:

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COMPETITIVE LANDSCAPE Multicast digital broadcast networks such as TUFF TV are relatively new and are the fastest growing types of television networks. TUFF TV remains the only network of its kind in America geared toward men. A changing media marketplace is currently the perfect time to grow TUFF TV into a successful channel based on several key factors including the following: Major cable networks geared to men are now changing focus and business models. These large media conglomerates are seeking additional viewers and higher ratings.   In the process, both broadcast and cable networks are going more mainstream. These channels are abandoning core programming genres to achieve higher revenues. Major league stick-and-ball sports is one of the main reasons these networks are changing. Attracting females and a more diverse group of ethnicities is another major factor. Consequently, the cost of programming is rising rapidly for these channels. Increased major league sports rights fees and scripted original content are reasons why.

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COMPETITIVE LANDSCAPE There are 10 broadcast, cable, and satellite networks that are geared to men, including TUFF TV. These channels are considered the primary competitors in the male lifestyle category, specifically niche pursuits and genres targeted at men. As detailed in the chart below, TUFF TV offers more programming genres than any other network. The advantages of TUFF TV are a wider appeal to men, and genres that attract more diversified and attractive sponsors and advertisers. TUFF TV is niche, without being too niche.

Network

Major Genres

Ownership

Distribution

Households

Spike TV

Drama, Sports, Reality, Movies

Viacom Media Networks, Inc./MTV

Cable, Satellite, IPTV

98,500,000

Velocity

Upscale Interests, Lifestyle

Discovery Communications, Inc.

Cable, Satellite, IPTV

42,000,000

Outdoor Channel

Hunting, Fishing, Adventure

Kroenke Sports & Entertainment, LLC Cable, Satellite, IPTV

38,000,000

Pursuit Channel

Hunting, Fishing

Pursuit Channel, Inc.

Satellite

38,000,000

TUFF TV

Sports, Lifestyle, Drama, Reality, Talk, Specials, Movies

TUFF TV Network, LLC

Broadcast, Cable

38,000,000

Sportsman Channel

Hunting, Fishing

InterMedia Outdoor Holdings, Inc.

Cable, Satellite, IPTV

31,000,000

America One

International Sports, Lifestyle

One Media Corp, Inc.

Broadcast, Cable

30,000,000

MAVTV

Family, Movies, Action, Variety

Lucas Oil Products, Inc.

Cable, Satellite

26,000,000

AMGTV

Family, Lifestyle, Sports, Movies

Access Media Group, Inc.

Broadcast, Cable

25,000,000

Untamed Sports TV

Outdoors, Powersports

OlympuSAT, Inc.

Broadcast, Cable

4,403,680

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WHY TUFF TV? The competitive landscape demonstrates why TUFF TV is poised for growth and success. Based on its history, the network has created a brand name that resonates with viewers and distributors. TUFF TV fills a void and has been designed to attract a male audience and advertisers that are enthusiast driven. Specifically, the following factors support the business objectives of TUFF TV: SPEED CHANNEL – Launched in 1996 as an all motorsports channel and bought by Fox Cable Networks in 2001 for $850 million, this successful network is becoming Fox Sports 1 and will change its focus from motorsports to major league sports to compete with ESPN. OUTDOOR LIFE NETWORK – Originally designed in 1995 as an outdoors enthusiast channel for hunting, fishing, and adventure, it sold to Comcast in 2006 for $550 million and was renamed Versus. The channel recently rebranded as NBC Sports Network to compete against ESPN. SPIKE TV – Launched in 1983 as The Nashville Network, this now MTV-owned channel for men recently announced its plan to attract women and an older demographic with new programming. FUEL TV – Created as an extreme sports network in 2003 by Fox, the channel is changing from action sports to mainstream sports to compete with ESPN2, and will now be known as Fox Sports 2. FOX SOCCER CHANNEL – There is no more soccer on this network as it has been rebranded as FXX, a sister network of FX, and changes genre to focus on comedy, movies, and drama. TruTV – Launched in 1991 as Court TV, and rebranded by Turner Broadcasting in 2008, this previously male-driven network just announced plans to expand its audience with comedy. 8

MARQUEE PROGRAMMING Network

Marquee Shows

Comparable TUFF TV Shows

Speed Channel

NASCAR, Formula 1 Racing, AMA Motorcycle Racing, Barrett-Jackson Auctions, PINKS All Out, Wind Tunnel

Sopwith Motorsports, Mazda Motorsports Hour, HDRA Desert Racing, Must See Xtreme Racing, American Outlaw Sprint Car Racing, AMA Motorcycle Racing, TORC Unleashed, Auto Wars, Street Kings, Low Ballers, MotoWorld

Spike TV

XFC MMA, Rocktagon MMA, United Fight Alliance, Brawl Call, MMA Inside The Cage, Training With Pros, Ringside Bellator MMA Fighting, IMPACT Wrestling, Bar Rescue, The Joe Schmo Boxing, TCW Wrestling, Wrestling On Fire: Classics, Dog Show, Entourage, CSI, CSI: New York, The Bounty Hunter, PUNK'D, Man On A Mission, Auto Wars, Tim McCarver Show, Ultimate Women's Challenge, Lionsgate CBS & Viacom Movies Movies, MGM Movies

Velocity

Greg's Garage, MotoWorld, MotoWorld 2, Auto Wars, Nitro Mecum Auto Auctions, All Girls Garage, Warriors, It's Cowboy Country, Training Grounds, Beach Patrol, Street Kings, Low Ballers, Civil Defense TV, Beyond Overhaulin', Café Racer, Wheeler The Talent, TORC Unleashed, Sand-Do MMA Reality, Dealers, Car Crazy, Car Fix, Kings Of Homeless To High Rise, Beyond The Line, Classic Restos, Crash, Chasing Classic Cars V8TV

Outdoor Channel

Bottom Feeders, Major League Fishing, The Bass Pros, Choose Your Weapon, Elite Tactical Unit, Dark And Dangerous With Ivan Carter, Savage Wild

Lip'Em & Rip'Em, Lake Commandos, We Love It! Outdoors, STIHL Timbersports Series, PREPP SCHOOL, Safari Hunter's Journal, Steve Scott's Outdoor Guide, Hot Zone, Lindner's Ultimate Angler, Safari Hunters's Journal

Sportsman Channel

Ultimate Catch, Chasing Silver, Joe Rogan vs Mule Deer, Meateater, Phil Phillips Unleashed

GillznFinz, Lake Commandos, Lindner's Ultimate Angler, Reelin' In The Keys, California Shotgunners, Safari Hunter's Journal, American Expeditions, On The Pole, Bass West USA, Suzuki's Great Outdoors, Wal-Mart Great Outdoors

Pursuit Channel

Lindner's Angling Edge, Collegiate Bass Fishing, Trigger Time, Turkey Call, The American Way, Hank Parker Outdoor Magazine, American Spirit

Lindner's Ultimate Angler, BC Sport Fishing, We Love It! Outdoors, Sporting Dog Adventures, Wingshooting USA, Steve Scott's Outdoor Guide, Hot Zone, Suzuki's Great Outdoors, Wal-Mart Great Outdoors, On The Pole, American Expeditions, Safari Hunter's Journal, American Spirit

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MARQUEE PROGRAMMING Network

Marquee Shows

Comparable TUFF TV Shows

America One

Jack Hanna's Animal Adventures, Sportfishing With Dan Hernandez, Bass West USA, Eye For An Eye, Planet X, Beach Sports Network, Cold Case Files, PUNK'D, Sopwith Motorsports, Japanese Baseball

Reel Animals, Lindner's Ultimate Angler, Bass West USA, Lip'Em & Rip'Em, We Love It! Outdoors, Safari Hunter's Journal, Steve Scott's Outdoor Guide, GillznFinz, STIHL Timbersports Series, Eye For An Eye, Planet X, Beach Sports Network, Cold Case Files, PUNK'D, Dog The Bounty Hunter, Auto Wars, Sopwith Motorsports, Florida Collegiate Baseball Summer League

MAVTV

King Of The Cage, Lucas Oil Motorsports, Championship Wrestling From Hollywood, Won & Done, Heartland Poker Tour, Wingshooting USA, Bonanza, Sony Movies

XFC MMA, Rocktagon MMA, United Fight Alliance, Brawl Call, MMA Inside The Cage, PKA Karate, Ringside Boxing, Training With Pros, Mazda Motorsports Hour, American Outlaw Sprint Car Racing, TCW Wrestling, Nitro Warriors, MotoWorld 2, Auto Wars, Dog The Bounty Hunter, Man On A Mission, Heartland Poker Tour, Classic Restos, V8TV, Wingshooting USA, Tim McCarver Show, The Marvin Show, Lionsgate Movies, MGM Movies

AMGTV

Garden Travels, Eye For An Eye, Insider Exclusive, Fearless Music, Animal Attractions, Crime Strike, NWA Wrestling, MMA Big Show, Heartland Poker, Planet X

Eye For An Eye, Insider Exclusive, Music Mix USA, Best Of The Best, A Slice Of Heaven, Miami Divas, Miami City Deal$, Livin' La Vida With Stella And Stuart, Cold Case Files, TCW Wrestling, XFC MMA, Tim McCarver Show, Ultimate Women's Challenge, Florida Collegiate Baseball Summer League, Heartland Poker, Planet X

GillznFinz, Gone Huntin' Safaria TV, Hog Heaven, Hawaiian Xtreme Sports TV, Sled Head 24/7, Softball 360, Heartland Poker Tour, My Combat Channel, TORC Unleashed, Mazda Motorsports Hour

GillznFinz, Reel Animals, BC Sport Fishing, Lake Commandos, Lindner's Ultimate Angler, Safari Hunter's Journal, STIHL Timbersports Series, Hog Heaven, Planet X, Fusion TV, Airtime, Ship Shape, Show-Boating, Sled Head 24/7, Softball 360, Heartland Poker Tour, Brawl Call, XFC MMA, MMA Inside The Cage, Training With Pros, Rocktagon MMA, United Fight Alliance, Ringside Boxing, TORC Unleashed, Mazda Motorsports Hour

Untamed Sports TV

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IMPRESSIVE AUDIENCE TUFF TV is all about the male consumer; his passions and pursuits. TUFF TV is the first digital broadcast network designed for men and delivers an attractive audience for local broadcasters and advertisers alike. Consumers – predominantly male – spend over $750 billion a year for the purchase of sporting equipment, automobiles, motorcycles, marine products, and related goods and services. Approximately 50% of these male consumers fall within the 18 to 34 age demographic, a sizable share of the marketplace. Advertisers spend over $19 billion annually targeting 18 to 34 year-old male consumers. The advertising dollars increase when 25 to 54 year-old men are considered. Men ages 18 to 34 are the most difficult consumer category for advertisers to reach. TUFF TV will offer advertisers and viewers alike the first ever digital broadcast network offering seven different synergistic genres that men are passionate about.

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IMPRESSIVE PURSUITS The U.S. Fish & Wildlife Service reports that 42 million Americans,  mostly male, participated in hunting and/or fishing in 2012. These outdoor activities comprise a marketplace of over $82 billion.   Consumers spend in excess of $109 billion annually in pursuit of these activities, of which $42 billion is spent predominantly by males on hunting and fishing equipment alone. Motorcycles alone comprise a $16 billion category per year in the United States, with annual 1 million units, not including ATVs. Contact sports participants in the United States numbered over 11 million  in 2012; 8 million in martial arts; 2 million in wrestling; and 1 million in boxing. Fitness is an $82 billion per year industry in the United States.  This  includes weight-loss related products, exercise equipment, and other services. Consumers bought $5 billion worth of exercise equipment in 2012, with  aerobics, bicycling, calisthenics, gym training, running, and swimming the most  popular categories.

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ORIGINAL PROGRAMMING ORIGINAL CONTENT – TUFF TV is currently airing original programming produced by third party independent suppliers in the SPORTS and REALITY genres. The network has an extensive number of production company contacts that produce original programming for networks such as ABC, ESPN, Fox Sports Net, Discovery, A&E, History Channel, Speed Channel, NBC Sports Network, Spike TV, MTV, and others. Sealsco was an early pioneer of original cable television programming appearing on major networks over the past three decades. Sealsco built an impressive programming library based on its original production and marketing business. The company has numerous and longstanding relationships with major sponsors and advertisers including Wal-Mart, Honda, Chevrolet, Honda, Suzuki, Toyota, Nissan, Yamaha, Budweiser, Coors, Kawasaki, Dodge, and a host of others. Establishing new brands, through the creation of original content, will be a key revenue factor for TUFF TV. Investing in original programming will drive distribution, viewers, and advertisers. Original REALITY content is the network’s primary objective. TUFF TV has identified a key group of independent producers who will create original programming exclusively for TUFF TV. REALITY programming, which drives the ratings for many of the top broadcast and cable networks, is an inexpensive form of content that is popular with viewers and does not require huge talent, production, and rights fees. TUFF TV has the means to commission the creation of original REALITY programming for pennies on the dollar compared to the major media conglomerates. In turn, the network is creating a valuable library that can be marketed worldwide. TUFF TV plans to spend approximately $13 million on the creation of original content over the next three years.

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ORIGINAL PROGRAMMING NEW EXCLUSIVE CONTENT – TUFF TV is developing original programming that will be exclusive to the network. The following shows are priority programs for funding: Slamball – A full contact sport similar to basketball. The game is played with four trampolines in front of each goal, and players score by jumping and dunking the ball. The events were first held in 2002. Florida Collegiate Baseball Summer League – TUFF TV has acquired the exclusive rights to this Major League Baseball affiliated league featuring the best college players in the United States. Tough Mudder – An endurance event series featuring military style obstacles across a 10 to 12 mile long course. These events are open to public and held near major cities across the United States, and 500,000 people participated in 2012. Dick Butkus Show – A planned talk show hosted by former Chicago Bear and NFL Hall of Famer Dick Butkus, this program will feature the best professional athletes from past to present. Sprite Refreshing Films Festival – A student film festival held on major college campuses across the United States and sponsored by Coca-Cola, this annual event showcases the best young filmmakers and their movies.

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ORIGINAL PROGRAMMING Red Bull TV – A series of special Red Bull sponsored events featuring competition including flugtag, soap box derby, air racing, cliff diving, and mountain biking. Running On Empty – A slacker runs for Congress to avoid getting a real job, and surprise, he wins! This new improv-based series is part scripted, part reality, and follows this candidate and his repeated wins. Are You TUFF Enuff? – Imagine a game show style competition where there are no rules and anything goes, then put it on live television! Contestants compete to convince judges how tough and cool they are. Holyfield vs. Tyson: The Recruits – An all new reality show featuring heavyweight opponents Evander Holyfield and Mike Tyson as they search for their own young contenders. Redneck Games – Held in south Georgia, this summer competition features the best in redneck culture including the hub cap hurl, bobbin’ for pigs feet, horseshoes, mud pit belly flop, and much more! My Bucket List – Based on the popular movie entitled The Bucket List, this new reality series features a celebrity host and his regular Joe co-host doing things they’ve always dreamed of accomplishing. Allison Brothers Unleashed – Grandsons of NASCAR legends Bobby and Davey Allison are profiled as they work to become the next great racers in this new reality series. 15

LICENSED PROGRAMMING LICENSED CONTENT – TUFF TV airs popular off-network original cable programming such as Dog The Bounty Hunter and PUNK’D. TUFF TV entered into a licensing agreement with Lionsgate for exhibition of a select number of the studio’s films on a barter basis. TUFF TV plans to spend $5 million over the next three years on licensed content. The following represents off-network original broadcast and cable programming targeted by TUFF TV:

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LICENSED PROGRAMMING Television Series Title

Desirability/Comments

Distributor or Original Owner

License/ Purchase

# Episodes/ Est. Cost Length Per Show

Adam-12 (original)

Medium/Popular retro series

NBCUniversal Television Distribution

License

174 x 30

1,000

Adam-12 (remake)

Medium/Has a brand name

NBCUniversal Television Distribution

License

52 x 30

1,500

Beavis and Butt-head

High/Classic MTV animated show

Viacom Media Networks, Inc.

License

209 x 30

5,000+

Deadlist Catch

High/Could be replicated

Discovery Communications, Inc.

License

126 x 60

7,000+

Dirty Jobs

High/Could be replicated

Discovery Communications, Inc.

License

163 x 60

3,500+

Duck Dynasty

Very High/Could be replicated

A&E Television Networks, LLC

License

41 x 30

15,000+

Family Guy

High/Popular animated series

Twentieth Television, Inc.

License

212 x 30

25,000+

Hawaii Five-O (original)

Medium/Popular classic brand

CBS Television Distribution

License

281 x 60

2,500

Hawaii Five-O (new)

High/Popular remake; highly rated CBS Television Distribution

License

72 x 60

30,000+

Ice Road Truckers

High/Could be replicated

A&E Television Networks, LLC

License

91 x 60

5,000+

Man vs. Wild

High/Could be replicated

Discovery Communications, Inc.

License

68 x 60

3,500+

Miami Vice

Medium/A retro classic

NBCUniversal Television Distribution

License

111 x 60

4,000

Mountain Men

High/Could be replicated

A&E Television Networks, LLC

License

8 x 60

5,000+

NYPD Blue

Medium/Cutting edge classic

Twentieth Television, Inc.

License

261 x 60

4,000

Pawn Stars

High/Could be replicated

A&E Television Networks, LLC

License

294 x 30

7,000+

Prison Break

High/Solid and popular drama

Twentieth Television, Inc.

License

81 x 60

10,000+

Survivor

High/Popular but could be copied

CBS Broadcasting Inc.

License

370 x 60

50,000+

Swamp People

High/Could be replicated

A&E Television Networks, LLC

License

65 x 60

5,000+

The Amazing Race

High/Popular reality series

CBS Broadcasting Inc.

License

259 x 60

40,000+

The American Sportsman

Medium/Classic outdoors series

American Broadcasting Company, Inc. License

200+ x 60

3,500

The Tim McCarver Show

High/Original with a known host

JMJ Films, Inc.

Purchase

300 x 30

TBA

Nitro Warriors

Medium/Action packed and classic Main Event Video/Entertainment

Purchase

100+

5,000

The Shield

High/Ground breaking drama

License

88 x 60

10,000+

WWE Raw

Medium/Not the only game in town World Wrestling Entertainment, Inc.

License

1000+ x 180 75,000+

FX Networks, LLC

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CONTENT ACQUISITIONS PROGRAMMING CONTENT – TUFF TV is actively researching potential content acquisitions of library programming geared to its audience across all genres of SPORTS, LIFESTYLE, DRAMA, REALITY, TALK, SPECIALS & MOVIES. TUFF TV is working with a variety of content owners and distributors to determine the best strategic content available for sale. Two acquisitions currently under review include the following: JMJ Films, Inc. is a television and film production company based in New York City that owns and produces the nationally syndicated Tim McCarver Show. Hosted by twelve time Emmy winner and well known baseball sports announcer Tim McCarver, the series has aired for 12 years. The show averages a 3.9 household rating, and is broadcast pre/post games on weekends 52 weeks a year across the United States in all Top 50 markets, and reaches most of Canada and the Caribbean. JMJ Films also owns an untapped treasure trove of copyrighted video, audio, and books, including more than 300 hours of television content and over 690 hours of radio content hosted by leading commentators including Pat Summerall and Dick Schaap – featuring prominent guests including Mickey Mantle, Arthur Ashe, Roy Campanella, Don Drysdale, Jimmy Connors, and hundreds of other sports notables.

Tim McCarver Show

Main Event Video/Entertainment, since 1980 has been a pioneer in the creation and production of exciting motorsports television content and videos under its Nitro Warriors brand. Produced by veteran filmmaker Dean George Papadeas, the company owns a library of over 100 episodes of the best drag racing programming ever produced, including the Super Bowl of Drag Racing, Classic Nitro, Funny Car Shootout, and Thrill. Programs are hosted by infamous drag racer “Big Daddy” Don Garlits, considered the father of the sport of drag racing, and a member of the Automotive Hall of Fame and International Motorsports Hall of Fame. 18

NETWORK ACQUISITIONS Strategic acquisitions will accelerate the growth of TUFF TV. These acquisitions include current broadcast, cable, and satellite networks, as well as programming libraries composed of content aimed at men. BROADCAST – TUFF TV remains the only digital broadcast network of its type. Three current broadcast channels are compatible with certain genres on TUFF TV, and potential acquisition targets. America One is a broadcast network that airs primarily international sports programming. America One is composed of 170 low power, full power, cable, and satellite affiliate stations. AMGTV is a family oriented broadcast network featuring sitcoms, lifestyle, sports, and movies. AMGTV owns a program syndication division and the channel is available in over 20 U.S. markets. Untamed Sports TV is a digital broadcast channel that provides niche outdoors and lifestyle programming targeted at men. Untamed Sports TV is available in approximately 10 U.S. markets. Universal Sports Network was formerly a digital broadcast channel offering general sports. Originally known as World Championship Sports Network, the channel converted to a cable network in 2012 and focuses on Olympic related sports.

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NETWORK ACQUISITIONS CABLE – There has long been an oversupply of outdoors networks dedicated to hunting and fishing. Plus, other national and regional cable networks offer blocks of hunting and fishing content, which prompted ESPN and ESPN2 to eliminate respective outdoors programming blocks years ago. The Outdoor Channel was established in 1994 as the first cable network featuring hunting and fishing programming. This publicly traded company was just sold for approximately $268 million to billionaire sports entrepreneur Stan Kroenke. Kroenke Sports & Entertainment also owns 50% of the World Fishing Network. The sale of Outdoor Channel, seen in approximately 38 million cable homes, prompted a bidding war between Kroenke and cable TV pioneer Leo Hindery, whose company owns rival outdoors hunting and fishing network the Sportsman Channel. The Sportsman Channel, launched in 2003 and now available in over 31 million cable households, is a primary acquisition target for TUFF TV. With its failure to win the Outdoor Channel, and its strictly hunting and fishing only genres, this outdoors media company – which also includes a cadre of national hunting and fishing magazines purchased at record prices – is a natural fit rebranded as TUFF TV to gain national cable distribution, expanding Sportsman Channel’s appeal to a broader segment of men. MAVTV, launched in 2004 as a male-driven cable channel, MAVTV was purchased by Lucas Oil in 2011. Lucas Oil is a major player in motorsports, and they own Lucas Oil Studios which produces Lucas Oil sponsored motorsports events for television. MAVTV is available on cable, satellite, and telco. Lucas Oil has recently rebranded MAVTV with the tagline “American Real” to attract a more family audience; however, MAVTV largely has evolved to copy the TUFF TV genres. MAVTV would be an excellent acquisition target for TUFF TV, and conversations have been held previously about working together. 20

NETWORK ACQUISITIONS SATELLITE – DirecTV and Dish Network have experimented with several satellite channels targeting men. The Mens Channel was an early offering on Dish Network; however, it failed to reach more than 12 million subscribers and its business model of “leasing” programming time to independent producers and infomercial providers was executed poorly and did not offer compelling content. The Mens Channel went black in 2007. Pursuit Channel, launched in 2008, is a male oriented hunting and fishing satellite network available primarily on DirecTV and Dish Network. The channel has struggled to turn a profit with its business model of buying its way on both DirecTV and Dish Network and leasing programming time to independent producers; however, it has managed to grow and reach critical mass in approximately 38 million satellite homes. Pursuit Channel has recognized its weaknesses, and is now expanding its programming to offer more than strictly hunting and fishing. Pursuit Channel is a significant acquisition target for TUFF TV.

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PATH TO PROFITABILITY QUESTION: Can TUFF TV be converted in whole or in part to cable TV, satellite, or telco service? ANSWER:  Yes.  Currently, TUFF TV gains its cable carriage via its broadcast affiliate agreements whereby these broadcasters are required to provide cable coverage.  TUFF TV is also designed to feed cable, telco, satellite, and online distribution.  TUFF TV HD, a secondary service, is currently being planned to enhance cable and satellite carriage. QUESTION: What capital is required and for what purpose? ANSWER: The Company plans to raise up to $1 million in crowdfunding investment to expand TUFF TV in 2014 under the Invest Georgia Exemption (IGE). Capital contribution is planned in various stages. Stage One is anticipated at $250,000. Stage Two is planned for $250,000. Stage Three is planned for $500,000. This investment will have an immediate impact on the network by providing funds and infrastructure that will fuel overall distribution growth and advertising sales. QUESTION: What is the plan to expand within the Top 10 markets on an attractive basis? ANSWER: TUFF TV currently has the unique opportunity to immediately clear additional major markets through one broadcast group.  This will cost $50,000 per month, which equates to $5,000 per month per station.  These top 10 markets include: New York, Philadelphia, Dallas/Ft.Worth, Houston, Seattle-Tacoma, Tampa-St.Pete, Miami-Ft.Lauderdale, Denver, Sacramento and St. Louis.  Additional top 20 markets available through this broadcaster are San Antonio, Austin, Corpus Christi, and Amarillo.

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PATH TO PROFITABILITY QUESTION: What are the quickest paths to profitability? ANSWER: Increased distribution will drive advertising revenues.  Advertising revenues will be driven by increased viewers.  Increased viewers will be driven by content.  Sealsco currently has the library and relationships to program TUFF TV as evidenced by the network’s four-year history.  The key factors going forward include the production of original programming for TUFF TV, and the licensing of top-rated first-run content geared to men currently driving the profits of networks such as Discovery, A&E, History Channel, and Spike TV.   Sealsco has the expertise at creating and producing original content with strong sponsorship and advertising support dating back to the company’s inception in 1984.  The creation of “tent pole” event programming will also drive revenue, as well as the acquisition of certain rights to enthusiast driven sports-oriented content being abandoned now by major cable networks that are concerned primarily with major league stick-and-ball programming. A primary example of this is the conversion of Speed Channel owned by Fox Cable Networks to Fox Sports Net 1.  The possibility of affiliate fees from traditional and non-traditional distribution is possible, but certainly not required, and will further enhance profits both domestically and internationally.   In summary, produced by independent companies such as Sealsco and its network of production companies, original REALITY programming appearing on the major broadcast and cable networks, and through newer multimedia outlets, can be created inexpensively compared to the costs and overheads that are inherit with large media companies.  Similarly, the same holds true for the creation, ownership, and operations of broadcast and cable networks such as TUFF TV.

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CURRENT DISTRIBUTION Rank 2 3 4 9 12 15 16 17 18 19 25 29 33 35 37 42 44 47 52 55 58 63 65 67 68 78 87 98 110 121 124 131 132 133 141 144 149 164 173 Totals

Designated Market Area (DMA) Los Angeles Chicago Philadelphia Atlanta Phoenix (Prescott) Minneapolis-St. Paul Miami-Ft. Lauderdale Denver Orlando-Daytona Bch-Melbrn Cleveland-Akron (Canton) Charlotte Nashville Salt Lake City Cincinnati Greenvll-Spart-Ashevll-And Las Vegas Birmingham (Ann and Tusc) Albuquerque-Santa Fe Buffalo Fresno-Visalia Albany-Schenectady-Troy Lexington Charleston-Huntington Wichita-Hutchinson Plus Flint-Saginaw-Bay City Rochester, NY Chattanooga Burlington-Plattsburgh Boise Eugene Yakima-Pasco-Rchnlnd-Knnwck Wilmington Chico-Redding Columbus-Tupelo-W Pnt-Hstn Beaumont-Port Arthur Wichita Falls & Lawton Erie Missoula Rapid City

City, State Los Angeles, CA Chicago, IL Philadelphia, PA Atlanta, GA Phoenix, AZ Minneapolis, MN Key West, FL Dove Creek, CO Orlando, FL Cleveland, OH Charlotte, NC Nashville, TN Salt Lake City, UT Cincinnati, OH Asheville, NC Las Vegas, NV Tuscaloosa, AL Albuquerque, NM Buffalo, NY Fresno, CA Albany, NY Lexington, KY Williamson, WV Wichita, KS Flint, MI Rochester, NY Chattanooga, TN Charlestown, NH Boise, ID Eugene, OR Yakima, WA Wilmington, NC Redding, CA Bruce, MS Beaumont, TX Sublette, KS Erie, PA Kalispell, MT Rapid City, SD

Affiliate KFLA-LD WPVN-CD WFMZ-TV WTBS-LD K38IZ-D K60-EJ WKWT K32EY-LD WHDO-CD WIVM-LD WHKY-TV WRTN-LP KPDR-TV WBQC-LD WASV-LP KHMP-LD WRTD-LD KYNM-LP/K26CI-D KBXZ KVBC-LD WYBN-LD WOBZ-LD WHJC-LP KSMI-LP WHNE-LD WBGT-CD WOOT-TV WYCU-LD KCDL-LD K47AV-D KYPK-LD WTMV-LD KGEC-LP WO7BN-D KAOB-LD KDGL-LD WLEP-LD K34MJ-D KRPC-LP

Channel 8.3 24.2 69.3 26.8 38.2 47.1 42 27.4 38.1 39.2 14.3 6.5 19 25.6 50.3 18.4 46.4 30.2/27.4 56.5 13.8 14.3 9.3 27.1 51.4/23.2 26.4 46.3 6.4 26.2 42 47 38.4 29.1 26.2 7.4 27.6 23.2 9.3 34.3 33.3

Total DMA HHs 5,665,780 3,534,080 2,963,500 2,375,050 1,855,310 1,748,070 1,663,290 1,574,610 1,490,380 1,484,530 1,157,920 1,043,440 921,240 908,440 849,340 726,010 719,200 690,740 634,280 580,180 548,560 490,920 457,600 454,040 448,960 402,300 360,150 317,960 267,470 240,480 233,630 194,070 193,000 189,750 166,880 159,780 157,250 115,760 100,510 38,084,460

% of US 4.892% 3.052% 2.559% 2.051% 1.602% 1.509% 1.436% 1.360% 1.287% 1.282% 1.000% 0.901% 0.796% 0.784% 0.733% 0.627% 0.621% 0.596% 0.548% 0.501% 0.474% 0.424% 0.395% 0.392% 0.388% 0.347% 0.311% 0.275% 0.231% 0.208% 0.202% 0.168% 0.167% 0.164% 0.144% 0.138% 0.136% 0.100% 0.087% 32.888%

Nielsen DMA data above does not necessarily represent individual station coverage. TUFF TV makes no representations as to the information contained therein.

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SAMPLE SCHEDULE Time (ET) 8:00 AM 8:30 AM 9:00 AM 9:30 AM 10:00 AM 10:30 AM 11:00 AM 11:30 AM 12:00 PM 12:30 PM 1:00 PM 1:30 PM 2:00 PM 2:30 PM 3:00 PM 3:30 PM 4:00 PM 4:30 PM 5:00 PM 5:30 PM 6:00 PM 6:30 PM 7:00 PM 7:30 PM 8:00 PM 8:30 PM 9:00 PM 9:30 PM 10:00 PM 10:30 PM 11:00 PM 11:30 PM 12:00 AM 12:30 AM 1:00 AM 1:30 AM 2:00 AM 2:30 AM 3:00 AM 3:30 AM 4:00 AM 4:30 AM 5:00 AM 5:30 AM 6:00 AM 6:30 AM 7:00 AM 7:30 AM

MONDAY THE OUTDOORSMAN (E/I) WALMART GREAT OUTDOORS ON THE POLE SUZUKI GREAT OUTDOORS SAFARI HUNTER'S JOURNAL PLANET X

TUESDAY THE OUTDOORSMAN (E/I) WALMART GREAT OUTDOORS ON THE POLE SUZUKI GREAT OUTDOORS SAFARI HUNTER'S JOURNAL PLANET X

WEDNESDAY THE OUTDOORSMAN (E/I) WALMART GREAT OUTDOORS ON THE POLE SUZUKI GREAT OUTDOORS SAFARI HUNTER'S JOURNAL PLANET X

THURSDAY THE OUTDOORSMAN (E/I) WALMART GREAT OUTDOORS ON THE POLE SUZUKI GREAT OUTDOORS SAFARI HUNTER'S JOURNAL PLANET X

FRIDAY THE OUTDOORSMAN (E/I) WALMART GREAT OUTDOORS ON THE POLE SUZUKI GREAT OUTDOORS SAFARI HUNTER'S JOURNAL PLANET X

CORE CULTURE

CORE CULTURE

CORE CULTURE

CORE CULTURE

HARD CHARGE

DOG THE BOUNTY HUNTER REEL ANIMALS WINGSHOOTING USA V8TV XPTV SPORTS SHIP SHAPE EYE FOR AN EYE CHEF'S KITCHEN MUSIC MIX USA CLASSIC RESTOS OUTDOOR GUIDE PLANET X MW2: REV IT UP! 3 WIDE LIFE

DOG THE BOUNTY HUNTER REEL ANIMALS WINGSHOOTING USA V8TV XPTV SPORTS SHIP SHAPE EYE FOR AN EYE CHEF'S KITCHEN MUSIC MIX USA CLASSIC RESTOS OUTDOOR GUIDE PLANET X MW2: REV IT UP! 3 WIDE LIFE

DOG THE BOUNTY HUNTER REEL ANIMALS WINGSHOOTING USA V8TV XPTV SPORTS SHIP SHAPE EYE FOR AN EYE CHEF'S KITCHEN MUSIC MIX USA CLASSIC RESTOS OUTDOOR GUIDE PLANET X MW2: REV IT UP! 3 WIDE LIFE

DOG THE BOUNTY HUNTER REEL ANIMALS WINGSHOOTING USA V8TV XPTV SPORTS SHIP SHAPE EYE FOR AN EYE CHEF'S KITCHEN MUSIC MIX USA CLASSIC RESTOS OUTDOOR GUIDE PLANET X MW2: REV IT UP! 3 WIDE LIFE

COLD SQUAD

COLD SQUAD

DOG THE BOUNTY HUNTER REEL ANIMALS WINGSHOOTING USA V8TV XPTV SPORTS SHIP SHAPE EYE FOR AN EYE CHEF'S KITCHEN MUSIC MIX USA CLASSIC RESTOS OUTDOOR GUIDE PLANET X MW2: REV IT UP! 3 WIDE LIFE ALL STAR CELEBRITY INVITATIONAL

BOUNTY HUNTERS V8TV XPTV SPORTS DOG THE BOUNTY HUNTER LUMBERJACK'S CHALLENGE CHEF'S KITCHEN MAN ON A MISSION XFC MMA

BOUNTY HUNTERS V8TV XPTV SPORTS DOG THE BOUNTY HUNTER LUMBERJACK'S CHALLENGE CHEF'S KITCHEN MAN ON A MISSION XFC MMA

FUTURE STARS OF WRESTLING

FUTURE STARS OF WRESTLING

COLD SQUAD NCAA BASKETBALL DIVISION II XPTV SPORTS DOG THE BOUNTY HUNTER LUMBERJACK'S CHALLENGE CHEF'S KITCHEN MAN ON A MISSION XFC MMA

WOODWALKERS V8TV XPTV SPORTS DOG THE BOUNTY HUNTER LUMBERJACK'S CHALLENGE CHEF'S KITCHEN MAN ON A MISSION XFC MMA

XPTV SPORTS DOG THE BOUNTY HUNTER TALKING PICTURES CHEF'S KITCHEN MAN ON A MISSION XFC MMA

FUTURE STARS OF WRESTLING

FUTURE STARS OF WRESTLING

FUTURE STARS OF WRESTLING

THE BORDER

SATURDAY THE OUTDOORSMAN (E/I) MONEY TV LIP 'EM & RIP 'EM GREG'S GARAGE DIVERS DOWN TV SPORTINGDOG ADVENTURES LAKE COMMANDOS TCW WRESTLING MMA INSIDE THE CAGE TRAINING WITH PROS BRAWL CALL MUST SEE RACING HARD CHARGE SLED HEAD SOPWITH TV MMA:30 ROCKSTAR KITCHEN HEALTH BEAUTY LIFE HIGHWAY TO FAME OFF THE ROPES RACELINE WE LOVE IT! OUTDOORS AUTO WARS TUFF FLICK AT WAR WITH THE ARMY WRESTLING WAR CLASSICS

SUNDAY INSIDER EXCLUSIVE RED CHIP MONEY REPORT RACELINE ANOTHER SHADE OF BLUE REELIN' IN THE KEYS LINDNER'S ULTIMATE ANGLER STIHL TIMBERSPORTS AUTO WARS POWER SPORTS ADVENTURES SLED HEAD AMERICAN SPIRIT TAILFINS & CHROME TUFF FLICK AT WAR WITH THE ARMY LIVIN LA VIDA RESTLESS JOSIE MMA INSIDE THE CAGE KING OF THE ROAD GREG'S GARAGE THE MARVIN SHOW TUFF FLICK BREACH OF TRUST UNITED FIGHT ALLIANCE BEST OF THE BEST STIHL TIMBERSPORTS HARD DRIVE AUTO WARS ROCKTAGON MMA

RINGSIDE BOXING JBTV

JBTV

JBTV

JBTV

JBTV

HEARTLAND POKER

HEARTLAND POKER

HEARTLAND POKER

HEARTLAND POKER

HEARTLAND POKER

UNITED FIGHT ALLIANCE

NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING

NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING

NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING

NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING

NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING

NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING

TRAINING WITH PROS STREET KINGS ROCKSTAR KITCHEN THE MOTOCROSS FILES NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING NETWORK PAID PROGRAMMING

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