The Fashion Channel
THE FASHION CHANNEL
A TIME FOR CHANGE
Implementing Sustainability through Targeted Marketing
THE DATA – STRATEGIC MARKETING
RESEARCH
The Fashion Channel Ad Revenue Calculator
Multi Segments
One Segment
Two Segments
Current
2007 Base
Strategy
Strategy
Strategy
TV House Holds
110,000,000
110,000,000
110,000,000
110,000,000
110,000,000
Average Rating
1.00%
1.00%
1.20%
80.00%
1.20%
Average Viewers (thousands)
1,100
1,100
1,320
880
1,320
Average CPM
$2.00
$1.80
$1.80
$3.50
$2.50
$2,200.00
$1,980.00
$2,376.00
$3,080.00
$3,300.00
2,016
2,016
2,016
2,016
2,016
52
52
52
52
52
$230,630,400.
00
$207,567,360.00
$249,080,832.00
$322,882,560.00
$345,945,600.00
0
15,000,000
20,000,000
Average revenue per Ad minute
Ad minites per week
Weeks per year
Ad revenue per year
Incremental program expenses
FORECAST – REVENUE AND EXPENSES
TFC Estimated Financials for 2006 and 2007
2006 Actual
2007 Base
Multi Segments
One Segment
Two Segments
Assumptions
Revenue
$230,630,400.0 $207,567,360.0
0
0 $249,080,832.00 $322,882,560.00 $345,945,600.00
$80,000,000.00 $81,600,000.00 $81,600,000.00 $81,600,000.00 $81,600,000.00
$310,630,400.0 $289,167,360.0
0
0 $330,680,832.00 $404,482,560.00 $427,545,600.00
2% growth
Cost of Operations
$70,000,000.00 $72,100,000.00
$72,100,000.00 $72,100,000.00 $72,100,000.00
3% growth
Cost of Programming
Ad Sales Comissions
$55,000,000.00 $55,000,000.00
$6,918,912.00 $6,227,020.80
$55,000,000.00 $70,000,000.00 $75,000,000.00
$7,472,424.96
$9,686,476.80 $10,378,368.00
3% of Ad Sales Revenue
Ad Sales
Affiliate Fees
Total Revenue
Expenses
Marketing and Advertising $45,000,000.00 $60,000,000.00 $60,000,000.00 $60,000,000.00 $60,000,000.00
SGA
$40,000,000.00 $41,200,000.00 $41,200,000.00 $41,200,000.00 $41,200,000.00
$216,918,912.0 $234,527,020.8
Total Expense
0
0 $235,772,424.96 $252,986,476.80 $258,678,368.00
Net Income
A TIME FOR CHANGE
Implementing Sustainability through Targeted Marketing
THE DATA – STRATEGIC MARKETING
RESEARCH
The Fashion Channel Ad Revenue Calculator
Multi Segments
One Segment
Two Segments
Current
2007 Base
Strategy
Strategy
Strategy
TV House Holds
110,000,000
110,000,000
110,000,000
110,000,000
110,000,000
Average Rating
1.00%
1.00%
1.20%
80.00%
1.20%
Average Viewers (thousands)
1,100
1,100
1,320
880
1,320
Average CPM
$2.00
$1.80
$1.80
$3.50
$2.50
$2,200.00
$1,980.00
$2,376.00
$3,080.00
$3,300.00
2,016
2,016
2,016
2,016
2,016
52
52
52
52
52
$230,630,400.
00
$207,567,360.00
$249,080,832.00
$322,882,560.00
$345,945,600.00
0
15,000,000
20,000,000
Average revenue per Ad minute
Ad minites per week
Weeks per year
Ad revenue per year
Incremental program expenses
FORECAST – REVENUE AND EXPENSES
TFC Estimated Financials for 2006 and 2007
2006 Actual
2007 Base
Multi Segments
One Segment
Two Segments
Assumptions
Revenue
$230,630,400.0 $207,567,360.0
0
0 $249,080,832.00 $322,882,560.00 $345,945,600.00
$80,000,000.00 $81,600,000.00 $81,600,000.00 $81,600,000.00 $81,600,000.00
$310,630,400.0 $289,167,360.0
0
0 $330,680,832.00 $404,482,560.00 $427,545,600.00
2% growth
Cost of Operations
$70,000,000.00 $72,100,000.00
$72,100,000.00 $72,100,000.00 $72,100,000.00
3% growth
Cost of Programming
Ad Sales Comissions
$55,000,000.00 $55,000,000.00
$6,918,912.00 $6,227,020.80
$55,000,000.00 $70,000,000.00 $75,000,000.00
$7,472,424.96
$9,686,476.80 $10,378,368.00
3% of Ad Sales Revenue
Ad Sales
Affiliate Fees
Total Revenue
Expenses
Marketing and Advertising $45,000,000.00 $60,000,000.00 $60,000,000.00 $60,000,000.00 $60,000,000.00
SGA
$40,000,000.00 $41,200,000.00 $41,200,000.00 $41,200,000.00 $41,200,000.00
$216,918,912.0 $234,527,020.8
Total Expense
0
0 $235,772,424.96 $252,986,476.80 $258,678,368.00
Net Income