“MILCOIN STUDIO FILMS” AI driven film enhancement system “MILCOIN STUDIO FILMS” Business Plan

Executive Summary IMDB - http://www.imdb.com/name/nm3153020/ LatAm’s & MilCoin Network, Chief Content Production Officer Mr. Igor Lopatonok https://www.imdb.com/name/nm3153020/ (“LatAm” or the “Company”) will be building a new AI (Artificial intelligence) driven content generation and distribution network via restoring , enhancing and claiming with new IP(intellectual property) of the films to worldwide audiences. LatAm will use its advanced technology to gather, restore and enhance these classic films from public domain and acquired film library's and then distribute them through the new platform based on the new emerging solution (users CDN and distributed bandwidth) video platform. All process of gathering and processing of assets will be fully automated and supervised by AI on all stages as finding, qualifying, ingesting, restoring, enhancing, storing and distributing. Creative decision making will be processed through AI-Human interface. Global 3 Pictures 2019

The Opportunity LatAm sees potential in this project due to the dramatic transformation of film distribution industry, unprecedented grow of OTT networks around the world and imminent emerging of digitalization and AI in all areas of industry during ongoing 4th Industrial revolution. Current state of film and TV assets it’s broken and segmented, demand on all type of quality assets growing faster the market can satisfy and nature of films and TV shows, as well as documentary’s perfectly matches to strategy of digitalization as a process. Global 3 Pictures 2019

Strategy LatAm plans to enter into agreements with rights-holders to license over 1,000 movies and 5000 hours of TV Shows and documentary’s. Utilizing its proprietary technology, LatAm plans to restore the films in the library in a cost-efficient manner. LatAm will also select the most popular of these classic films and restore and colorize them to a higher level. Management believes these processes will enhance the popularity of the movies, expand the consumer base to a younger audience, and increase overall demand. LatAm intends to go to existing platforms worldwide such as Hulu, Netflix, Google Now, Amazon Prime and iTunes. Under these arrangements, LatAm aims to earn money through advertising revenue. Simultaneously, LatAm plans for consumers to ultimately migrate from their established VOD platforms to its own streaming service, allowing consumers worldwide more programming flexibility. Once the Company’s initial catalog business has been secured, management will begin focusing its efforts acquiring libraries in other languages for their respective populations.

Comparative Advantage LatAm holds an advantage over competitors due to its advanced technological abilities, ownership over an immense content library, and relationships with key rights-holders. Most of its competitors have not restored their films to the quality consumers expect although high-definition television continues to dominate the market. In 2014, over 70% of US televisions were in HD. After restoring and upscaling our library from SD to HD quality we will have the most exclusive content library of classics. This wide variety of restored content, consumer-friendly price points, and selection of limited/no-ad channels to view the films give LatAm leverage over its competitors.

Technological Advantage LatAm recognizes that this is an opportune time for a company focused on digital distribution. Internet-delivered content on consumers’ televisions, computers, and mobile phone screens at LTE speeds is increasingly popular The average connection speed in the world increased by 30% in the last year, and now it is more than 5 Mbit per second. 1. https://senryaku.wordpress.com/2011/12/19/why-netflix-struggles/ LTE availability in the world The media industry is already experiencing a shift from spending on cable television ($90 bln annual business) to VOD and IP television, where traditional channels will be ported and new ones created Global 3 Pictures 2019

Subscription VOD (SVOD) Universe Global 3 Pictures 2019

Subscription VOD services with original content Since fall 2014 five major companies offering exclusive original content appeared on the market.

Ad-Supported VOD Services Universe Global 3 Pictures 2019

Content Preparation Workflow Acquiring content Restoration Upscaling and enhancing Claiming new IP copyright Publishing After researching and qualifying copy of the content , AI will evaluate the quality of the material obtained and make a decision what exactly restoration and upscaling is needed. Our algorithms will first perform automatic restoration of the picture and then it is upscaled with the using special based on Deep Learning equipment to needed quality. After performing quality assurance pass, our algorithms will prepare metadata (trailers, subtitles, all information about the film), claim new copyright on the picture then published to our and third party services.

Stages of Film Acquisition, Enhancement and Publishing 11 movies from G3P library PHASE I - testing 87 titles from Italian Library PHASE II – upscaling capacity About 900 titles from different studios PHASE III - Emerging From the first day of opening the service work we will work on our library of colorized and restored Russian classic movies from top 20 Russian classics of all times. After the first 2 month of testing and first reviews from customers we are planning to work on about 87 films from Italian library to evaluate and implement flexible scalability of system. And the third stage will be deploying a system on about 900 titles from different languages – English, Spanish, Chinese, German, French etc.. They will be published one-by-one after acquisition, restoring, upscaling and enhancing. Global 3 Pictures 2019

VOD Service Monetization Freedom of choice A-VOD S-VOD LatAm will offer users two choices: either watch for free with advertising or pay $5 per month and watch all the content without any interruptions (price will vary depending on the territory). In this scheme, LatAm will be able to obtain a sufficient response from the audience unwilling to pay monthly.. Also LatAm is planning to place banner advertisement, which is estimated to bring up to 10% of profit. This scheme will be revised quarterly, basing on the received sales statistics and number of views.

Planned Growth LatAm plans to reinvest all profits in advertising, thus providing an aggressive growth in popularity of the service in the first half of the year and steady subsequent growth. LatAm plans to reach 10,000,000 unique visitors per day before the end of the first year. Ten million users a day will generate an average of 20 to 60 thousand views of each title per month. By keeping at least 50% growth during the first 2-3 years, LatAm will be able to reach $13 million USD quarterly profit by the end of the 9th quarter of the service existence.

 Long-Term Plan After processing about 1,000 films, LatAm will begin to expand the market to the world classics. Also, LatAm is planning to develop a system to work with our service for content aggregators, whose customers are interested in publishing their films on our service. This will allow our VOD service to come out on market in the full scale and compete with many existing projects. In the future we are planning to enter into agreements with manufacturers of entertainment equipment (TV boxes, TVs, home theatres) abut including our application into the standard set of Smart TV.