3. Game-On Productions Patrick K. Cooper, Carmela J. Farolán, David L. Marcelis, Christopher P. Miller, Venisha L. Wimbish

4. The Chicago Game

5. -A news- and community-driven online game. Coming up: -Why make this game? -How does the game work? -How does the game work as a successful site? -How does the game work as a successful product? What is the Chicago Game?

6. -Chronicle needs a site that can attract an audience -- an under-35 audience -- on its own merits. -Something consumers want -Something that drives traffic and subscriptions -CG accomplishes these goals by its nature - a multi-media, multi-platform interactive product. -Unites people around their city and their Internet Why make the Chicago Game?

7. -Young people’s decreasing appetite for news dates back more than 30 years. Why? -More media choices -Lack of newspapers in the home -Lack of marketing -Electronic media enables an individualized media experience -219 million+ computer/video games sold in 2000. -Online gaming audience will rise to 80 million by 2005, up 38 percent from today’s 58 million. -Online advergaming revenue (ads displayed within a game) will rise to $774 million by 2006 Why make a game at all?

8. -Survey of 90 people on their interaction with multimedia devices for online recreation: -96 percent have Internet access -47 percent participate in online games -90 percent wouldn’t pay for online games -71 percent have cell phones -Of cell phone users: -25 percent use wireless Internet -17 percent play games -17 percent use text messaging -14 percent get news Why make a game at all?

9. -New theme every month - keep players playing -June’s theme: “Summer Fun” -First week, for promotion and registration How does the game work? Week’s calendar Tuesday, 8:30 p.m. -First quiz begins Wednesday, 8:30 p.m. -First quiz ends Thursday, 8:30 p.m. -Second quiz begins Friday, 8:30 a.m. -Weekend task begins Friday, 8:30 p.m. -Second quiz ends Monday, 8:30 p.m. -Weekend task ends

11. -Components of the site encourage and enable Chicagoans to play the Chicago Game Site components: -Home page allows players to register, as well as access game-related content -Articles and news packages related to themes, quizzes and tasks -Game play (answer quizzes, tasks) -Personal information, performance statistics and rankings within the game How the site fits the game

12. -Structure of the Chicago Game allows game editors to control content topics. -CG has the ability to interchange topics for purposes of education, promotion, or advertising. -Traffic can be driven to specific Web sections. -CG’s flexibility will bring longevity. -Chicago Chronicle reaches a new audience of younger readers by receiving traffic from CG. -Result: Increased subscriptions. Driving traffic, increasing subscriptions

13. -As a start-up, CG will benefit from the strength of its parent firm, Chronicle Co. -Number one in total market reach among Chicago news and information Web sites -8 th largest media organization -Reaches more than 80% of U.S. homes -CG uses cross-promotion support from Chronicle properties (Chicago Chronicle, chronicle.com, and Chronicle TV and radio). -CG will develop “out-of-family” advertising support from print and online publications. Marketing campaign

14. -CG revenue generation will rely on a model of pure-play advertising with sponsorship packages and online ads. -CG sponsorship packages allow advertisers to become identified with aspects of the Game. -Types: Major (1) - Theme (1) - Task (4) - Quiz (4) Business plan -Although CG will obtain start-up funds, the site will not be launched until sponsors pledge support -Future revenue streams -Subscription model for expert players -E-commerce / merchandising

15. Business plan, continued -Also: Independent design consultant to be hired for 6 mos. Senior producer Associate producer Advertising rep Game manager -Staffing:Five to operate CG on an ongoing basis: Reporter

16. Technology: -CG will share in Chronicle’s Web infrastructure. -System’s 50 percent idle capacity can handle CG’s estimated 2,000,000 monthly views. -CG will invest in the necessary computer hardware and software applications. Business plan, continued

17. Start-Up Investments Domain name registration:$ 200 Technical systems: -Computer hardware ($2,000 x 5)$ 10,000 -Application software ($1,000 x 5)$ 5,000 -Hosting(Chronicle)--- -Bandwidth/Connectivity (Chronicle)--- -Network tech support (Chronicle) --- Total technical investment$ 15,000 Office furniture:$ 2,500 Staffing: ($31,400 x 6 mos.): $ 188,400 Overhead: ($7,700 x 6 mos.):$ 46,200 Total Start-up Investment$ 252,300 Business plan, continued

18. Profit and loss statement (1st month) ItemMonthly revenue allocation Sponsors on monthly game weeks: -Major ($ 30,050 x 1) $ - (-$30,000 for car prize) -Theme ($ 13,850 x 1) $ 12,350 (-$1,500 for cell prizes) -Task ($ 7,800 x 4) $ 30,900 (-$300 for gift prizes) -Quiz ($ 7,350 x 4)$ 29,100 (-$300 for mag. prizes) Advertisers on Promo Week: -Skyscraper Ad - 1 week / month$ 5,000 -Tile / Box Ad - 1 week / month$ 14,250 Projected Monthly Income$ 91,600 Business plan, continued

19. ItemMonthly expense budget Payroll: -Senior Producer – Technical/Editorial$ 6,700 -Online Advertising Representative$ 6,000 -Associate Producer – Marketing $ 5,200 -Online Game Manager$ 4,500 -Reporter$ 4,000 -Web Interface Designer (6-month contract)$ 5,000 Total monthly payroll$31,400 Advertising and promotions: -Chronicle print promo $ 1,540 -Chronicle online promo$ --- External advertising and promotions: -Chicago Reader print $ 3,000 -@Chicago online $ 2,000 -Other promotional channels $ 10,000 Total promotional expenses$ 16,540 Business plan, continued

20. ItemMonthly expense budget Supplemental game package (uclick)$ 4,000 Site hosting / bandwidth / tech support $7,000 Operational overhead: -Leasehold expenses$ 1,200 -Utilities$ 1,000 -Fax / telephone$ 300 -Office supplies / postage$ 200 Total operational overhead$ 2,700 Projected monthly expenses$ 61,640 Projected 1st month income (~33%)$ 29,960 Projected 7th month income (~5%)$ 5,060 -With CG’s success, the model is completely exportable to other markets or can be licensed to any media company. Business plan, continued

21. -Any questions? End of presentation