Background
The last Flying Tiger Aircraft in the world was found in a lake in China. (The Flying Tigers are still revered as heroes in China). That started relationships with
several Chinese organizations (both private and Government). The first result was the establishment of the Sino-American
Aviation Heritage Foundation. Jeff Greene and John Tao serve as the two
managing Directors for the Foundation. They invited Greg Gustin to serve as Executive Vice President. The Founding Members also include
24 retired Flag Officers
(Admirals and Generals) and an even more impressive list of dignitaries from China. The stated goal of the Foundation is to improve relations between
our two countries, using the bond developed between allies during World War Two. In addition, we held the anticipation to develop sufficient commercial relationships within China that might someday mature into
profit making opportunities.
|top| Also, about one year ago, John Tao, a successful businessman in Southern California
(video to CD), approached certain Chinese Officials. He suggested that China might be better welcomed by the world community if they improved their media industry. His suggestions included the development of
studios in the US vs China (ie using American talent (producing, writing, directing etc.)).
|top| CAC
The relationships generated by the Foundation and through Mr. Tao's initiative resulted in
the formation of CAC (three principals, Greene, Tao and Gustin). But rather than putting a 'spin' on Chinese news, we have evolved it into the concept of a fulltime 24/7 network that will broadcast shows about
China (its people, heritage, current affairs, business opportunities, etc.). These shows will target breadbasket America and businessmen– not Chinese viewers.
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Typical questions to date:Who would watch a show about China?
Well, CAC would be in effect a combination Travel, Discovery, History and CNN etc. about China! Nearly all material would be fresh, never-before-seen information about
the world's largest country. They already receive millions of American visitors annually.How would you generate revenues?
We were first challenged that no one would be likely to pay
for advertising on a show about China. Well, part of our relationship with CCTV is that once we get our show functioning, it will rebroadcast back in China. Therefore all advertisers get a two-for one. We all
hear about the millions of dollars spent on national spots. Well even at just $1000/spot/16 spots per hour generates $280million/year. (FYI – 8,760 hours in a year) Eventually, we will also
generate significant revenues by selling/licensing documentary footage. China has offered us access to their entire film and video library. That's 50 years of TV and nearly 100 hundred years of archived film.
The value of this cannot be estimated at this time (ie too high to be practical – $billions potential). If it is so profitable, why aren't there more networks?
Two reasons – you
need unique content, and the typical budget to start a network exceeds $200 million. That's the cost of creating the shows. However, our cost is closer to zero in that we will be given the content (nominal fees).
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Bonanza
There are
currently 30,000 US firms doing business in China. And now that China has been approved for membership into the WTO, this number will surely explode. However, even using the existing database (of which we have
total access to through our friends in the Chinese government), we intend to approach each of these 30,000 companies and request $10,000. In return, they will receive $20,000 worth of advertising, and the claim
to be a Charter Sponsor for China's first and only officially sanctioned US Network. They will be unlikely to refuse if they want to maintain in high profile China. This equates to another $300 million per year!
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Accomplishments
We have created working agreements with the following:Chinese Officials authorizing these activates (ie Chinese owned material for commercial use)
CCTV (Central China TV) for rights to their content (200 hours of new shows created daily) China TV (North America) endorsement to use licensed content for English distribution in NA
Studios – we have three offers for studios, one of which already includes access to 5 million households via their own network feed. Having access to the studio saves us at least $1.5 million in hardware
acquisition costs, and approximately 90 days for setup and training
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Timeline
Due to the recent announcement that China is accepted into the WTO, our warm-up period has dissolved. The Chinese officials have informed us that there are now
many firms already seeking to assume (steal) our position. Because of their loyalty to us, the government gave us first rights to prove we are capable of accomplishing our tasks.
|top| Requirements
We have determined that
our first year operating budget is $3.5 million. Even though our belief is more optimistic, as experienced businessmen, we elected not to rely on revenues our first year of operations. We are therefore seeking the
full $5 million (fees, reserves, etc.) for our first year. We need to convince our associates (China officials, etc) that we have access to at least $1 million as soon as possible.
|top| Return on Investment
As you can see from the information presented, we are extremely
confident that CAC will be extraordinarily profitable. As time is of the essence, we will be very aggressive in seeking financial partners, for which we will offer vary favorable terms. See Executive Summary ROI for additional information.
|top| Please contact Greg Gustin for additional information1.941.699.2200(v) 1.941.699.9969(f)
greg@topgun.com |
