Investor Presentation
April, 2008
Legal Disclaimer
This summary is for informational purposes only and does not constitute an offer or solicitation to purchase or sell securities of Juniper Content Corporation.
Certain statements in this summary may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this summary, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include, among other things, the following: general economic and business conditions; competition; unexpected changes in technologies and technological advances; ability to commercialize and sell products and services; results of experimental studies; research and development activities; changes in, or failure to comply with, governmental regulations; and the ability to obtain adequate financing in the future. This information is qualified in its entirety by cautionary statements and risk factors disclosure contained in certain of Juniper Content Corporation’s Securities and Exchange Commission filings available at http://www.sec.gov.
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Juniper Content Corporation
Building brands for the digital future
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Focusing on the underserved Hispanic market
Investment Highlights
¡Sorpresa! is dedicated to becoming “the” brand for Hispanic kids and their families in this fast growing market
¡Sorpresa! is the first and only 24/7 Hispanic children’s television network broadcast exclusively in Spanish, serving more than 1,000,000 subscribers in 22 of the top 25 Hispanic television markets
SorpresaTV.com is well positioned to become a leading online destination, connecting to Hispanic youth and their parents
Accomplished management team and Board with multi-platform and Hispanic media experience
An independent appraisal completed during Q4 2007 valued the net tangible and intangible assets acquired in the Firestone Merger on January 19, 2007 at approximately $16 million
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Recent Financing
Received approximately $2.2 million in a private placement in Q1 of 2008
Senior 7% Convertible Preferred Shares plus warrants
The preferred stock is convertible into common stock at $3.20 per share
7% dividend beginning in 2010, paid quarterly in cash or kind
The structure and pricing of the financing supports a value for the Company beyond that currently reflected in the market
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Current Operations
¡Sorpresa! has affiliation agreements with all the major cable MSO’s including TimeWarner, Cablevision and Comcast; is the only 24/7children’s cable network broadcast exclusively in Spanish
We provide network origination services to AmericaOne, The Documentary Channel as well as ¡Sorpresa! at our uplink facility in Fort Worth, Texas, along with third-party production services
Currently, we derive revenue principally from cable affiliate fees, advertising sales, production services, uplink and facility fees
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Management Team
Stuart B. Rekant, Chairman & CEO of Juniper Content and CEO of ¡Sorpresa! - Executive, entrepreneur and producer with 30 years in media and entertainment, HBO, US News Productions, WinStar
Herbert J. Roberts, Senior Vice President, CFO, and Secretary - Financial Executive with 30 years of experience with CBS, Helicon Cable, Prudential Securities
Leonard L. Firestone, President & COO* - Executive and entrepreneur for 20 years, founder of Firestone Communications, DBA ¡Sorpresa!, Allbritton Communications
Christopher Firestone, Executive VP of Digital Media and Broadcast Operations * - 10 years Media Executive, The William Morris Agency, independent and commercial film production
Michael Weiden, Senior VP of Advertising/Sales* - 20 years in television syndication: Litton Media Sales, Si TV, Fremantle Media, Pearson Television, All American Television, LBS Communications
Maria Badillo, VP of Programming * - 15 years domestic/ international youth programming/ production: Discovery Kids Latin America Network, Univision Network, MTV Latino America
Tim Kelly, VP of Affiliate Sales and Marketing* - 10 years in Hispanic general consumer and
markets marketing:
DISH Network/Echostar Communications, Charter Communications
* Firestone Communications Inc, DBA ¡Sorpresa!
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Juniper Content Board of Directors
Stuart B. Rekant
Chairman of the Board
Advisory Services
Financial
Young
Raymond Mason
Vice Chairman of the Board……….. Connemara Capital/Charter Group
John K. Billock, Director ………….. Time Warner Cable, HBO
Steven G. Chrust, Director ……….. Centripetal Capital Partners, SGC
Bert A. Getz, Jr., Director …………. Globe Corporation, Wintrust
Richard Intrator, Director …………. Philanthria, Paine Webber Inc.
Paul Kramer, CPA, Director ………. Kramer Love & Cutler, Ernst &
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What Makes ¡Sorpresa! Special
The only Spanish language cable television network dedicated to Hispanic kids
In-culture
In-language
Connecting to their Hispanic heritage
Targeting to 2-17 year olds
Available on cable and other digital platforms including MobiTV and Brightcove
Premium programming from around the world
Principally purchased rather than produced
At a competitively lower programming cost
Specials & Holiday-specific programs
Celebrating the uniqueness of Hispanic cultural heritage
SorpresaTV.com
Platform to become the leading online destination for quality entertainment and education
dedicated to Hispanic youth and a brand extension of the network
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Ideal vehicle for advertisers targeting
the fastest growing and youngest U.S. demographic
U.S. Channels Targeting Kids
Kids Blocks in Spanish
English/SAP
24/7
In-Culture
In-Language
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Unique within its market
Competitive Landscape
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¡Sorpresa! ’s
unique approach delivers broad content and format variety in
Spanish with a Hispanic appeal for each segment of its audience;
preschool, 6-
11 and teens, with more premiere series, specials and original productions,
tailor made for Hispanic kids
General entertainment channels dedicated to the Hispanic market like
Univision, Telemundo and TV Azteca
only cater to kids with limited hours of
programming, mainly during weekends to fulfill FCC
requirements
Strong emphasis on preschoolers, dubbed versions of shows from their
English language networks, on MTV Tres and
Discovery Kids En Español with
no original productions tailor made for Latino kids in the U.S.
General entertainment English-language channels like Cartoon
Network,
Disney and Nickelodeon only cater to U.S. Hispanic kids through the SAP
option with no direct
connection to their audience
¡Sorpresa! The World You Imagine
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Launched new look and on-air promotional campaign in February
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Hispanic Cable and Satellite Audience
Conversion to Digital – 36 million digital cable1 and 31 million2 digital satellite
subscribers now approaching 63% of the 112 million TV households1
Increased attention from cable and satellite operators on Hispanic demographic
Cable operators utilizing Hispanic packages as part of their digital tier rollout plans
DirecTV’s Paratodos 1.0 million subs1
Echostar’s Dish Latino 1.2 million subs1
Total U.S. Hispanic TV Households = 12.1 million3
Cable TV - 50% penetration of total Hispanic households4
Satellite TV - 27% penetration of total Hispanic households4
Hispanic subscriber penetration by Demographic Market Area (DMA)1
Top 10 Hispanic DMAs represent 55% or 6.2 million TV households
Top 20 Hispanic DMAs represent 72% or 8.1 million TV households
78% of bilingual Hispanics watch programming in Spanish weekly4
47% watch children’s programs everyday4
45% watch Spanish language programming for kids5
5 Focus Latino VI 2006 Horowitz and Associates
4 Focus Latino VII 2007 Horowitz and Associates
3 Nielsen, August 2007
2 Public Filings as of 12/31/07
1 SNL Kagan, 2008
¡Sorpresa! Distribution
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Cablevision
Charter
Comcast
Cox
Brighthouse
Time Warner
NCTA
OneLink PR
Available through
Available in 22 out of the 25 top Hispanic DMAs
S! Distribution
S! n/a
Percentage of residents
in the country identifying
as Hispanic
0.0% - 6.0%
6.0%-17.4%
17.4%-34.7%
34.7%-61.1%
61.1%-100.0%
¡Sorpresa! Subscriber Growth
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Starting the year with more than 1,000,000
Subscribers
987,000 Subscribers
1,000,000
750,000
500,000
250,000
0
Month
38% Year-Over-Year
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SorpresaTV.com
Currently targeting Hispanic kids ages 6-11 featuring
¡Sorpresa!
Network content along with games and user generated content
Expanding the target demo to also include Hispanic preschoolers
and their parents to become the destination of
choice for this category
Content will relate to: ¡Sorpresa!’s
specific programs on the air; other
topics of interest to the demographic, including soccer, dance and music;
as well as those categories that don’t lend themselves directly to the
channel such as games and education
A site where Hispanic kids and their parents can be entertained and
educated through activities that speak to their cultural background
Revenue generator and platform for brand extension
The Brand for Hispanic Youth
Culturally relevant/
Latino identity
Category trend
setter
Original Productions
Magazine
Entertainment
Sports
Acquisitions
Animation
Drama & Comedy
Movies
Specials & On-Air
Culturally relevant
Season based
Latino look & feel
Exclusivity
US Territory
Linear channel
Internet &
Broadband
Mobile & VOD
Grass Roots / PR
Traditional & New
Media
Sales material
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¡Sorpresa! taps into the Latin kids’ life through
engaging programming
available, anytime and anywhere
Hispanic Advertising Opportunity
Fastest growing US segment1
44.3 million residents, almost 15% of population
1 in 4 are under 14 years of age
Spanish-language advertising continues to outperform the general market2
Buying power growing 8.6% per year3
Hispanic advertising market is projected to grow 3.7% in 2007 compared to 1.7%
growth for the general market2
Hispanics under-indexed
Just 3.3% of ad dollars spent on 14.7% of population1,4
1 U.S. Census July 2007
2 Advertising Age’s Hispanic Fact Pack report, July 2007
3 Selig Center for Economic Growth, The University of Georgia, June 2007
4 AdWeek 2007
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Large, growing and underserved demographic
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Expanding Digital Platforms
Driving Demand For Content
1 SNL Kagan, 2008
2 Dish and DirecTV 10-K, 12/2007 and 12/2006
3 Rentrak 2007
4 PriceWaterhouseCoopers, 2007
5 Parks Associates, 2007
6 Nielsen, 2007
Cable TV and DBS growth
Digital cable subscribers estimated to grow 10% to 39 million by year-end 2008, from 36 million in 20071
DBS reached 31 million homes in 2007 from 29 million in 20062
Video-On-Demand growth
$2.1 billion estimated spending on VOD services in 2007, a 23% increase from 20064
Kids programming represented 24% of total “free” VOD orders in the first 5 months of 2007, just behind
music and movies3
New forms of advertising emerging via VOD
Other internet, broadband and mobile delivery platforms growing
Internet access, over the next four years, is estimated to be the fastest growing consumer segment of
the entertainment and media industry – growing at a 11.9% CAGR4
U.S. broadband penetration will exceed 50% of US households by end of 20075
Mobile video subscribers in the U.S. totaled 8.4 million in Q1 2007 compared to 3.3 million in Q1 2006,
growing 155% year-over-year6
Market becoming more customized and niche-oriented
Our Growth Strategy
Expand ¡Sorpresa! Network and Digital Community
Diversify brand into original programming, licensing and merchandising
Make SorpresaTV.com the leading destination for Hispanic kids and their parents
Leverage our other operations for future growth
Utilize uplink capability and production facilities to expand content relationships
Build expertise in other content categories and expand distribution capabilities to serve emerging digital platforms
Expand our current operations and infrastructure through acquisitions
Acquire branded content media and entertainment businesses
Develop digital communities around these and other high-growth opportunities
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Summary Balance Sheet
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December 31, 2007
Assets:
Current Assets
$
5,787,524
Programming assets, net
19,591
Property and equipment, net
2,715,515
Restricted cash
94,092
Intangible assets, net
10,160,342
Goodwill
157,166
Other assets
57,495
Programming rights long-term
125,644
Total Assets
$
19,117,369
Liabilities and Stockholders’ Equity:
Total liabilities
$
5,087,702
Total stockholders’ equity
14,029,667
Total liabilities and stockholders’ equity
$
19,117,369
Summary of Operations
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Year Ending
Year Ending
December 31, 2007
December 31, 2006
Revenues
$
2,224,803
$
-
Expenses
Operating
2,902,840
-
Selling, general and administrative
5,655,508
469,269
Advertising
443,694
-
Depreciation and Amortization
2,900,115
-___
Loss from Operations
(9,677,354)
(469,269)
Other Income (expenses):
Other Income, net
1,782
-
Interest income
369,694
719,539
Interest expense
(228,408)
-
Total other income (expenses)
143,068
719,539
Income (loss before provision
for income taxes)
(9,534,286)
250,270
Provision (benefit) for income taxes
$
(3,209,938)
86,000
Net income (loss)
(6,324,348)
$
164,270
Investment Summary
Establish the ¡Sorpresa!
brand as the leading media destination for
Hispanic kids and their families
Build on ¡Sorpresa!’s first mover status in Hispanic children’s
programming to secure a significant position in the expanding Hispanic
marketplace on television, on the internet and
other media platforms
Capitalize on the high-growth Hispanic media market and its increasing
importance of this growing demographic
to advertisers and marketers
Expand operations and infrastructure through the acquisition of other
media and entertainment businesses
Leverage the skills of an accomplished management team and Board
with significant media experience
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Be the leading Hispanic brand for kids and their families
What Hispanic Families Want
The following is based upon a survey of heads of Hispanic households
Top 12 Programming Genres Watched Every Day/Almost Every Day
Among Hispanics with Children Under 18 in the Home
Local News
79%
Programming in Spanish (in general)
56%
Programming for Children
55%
International News
51%
Novelas (Soap Operas)
42%
Movies on TV
41%
Sports Events
40%
Comedies or Sitcoms
40%
Sports News
37%
Music Videos
29%
Cooking, Home Decorating, Home Improvement
28%
Drama Series
27%
Source: Focus Latino VII, copyright 2007 Horowitz Associates, Inc., August 2007
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Exhibit A
Hispanic Households are Younger
and Have More Children
% Total
Households
% Hispanic
Household
K2-11
36
68
K6-11
21
39
Teens
22
37
W18-34
30
51
W18-49
58
85
Source: Nielsen
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Exhibit B
¡Sorpresa! Ranks High Among Viewer Interest
in Hispanic Networks
This survey found that of all the
channels tested, ¡Sorpresa! is one
of the channels in highest demand
among the respondents surveyed
1 Latino VII, Horowitz Associates, Inc. August 2007
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Exhibit C
29%
Latele Novela
29%
TBN Enlace
16%
TV Colombia*
39%
¡Sorpresa!
14%
TV Chile*
33%
Utilisima
35%
ESPN Deportes
36%
DocuTV
37%
Canal 52MX
37%
Teleformula
39%
MTV TR3S
40%
Cine Mexicano
47%
History Channel en Español
Rankings of Value Ratings1
*Note small sample of Colombians and Chileans in study
Cable Network Business Model
Exhibit D
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Average Cable Network Profitability Statistics for 20071
36.1%
Cash Flow
17.7%
SG&A Expenses
53.8%
Gross Margin
43.4%
Programming Expenses
100.0%
Net Revenue
1 2007 SNL Kagan Research estimates
Firestone Facility
Exhibit E
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Network Origination Facility
Network Operations Center – State-of-the-art fiber and satellite
services facility located in Fort Worth, Texas
Fully automated digital master control and uplink – Pop with 24
lines on SBC fiber backbone
Tape and Tape-less playback environment
C-Band and KU downlink capability 8-network capacity @ 4.5 MHz
Production Services Operation
Fully digital facility with full-services production capability
Editing, graphics, sound stages, control room
Significant Hispanic expertise
Firestone Transaction Overview
Exhibit F
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On January 19, 2007, Juniper Content acquired all the capital stock of Firestone, which owns and operates ¡Sorpresa!, for 2,676,127 shares of Juniper Content Common stock plus warrants to purchase an additional 250,000 shares plus up to 2 million warrants exercisable at $5.00 contingent on achieving certain milestones in 2007 and 2008
All of Firestone’s debt which exceeded $3 million was retired; the remaining $3 million of outstanding debt to a major Juniper Content shareholder is non-recourse to the ¡Sorpresa! Network and related programming assets and services as well as Juniper Content
The purchase price of $8,220,140 was based on the value of Juniper Content’s common stock in August of 2006 ($6,529,750), the value of the non-contingent warrants issued ($82,000) and direct acquisition costs ($1,608,390) incurred in the transaction