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