SBN- Satellite Broadcasting Network

 

  • SBN offers its subscribers more than 90 music channels in CD quality (128 Kbps) via the internet as well as a wide variety of other channels including sports, tourism, news  etc
  • €7.50/mth subscription fee
  • Approx. 100,000 subscribers
  • Renewal Rate of 60-70% in first months of operation
  • Target 12.31.09 for 500,000 paying subscribers
  • SBN is the ONLY company with a selling network for its Internet Radio service. American companies are selling similar services ONLY through the web
  • Primary distribution channel for subscribers is via pre-paid cards – similar to pre-pay cell phone services.
  • Scratch off unique 16 digit codes and enter the code on SBN website
  • Subscription and renewal also available via SBN website

Model is uniquely suited to Europe:

  • European users are not as confident in buying online products and services as US consumers
  • Greater use of pre-paid cell phone service: consumers are used to the methodology
  • Less common credit card and debit card usage – particularly in Eastern Europe
  • In this way it is very easy to sell the service NO PAPER TO SIGN - NO CREDIT CARDS. Subscribers just buy the card including the activation and a minimum of 30 days of service, and the activation is easily done at home.


Pre-paid card model offers additional unique benefits:

  • Available in bulk to advertisers with advertising message on one side of cardExisting clients include Bacardi and Mercedes
  • Negotiating with Vodafone Spain, Italian Supermarkets, Spanish Hotel Chain
  • Unique promotional tool – offer 1 month or more of free service
  • SBN receives full payment by advertisers upfront
  • Intensive marketing push to commence once Radio hardware is available
  • Advertisers can also benefit by €3.50/mth for each monthly renewal on cards issued to them
  • Barcodes provide ability to track cards and compensate purchasers whenever the accounts are renewed by end users.
  • Promotional costs reduced and could even become profit centers.
  • Great for small local businesses such as restaurants, bars, hotels as well as large corporations.

Distribution:

  • SBN will have a distributor in each European country.
  • Distribution agreements with Italy, Spain, Switzerland, United Kingdom, Russia, Greece, Bulgaria, Estonia,, Latvia, Lithuania, Poland, Romania, United States, Turkey.
  • Currently negotiating SBN card distribution in several other European nations.
  • Existing distribution agreement with 58,000 tobacco stores in Italy
  • Potential distribution agreement with Sky TV Italia distributors

Car Manufacturers:

  • SBN is exploring the possibility of partnerships with Asian and European car manufacturers to include SBN radio receivers in new cars and trucks as a factory standard.
  • Unlike in the US there will not be competing broadcasters (ie XM & Sirius) so it will not be necessary for manufacturers to choose between providers
  • Toyota intends to use SBN cards as a promotional tool in the near future.

Car Rentals:

  • SBN is exploring the possibility of partnerships with European car rental companies to have SBN radios available as an option for their rental car customers.
  • Personal relationship with [owner] of one of the major car rental agencies.


Car Stereo Distributors/Installers:

  • Through its PHD business SBN has an existing relationship with both major and local car audio distributors and installers for post-sale installations in Europe and worldwide. 350 stores are in Italy alone.

 

More information on this product is available online at www.satbn.com