Video Monetization ...GLOBAL MUSIC DISTRIBUTION

Your Video Network

Over the past five years we’ve developed a video distribution and monetization network that is one of the largest in the world. Sugo Music Group manages hundreds of video channels within the Internet, YouTube and social media sites. We have partnerships with the leading ad placement, content monetization, and audio video distributors in the world. Together we supervise and monetize a growing network of channels on a daily basis. The technology we are using is some of the most advanced in the world today for optimizing the monetization process and is designed to yield the highest possible revenue cost per thousand impressions (CPM).

Monetize All Your Videos

Think of Sugo Music Group’s Video Monetization program as an annuity—a stipend where your revenue grows with time and your brand garners significant exposure in a competitive digital marketplace. Our audiovisual deployment team will provide full optimization, protection, processing and monetization on most major DMS partner video sites. Sugo Music Group can add significant dollars to your royalty checks as a direct result of our advertising sales and trafficking expertise for your videos—even if your videos are homemade, concert footage or slideshows. Our video distribution services will add additional revenue streams to your portfolio.

Choose the Right Partner

There are alternate solutions for Video Monetization, yet they are not optimal. For instance, sites such as YouTube use their advertising company for ad placements on video channels. YouTube’s sales team primarily focuses on monetizing YouTube’s home page and top-level domains (e.g., Eminem’s video channel). Why? The math is simple: the home page is worth $500K per day! Why would they sell used cars when they can have a brand new Rolls Royce people are clamoring to buy? However, there is still a market for the remaining ad inventory for smaller independent video channels like yours—and Sugo Music Group and our advertisement partners know how to monetize it!

Costs and Time

Sugo Music Group and its Video Monetization affiliates will aggregate, segment and sell advertising inventory around your content that we have licensed to the social media websites on the Internet. These websites, along with our monetization partners, collect a revenue share on behalf of your content assets. We bear all of the expenses out of our share, with no hidden fees or chargebacks to you. All revenues are tracked on a CPM basis, and we meticulously report on how much money each one of your assets generates in each accounting period. There is typically a nine-month lead time before your first reporting because we and our monetization partners have to process your content, ingest it into the system, build your Content ID docket, distribute, manage the ad inventory online, sell and traffic the ads and get paid by the advertisers.

Quality Control

You can rest assured that all advertising sold around your content must conform to family friendly guidelines. You will never see ads for adult content, alcohol, tobacco, weapons or other products or services that are not family friendly when working with Sugo Music Group. If you have video assets—however big or small—there might be untapped potential revenue to be earned via proper exploitation. Join the Sugo Music Group’s team, and we’ll take a look at what can be done! Get plugged in!

QCan you explain more simply what Video Monetization is?

A:Sure. First, we’ll help get your videos up onto, say, YouTube to start. Then our team will monetize each video with several different ad placements: In-Stream Ads, In-Video Overlay Ads and/or Standard Banner Ads. Consumers are accustomed to video ads throughout YouTube. For each stream that is viewed, you’ll generate income.

QOK. Can you now explain in more detail what Video Monetization is and how your video distribution services work? What are the revenue rates?

A:Rates can vary from $1 to as high as $300 per 1,000 views. The current payout CPM on average is about $2.75 to $3.50 per 1,000 views (this is conservative). For channels and videos that develop higher viewership, higher dollar ad values are sold—for example, $18 to $30 per 1,000 views for videos with 100,000 or more views. If channels or videos go viral and exceed 800,000+ views, significantly higher “paid product placement” ads are sold, and they can reach as high as $90 to $300 per 1,000 views.

QAre there different types or tiers of payout rates? Can you be more specific about these?

A:Three classifications of advertisement inventory are available:

Run of Content: Advertisers purchase ads targeted across the entire content network without regard to any individual piece of category of content. These are generally direct response advertisers looking for performance. The ads are often sold by advertising networks and exchanges. Rates are commonly around $1 CPM and consist mostly of banner ads and sponsored links.

Run of Audience: Advertisers purchase video or display ads around content segmented into categories that correspond to general audience appeal. An example could be “auto” or “basketball.” This inventory may be sold by our advertising partner, the publisher or an affiliate. Rates are commonly $4 to $12 CMP for video preroll or in video overlays.

Direct Sold: Brand advertises purchase premium: 15- and 30-second video prerolls (movie trailers, premium commercials, etc.) directly from our advertising partner with stringent targeting and tracking requirements. Rates are commonly $15+ CPM for video prerolls.

QWhy is your company better at this service than other companies?

A:Our video optimization process drives average monetization lift from 28% to near 90%—a 3x increase in content available for monetization on these types of DMS channels. Our system strives to fill 100% of all available inventories at the highest possible rate. Sugo Music Group and our monetization partners are dedicated, on a daily basis, to actively growing this side of the business with significant opportunity to generate additional revenues for you.

QCan I opt out of advertising at any time?

A:Yes, absolutely. Most, if not all, label partners choose to stay in the program because this service increases overall earnings.

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