6.9% - 10.0%
min - max equity offered
NZ$100,500.00 - NZ$150,000.00
min - max investment sought
min investment parcel
More detailed information about this offer is contained in this Information MemorandumInformation Memorandum
BehindTheSeams.TV is offering 67 to 100 Class B Shares under the following terms:
BehindTheSeams.TV is raising a total of NZ$450,000 through two separate tranches of capital (300 shares).
The first round of capital (tranche 1) has been filled and shares issued. This occurred outside of the Equitise platform and was led by VMG (subscription agreement in documents section of the platform).
Tranche 1 raised NZ$300,000 (A$272,727) through the purchase of 200 ordinary shares and was closed in August 2017.
Equitise is facilitating the remaining shares in this offer, raising up to NZ$150,000 (A$136,364) through the issue of up to 100 Class B Shares.
The total number of shares offered in both tranches of capital represents approximately 30% of the company’s share capital after the completion of a maximum raise scenario through Equitise.
Should BehindTheSeams.TV complete a maximum raise through Equitise, VMG will have a 10% stake, Mike Loftus will own a 20% stake and Scott Styris will own a 25% stake in BehindTheSeams.TV.
The VMG investment for 10% of the Company has been made in two separate tranches. The first tranche for 5% of the Company has been made upfront with a further tranche (for the remainder of the investment) due once BehindTheSeams.TV have secured three sponsorship agreements. For more information regarding the VMG investment, please see the Subscription Agreement in the Documents section of the offer.
A group of New Zealand cricketers have created BehindTheSeams.TV, a subscription video platform where some of the world's best cricket players and coaches reveal honest renditions of their careers in interviews.
BehindTheSeams.tv (BTS) is a global, web-based cricket digital platform, with massive growth aspirations to bring millions of cricket fans closer to the leading personalities of the game.
BTS believes that passionate cricket fans deserve to get behind the game-face of the stars, and get to know the real people within.
Fans pay a minimal subscription of $US1.99 a month to access a treasure trove of unique video content, co-created with leading international cricketers and refreshed every week. Interviews give fans a deeper insight into the stars than ever before, delving into the real person off the field and revealing the secrets behind their successes and heartbreaks. BTS also use this world-class content to deliver master-classes across all technical areas of cricket, that will improve the games – and enjoyment - of fans everywhere.
Indian cricketer Rohit Sharma, Australian cricketer Glenn Maxwell and Sir Richard Hadlee are among the subjects of the interviews ready to be published on the website.
Major shareholders in the business are Mike Loftus and international cricketers Scott Styris and Mitchell McClenaghan.
BTS plans on using 2 mechanisms to capture revenue: subscriptions and sponsorship/advertising.
Fans pay a minimal subscription to access a treasure trove of unique video content, co-created with leading international cricketers and refreshed every week.
An initial survey of 5000 CricHQ users globally elicited 408 responses with over half of respondents noting they would pay a US$2 per month subscription fee for this content.
Sponsorship and Advertising Revenue
In addition to subscription revenues, the opportunity to contract selected sponsors for on video and on site promotion exists, as does the selective placement of advertising. Both sponsorship and advertising needs to be contextual and non-intrusive to the user experience.
A target of establishing a family of six sponsors at NZ$50k each (ie NZ$300k) has been set as the first year target.
A royalty for each video will be paid based on a unique subscriber view of the video (i.e. a subscriber viewing for a second time is not counted for royalty payments), as follows:
- Player interviewed: NZ$0.10 per unique subscriber view
- Interviewer: NZ$0.05 per unique subscriber view
The use of a royalty for payment of talent (in replacement of an appearance fee) encourages the talent to promote their video and the behindtheseams.tv platform to their network, assisting with subscription growth.
- Jan 2017 - Company incorporated
- Jul 2017 - Simon Doull and Mitchell McClenaghan joined interview crew
- Aug 2017 - Video production and digital platform completed
- Sep 2017 - Site soft-launch in New Zealand
- Oct 2017 - Site launch in India
Content and Site Plan
behindtheseams.tv will be presented in two main sections within the Cricket section of the site:
- a ‘Technical Education’ section;
- and an ‘Interviews’ section.
The ‘Interviews’ section will host video interviews with leading current and past players, with video length between 10 and 25 minutes. Interviews will be categorised by sub-topics, allowing subscribers quick search options for content.
The ‘Technical Education’ section will use content from the video interviews and separate technical questions asked of each player to provide content covering:
- Captaincy (Field placement, Strategies, Player management, etc)
- Match Preparation (Routines, Rituals, Mental Prep, etc)
- Resilience (Bouncing back, Mental prep, etc)
- Batting (Opening, Top order, Middle order, Tail)
- Bowling (Fast, Swing, Spin)
- Fielding (Outfield, Slips)
All interviews are conducted by Scott Styris, Simon Doull and Mitchell McClenaghan in a context that conveys the personality and interests of the person being interviewed. Each interview video is produced to a premium broadcast quality.
In addition to the personal interview, each player interviewed will be separately asked 5-6 ‘standard’ cricket technique questions, that can then be placed in the ‘Technical Education’ area of behindtheseams.tv.
Each person interviewed will end with the question ‘If you could ask one question of any cricketer, what would it be and who is that cricketer?’. This will provide the introduction question for an interview with the person noted as being asked the question.
An initial trailer can be seen at:
Snippets from the pilot interview with BLACKCAP Mitchell McClenaghan can be seen at:
The $450k of new equity funds sought for 30% of BehindTheSeams.TV will be utilised for the following items:
Profit and Loss
*March 2018 to January 2019
Full historical financials available on request.
Cricket is the world’s second most popular sport, with over 2.5bn* fans globally; with more than 500m** of these fans known to be online.
India is the world’s largest cricket media consumption market, followed by the USA (which has over 2m registered cricket players). Large cricket content markets also exist in the UK, Australia and the remainder of South Asia.
An initial survey of 5000 CricHQ users globally elicited 408 responses with over half of respondents noting they would pay a US$2 per month subscription fee for this content. Extrapolated over the known 500m online fans globally, behindtheseams.tv could realistically anticipate a subscription base of over 20 million customers.
First year targets have been set at 100k monthly subscribers to provide investors with a one year RoI. Only 35k monthly subscribers are required to reach breakeven.
The concept of BehindTheSeams.TV is to take fans into the personal lives, thoughts and routines of the players they watch each week.
Mainstream media provide match analysis, analysis of player performance and integrated stats, but rarely do they have the time, skills or access to delve deeper into what players do to perform at the top level.
BTS interviewers are also able to utilise their unique access and intimate relationships with the top cricketers to elicit unique stories and insights into historic cricket moments that fans will likely not have heard anywhere else. It’s like being a fly on the wall at player to player after match chats.
No one else is doing what BTS plan to do, with the nearest being the following cricket related sites:
- ESPN CricInfo: Match reviews, player profiles and statistics, as well as match related video and written articles
- CricBuzz: India focussed match reviews, player profiles and statistics, as well as match related video and written articles.
- Wisden: ‘The old man of cricket’, with match reviews, statistics and in-depth articles on all aspects of the game.
- All Out Cricket: UK magazine covering cricket from grassroots to Tests, with in depth written articles and short videos.
- Unscriptd: Online selfie videos from world sport stars.
Based on a very conservative 100k subscribers (of a 2.5b global cricket fan base), behindtheseams.tv is expected to achieve an net profit position of ~NZ$230k by Dec 2017, and just under NZ$1m net profit in full year 2018.
It is expected these forecast net profits, from Dec 2018, will be available for dividend payment in the January immediately following year end. Using methodology from FE International, the value of similar media and social network businesses is calculated at between US$100 and US$250 per user.
Based on the year one target of 100k subscribers/users, behindtheseams.tv would be valued at between US$10m and US$25m, while 20 million subscribers would provide a company valuation at between US$2b and US$10b. Using a more traditional revenue multiplier methodology, 100k subscribers (at US$1.99/mth) would provide a company valuation at US$16.7m, and 20 million subscribers would provide a valuation of US$3.34b.
The investors below have committed capital to the business in this funding round.
I am confused with what appear conflicting statements in the financials presented.
"Based on a very conservative 100k subscribers (of a 2.5b global cricket fan base), behindtheseams.tv is expected to achieve an net profit position of ~NZ$230k by Dec 2017, and just under NZ$1m net profit in full year 2018." This is from the market overview section and I think from memory in the IM document.
But on the Offer Overview page the 2017 accounts show a loss, $129k and a small profit of only $45k in 2018. Can you explain what the difference?
Also in the table on the overview page the following "*March 2018 to January 2019" is a note to the financials. Why is the 2019 forecast numbers only presented for 10 months.
Thanks for raising this. The IM and raise overview were written in July, with a planned October India launch, which was delayed to next week due to availability of the player talent we wanted to film. We've since recorded interviews with Sachin Tendulkar, Rohit Sharma, Hardkik Pandya and more ready for our India engagement. Our 2018 fun year net profit forecast, based on gaining and retaining a 100k subscriber base, is around NZ$3m. a 100k subscriber base would also place the company value at around US$10m.
Replied to Ralph Shale
Hello, I would like to know how ‘Behind the Seams’ proposes to sanction & protect video content to a subscriber. What’s to stop them posting it online through YouTube & Facebook
Hi, we have trademarked BehindTheSeams.TV globally and copyright each interview. We also use a secure broadcast platform that protects against duplication of the video. That's not to say someone with a camera filming the broadcast won't be able to replicate, and these will be pursued through legal action as required.
Replied to Craig beardsley