E
XECUTIVE
S
UMMARY
Emerald City of Oz LLC was formed to develop and produce entertainment product based on the intellectual properties licensed from Roger S. Baum. The IP licensing agreement, dated Sept. 30, 2008, includes seven titles written by Roger S. Baum and are based on The Wonderful Wizard of Oz series written by his great-grandfather, L. Frank Baum. It is the Company
’
s vision to develop, produce and distribute the IP under the three main business drivers of filmed entertainment, digital content and marketing and licensing opportunities of products. To facilitate these efforts, we are currently raising funds to develop and produce a 3D version, under our best efforts, two feature-length animated musicals, digital content such as a virtual world, and a capital reserve to stimulate licensing and marketing opportunities, as well as allocated advertising (P&A) funds to promote all media and products.
E
XECUTIVE
S
UMMARY
Digital content, which encompasses virtual worlds, games (online & console) and mobile technology, as well as emerging technologies, is a fast-growing entertainment sector with unlimited upside potential. The top 10 virtual worlds are earning revenue estimates in excess of $50 million per year, with the highly successful
“
World of Warcraft
”
leading the way with a staggering estimate of $500 million per year, according to DFC Intelligence. Strategy Analytics, in its Virtual Worlds Market forecast for 2009-2015, said
“
it sees the global population of virtual-world users growing from 186 million today to almost 640 million by 2015.
”
That
’
s almost 100 million new players a year, a nearly 25% compounded annual growth rate. The fastest-growing demographic is kids between the ages of 5 and 9, which the Company predicts will grow 27%. The current largest segment of virtual world
’
s players, tweens and teens, should grow by some 21%. Online and console gaming, as well as mobile technology, are exhibiting earning potential in the multi-millions per year, and continued growth is expected in this area as well.
E
XECUTIVE
S
UMMARY
Licensing of intellectual property based on animated content has proved to be a highly lucrative market. It has created over 1,000 separate licensing agreements for
“
The Simpsons
”
franchise, earned net revenue of $750 million for Nickelodeon
’
s
“
Sponge Bob Squarepants,
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and projected billions for Disney
’
s
“
Cars,
” “
Wall-E
”
and other film franchises.