Firestorm (code name)

Preserving and Sharing

Old Photographs

June 2007

Firestorm Proprietary and Confidential. Please do not distribute.

 Firestorm The Need
• Old photos are stuck in the closet, yet they are cherished for decades.

• Digital photography is extremely popular, and it has changed our

capabilities and expectations.

• Prediction: Old photos will be digitized and will be shared, printed, and
interacted-with in the same way as digital photos.

Firestorm Proprietary and Confidential. Please do not distribute. Slide 2

 Firestorm The Service and Business Model

• Digitize and Preserve Old Photographs.

• At the Customer’s Driveway.
• Charge a service fee.
• Photos are available to view and share online.
• Offer ancillary products and services: prints, photo books, mugs,
t-shirts, etc.

• Starts as a highly localized, operationally intensive business.

• Evolves into a more purely online business.

Firestorm Proprietary and Confidential. Please do not distribute. Slide 3

 Firestorm Revenue Model

• Fees for scanning service: at driveway and mail-in.

• Sales of prints and other ancillary products and services.
• Online advertising.

Firestorm Proprietary and Confidential. Please do not distribute. Slide 4

 Firestorm Marketing
• Target affluent households. Ventura County has 200k families and a
$76k median income (2000 census).
City Households Families Median Income for Family
Agoura Hills 6,874 5,588 $ 95,765
Westlake Village 3,270 2,491 $ 109,310
Thousand Oaks 41,793 31,177 $ 86,041
Newbury Park 985 809 $ 64,345

Simi Valley 36,421 28,954 $ 75,140

Moorpark 8,994 7,698 $ 78,909

Camarillo 21,438 15,242 $ 72,676

Oxnard 43,576 34,947 $ 49,150
Ventura 38,524 25,233 $ 60,466
Port Hueneme 7,268 5,000 $ 40,056

Carpinteria 4,989 3,332 $ 54,849

Summerland 715 368 $ 75,625
Santa Barbara 35,605 18,941 $ 57,880
Goleta 19,954 13,468 $ 67,956

Calabasas 8,350 5,544 $ 107,330

Malibu 5,137 3,164 $ 123,293
Total / Total / Avg 283,893 201,956 $ 76,174

• Conduct local marketing – like any service business or restaurant (ads

in newspapers, flyers at homes, etc.)
• Van is a moving billboard.

Firestorm Proprietary and Confidential. Please do not distribute. Slide 5

 Firestorm The Marketplace

2006 Revenue: $200M (Estd)

Started trials of ScanVan service.
2006 Revenue: $123M
2006 Revenue: $100M (Estd)

• Photo sharing is an extremely popular online activity. Very viral in nature.

• In 2006, Shutterfly did $123M in sales of prints and ancillary products (approximately 50/50
split). CPA < $12. “75% of customers acquired virally”
• Who will “own” the old photos and benefit from the related prints, ancillaries, pageviews,
and viral customer acquisition for years to come?
Firestorm Proprietary and Confidential. Please do not distribute. Slide 6
 Firestorm Tactical Details

Equipment, Software, hardware, and other necessary services are readily

available:

• Scheduling – License software like 1-800-got-junk or Stanley Steamer

• Mobile Lab – Lease Ford Econoline Vans or similar
• Maintenance – Contract with Fleet Management service
• Scanning – Fujitsu FI-5750C or similar (off-the-shelf)
• Uploading – Regional offices as upload centers
• Storage – Amazon S3 or similar
• Viewing and Sharing – License Software Package
• Ordering – EZPrints and other providers

See workflow PDF

Firestorm Proprietary and Confidential. Please do not distribute. Slide 7

 Firestorm Economics

COSTS REVENUE

Regional Offices Initial Service

Setup Ancillaries
Monthly - Expenses Advertising
Monthly - Staff
KEY FACTORS
Vans
Setup CPA
Monthly - Expenses Avg Sale: Initial Service
Monthly - Staff
Avg Referrals Per User
Web Service Avg Page Views Per User Per Month
Setup Avg CPM earnings
Monthly - Staff
Storage Avg Ancillaries Per User Per Month
Bandwidth Avg Sale: Ancillaries

See spreadsheet for details

Firestorm Proprietary and Confidential. Please do not distribute. Slide 8

 Firestorm Next Steps
• Sales and Marketing
● Establish Pricing for Service
● Quantify Demand

Firestorm Proprietary and Confidential. Please do not distribute. Slide 9