INVESTOR ALERT!

 

WHY HIP-HOP?

 

The term hip hop (also spelled "hip-hop" or "hiphop") refers both to a musical and cultural genre or movement that was developed predominantly by African Americans and Latinos (primarily of Puerto Rican ethnic heritage) in urban communities, starting in the 1970s. Since first emerging in New York City in the seventies, hip hop has grown to encompass not just rapping, but an entire lifestyle that consistently incorporates diverse elements of ethnicity, technology, art and urban life. There are four fundamental elements in hip hop: hip hop dance (notably breakdancing), urban inspired art (notably graffiti), DJing and MCing or Rap (a form of rhythmically delivered rhyming lyrics).

 

 

Hip Hop music and culture is becoming a mainstream force with a global appeal. Hip Hop culture has influenced the lifestyle and culture of the American youth. According to Forbes.com, Hip Hop generates over $10 billion in revenues, every year. Hip Hop music and culture has captured the imagination of 45 million Americans, aged 13 – 34. This demographic of approximately 45 million Americans between the ages of 13 to 34 is estimated to represent $1 trillion of spending power. The market share of Hip Hop music has increased to 13.5% and it has replaced traditional Pop music from the number two position. While it has grown far beyond its music roots, Hip Hop is fundamentally a media-based industry targeting a media-centric audience. Hip Hop is the second largest selling music category, trailing only Country (for which, by comparison, there are already three dedicated cable networks). There are at least two Hip Hop radio stations ranked among the top 10 (based onlistenership) in nine of the ten largest U.S. markets.

 

HIP HOP GENERATES OVER $10 BILLION
IN REVENUES, EVERY YEAR

 

Hip Hop CD sales hit $5.5 billion in 2003, and in 2004, Hip Hop music saw a number of Grammy nominations. Hip Hop is the most popular genre on BET’s African-American lineup and MTV’s general music menu.

 

 
 

COMPANY PROFILE

 

 

RHNMEDIA creates a 24 hour television network. RHN.TV is focused exclusively on Hip Hop music, lifestyle and culture. RHNMEDIA's programming schedule is devoted entirely to capturing the hip hop marketplace with a targeted selection of programming directed to the 18-34 year old demographic, in both urban and suburban markets. Singularly focused on creating entertainment and interactive applications for the Hip Hop audience, RHNMEDIA is positioning itself to become the hub of the $10 Billion dollar hip hop industry.

 

Content
RHNMEDIA currently has 15,000 hours of video ready for broadcast, providing low cost programming content. In addition to the music videos, RHNMEDIA has produced original content and has plans to create additional programming centered on the Hip Hop culture, including fashion, automobiles, jewelry, lifestyles and trends.

 

Distribution
RHNMEDIA distribution agreement with OlympuSat provides instant 24 hour access to 15 million homes in 2005, and 43 million homes in 2008. OlympuSat provides distribution through a multi-content agreement with Dish Network, Direct TV and the top 10 major cable channels. OlympuSat can also assist and provide channel origination, operations, digitization, compression and up-linking, distribution, affiliate technical assistance and marketing.

 

 

WHY RHNMEDIA CORP?

 
   

RHN.TV to enter Metro TV Markets in 2007

     

 

Real Hip Hop Network Holdings Corp., a wholly owned subsidiary RHNMEDIA, has entered into an agreement for cable and satellite distribution in the Metro TV markets, starting from 2007. The agreement aims to target several metro markets including California, Georgia, Texas, Illinois, and New York. Moreover, the Company plans to announce the debuting TV stations – KTBU, KDOC, WJYS and WRNN – to its TV audience in the upcoming promotional events, TV guides and print media. Through the execution of this plan, the Company plans to broadcast its channels to over 100,000,000 households by December 2007.

 

Broadcasting approval from Comcast Corporation

 

RHNMEDIA has got the green signal from Comcast Corporation (NASDAQ NM: CMCSA,CMCSK) to broadcast its shows via RHN.TV to the target audience. Comcast Corporation is the country’s largest cable service provider and one of world’s leading communications companies. Comcast is focused on content, commerce, and broadband cable and delivers innovative programming, clearer broadband phone service, faster internet connectivity and digital services. The approval received by RHNMEDIA from Comcast will have a significant impact on the Company’s visibility, popularity and brand building.

Comcast has cleared and approved RHNMEDIA’s time slots for broadcasting (0000 to 2400 on MHz 4 and 0000 to 1800 on MHz 2). The Company has also entered into an agreement with MHz Networks, which made its network available in the Greater Washington DC market for 24 hours a day since July 1,2006. In the 3th Qtr 2006, RHNMEDIA is broadcasting RHN.TV to over 22 million households.

 

WITH MORE HOURS TO BROADCAST ITS PROGRAMS, THE COMPANY IS POISED TO BECOME ONE OF THE MOST POPULAR HIP HOP CHANNELS OF THE COUNTRY.

 

Advertising Sales Execution Strategy

   
     

RHNA will target to obtain Drive charter sponsorships via category exclusives, with major advertisers that
desire to reach the core hip-hop audience. Universal McCann has been retained to drive charter sponsor efforts.

RHN’s advertising strategy includes sponsorship, product placement, branded programming, traditional ad units, and on-air celebrity endorsements.

Selected sponsors and current advertising clients that have expressed significant interest include:
m Coca Cola
m Microsoft X-box
m Sprite

Sponsors and celebrities will also support RHN’s subscriber marketing effort.

RHNMedia’s management understands the difficulties a new network faces in securing both analog and digital distribution and is positioning its business for success through tiered distribution of programs. The Company is exclusively focused on a fast-growing but underserved Hip Hop marketplace and plans to capitalize on its unique cross media packaging opportunities.

 

RHN’s mission is to be the television destination for the multi-racial hip-hop generation by returning Hip- Hop culture back to its “realness,” meaning its true conscious
and artistic form, by creating a new worldwide market
to present its international influence.
 

 

 
 

RELATIONSHIPS & ALLIANCES

 

 

RHNMedia has identified leading Hip Hop media companies and is working with them to jointly develop programming content and a differentiated product. The Company formed strong relationships and business alliances with a wide array of influential individuals and reputed companies.

 

Some of the popular alliances include:

m

McCann Erickson - The world’s largest advertising agency network. 

  Presently in discussions on behalf of RHN for agreement with
  Microsoft X-Box, Coca Cola and Source Magazine.
m The Source Magazine – The finest Hip Hop culture magazine.
m

Democratic National Committee – Media Partnership to increase

  voter participation in the 18-34 demographic.
m

ROO Media – Leading provider of web based video content. ROO  for 

  Partnered with RHN to develop a web-based video on demand site
  RHN on www.rhn.tv . The site offers the latest music videos, news
  and RHN programming.
m

Deloitte & Touche - Business advisors, Accountants Washington D.C.

m

Hip-Hop Fashion Market – Ecko, Sean John, Phat Farm, Enyce,

  555Soul, E-commerce.
m

Womble Carlyle - Legal Counsel, Washington D.C. Other clients

  include Time Warner Cable, Dish Network and Pan Amsat.
m

Pseudo.com – Media Technology Company that creates, manages,

  and transmits digital content for film, web and television.
m

Prana Marketing - Marketing and Public Relations firm servicing

  premiere music artists, media firms and corporations.
m

Vibe Magazine - 800k circulation base; Advertsing Partner in  close

  SayShe.com (a Hookt.com affiliate); Kenard Gibbs, President has
  relationship with management.
m Atlantic Video Inc. – Premier Broadcast Production Company.
m

OlympuSat - Provider of distribution through multi-content agreement

  with Dish Network, Direct TV and the top 10 major cable channels.
m

Russell Simmons – The “Godfather” of Hip-Hop.

m

Sean “Puffy” Combs – Hip-Hop music and fashion mogul Sean Jean

  Line.
m

Eminem – No.1 recording artist and $100 million Box Office Star.

m

Chuck D – Hip-Hop industry leader, spokesman and activist.

m

Universal Music - Controls over 50% of Hip-Hop and R&B music;

  Owner of Island/Def Jam, Interscope and Cash Money.
 

These alliances and relationships with influential individuals and reputed companies will enable RHNMEDIA to quickly penetrate the Hip Hop market, increase visibility, brand awareness and generate revenues.

 

THE TRENDS

 

RHNMEDIA has positioned itself at the convergence of three massive trends transforming America:

m The explosion of Hip Hop music and culture into the mainstream,

m The mobility of media, and

m The expansion of urban influence in suburban culture.

 

 

Driving this trend are the Hip Hop artists at the forefront of a new force in musical commerce – the “One Man Brand”. This transforms individual artists into global entrepreneurs. No longer satisfied with recording contracts that give up control, artists are producing their own music and parlaying their talent into global brands offering and endorsing everything from clothing to fragrances, credit cards to cars, make-up to movies. The mention of a product in a song can skyrocket sales overnight and hip hop inspired fashion brands such as Phat Pharm, FUBU and Sean John can be found in department stores right alongside standbys such as Ralph Lauren and Tommy Hilfiger.

Furthermore, using cell phones and personal digital assistants (PDAs), enabling people to share video clips with friends around the world and further indulging their Hip Hop passion with ring tones from their favorite artists. These hip hop “interactions” serve to deepen interest in the music, making it a stronger element in daily life. People will come to RHNMEDIA to stay current with the latest hip hop trends, see how their favorite artists live and get the insider knowledge that fans crave.

 

 

Future RHNMEDIA branded mobile applications and events will accelerate and reinforce RHNMEDIA’s market acceptance. Hip Hop is born of the urban experience. As cities become increasingly crowded and ethnically diverse, RHNMEDIA’s core urban audience expands. More city-dwellers can relate to the messages in the music, while at the same time increasing numbers of suburban youths relate to the music, culture and fashions. Urban is cool. Tired of the seemingly uneventful suburban life, they cling to exciting urban images and style to spice up their lives. Urban expansion will drive viewers to RHNMEDIA.

 

Hip Hop has become the new American melting pot, simultaneously appealing to African-American, Hispanic, Asian and White demographics. Urban markets, critical sites of cultural production and consumption, have a tremendous impact on consumption patterns outside urban areas. Urban-originated trends in music, video, film and fashion constitute the elements of culture that are transmitted by traditional media, cable television and the Internet to legions of viewers with sufficient discretionary income to indulge their passions. Programming and events designed to satisfy these passions, created by people who share them, will bond viewers to RHNMEDIA.

 

 
 

 
 

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