FINANCIAL STRATEGY

Revenue model, Pricing Strategy and Cost Structure

High 4. %sla ic ,ele(isio#

Pro-ect

PR%$#%&%D 'DD%D &'L(%

3.

5.

2.

Pricing Policy 1. No Frills 2. Low Price 3. Hybrid Low

1.

Needs/Risks

!.

$ . ) . + / Likely 'trate0ies desti#ed "or ulti ate "ailure

to be segmented specific

Risk of price war and low margins; need to be cost leader. Low cost base and reinvestment in High low PR#$% price and differentiation. Perceived added value by user, yielding market share benefits. Perceived added value sufficient to bare price premium. Perceived added value to a particular segment, warranting price premium Higher margins if competitors do not follow; risk of loosing market share. Only feasible in monopoly situation. Loss of arket share

".

4. Differentiation (a) Without price pre iu (b) With price pre iu !. Focused di""ere#tiatio# $. %#creased price&'ta#dard (alue ). %#creased price&Low *alue +. Low *alue&'ta#dard Price Differentiation

Islamic Television Pro ect

Registration Num&er '(%)*$'

Co!yrig"t#$$%

FINANCIAL STRATEGY
Revenue model, Pricing Strategy and Cost Structure

F%N1N2%1L ',31,456 ..............................................................................................................1 Prici#0 Policy.................................................................................................................................1 Needs&3is7s....................................................................................................................................1 #)L'*#$ +%L%&#)#,N PR,-%$+ $,P.R#/H+ 2003 ........................................................................................................................................................ 1 PR#$#N/ )+R'+%/................................................................................................................. 3 '. PR#$% )+R($+(R%......................................................................................................................3 1. PR#$% .......................................................................................................................................... $. *%+H,D) ,2 R%&%N(%.............................................................................................................." D. $,)+ 'N'L.)#)................................................................................................................... 3 1#DD#N/ ).)+%*................................................................................................................... 10 $,)+ )+(R($+(R%............................................................................................................... 11 %. $,)+#N/............................................................................................................................... 12 1. 1R,'D$')+#N/..........................................................................................................................12 2. PR,D($+#,N..............................................................................................................................13 3. ,P%R'+#,N)..............................................................................................................................14 2. %4%$(+#&% )(**'R..................................................................................................... 15 /. %4%$(+#&% 2#N'N$#'L )(**'R............................................................................. 1

Islamic Television Pro ect

Registration Num&er '(%)*$'

Likely Failures

Co!yrig"t#$$%

FINANCIAL STRATEGY
Revenue model, Pricing Strategy and Cost Structure

Pricing )trategy '. Price )tr5ct5re

1"ter e8te#si(e feasi6ility study9 s5ita6ility a#alysis a#d "urther ore9 research o# acce7ta6ility9 it could be co#cluded that the Prici#0 strate0y ost desirable "or the #eeds o" %sla ic tele(isio# pro-ect is based o# 1dded *alue a#d di""ere#tiatio#. ,his is illustrated i# the dia0ra as route :. %t is the di""ere#tiatio# without a price pre iu 9 which 2ha##el %sla s prici#0 policy would adopt. 1 di""ere#tiatio# strate0y see7s to pro(ide products or ser(ices u#i;ue "ro those "ro the co petitors i# ter s o" di e#sio#s widely (alued by (iewers. %# the case o" 2ha##el %sla 9 we ca# co#"ide#tly clai that we ha(e a u#i;ue product tar0eted to a #iche ar7et9 which has #ot yet bee# perused i# the tele(isio# broadcasti#0 i#dustry. ,he ar7et de a#d "or the product is i e#sely hi0h9 whilst there are #o pro(iders other tha# %sla ic tele(isio# pro-ect itsel". ,he buyers widely a#d hi0hly (alue the ser(ices o""ered by 2ha##el %sla . ,he primary buyers being the viewers and subscribers would e#-oy a dedicated ser(ice o" <i0ital *ideo =roadcasti#0 (<*=) o# both 2able a#d 'atellite syste s. Advertisers are esse#tial custo ers o" 2ha##el %sla > they are the secondary form of customers. ?#li7e ost co ercial cha##els9 %sla ic tele(isio# pro-ect is #ot lar0ely relia#t o# ad(ertisi#0 a#d spo#sorships. ,he @ar7et plat"or a#d access to the u#i;ue ar7et se0 e#t o""ered by %sla ic tele(isio# pro-ect is 0reatly sou0ht a"ter by a#y @usli a#d #o#A@usli busi#esses ali7e. ,he o#ly curre#t edia "acilities a(ailable "or the are (ia 3adio9 Newspapers a#d @a0aBi#es9 howe(er> the radio is o# a seaso#al a#d local #etwor7. ,he #ewspaper a#d a0aBi#es operate withi# specialist areas a#d 0roups. ,hus9 %sla ic tele(isio# pro-ect is the o#ly #atio#al base ediu 9 which caters "or the @usli ar7et as a whole9 with the optio# "or localiBed pro otio#. ,his allows the co pa#y to o""er a pac7a0e deal9 desi0#ed to cater "or i#di(idual busi#esses #eeds9 i# ter s o" who they tar0et a#d how. ,here is #o depe#de#cy o# a si#0le re(e#ue strea . ,he i8ed re(e#ue strea will allow %sla ic tele(isio# pro-ect to o""er discou#ted prices9 which are si0#i"ica#tly lower the# the ar7et a(era0e to both Pri ary a#d 'eco#dary buyers. ,here"ore9 %sla ic tele(isio# pro-ect ay success"ully pursue the route "our prici#0 strate0y withi# the "ra ewor7 o" <i""ere#tiatio# a#d 1dded *alue.

Islamic Television Pro ect

Registration Num&er '(%)*$'

Co!yrig"t#$$%

FINANCIAL STRATEGY
Revenue model, Pricing Strategy and Cost Structure

'. %sti8ated &ol58e and +argets i9 Pri8ary 15yers : &iewers/)56scri6ers #te8 Descri7tion @ar7et siBe Nu ber o" Households @ar7et 'hare 48clusi(e 'ubscriptio# 3e0ular 'ubscriptio# +otal ,otal @usli Populatio# e ber per &ol58e/'8o5nt 39CCC CCC ( illio#) )!C9CCC

1(era0e "our (:) household

Perce#ta0e o" Households ,ar0eted 1.3D !.3D . ; 1C9CCC :C9CCC 50<000

ii9 )econdary 15yers : 'd=ertisers and )7onsors #te8 Descri7tion Potential 15yers 2orporate =usi#ess i# ?E Forei0# 2o pa#ies ' all =usi#ess Fr0a#isatio#s 2orporate =usi#ess i# ?E ' all =usi#ess

&ol58e/ '8o5nt 2C2)1 :$)2 !$CC3 )2: +1$+ 13C! 2CC! +:G+

@ar7et siBe

*5sli8

,otal Non>*5sli8 ,otal Nu ber o" =usi#esses

2

Fbtai#ed "ro @usli Ltd 2o pa#ies re0istered with the co pa#ies house 2o pa#ies i porti#0 0oods i# ter s o" products a#d ser(ices to the ?E @usli @ar7et9 esti ated to the bare i#i u "i0ure9 deri(ed "ro the @i#tel. 3 4sti ated "ro the @usli directory9 yellow pa0es9 ,ho as directory a#d other sources. ,he esti ate holds the lowest "i0ures i#dicated. Islamic Television Pro ect Co!yrig"t#$$% : F#ly accou#ti#0 "or ediu to lar0e siBe or0a#isatio#s9 i#cludi#0 so e 2harity or0a#isatio#s as well as a#y Num&er '(%)*$' co Registration ercial o#es too. ! ,he esti ated le(els o" i#terests "ro the #o#A@usli 2orporate a#d s all busi#esses

FINANCIAL STRATEGY
Revenue model, Pricing Strategy and Cost Structure

Islamic Television Pro ect

Registration Num&er '(%)*$'

Co!yrig"t#$$%

FINANCIAL STRATEGY
Revenue model, Pricing Strategy and Cost Structure iii9 )econdary 15yers : 'd=ertisers and )7onsors #te8 Descri7tion Potential 15yers 2orporate =usi#ess i# ?E Forei0# 2o pa#ies ' all =usi#ess Fr0a#isatio#s 2orporate =usi#ess i# ?E ' all =usi#ess 2orporate =usi#ess i# ?E Forei0# 2o pa#ies ' all =usi#ess Fr0a#isatio#s 2orporate =usi#ess i# ?E ' all =usi#ess &ol58e/ '8o5nt 1CD :.$D 1!D ).2D 3D 1CD 2C3 22 +:C ) : 2C 1CG!

,ar0et

*5sli8

Non>*5sli8 @ar7et 'hare *5sli8

Non>*5sli8 +otal

1. Price
i. Pri8ary 15yers : &iewers/)56scri6ers #te8 ?5antity Price @ 48clusi(e 'ubscriptio# 3e0ular 'ubscriptio# +otal 1C9CCC :C9CCC H11!.CC !or " year H!!.CC Per #ear Re=en5e @ H191!C CCC H292CC CCC

50<000

@3<350 000

#nternational 'd=ertising Packages : Pan %5ro7ean and ()' Ato 6e de=elo7ed9 National 'd=ertising Packages : (B and ()'

Islamic Television Pro ect

Registration Num&er '(%)*$'

Co!yrig"t#$$%

FINANCIAL STRATEGY
Revenue model, Pricing Strategy and Cost Structure Local 'd=ertising Packages : (B and ()' regional seg8entation

ii. )econdary 15yers : 'd=ertisers and )7onsors

National 'd=ertising Packages 5 s7ots 7ackage 10 s7ots 7ackage 15 s7ots 7ackage 20 s7ots 7ackage

10sec H2912! H:9C)! H!9G!C H)9)!C

20sec H39!3C H$9)!C HG9+)! H129+$!

30sec H:92!C H+91!C H119GCC H1!9!CC

'll off>7eak 7ackages are disco5nted at the fiCed rate of 40;

Local 'd=ertising Packages 5 s7ots 7ackage 10 s7ots 7ackage 15 s7ots 7ackage 20 s7ots 7ackage

10sec H19CCC H19GCC H29)$3 H39$CC

20sec H19$$C H391!C H:9!+! H!9G)!

30sec H29CCC H39+CC H!9!2! H)92CC

'll off>7eak 7ackages are disco5nted at the fiCed rate of 40;

Islamic Television Pro ect

Registration Num&er '(%)*$'

Co!yrig"t#$$%

FINANCIAL STRATEGY
Revenue model, Pricing Strategy and Cost Structure iii. )econdary 15yers : 'd=ertisers and )7onsors #te8 ?5antity Price @ Re=en5e @
argin of

$verage spending on advertising packages %he Off&peak revenues are not included, this again shows that far greater revenues available, compared to that stated below.

National 'irti8e 2orporate =usi#ess i# ?E Forei0# 2o pa#ies Fr0a#isatio#s %otal Local 'irti8e ' all =usi#ess Fther %otal +otal

2C3 22 ) '"' +:C C -./ 10!2

H)9)2$ H)9)2$ H!9CCCI

H19!$+93+) H1$G9G)2 H3!9CCC (),**","+,

H39!G)

H39C219:+C HC (",/'),.-/ @4<!34<"33

01iscount

%he cost of advertising packages for the consumer is lower than local or national radio advertising rates in the 23. %he price comparison4s can be made through 5R$1 6the media publication7. %he packages above are inclusive prices, thus including the cost of advert production and editing, as well as transmission. 8n essence, the focus is providing value for money for the advertisers. #te8 #te8 ?5antity Re=en5e @ H191!C CCC H292CC CCC H393!C CCC H19))393!G H39C219:+C H:9)G:9+3G @"<144<"33

'ubscriptio# 'ubA,otal 1d(ertisi#0 a#d 'ubscriptio# 'ubA,otal /rand +otal

48clusi(e 3e0ular Natio#al 1irti e Local 1irti e

1C9CCC :C9CCC !C9CCC 232 +:C 1C)2

$. *ethods of Re=en5e Islamic Television Pro ect

Registration Num&er '(%)*$' Co!yrig"t#$$%

FINANCIAL STRATEGY
Revenue model, Pricing Strategy and Cost Structure

)56scri7tion
'ta#dard o""er :C9CCC ,ar0et u#its at H!!.CC

(pa) @2<200<000

Local 1irti e ' all =usi#ess 3ates (pa9 @3<021<4"0

'd=ertising
Natio#al 1irti e i#cl. Pro otio#al Pac7a0es (pa) @1<!!3<353

+otal 'nn5al Re=en5e

@"<144<"33 A7a9

5o(er# e#t 0ra#t e#title e#t "ro the @i#istry o" 2ulture a#d 4uropea# le(el "u#di#0 "or @idla#ds busi#ess i#itiati(es calculated at a i#i u 0ra#t le(els esti ated at (pa) @1<200<000. ,he processes o" 0ra#t e#title e#ts ha(e e8ceeded the applicatio# sta0e a#d awaiti#0 re(iew a#d audits sta0es to co plete the e#title e#t processes.

48tra re(e#ue ca# be realised throu0h sales o" pro0ra e library (broadcasti#0 copyri0hts) to e8isti#0 2ha##els loo7i#0 "or authe#tic9 hi0h ;uality9 i#spiratio#al %sla ic pro0ra i#09 speci"ically to cater "or those audie#ces "or 4#0lish spea7i#0 cou#tries. 'eco#dly9 the lease o" e8tra three cha##el capacity broadcasti#0 playAout "acility9 i" the broadcasti#0 capabilities are "ully ow#ed a#d a#a0ed.

D. $ost 'nalysis $ost )tr5ct5re Islamic Television Pro ect

Registration Num&er '(%)*$'

Co!yrig"t#$$%

FINANCIAL STRATEGY
Revenue model, Pricing Strategy and Cost Structure ,here are three a-or cost 0e#erators withi# %sla ic tele(isio# pro-ect9 which ay be cate0oriBed by the "ollowi#0 acti(ities> =roadcasti#09 Productio# a#d Fperatio#s.

1roadcasting
,his i#cludes all #ecessary co po#e#ts re;uired to be able to pro(ide e#dAtoAe#d di0ital (ideo broadcasti#0. ,he pri ary costs associated with broadcasti#0 are the ai#te#a#ce o" the i#"rastructure a#d #etwor7s. Howe(er9 there are (arious optio#s a(ailable9 which allow the costs to be (aried i# "or s9 there"ore adapt it to the #ature o" the cash "low re;uire e#ts. ,he 7ey ele e#t i# deter i#i#0 the co positio# o" the costs i# this sector depe#ds o# the #ature o" co#tracts a#d arra#0e e#ts #e0otiated with the ser(ice pro(iders. ,he cost 0e#erated "ro this acti(ity could be de"i#ed as a "i8ed cost.

Prod5ction
,he productio# cost is the ost co plicated cluster o" costi#09 as it co#sists o" ultiple cost ce#tres deri(ed "ro ultiple ediu s. ,his is the ost e8pe#si(e se0 e#t o" acti(ities9 as the processes i#(ol(ed ay re;uire tech#ical e8pertise a#d e8ter#al resources. ,he acti(ities withi# this cluster ay be cate0oriBed as9 #n>ho5se< ,5tso5rced and ,n>shelf. i. #n>ho5se 7rod5ctions are the pro0ra es produced i#ter#ally withi# the %sla ic tele(isio# pro-ect Ltd "acilities. ,he types o" pro0ra es produced %#A house would i#clude9 News a#d 2urre#t 1""airs9 ,al7 shows9 <ocu e#taries a#d other pro0ra es9 which do #ot re;uire a hi0h le(el o" tech#ical e8pertise9 #or ha(e a lo#0 tur#arou#d ti e. 3ele(a#t costi#0 syste should be used where appropriate. ii. ,5tso5rced 7rod5ction will i#clude editi#09 subtitli#0 a#d dubbi#0 acti(ities9 as well as productio# o" u#i;ue a#d dedicated pro0ra i#0 "or 2%L (%sla ic tele(isio# pro-ect Ltd). ,he outsourced acti(ities would be operated withi# a biddi#0 syste 9 which will be used to select appropriate Productio# 2o pa#ys to carry out the tas7 o# the basis o" the specialist area a#d cost e""icie#cy. Howe(er9 this still would re ai# the hi0hest cost 0e#erator a o#0st all the three stra#ds o" acti(ities9 ,here"ore9 relia#ce o# this stra#d o# acti(ities should be i#i iBed without co pro isi#0 the #eeds "or hi0h ;uality i#spiratio#al pro0ra i#0.

1idding )yste8
@ost %sla ic tele(isio# pro-ect Ltd Productio#s are ;uoted o# a "i8ed bid syste .

Islamic Television Pro ect

Registration Num&er '(%)*$'

Co!yrig"t#$$%

FINANCIAL STRATEGY
Revenue model, Pricing Strategy and Cost Structure ,his ea#s that o#ce a# esti ate is appro(ed9 the Productio# 2o pa#y price is bi#di#0 with !CD o" the ;uoted bud0et bei#0 paid upo# the -ob 0o ahead a#d the re ai#i#0 !CD upo# satis"actory co pletio# o" the "il . 1#d others where9 the productio# co pa#y ta7es "ull respo#sibilities9 a#d pay e#ts are ade o# tra#s issio# o" the pro-ects. 1s part o" the =id 'yste 9 Productio# 2o pa#ies are re;uired pro(ide a detailed brea7dow# o" the esti ate i# li#e with the Productio# a#d %#sura#ce =ud0et 'peci"icatio# 0uideli#es a0reed by the Joi#t Wor7i#0 Party betwee# %sla ic tele(isio# pro-ect Ltd a#d the respecti(e producers. ,his allows the producers to u#dersta#d the prici#0 o" the 7ey ele e#ts behi#d the bid a#d is bro7e# dow# by 7ey cost co po#e#ts i.e. ?#it 'alaries9 4;uip e#t 2osts9 a#d Locatio# 2osts etc. iii. ,n>shelf 7rod5ctions are pro0ra es that ha(e already bee# produced a#d are a(ailable with copyri0ht ow#erships. ,hese pro0ra es will re;uire editi#09 subtitli#0 a#d dubbi#09 which will be outsourced to productio# co pa#ies. @a-ority o" the F#Ashel" products will be purchased "ro the @iddle 4ast9 i#cludi#0 %ra#. ,he types o" pro0ra es i#cluded i# this cate0ory are "il s9 dra as9 cartoo#s9 debates a#d other "or s o" i#"or ati(e9 educatio#al a#d e#tertai#i#0 aterials withi# 2%L protocol. 'o e 2opyri0ht reser(es aybe purchased at a (ery low price9 whilst others ay re;uire persuasi(e #e0otiatio#s. Howe(er9 tur#arou#d ti es "or these pro0ra es ay be hi0h9 as tra#slatio#s will be re;uired "or subtitli#09 a#d dubbi#0 a#d will re;uire e(e# ore ti e. 1#other i porta#t "actor which will co#su e a lot o" ti e a#d e""orts are editi#0 the aterials to e#ha#ce ;uality as well as ce#sorship co#trols.

,7erations
,he Fperatio#al acti(ities o" the co pa#y i#cludes all a#a0erial a#d or0a#isatio# acti(ities #ecessary to 7eep %sla ic tele(isio# pro-ect Ltd ru##i#09 i#cludi#0 the day to day acti(ities a#d routi#es. ,he cost ce#ters i#clude costs 0e#erated "ro all the depart e#ts withi# the co pa#y9 i#cludi#0 @ar7eti#09 'ales9 ad i#istratio# a#d the 2reati(e depart e#t. ,he basic de"i#itio# o" the cost ce#tre i# relatio# to %sla ic tele(isio# pro-ect Ltd is the su o" all costs associated with operati#0 the co pa#y success"ully. ,here are (arious le(els a#d types o" costs i#(ol(ed here9 i#cludi#0 "i8ed a#d (ariable costs9 <irect a#d %#direct costs. 4(e# i# so e cases stepped "i8ed costs are i#(ol(ed here. ,here"ore9 2ost *olu e Pro"it 3elatio#ship a#alysis will be used to audit the costs 0e#erated.

$,)+ )+(R($+(R%

#+$ : /o=ern8ent License

Islamic Television Pro ect

Registration Num&er '(%)*$'

)%) 'stra : )atellite

Co!yrig"t#$$%

FINANCIAL STRATEGY
Revenue model, Pricing Strategy and Cost Structure

1roadcasting
)ky : %P//8 Platfor8 N+L : $a6le E )at (7link Play>o5t $enter #n>Ho5sed : 0; of Prod5ction

#sla8ic tele=ision 7roDect

Prod5ction

,5t>)o5rced : 20; of Prod5ction ,n>)helf : 20; of Prod5ction

*anage8ent E ,rganisation

*arketing E )ales

,7erations
'd8inistration E $ontrol

2inancial E *gt 'cco5nting

%. $osting 1. 1roadcasting
,he broadcasti#0 costs are "i8ed costs as stated pre(iously9 a#d the costs ca# be associated with the startAup cost. ,he costi#0 syste s "or 1stra9 '7y a#d N,L are based arou#d the #u ber o" hours broadcasti#0 a#d si#ce %sla ic tele(isio# pro-ect will be broadcasti#0 "or 2:hours9 the costi#0 rates are o# a "latArate basis. Howe(er9 the cost o" the %,2 Lice#se is a o#eAo"" cost9 which is re#ewed at the e#d o" its co#tracted period. ,he costs o" broadcasti#0 ay be e8pressed as a u#it

Islamic Television Pro ect

Registration Num&er '(%)*$'

Co!yrig"t#$$%

FINANCIAL STRATEGY
Revenue model, Pricing Strategy and Cost Structure per hour. F#ce the a##ual costs per ite are ide#ti"ied9 usi#0 appropriate "or ula the u#it cost ay be calculated.

#te8

Price @

$ost @

8%9 is a )/ 6ten7 years 9ontract %he difficulty is in calculating a fi:ed burn rate, to indicate the cost of broadcasting per unit in terms of per hour broadcasting, as the control room is a one off purchases.

1roadcasting > #nfrastr5ct5re %,2 K <*= Lice#se 1stra A 'atellite '7y K Plat"or 4P5& N,L K 2able a#d ?pli#7 %otal #nternal Reso5rces 2o#trol 3oo A 4;uip e#ts 2o#trol 3oo 'witcher 'tora0e L 1rchi(i#0 F #eo# *ideo Networ7 Flip "actory A Web strea i#0 @ics Products H< ++C Li#es 2a eras I 3 2o#trol 3oo a#d other 4;uip e#ts %otal +otal

Per 'nn58 H1C9CCC H3$C9CCC HG!9CCC H2!C9CCC %t ust be #oted that "i#a#cial rei burse e#ts will be ade by N,L (*)+,/// ,hese are o#eAo"" capital i#(est e#t costs9 there"ore9 should #ot be i#cluded i# the bur# rate. (+'),/// @1<23 <000

H1CC9CCC H)!9CCC H!C9CCC H129CCC H11C9CCC H$C9CCC H11:9CCC

2. Prod5ction
#te8 Price @ $ost @
9oncessions0 are e:penses paid for guests and audiences participating in 9 8 programmes. %he 9opyrights and ownership of pro;ects out&sourced are retained with 8slamic television pro;ect Ltd. <diting includes subtitling and dubbing of selected programmes.

0; Prod5ction : #n>Ho5se 'tudio News L *iews (Fi8ed) 'tudio 1 (@ediu ) 'tudio 2 (Lar0e) 'tudio 3 (48tra)

Per 'nn58 H1!9CCC H2!9CCC H3C9CCC +9CCC ,he studio costs i#clude "itti#0s a#d "i8tures9 "or (arious si#0le a#d ulti pro0ra e sets
Co!yrig"t#$$%

Islamic Television Pro ect

Registration Num&er '(%)*$'

FINANCIAL STRATEGY
Revenue model, Pricing Strategy and Cost Structure Pro0ra es Productio# 4;uip e#ts I %otal H:1$9CCC H1)C9CCC Pro-ects are sole productio# o" a co plete pro0ra e a#d its series "or the uses o" 2ha##el %'L1@ H21C9CCC H1$!9CCC ("*+,///

(==.,///

30; Prod5ction : ,5t>)o5rced Pro-ects 4diti#0 %otal

10; Prod5ction : ,n>)helf Fil s <ra as <ebates a#d ,al7Ashows Fther H11C9CCC H+!9CCC H$C9CCC H1+9CCC 2opyri0ht ow#ership is obtai#ed "or both 1st tra#s issio# a#d repeats. %t ost be #oted that a#y pro0ra es ha(e di i#uti(e ((ery little) i#terests a#d de a#ds "ro curre#t edia ('*",/// @1<312<000

%otal +otal

3. ,7erations
#te8 Price @ $ost @

9ost of employees working as production crew is included in the cost of production. iscellaneous costs account for costs that are difficult to forecast or categori>e, it also provides with a buffer >one for cost activities.

,7erations > %87loyees 3ecruit e#t <irectors @a#a0ers 2oordi#ators&'pecialists '7illed 'e iA'7illed

Per 'nn58 H1C9CCC H1+$9CCC H++9CCC H+19CCC H1:C9CCC H2)29CCC ,otal e ployees wor7i#0 "ullAti e are :G. Part&time allowance is put a side for seasonal demands. ?uch as
Co!yrig"t#$$%

Islamic Television Pro ect

Registration Num&er '(%)*$'

FINANCIAL STRATEGY
'ta#dard %otal ,7erations : 'ssets 2iCed Property A Lease L <eposits Fitti#0 a#d Fi8tures @ai#te#a#ce =ills L 3ates 2o puters a#d %, ,=erheads 'tatio#ary @ar7eti#0 L Pro otio#s @iscella#eous H129CCC H)C9CCC H$C9CCC ().',/// (.=",/// %otal +otal @1<422<000 H1::9CCC H+C9CCC H2!9CCC H229CCC H!C9CCC ("'),/// Revenue model, Pricing Strategy and Cost Structure Ramadan. H1+29CCC (,+,,///

2. %Cec5ti=e )588ary
i. /rand +otal for $osting #te8 +otal $ost 1roadcasting Prod5ction ,7erations +otal Price @ $ost @ Per 'nn58 (),'"=,/// (),")',/// (),.'',/// @3<3!0<000
Co!yrig"t#$$%

Islamic Television Pro ect

Registration Num&er '(%)*$'

FINANCIAL STRATEGY
Revenue model, Pricing Strategy and Cost Structure

ii.

15rn Rate Per Ho5r +y7e ?5antity

+otal $ost Rate @ @ Per u#it Looking at a flat rate, rather than distinguish a peak and off&peak rate. @o#thly 12 @o#ths H39G)C9CCC @330<"33 ,ra#s issio# Wee7ly !2 wee7s H39G)C9CCC @! <34 ,ra#s issio# <aily 3$! days H39G)C9CCC @10<"! ,ra#s issio# 2: Hours +)$C hours H39G)C9CCC @453 ,ra#s issio#

/. %Cec5ti=e financial s588ary

Pri8ary Re=en5e : )56scri7tion %Ccl5si=e )56scri7tion Reg5lar )56scri7tion +otal )56scri7tion Re=en5e $ost 1roadcasting Prod5ction ,7eration +otal $osts /ross Profit @1<23 <000 @1<312<000 @1<422<000 @3<3!0<000 >@ 20<000
Co!yrig"t#$$%

@1<150 000 @2<200 000 @3<350 000

Islamic Television Pro ect

Registration Num&er '(%)*$'

FINANCIAL STRATEGY
Revenue model, Pricing Strategy and Cost Structure )econdary Re=en5e : 'd=ertising #nternational 'd=ertising Packages National 'd=ertising Packages Local 'd=ertising Packages +otal 'd=ertising Re=en5e ,7erating Profit @0 @1<!!3<353 @3<021<4"0 @4<!34<"33 @4<1!4<"33

Key Notes:
1. %sla ic tele(isio# pro-ect will be "ree to (iew "or the "irst year9 de(elopi#0 a#d establishi#0 a solid "ou#datio# o" custo er base upo# which ad(ertisers could be e#ticed. 2. ,he seco#d year will be0i# with o""eri#0 o" the e8clusi(e subscriptio# pac7a0e9 which will be H11!.CC "or 3 years. ,his e8clusi(e o""er will be a(ailable "or the "irst 1C9CCC subscribers. ,his is to create a co#crete custo er base9 as well as "or strate0ic ar7eti#0 purposes. Fbser(e the @ar7eti#0 'trate0y "or "urther details. 3. ,he 3e0ular subscriptio# will be0i# by the e#d o" the e8clusi(e o""er9 which will be H!!.CC a year. ,his is H:.!C per o#th> this is !!D lower tha# a#y curre#t cha##el subscriptio#9 e(e# as co petiti(e as the prices o" %#ter#et e bership subscriptio#. :. Please study the %#co e L 48pe#diture report o" 6ear 192 a#d 3 "or "i#a#cial illustratio# o" this strate0y a#d its i plicatio#s.

Islamic Television Pro ect

Registration Num&er '(%)*$'

Co!yrig"t#$$%