Investors | Masters Radio

Highlights

Executive Summary

Market, Products and Services Overview

Music streaming market projected to have reached $25.84 billion in 2023
Masters Radio has over 300 million content views and over 275 thousand people engaging each month.
Masters Radio uniquely empowers artists to debut their latest tracks while forging deep connections with an engaged community of music enthusiasts.
Masters Radio offers music, interviews, live events, and unique fan engagement opportunities.
Four revenue streams: Advertising, Subscriptions, Commissions from investments and benefits, merchandise and events sales

Marketing Strategy

Sales Strategy

Financial Projections

	Year 1	Year 2
Total Revenue	$6,997,854	$12,842,856
Total Expenses	$4,015,133	$7,678,563
Profit	$370,418	$5,164,293
Investor/Artist	$756,985	$2,568,571

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Detailed Investor Information

Executive Summary

Overview

Masters Radio, founded by three seasoned entrepreneurs, aims to revolutionize the music industry by supporting artists and their fans. Initiated by Rob Snyder seven years ago, Masters Radio has grown significantly. We focus on playing new music from artists who first gained popularity before 2004. With over 3,000 solo artists and bands across all genres, we refresh our content monthly, accessible globally via our website and mobile apps

Background

The music industry often overlooks new music from established artists in favor of seeking the next big sensation. This approach has led to reduced revenues for these artists and higher subscription costs for fans. Masters Radio addresses this gap by promoting artists’ new music and offering affordable subscriptions.

The Unique Value Solution

Masters Radio disrupts the digital music model by increasing artists’ revenue share and maintaining low subscription costs. We offer various revenue streams, including concierge advertising options and competitive pricing for streaming audio and online media ads. Our $5 per month subscription includes exclusive interviews, curated playlists, merchandise, and events. We also provide artists with access to affordable healthcare and other benefits, unique in the music industry. Our artist pages help raise capital for tours and content development.

Revenue

Our conservative first-year plan targets capturing 1% of the digital music advertising market. We have built a self-service advertising portal and hired an experienced commission-based sales team. We aim to earn $4M per year from 740 monthly retainer-paying customers and generate $2M from subscriptions by converting 1% of our monthly reach. We expect $1.6M in revenue from enrolling 700 artists for benefits in the first year and $19k from merchandise sales. We plan to expand merchandise sales through artist pages on our site.

Growth

Masters Radio anticipates a “hockey stick” growth model in the first year, with a gentler curve in the second year as we transition to an operational focus. Our two-year plan includes continuous reassessment and improvement, guided by our advisory board of industry leaders. We will maintain close collaboration with our artists to shape Masters Radio’s direction.

Conclusion

Masters Radio is poised to fill a gap in the music industry, supported by fans and artists worldwide. Our platforms reach hundreds of millions of people each month, with streams heard on all seven continents. Our experienced executive team, active advisory board, and artist input drive our growth. Masters Radio aims to positively impact the music industry by better supporting the artists who create the soundtrack to our lives.

The Leadership Team

Rob Snyder

Rob, the founder and CEO of Masters Radio, brings 35 years of successful business experience, driving the company’s vision and content creation.

Jay Slonaker

Jay, our Chief Marketing Officer, is a veteran in digital marketing, social media, and artificial intelligence. He utilizes cutting-edge marketing techniques to promote Masters Radio

Adam Pressman

Adam, the Chief Operating Officer, manages day-to-day operations, overseeing sales, artist engagement, and investor relations. He has a proven track record in founding and growing successful businesses.

Market Analysis

The global digital music streaming market continues to experience significant growth. The worldwide market size is projected to reach $41.09 billion in 2024, up from $34.53 billion in 2022, with a compound annual growth rate (CAGR) of 15.10%. The demand for music streaming services has surged, with a 26.4% growth in worldwide streaming subscriptions The market is expected to be worth around USD 125.70 billion by 2032. The market is driven by factors such as the widespread use of smart devices, the increasing acceptance of digital platforms, and the availability of high-speed internet. The market segmentation is primarily based on platform, service, end-use, content type, and region. The biggest pain points consumers have with music streaming services include in-app bugs, wrong recommendations, unwanted ads, and offline use.

Masters Radio is, from a revenue perspective, a startup but it has been around for years and therefore has a track record to better validate the size, scope and worth of the likely market. Over 300 million people have seen our content and over 10% of them have engaged to find out more. So with a potential reach of 3.5 million we anticipate easily obtaining the market share of advertisers listed below in the marketing plan and a good number of subscribers from our followers but also among the 5 million app purchasers.

For the App Download

Customer Segment	Total	Market Share	Converted	Price
Listeners	3,300,000	1%	33,000	$1
App buyers	5,000,000	1%	50,000	$1

For the Monthly Subscriptions

Customer Segment	Total	Market Share	Converted	Price
Listeners	3,300,000	1%	33,000	$5

Products and Services Overview

Masters Radio will offer digital content in the form of video, audio (music and interviews), live and virtual events, options for direct and indirect fan and artist engagement for funding projects, purchasing merchandise and event tickets, real-time video conferencing between artists and fans and, via partners, enhanced listening technology for the fans and enhanced control over their digital creations for our member artists as well as comprehensive corporate employee style benefits.

There are five paths to revenue.

Advertising – We are a low-cost, high-reach option for customers who want finely grained demographic targeting and comprehensive reporting on results. We plan to be the “Go 2” option for mass media buyers seeking an effective alternative for the most expensive outlets.
Subscriptions – While many of our member artists’ content is available in multiple ways besides Masters Radio, our analytics since we started prove that our unique content: playlists, interviews, podcasts, and music news are all at a level typically available (Rolling Stone for instance) at a much higher premium subscription than our $4.99 per month. Again we’ll provide a lower cost to the subscribers for a broader and usually better quality of content.
Benefits – our partner providers of benefits pay commissions for each member we enroll while they maintain their premiums. These benefits would not be available to our members any other way and, upon our attainment of first year goals, will be subsidized or paid outright by Masters Radio. In good times or bad, people pay their health insurance so there’s a more recession resistant path to revenue.
Event, merchandise and investment revenue. Our artists will leverage our reach and capabilities in event and merchandise sales to bring in more revenue for themselves and we’ll take a small commission for that as well as the commission on our providing crowdfunding services for the artists projects supported by their fans or investors. The ability to combine advanced financial technology with advanced entertainment technology is a differentiator allow us to be more valuable to our member artists and subscribers who support them.
Funding – Masters Radio is unique in being a community of musicians and their fans that is connected to a turnkey regulated investment platform to support crowdfunding and other ways for our users to convert their social capital into working capital. Masters Radio gets a percentage (typically 3 to 8%) of all capital raised.

Marketing Strategy

Masters Radio’s marketing strategy leverages our founders’ LinkedIn connections, social media promotion, partnerships with known artists and corporate entities, and a conservative market share approach. We employ commission-based digital media advertising sales professionals to secure ad revenue from corporations and agencies. Additionally, we have partnered with a leading subscription marketing agency to promote and manage our subscription services.

Conservative Projections

Our strategy is built on conservative assumptions. For example, Pandora Media experienced fourfold growth in its first year. While competition is tougher now, Masters Radio benefits from additional revenue streams such as events and merchandise, and we offer exclusive content.

Target Market Breakdown

Our three founders have an average of 22,000 LinkedIn business connections. We estimate our market targets as follows:

Customer Segment	Total	Market Share	Converted
Corporate marketing pros	4,320	25%	1,080
Artists & management	8,160	5%	408
Venues	5,520	5%	276
Marketing Providers	3,984	25%	996

We expect a one-in-four close rate with senior-level ad sales professionals. Our content has shown high engagement rates, with social media posts achieving a 100-120% viewing rate within three days. This performance has earned us premier advertising status on platforms like Meta.

Marketing Budget

We will allocate a marketing budget that adheres to industry best practices, ensuring our efforts meet our market share goals.

Year 1 : $52,800

Year 1 : $107,440

For purposes of comparison:

Pandora launched in 2005, reporting $311,000 in revenue in Q4 2005, growing to $4.5 million by Q4 2006. Their early revenue was primarily from advertising before they introduced paid subscriptions. By 2015, their revenue exceeded $1 billion. Masters Radio aims to replicate this growth while also leveraging multiple revenue streams beyond just streaming.

Sales Strategy

Advertising

Masters Radio’s advertising strategy surpasses industry standards with a competitive commission-based sales model. Our advertising rates are highly affordable given our monthly reach to millions. We offer a unique single-vendor solution for both creating and distributing digital media content. Our detailed sales plan includes clear client acquisition and revenue goals, relying on a commission-only sales team (30%) targeting clients identified in our market analysis.

Research indicates that US businesses spend around $200 per month on social media advertising. Masters Radio has streamlined a self-service setup for ads, beneficial for established advertisers and media buyers. Our sales team will target $5000 monthly retainers for comprehensive advertising campaigns. The key value proposition is the convenience of content creation and distribution from one source, a significant advantage in the market.

Recently, we attracted over 100 experienced digital media salespeople for our ad team, with four top candidates selected, confident in meeting their sales goals. With just 1% of our executive team’s 22,000 LinkedIn connections purchasing these retainers, our revenue targets will be met, potentially earning sales team members approximately half a million in commissions. Advertising is our primary revenue path.

Subscriptions

Masters Radio has partnered with Recurly, a leading subscription marketing agency, to handle the development, launch, and maintenance of our subscription services. This partnership minimizes our risks and allows us to experiment with various marketing methods. By bundling subscriptions with other offers and leveraging word-of-mouth and unique platform features, we anticipate a steady growth in our subscriber base. Recurly’s extensive client list facilitates cross-promotional opportunities, integrating our subscriptions with other services.

We aim to achieve 4,820 subscribers, less than 2% of our average monthly reach. This will help us meet our annual goals, driven by our growing reputation and quality content.

Benefits

Leveraging our existing connections with artists and LinkedIn, we project a first-year commission net of $108,000 from benefits. Our segmented market includes:

Customer Segment	Total	Market Share	Converted	Commission per month
LinkedIn connections	25,000	1%	250	$20
Facebook/Insta connections	5,000	1%	50	$20
Contacts	15,000	3%	450	$20

It’s important to note that Masters Radio is incurring no risk typical of underwriters of benefits like healthcare. Our partner Gig Workers Solutions takes on these clients paying us a commission on their monthly premiums.

Non Recurring Revenue - Merchandise, Events, Investments

What we are calling our transactional channel as it does not focus upon monthly recurring revenues is what we’ll earn from selling our own brand merchandise and tickets to exclusive events, our commission on the sale of artists’ merchandise and any investment they obtain with our fan investment platform available to every member artist. In our first year we do not expect as much traction as we’ll get later when artists and fans, seeing the value in the brand, are more likely to support it.

We think we can sell hats without a lot of effort or risk to a small percentage of those already clicking our content. Our marketing will be ads in our stream and in our social media platforms that already see that high level of engagement. We have providers of “company store” brand marketing services that will for a small fee set up an online sales and fulfillment site, branded as Masters Radio or any desiring member artist, that will manage inventory, tax, shipping and handling thereby removing all the risks typical of a retail or online storefront.

The thousands of artists who support Masters Radio now have already committed to exclusive live and recorded events and a partnership in the first six months of operation will provide for a Masters Radio Presents touring concert series providing an opportunity for many of our artists who now can’t afford to go out on the road and get in front of their fans a way to pay for and manage the series.

Crowdfunding is one of the best ways people with large groups of fans and compelling content can get access to capital for funding new albums, tours, equipment purchases, even real estate and other securities investments. At present there is no music focused platform that is able to legally provide donations and investments to our artists and the fans that love them. A fully registered investment platform is connected to Masters Radio providing each member artist the way to get funds from their fans. The sales strategy for this is simple. Show the artists how this works and then get out of their way. We will not need to “close” anybody on the huge value this provides a community not often able to take advantage of other means of capital formation. Masters Radio takes a commission on each dollar raised on the platform.

Financial Projections

Masters Radio has a conservative first-year revenue target of $7 million, with multiple revenue streams contributing to this goal. The company has a solid financial plan which focused on profitability right from the start. There are three cases below add one with only a third of the goal, just under $3 million, as well as a dramatically increased stretch goal of almost $80M in the other cases’ two year projections. Note that there are no months without profit due to a careful control of costs once the plan begins. Also leaning toward conservative numbers, we determined a “likely addressable market” as opposed to a total addressable market by selecting among the four most likely ad buying business sectors (Corporate ad buyers, Artists & management, Venues, Marketing Providers) those to which the company founders have LinkedIn connections. That number is just under 22,000.

Case 1: "Good"

Case 1 is no new hires, no partner fees. Just organic growth to 43 retainer customers or 542 average ad buyers for the year. 2210 or just under a tenth of a percent of the monthly engaged listeners. Sales team averages $95k in commission for the year. Marketing from 3 to 9% of revenue.

Case 2: "Better"

Case 2 brings on new hires dedicated to ad sales and subscription growth From 1/10th to one percent of our average engagement leads to 221 retainer customers or 2750 average ad buyers for the year. Also, 1464 become 4820 subscribers. Sales team averages $464kk in commission for the year. Marketing plan at 3% of revenue. The member artist stipend and bonus fund accrues just over $1.2M at year end.

Case 3: "Best"

Case 3 hires to the full staff model providing just under $3M in payroll for area jobs. From just four percent of our average engagement leads to 882retainer customers or 2750 average ad buyers for the year. Also, 4820 becomes 19280 subscribers. Sales team averages $464kk in commission for the year. Marketing plan at 3% of revenue. The member artist stipend and bonus fund accrues just over $1.2M at year end. The sales team averages just under $2M in commissions, each and marketing expenses reduce to below 1% of revenue. The member artist stipend and bonus fund rises to $6M and $3M is used to pay for all artists benefits.

Case 1 - Good

	Year 1	Year 2
Total Revenue	$1,303,324	$2,410,145
Total Expenses	$932,906	$1,536,601
Profit	$370,418	$873,544

Case 2 - Better

	Year 1	Year 2
Total Revenue	$6,997,854	$12,842,856
Total Expenses	$4,015,133	$7,678,563
Profit	$370,418	$5,164,293
Investor/Artist	$756,985	$2,568,571

Case 3 - Best

	Year 1	Year 2
Total Revenue	$28,083,891	$51,541,272
Total Expenses	$14,634,414	$28,781,051
Profit	$13,449,477	$22,760,220
Investor/Artist	$3,833,357	$10,308,254

Investment Terms

Masters Radio is offering very favorable terms to help investors reduce the risk of investing in a startup and to more quickly provide a term-certain amount and timing of your exit strategy. Complete a contact form so that we can share that information with you. We can’t offer specifics otherwise due to regulatory restrictions.

Use of Proceeds

The proceeds from the private placement will be used to fund the growth strategies outlined in the business plan, including marketing, sales, product development, and operational expenses. Here are two graphs to indicate the use of funds (invested or earned) for each of Year 1 and Year 2.

Risk Factors

Investing in Masters Radio involves risks, including market conditions, competition, and reliance on the continued popularity of the artists featured on the platform; though some of that is offset by the benefits revenue stream. Also as there’s no equity in this offer, investors can’t liquidate assets to offset losses.

Masters Radio has undergone a comprehensive due diligence assessment. The questions and answers are here.