Change the Music Scene

Radio stations around the world offer increasingly bland and vanilla music. We now see this same appalling trend with internet radio websites. Why? Because most radio stations – online and offline – are focused on advertisers, not on the music.

HotSpot Radio Network http://www.hotspotradio.com places the focus where it should be: on the music.

Beyond internet radio, HotSpot Radio Network is a social broadcasting network, where independent bands and artists can get free airplay. They get exposure to listeners worldwide, who can hear their music and can purchase their music. Fans hear their favorite bands and new bands, get involved via the social networking in all aspects of the HotSpot Radio Network, and support bands and artists by connecting with them, purchasing their music, and telling their friends about them. By getting involved, bands, artists and fans help influence the music scene.

We are devoted to delivering high-quality online radio 24x7x365, absolutely free. Our initial channel is the Independent Music Showcase Channel is online now from our website. As we add independent bands and artists, we will splinter this channel into up to 10-20 genre-specific indie channels: Acoustic, Rock, Alternative, Folk, Americana, Rock n Roll, Blues, Jazz, Pop, Soul, Adult Contemporary and many more.

As we roll out channels, we will offer a membership option for each channel. This upgrade membership option will enhance the Network's relationships with the truly "active listeners" who want to learn more about the music and bands played in their favorite channel and connect with other like-minded listeners.

Our regular communication with these listeners will provide opportunities for the Network to encourage listeners to support their bands and support HotSpot Radio Network by buying bands' CDs, referring their favorite independent bands to us, going to HotSpot Radio Showcase Shows and much more.

Listeners will always hear music free on HotSpot Radio Network, and we are not using an advertising model to generate income.

So what is the business model for HotSpot Radio Network?

The 3 key aspects of HotSpot Radio Network's business model are:

1. Membership - We will provide multiple, compelling incentives for bands and their fans to become free members of HotSpot Radio Network. The goal for each band is to refer at least up to 200 fans. With our initial goal of 500 indie bands of the first channel, this creates a listening audience of 100,000+. As we grow the Network with the 500 bands and artists and they each each expand this audience to 500,750 or 1000 fans.

With 10 channels each with 500 bands and artists attracting 500 fans to the Network the audience will be 2,500,000 or more.

After a Band or Artist has become a free member we encourage to become what we call an 'qualified' (meaning they refer 200 fans to the site), this entitles them to a range of other services and resources for qualified bands and artists only.

This package for fans offers a range of benefits and resources designed to enhance the listener experience and provide some unique features such as downloads of much of the music we play. This membership offer will be offer will be made to the 100,000 fans that are referred into each channel, creating a way for them to truly connect with the bands and artists as well support the network.

We expect a low percentage of this fan base to sign up for the membership package but even with a low conversion it will become a major revenue stream - 100,000 fans x 10% of fan base become members = 10,000 members x $20 gross per month = $200,000 a month from which we expect to net $50,000 transactional costs, referral commission and the provision of the package. With 10 channels developed this is $500,000 a month and growing through additional referrals.

2. Music Sales - We estimate that approximately 10% of the listening audience will purchase a CD through our strategic partner in any specific month. The HotSpot Radio Network will earn a $1 commission from each of these sales. Therefore, our immediate expectation for this revenue stream is around $10,000 a month from an audience of 100,000+. This will also increase as the membership grows.

The listening audience will be also be encouraged to purchase our alternative music package which creates a new and compelling delivery system for independent music. This allows for a lower unit price and a higher profit per sale increasing the revenue stream for bands and artists and it adds the unique feature of capturing basic demographic data from all purchasers building a fan database.

3. General Sales through the Marketplace (affiliate commissions) – We will encourage members and bands to shop the internet via The Marketplace gateway on our website. Because the HotSpot Radio Network will receive a percentage of each sale, members and bands can help the Network thrive and continue to meet its mission of offering great airplay and promotional services for bands and commercial free radio to listeners, simply by doing their online shopping through The Marketplace.

Our slogan says it best: "Listen. Be heard. Get involved!"

As the first social broadcasting network, bands and artists can get free airplay, fans can listen and support bands, and together we can all become involved in the music scene.

Truly Viral Media and the HotSpot Radio Network is proud to create the first social broadcasting network, and we believe that this model can realize healthy profits from a solid business that fills a growing need.