BoomCloud 360 / Boomstick Presentation C BoomStick FAQ 1 WHAT IS A BOOMSTICK? / HOW DOES IT WORK / WHO IS IT FOR? Anyone who . . . • listens to music with wired headphones or earphones. The BoomStick™ is an audio accessory that • wants their music to have enhance clarity, feel as if it’s supercharges the sound of any wired headphones playing live in the room, and deeply immersive. or earphones. How? Through a proprietary set of • is shopping for a new set of earphones or headphones algorithms based on psychoacoustics, which treat the ear and brain as a system. HOW DOES IT WORK? WHAT IS A BOOMSTICK? The BoomStick dynamically processes the incoming sound from a media player (like a mobile phone) and • is buying a new phone or tablet WHO SHOULD TRY A BOOMSTICK? sends it on to the headphones. The end result is dramatically enhanced bass, vastly improved clarity, and enveloping, immersive sound. A MULTI-DIMENSIONAL EXPERIENCE 18 Confidential BoomStick FAQ 2 IS IT AN AMP or EQ? / WILL IT WORK WITH CORDLESS BLUETOOTH HEADPHONES? Headphone amps only add gain (aka volume). The The BoomStick works with wired headphones and BoomStick enhances + transforms the sound of your earphones that use a standard 3.5mm connector. music, movies and games. It uses patented Bluetooth/Wireless headphones and earphones are algorithms that dynamically process sound to restore not compatible with the BoomStick 1. However iPhone bass punch, increase clarity for mid and high frequencies, and deliver a much richer and immersive overall listening experience. IS THIS A HEADPHONE AMP, JUST MAKING SOUND + BASS LOUDER? IS THIS AN EQ? HOW IS IT DIFFERENT FROM AN EQUALIZER? The BoomStick experience goes well beyond equalization for headphones. It pushes the audio perception outside of your head for a more natural 7 and other devices releasing this fall without headphone jacks will offer compatible adapters to bring richer, fuller sound to Bluetooth. WILL THIS WORK WITH NEW CORDLESS BLUETOOTH HEADPHONES? sound. It restores punch in bass, which is normally lost in headphone reproduction. And It enhances overall clarity throughout the sound spectrum. 19 Confidential BoomStick FAQ 2 WILL IT WORK WITH MY SPEAKERS? / WHY IS IT BETTER THAN BUYING EXPENSIVE HEADPHONES? BoomStick audio processing is optimized for small The BoomStick enhances sound for all types of drivers used in headphones and earphones.. headphones and earphones, and makes premium That said, many people do find it enjoyable when headphones sound off-the-charts amazing. Consumer using with speakers. With certain brands, there is a remarkable difference. For example, the before and after quality on the Beats Pill in tests, was amazing. WILL THIS WORK WITH MY SPEAKERS? (BOTH LO-FI + HI-FI?) WHY IS A BOOMSTICK BETTER THAN BUYING MORE EXPENSIVE, QUALITY HEADPHONES? research shows that using the BoomStick with even Adding a BoomStick to your current headphones for I ALREADY OWN PREMIUM HEADPHONES / EARBUDS, WHY SHOULD I HAVE A BOOMSTICK TOO? $79 delivers better sound than more expensive headphones alone. Consumer research shows that in every case the BoomStick enables free or high end headphones provided a significantly superior listening experience.. inexpensive earphones and headphones to outperform $200 or even $300 models. 20 Confidential | PLAYS WELL WITH ALL SPEAKERS + ULTRA-PORTABLE RELAX + ENJOY Just plug a BoomStick into your portable speaker audio jack, and go! BoomStick technology will make even inexpensive speakers + earbuds sound far better than you ever imagined possible…while improving hi-end audio as well. Just press the Boom Button to transform your listening experience. Customers tell us: “I didn’t know my speakers were this flat and dull. I can’t even listen to music anymore without my BoomStick.” TAKE YOUR GAME TO THE NEXT LEVEL with IMMERSIVE, DIMENSIONAL 360 SOUND AUDIO FAHRVERGNUGEN Gaming graphics have become so advanced, so real. But it’s often missing the audio experience. When game hearing rich, spatial, multi-dimensional sound, it’s mind-blowing. You thought you already had a great car speaker system. Wait until you try BoomStick in the car... Open up your music on the road. .. BETTER SOUND QUALITY for VIDEO CON-CALLS + FACETIME (WORK or PLAY) Does your current iPad or portable desktop speakers sound flat or hard to hear others? BoomStick clarity + definition improves mobile conference. WATCH MOVIES IN A WHOLE NEW WORLD OF DETAIL, DEFINITION + DIMENSION Movie scenes, surroundings and perceived dimensions of moving objects come to life in your living room. Sound so real, it’s pure immersion. MUSIC IS LIFE Wherever you go, whatever you do. Music is better with BoomStick. You are what you listen to. BoomCloud brings “the real music” back to real people everywhere – no matter whether you paid $10 or $800 for your headphones. In the mobile revolution, we lost something important… sound quality. We downgraded music-richness for portable convenience. Compressed MP3’s can’t compare with former stereo tech and CDs. Now you can have convenience AND sound quality unlike ever heard before. With BoomCloud 360 tech, music feels as big, colorful and real as life. 25 Confidential BOOMSTICK CUSTOMER RESEARCH / Section 3 Mexico: 95% of consumers ranked their audio experience better with BoomStick The consumer research was conducted in 9 gyms in the Mexico City area with a total sample size of 384 Consumers were intercepted at local gyms with their own headphones and their own music Our data sample of 384 is large and consistent with the US consumer research AUDIO EXPERIENCE WITH BOOMSTICK AUDIO EXPERIENCE WITHOUT BOOMSTICK (scoring from 1-10) (scoring from 1-10) 250 120 109 Average = 6.9 200 95 100 82 80 60 136 150 48 100 33 40 50 20 0 212 Average = 9.4 0 1 0 1 2 3 Worst 9 7 0 4 5 6 7 8 9 10 Best 0 0 0 0 2 1 6 1 2 3 4 5 6 7 Worst 27 8 Scoring of 9 and 10 increased from 40/384 to 348/384 26 Source: BoomCloud 360 Mexico Consumer Research: N = 384 Confidential 9 10 Best BOOMSTICK CUSTOMER RESEARCH / Section 3 China: 98% of consumers ranked their audio experience better with BoomStick The consumer research was conducted in Shanghai, Beijing, and Guangzhou with a total sample size of 677 Consumers were intercepted at local gyms with their own headphones and their own music Our data sample of 677 is large and consistent with the US consumer research AUDIO EXPERIENCE WITH BOOMSTICK AUDIO EXPERIENCE WITHOUT BOOMSTICK (scoring from 1-10) (scoring from 1-10) 300 Average = 6.1 262 250 190 200 153 150 174 147 150 100 100 50 0 Average = 8.0 250 200 282 300 0 0 4 1 2 3 Worst 45 19 4 5 6 7 8 41 50 0 0 0 1 5 10 1 2 3 4 5 Best Worst 4 0 9 0 6 27 7 8 9 Best Scoring of 9 and 10 increased from 4/677 to 201/677 29 Source: BoomCloud 360 China Consumer Research: N = 677 10 Confidential BOOMSTICK CUSTOMER RESEARCH / Section 3 BoomStick™ succeeds across headphone brands – in best listening experience AVERAGE WITHOUT vs. WITH THE BOOMSTICK US, by headphone brand Samsung (free with phone) 10 8.7 9 8 Apple Earpods 10 8.8 9 8 7 6 10 6.5 6 7 Beats 8.8 9 8 7 6.3 Skullcandy 8 6.9 9.1 10 9 Bose 7.4 10 9 8 7 6 6 7 6 5 5 5 5 5 4 4 4 4 4 3 3 3 3 3 2 2 2 2 2 1 1 1 1 1 0 0 0 0 0 Without BS With BS Without BS With BS Without BS With BS Without BS With BS 7.5 Without BS SUCCESS OVERVIEW Consumers agree that the BoomStick makes every headset sound better. Strongest improvement was with highest volume (bundled) headsets. Top audio experience was with Beats branded headphones. Results were consistent bin US, Mexico, and China. Source: BoomCloud 360 US Consumer Research: N = 450 30 Confidential 8.5 With BS BOOMSTICK CUSTOMER RESEARCH / Section 3 stated willingness to switch mobile carriers is very high WILLINGNESS TO SWITCH MOBILE CARRIER for BoomStick Audio Experience US, Mexico, China 100% SUCCESS OVERVIEW 90% Telecom customer lifetime value ~$1,500 in US, and most telecom subs get a free headset. 80% 70% Mobile carriers desperate for differentiation. 60% 51% 50% 43% If BoomCloud 360 can drive switching, then this is the highest value-creating use of our technology. 40% 30% Hence the focus on telecom carriers…prove switching and negotiate a Gain Share. 25% 20% 10% 0% US Mexico China Source: BoomCloud 360 Consumer Research 31 Confidential BOOMSTICK CUSTOMER RESEARCH / Section 3 stated willingness to switch music streaming carriers – is shockingly high WILLINGNESS TO SWITCH MUSIC STREAMER for BoomStick Audio Experience US, Mexico, China 100% SUCCESS OVERVIEW 90% 77% 80% 70% 78% 67% Loyalty to streamers is very low. 60% No streamer has differentiated quality (even though some trying with higher bitrates). 50% Streamers have multi billion dollar valuations. Big opportunity for Business Model #3… platform subscriptions wrapping around existing streamers. 40% 30% 20% 10% 0% US Mexico China Source: BoomCloud 360 Consumer Research 32 Confidential BOOMSTICK CUSTOMER RESEARCH / Section 3 The BoomStick outperformed the HK Clari-Fi algorithm – as well as standard and Hi-Fi streaming services BoomStick vs. Spotify + TIDAL HiFi BoomStick vs. HK Clari-Fi vs. 10 * With Sharp Aquos phone and EarPods 8 6 4 vs. 10 6.5 4 7.6 2 0 0 33 4.9 7.9 5.5 4 2 Clari-fi OFF 7.4 8 6 4.8 * With iPod Touch music player and EarPods Clari-fi ON Clari-fi OFF + BS Clari-fi ON + BS Spotify Source: BoomCloud 360 Focus Groups; 1-10 scale where 1 is the worst and 10 is the best TIDAL Spotify + BS TIDAL + BS
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