The Puppy Channel --- Investors

Investment History & Future

CHANNEMALS LLC is a business involved in the combination of people's love for animals and the Internet's booming phenomenon of video and community networks. It has been compared to a “YouTube” of puppy videos, plus additional, exclusive, features. The primary enhancement is clever, original video creations by professionals who have produced hits for television networks and other media. These videos will differentiate us from the competition and drive company value by generating pass-along among consumers, and “buzz” in the news, in order to build audience quickly and bring in advertisers at premium rates. Additional enhancements will include some of the Facebook and Myspace features for pet-lovers.

You’ve seen or heard of the fun and funny puppy videos in emails forwarded around the planet. That "infectious" enthusiasm is what CHANNEMALS℠ is all about. We're a family of narrow-focus, high-interest video entertainment-and-information community networks for the Internet. This second-generation website will demonstrate how we focus the power of other successful Web 2.0 affinity-group community businesses, such as YouTube, Facebook and Myspace*, into consistently popular, but more narrowly defined, ad-efficient areas.

In addition to independent investors, the business has attracted support from industry entities that have helped to enable the growth of Facebook, FOXNews.com, and animalplanet.com that are prepared to provide services.

Revenue streams: advertising, sponsorship, videos, licensed products, content for mobile devices, information, membership fees.

Potential: Iconoculture.com reports the US spends more than $41 Billion (B) annually on pets, for food and toys, as well as more upscale items (passports, car seats, weddings). eMarketer has projected that 2008 online advertising will grow 8.9% to $25.7B, and to $37B in 2012; that the fast-growing online video advertising market, which grew 81% in 2008, will increase 45% in 2009, to $850M; more than 84% of US Internet users (168/199M people) will watch online video at least once a month in 2009, and increase to 190M monthly online video viewers in 2012; and that 72.3% of users (144M people) will see online video advertising in 2009.

A JPMorgan Chase report stated that the average advertising cost per thousand Internet ad viewers was $3.31 in 2007, and would rise to $3.86 in 2011. An AOL spokesman commented that better revenues will come to premium branded content and social networks as well as small and niche content sites that sell advertising through services such as FM Publishing and Google AdSense.

The comScore Video Metrix service reports that 77% of US Internet users (146M people) viewed more than 12.7B online videos in Nov. 2008, 34% more than in Nov. 2007, each watching an average of 87 videos, with an average duration of 3.1 minutes (237 minutes, total). 52% of the 190M Oct. 2008 US Internet users were 25-54 in age, with older and younger viewers splitting the balance about equally.

Immediate Future: Investment being sought currently will be concentrated on marketing and the creation of exclusive, original content, to build the audience of thepuppychannel.com/. The next stage will measure the rates of audience- and revenue-building ROI, and refine the current strategy for fuller development and marketing based on results.

History: The original developer of thepuppychannel.com, The FitzSimons Company was founded in 1973, operated successfully in media-oriented businesses, and began its investments in the entertainment industry with development of the CHANNEMALS in the late 1990s. It funded more than $1,000,000 in market research, production of a TV pilot show that sells online as a DVD, trade show appearances, the original website, music and music rights, copyrights, Internet domains, marketing, advertising, and publicity, along with other related expenditures. Current owner of this site, and its related businesses and property, is CHANNEMALS LLC.

Company investments have contributed to the establishment of relationships with major industry players, including Endavo Media & Communications, whose technology powers the uploading, playback, and other media-system-management functions of this site.

This site establishes the direction we will pursue with a next-step investment in a more robust, audience-directed Internet presentation and sustained marketing to target audiences. (See Advertising section)

Background on The FitzSimons Company's history may be seen online at www.fitzcompany.com. More information about investment objectives, timetable and other detail is available to prospective investors by emailing Dan FitzSimons, Managing Partner, CHANNEMALS LLC, to fitz@thepuppychannel.com .

* YouTube, Facebook, MySpace, FOXnews.com, and Animal Planet are names that are trademarks of the companies that own those entities. Those companies are not related to The Puppy Channel or CHANNEMALS LLC.