The pitch · chapter 03 of 5

Business Case

Deal terms, budget tiers, and the monetization strategy.

anchor #deal-termsstatus draftsource Counsel

Proposed Demands & Deal Terms

Numbered clauses for the writers-room / distribution deal.

The deal-term posture below is a negotiation opening, not a commitment. Final clause language, jurisdiction, and dollar figures will land here once Counsel publishes the redlined term sheet.

Creative control. CEO holds final cut on the pilot; subsequent episodes follow a documented review chain (showrunner → CEO → platform).
IP ownership. Pleet3D, LLC retains underlying world / character / 3D-pipeline IP. Platform receives a time-bounded distribution license, not assignment.
Distribution window. First-window exclusivity is negotiable per platform; default ask is 12 months from release with reversion thereafter.
Revenue share. Net-profit definition must be transparent (auditable line items) and tied to a documented waterfall. No "Hollywood net" wording.
Talent terms. Standard SAG-AFTRA scale floor; key cast options on episodes 2–6 capped at parity with industry mid-band.
Marketing approval. Platform marketing assets require opt-in approval from Pleet3D for likeness, voice, and brand-adjacency use.
Termination & cure. Material breach triggers a 30-day cure window before termination. Termination reverts unreleased episodes to Pleet3D.
Audit rights. Quarterly platform-side audit at Pleet3D's request, capped at 2 per year, with 14-day notice.
Tax / production credits. Production-state tax credits (where applicable) accrue to Pleet3D unless explicitly assigned in the term sheet.
Governing law. To be set by Counsel; default ask is Delaware (Pleet3D entity domicile).

Opening posture — negotiation framing. These ten clauses state Pleet’s opening positions. Final dollar figures and governing-law jurisdiction are set by Counsel during term-sheet redline.

anchor #budgetstatus finalsource Finance — Pleet3D, LLC

Budget Tier Options

Three production tiers — Lean, Standard, Premium — line items, crew bands, travel envelope, and a two-layer contingency reserve.

Equipment + post share declines as tier rises: variable above-the-line spend (host fees, producer scale, on-location specialists, travel envelopes) scales faster than fixed below-the-line spend (cameras, audio, edit suites, color, mix). Equipment + post share derivation[src]

Lean

10 ep season

$258k

per episode

$2.58M per season

Crew: 12 heads
Lower band, non-union unscripted reality
Day rate: $1,083.33/head-day
Equip + post: 50.00%
Travel scope: NY / AR / OK rotation, no international

Above-the-line (host + showrunner + EP)$48,00018.60%
Below-the-line crew (12-person field unit)$52,00020.16%
Equipment + post-production allocation$129,00050.00%
Travel envelope (NY / AR / OK rotation, no intl.)$14,2005.50%
Insurance + production legal$9,4003.64%
Contingency (layer-1, ep-level)$5,4002.09%

Reverse-solve receipts

Per-season: $258,000 × 10 = $2,580,000
Equipment+post: $258,000 × 0.5000 = $129,000
Crew day-rate: $52,000 / (12 × 4) = $1,083.33 / head-day

Standard

10 ep season

$725k

per episode

$7.25M per season

Crew: 22 heads
Mid-band, experienced field producers
Day rate: $2,068.18/head-day
Equip + post: 33.70%
Travel scope: NY / CA / AR / OK + 1 international swing

Above-the-line (host + 2 EPs + showrunner + line producer)$148,00020.41%
Below-the-line crew (22-person field + base unit)$182,00025.10%
Equipment + post-production allocation$244,32533.70%
Travel envelope (NY/CA/AR/OK + 1 intl. swing)$68,4009.43%
Insurance + production legal$24,2753.35%
Contingency (layer-1, ep-level)$58,0008.00%

Reverse-solve receipts

Per-season: $725,000 × 10 = $7,250,000
Equipment+post: $725,000 × 0.3370 = $244,325
Crew day-rate: $182,000 / (22 × 4) = $2,068.18 / head-day

Premium

10 ep season

$1.95M

per episode

$19.5M per season

Crew: 38 heads
Upper band, union CA camera/grip + overseas premium
Day rate: $2,889.47/head-day
Equip + post: 30.50%
Travel scope: NY / CA / AR / OK + Vietnam + Virgin Voyages

Above-the-line (host + 3 EPs + showrunner + line producer + DP)$432,00022.15%
Below-the-line crew (38-person multi-unit)$549,00028.15%
Equipment + post-production allocation$594,75030.50%
Travel envelope (NY/CA/AR/OK + Vietnam + Virgin Voyages)$208,25010.68%
Insurance + production legal$58,5003.00%
Contingency (layer-1, ep-level)$107,5005.51%

Reverse-solve receipts

Per-season: $1,950,000 × 10 = $19,500,000
Equipment+post: $1,950,000 × 0.3050 = $594,750
Crew day-rate: $549,000 / (38 × 5) = $2,889.47 / head-day

Math notesalgebraic + calculus▸

Displayed value (frozen)Lean $258k/ep · Standard $725k/ep · Premium $1.95M/ep

Algebraic

Per-season = per-episode × 10. Line items sum to per-episode exactly on all three tiers. Equipment+post = ep × equipmentPostPct. Crew day-rate = BTL / (headcount × shootDays). All reverse-solves dual-engine PASS (see script).

Calculus / continuous

N/A for continuous dynamics — discrete production-budget allocation. Optional continuous interpretation: equipment share s(tier) declines as ATL/travel scale (Lean 50% → Standard 33.7% → Premium 30.5%); treated as stepwise schedule, not a fitted continuous function on-site.

Residual riskLOW arithmetic; residual is production-planning assumption risk

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Travel envelope — illustrative multi-tier scope

Mixed-scope illustration — includes Premium-scope rows (badged). Not the Standard-tier travel derivation: Standard's travel line is $68,400/ep.

Per-season travel envelope by location — illustrative multi-tier scope. Mixed-scope illustration — includes Premium-scope rows (badged). Not the Standard-tier travel derivation: Standard's travel line is $68,400/ep.
Location	Trips / season	Avg cost / trip	Season total
New York (HQ, base)	4	$9,500	$38,000
California (LA post + on-camera arc)	3	$22,000	$66,000
Oklahoma (printer site arc)	9	$14,189	$127,700
Vietnam (furniture-pack supply line)Premium scope	1	$48,000	$48,000
Virgin Voyages (offsite arc)Premium scope	1	$36,000	$36,000
Season total		per-ep avg $31,570	$315,700

↳ Oklahoma merged: 5 × $14,500 + 4 × $13,800 = $127,700 over 9 trips (blended avg ≈ $14,188.89). Σ location totals: 38,000 + 66,000 + 127,700 + 48,000 + 36,000 = $315,700 ; per-ep avg = 315,700 / 10 = $31,570. Illustrative multi-tier scope — not the Standard tier's $68,400/ep travel line.

Math notesalgebraic + calculus▸

Displayed value (frozen)$315,700 / season · $31,570 / ep average

Algebraic

OK merged: 5×$14,500 + 4×$13,800 = $127,700. Σ locations = 38k+66k+127.7k+48k+36k = $315,700. Per-ep = 315,700/10 = $31,570. Explicitly NOT Standard travel line ($68,400/ep).

Calculus / continuous

N/A — discrete trip-count × average-cost sum. No continuous path geometry on-site.

Residual riskLOW if labels retained; HIGH if misread as Standard travel

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Contingency — two-layer reserve

Two-layer allocated reserve. Layer-1 = per-episode overage band (weather, retake, equipment failure). Layer-2 = season-level structural risks (location loss, talent unavailability, post-production reshoot) held off-episode as a single bank. Two-layer reserve methodology[src]

Layer-1 (per-episode, by tier)

Lean2.09%
Standard8.00%
Premium5.51%

Layer-2 (season reserve)

10.00% of (sum of episode budgets minus layer-1)

Standard tier — effective season rate

17.20%+220 bp above canonical 15.00% upper bound [src]

Above-canonical hybrid TV + construction risk-stacking premium. Not a compound stack (which would yield 19.00%–27.75% and distort per-episode economics).

Reverse-solve receipts

Σ episode budgets: $7,250,000
Layer-1 total: $58,000 × 10 = $580,000
Layer-2 reserve: 0.1000 × ($7,250,000 − $580,000) = $667,000
Total contingency: $580,000 + $667,000 = $1,247,000
Effective rate: $1,247,000 / $7,250,000 = 17.20%

Math notesalgebraic + calculus▸

Displayed value (frozen)17.20% effective season rate ($1,247,000 on $7,250,000)

Algebraic

L1 = $58,000 × 10 = $580,000. L2 = 0.10 × ($7,250,000 − $580,000) = $667,000. Total = $1,247,000. Rate = 1,247,000 / 7,250,000 = 0.1720 = 17.20%. Hybrid (not compound) stacking per PLE-843/PLE-847 certified receipt.

Calculus / continuous

Let B = season budget, ℓ1 = layer-1 dollars, α2 = 0.10 layer-2 rate. Total T = ℓ1 + α2(B − ℓ1) = α2 B + (1−α2)ℓ1. Effective rate ρ = T/B = α2 + (1−α2)(ℓ1/B). With ℓ1/B = 580k/7.25M ≈ 0.08, ρ = 0.10 + 0.90×0.08 = 0.172 exactly. Continuous sensitivity: ∂ρ/∂α2 = 1 − ℓ1/B ≈ 0.92 (layer-2 rate is high-leverage).

Residual riskMED — methodology choice (hybrid vs compound); arithmetic exact

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anchor #monetizationstatus finalsource Finance — Pleet3D, LLC

Monetization Strategy

License fees, sponsorship, backend, merchandising, JackalopeEnterprise spin-offs, and the Pleet3D ripple — anchored by three CEO-locked decisions.

CEO decision · 1 of 3Locked

TAKE BACKEND. Hard floor L = 1.30×.

Defined-gross backend at 25.00% of distributor gross. Streamer's cost-plus multiple is the certainty floor.

Walk-away (Hard floor)

L = 1.30×

$9.43M @ Standard

Any SVOD offer below this is rejected outright.

Pitch mid-case

L = 1.45×

$10.5M @ Standard

Default streamer model — Pleet3D holds backend.

Backend ≡ certainty break-even

L = 1.70×

$12.3M @ Standard

Above this multiple, certainty (license-only) dominates backend.

Below-floor fallback (Year-1 floor, Standard)

cable $4,750,000 + sponsorship $5,000,000 + ripple $5,286,600

$15M

Engaged only if no SVOD offer clears L ≥ 1.30×. The fallback already exceeds the hard-floor SVOD number ($9,425,000), which is why the walk-away is enforceable.

Reverse-solve receipts (distribution route)

Hard floor dollars: 1.30 × $7,250,000 = $9,425,000
Pitch mid: 1.45 × $7,250,000 = $10,512,500
Break-even: 1.70 × $7,250,000 = $12,325,000
Break-even derivation: 1.00 + (0.25 × 2.80) = 1.70× ⇒ backend equals license-only at L = 1.70×
Fallback stack: $4,750,000 (cable) + $5,000,000 (sponsorship) + $5,286,600 (ripple net) = $15,036,600

Backend derivation cite: Defined gross backend participation[src]

Math notesalgebraic + calculus▸

Displayed value (frozen)$9,425,000 / $10,512,500 / $12,325,000 on Standard $7,250,000

Algebraic

Dollars = L × $7,250,000. Backend break-even: 1 + (0.25 × 2.80) = 1.70×. Fallback stack: 4,750,000 + 5,000,000 + 5,286,600 = 15,036,600 > hard floor 9,425,000.

Calculus / continuous

License value V(L)=L·C is linear. Backend-equivalent multiple L* = 1 + s·M with s=0.25 backend share, M=2.80 defined-gross multiple of cost. Continuous tradeoff: take backend when L < L*; flip to certainty when L ≥ L*.

Residual riskMED commercial negotiation risk; arithmetic exact

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CEO decision · 2 of 3Locked

3.00% planning · 4.00% pitch

Two adjacent base rates — pitch the upside band, plan against the conservative band.

Pitch base

4.00%

Defensible per modular/custom bracket — §3 sensitivity table.

Standard Year-1 ripple net $5.29M

Planning base

3.00%

Used for spend gating, hiring decisions, and Pleet3D production-capacity provisioning.

Standard Year-1 ripple net $3.96M

Combined planning net (Standard Y-1): $13.3M — still strongly positive.

Grokipedia 404 on home-builder closing-rate is a logged gap on ARC-1878; revisit when the gap closes. Custom and modular home funnel bracket[src]

↳ Planning ripple: (3.00 / 4.00) × $5,286,600 = $3,964,950 ; combined planning net: $9,342,500 + $3,964,950 = $13,307,450

Math notesalgebraic + calculus▸

Displayed value (frozen)$5,286,600 (planning 3% → $3,964,950)

Algebraic

2,670,000 × 0.015 = 40,050; ×0.05 = 2,002.5; ×0.04 = 80.10; ×$300,000 = $24,030,000; ×0.22 = $5,286,600. Planning: (3/4)×5,286,600 = 3,964,950.

Calculus / continuous

Orders O = R·p1·p2·p3 with rates p1=0.015, p2=0.05, p3=0.04 (pitch). Net N = O·ASP·m. Continuous sensitivity: dN/N = dR/R + dp1/p1 + dp2/p2 + dp3/p3 + dASP/ASP + dm/m (log-differential). Dominant residual: p1,p2 unconfirmed; p3 within modular/custom bracket. Homogeneous degree-1 in R.

Residual riskHIGH on conversion rates; arithmetic exact on stated inputs

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CEO decision · 3 of 3Locked

Sponsorship floor — $5.00M / year

Annual sponsorship floor

$5M

Of which $1.8M (36.00%) is the single title-slot.

↳ $1,800,000 / $5,000,000 = 36.00% ✓

Swing factor

Title-slot fill is the highest-leverage controllable variable on the full monetization stack.

CMO/CRO chain is opening a confidential title-sponsor prospect register in parallel (separate workstream, Marketing/Sales chain). Names are not listed here by design.

Sponsorship tier ladder — slot count, annual commitment, integration treatment.
Tier	Slots	Annual / slot	Integration	Example vertical
Title	1	$1,800,000	Opening billboard + 1 episode-arc tie-in / ep	Construction or material brand
Presenting	2	$900,000	End billboard + co-branded segment, 2× per season	Tool / equipment brand
Integration	4	$350,000	Episode-organic placement, 1–2 per season	Apparel, lifestyle, finance

↳ 1 × $1,800,000 + 2 × $900,000 + 4 × $350,000 = $1,800,000 + $1,800,000 + $1,400,000 = $5,000,000 ✓

Math notesalgebraic + calculus▸

Displayed value (frozen)$5,000,000 = 1×$1.8M + 2×$0.9M + 4×$0.35M

Algebraic

1×1,800,000 + 2×900,000 + 4×350,000 = 5,000,000. Title slot share = 1,800,000/5,000,000 = 36.00%.

Calculus / continuous

N/A — discrete slot inventory. Optional: treat slot-fill as Bernoulli; expected sponsorship = Σ ni·vi·qi with qi fill probabilities (not modeled on-site).

Residual riskMED commercial fill risk

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License fees

Linear cable
Linear cable citation[src]
First-season unscripted producer band
Band / ep
$400k–$550k
Mid / ep
$475k
Std Y-1 season
$4.75M
Production coverage
65.52%
↳ 10 × $475,000 = $4,750,000 ; coverage = $4,750,000 / $7,250,000 = 65.52%
Streaming originals (SVOD)
Streaming originals (SVOD) citation[src]
Cost-plus multiple, windowed exclusivity
Multiple band
1.30× – 1.60×
Mid multiple
1.45×
Std Y-1 season
$10.5M
↳ 1.45 × $7,250,000 = $10,512,500
YouTube AVOD
YouTube AVOD citation[src]
Blended-niche RPM (construction + lifestyle overlap)
RPM
$13.50($10.00–$18.00)
Std Y-1
$405k
Long tail Y2–Y3
$1.22M
↳ Year-1: 30,000 (M-views) × $13.50 = $405,000 ; Y2–Y3 long tail: 90,000 × $13.50 = $1,215,000
Syndication tail
Syndication tail citation[src]
Stripping-floor trigger (revised v1.1)
Band / ep
$100k–$500k
Trigger
65 ep / 100 ep
Std Y-1
$0 (below trigger)
Below trigger threshold in Year-1 model. Tail engages Year 7+ (first-run stripping) / Year 10+ (off-network maturity).
↳ 5 strips/wk × 13 wks = 65 ep first-run ; 5 strips/wk × 20 wks = 100 ep off-network

Math notesalgebraic + calculus▸

Displayed value (frozen)Cable $4.75M · SVOD mid $10.5125M · YT Y1 $405k · synd Y1 $0

Algebraic

Cable: 10×$475,000 = $4,750,000; coverage 4,750,000/7,250,000 = 65.52%. SVOD mid: 1.45×7,250,000 = 10,512,500. YT: RPM $13.50 × (30,000,000/1000) = $405,000; long-tail 90M views → $1,215,000. Syndication triggers 65 / 100 ep — Year-1 = $0.

Calculus / continuous

AVOD revenue R_yt = ρ · (V/1000) is linear in views V and RPM ρ. Elasticity ε_V = 1. Continuous note: no CPM decay curve modeled. Syndication is a threshold (Heaviside) on episode count — discontinuous; calculus N/A at trigger.

Residual riskMED–HIGH for RPM and view counts (internal)

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Backend participation

Defined gross participation

Share25.00%Defined gross2.80× costBreak-evenL = 1.70×

Hold backend at Standard (L = 1.45× mid-case). Flip to certainty only if streamer clears L ≥ 1.70×.

Derivation

Certainty value: L × cost
Backend at certainty floor (L = 1.00): 1.00 + (0.25 × 2.80) = 1.70× cost
Backend ≡ certainty break-even ⇒ L = 1.70×

Cite: Backend citation[src]

Merchandising

Apparel royalty8.00%Tool royalty12.00%Split70 / 30 apparel / toolY-1 wholesale$1.25MY-1 royalty$115,000

↳ (0.70 × $1,250,000 × 0.0800) + (0.30 × $1,250,000 × 0.1200) = $70,000 + $45,000 = $115,000

Cite: Merchandising citation[src]

JackalopeEnterprise digital

Pleet3D share70%Jackalope share30%Y-1 gross$800kPleet3D recognizes$560k

↳ 0.70 × $800,000 = $560,000 ✓

Cite: Related-party revenue sharing citation[src]

Math notesalgebraic + calculus▸

Displayed value (frozen)$115,000 merch · $560,000 Jackalope Pleet3D share

Algebraic

Merch: (0.70×1,250,000×0.08)+(0.30×1,250,000×0.12)=70,000+45,000=115,000 (PLE-847). Jackalope: 0.70×800,000=560,000.

Calculus / continuous

N/A beyond linear royalty maps. Blended royalty rate = 0.70×0.08 + 0.30×0.12 = 0.092 (9.2% of wholesale).

Residual riskMED volume risk; arithmetic exact

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Pleet3D ripple — the dominant economic effect

Show is a Pleet3D demand-generation engine. Viewers see the elementary school, the home arc, and the Vietnam furniture line; a fraction enter the funnel. Headline figures use the 4.00% pitch base for lead → buyer; on the 3.00% planning base the Year-1 ripple net is $3,964,950. The first two funnel rates are internal model assumptions with no citation row, gated as unconfirmed below.

Year-1 reach2.67M unique viewersunconfirmed: internal model

Reach → Site visit1.50%
unconfirmed: model assumption — no citation row for this rate; internal planning input.→ 40,050
Site visit → Lead5.00%
unconfirmed: model assumption — no citation row for this rate; internal planning input.→ 2,002.5
Lead → Buyer (home order)4.00%
Pitch base (4.00%), within the cited custom (2–3%) / modular (5–7%) bracket; planning base is 3.00% (see Lead → Buyer split).→ 80.1

Year-1 ripple (Standard)

$24M

gross

$5.29M

net @ 22.00% margin (unconfirmed)

ASP: $300,000 / home

Reverse-solve receipts

Stage 1: 2,670,000 × 0.0150 = 40,050 site visits
Stage 2: 40,050 × 0.0500 = 2,002.5 leads
Stage 3: 2,002.5 × 0.0400 = 80.10 home orders
Gross: 80.10 × $300,000 = $24,030,000 (≈ $24.00M)
Net: $24,030,000 × 0.2200 = $5,286,600 (≈ $5.28M)

Cites: grokipedia-first-season-reach[src] grokipedia-3dcp-home-asp[src] grokipedia-additive-margin[src] grokipedia-custom-modular-funnel[src]

Math notesalgebraic + calculus▸

Displayed value (frozen)$5,286,600 (planning 3% → $3,964,950)

Algebraic

2,670,000 × 0.015 = 40,050; ×0.05 = 2,002.5; ×0.04 = 80.10; ×$300,000 = $24,030,000; ×0.22 = $5,286,600. Planning: (3/4)×5,286,600 = 3,964,950.

Calculus / continuous

Residual riskHIGH on conversion rates; arithmetic exact on stated inputs

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Year-1 Standard-tier stack

Streaming license (1.45×)$10,512,500
Sponsorship + brand integration$5,000,000
YouTube AVOD$405,000
Merchandising royalty$115,000
JackalopeEnterprise digital (Pleet3D share)$560,000
Show-side gross (Y-1, Standard)$16,592,500
Less: production cost (Standard, 10 ep)($7,250,000)
Show-side net$9,342,500
Pleet3D ripple net$5,286,600
Combined Y-1 net$14,629,100

Ripple line is 36.14% of combined net — share grows in Years 2+ as the funnel compounds and the syndication tail engages.

Planning base (3.00% lead → buyer): ripple net $3,964,950, combined Y-1 net $13,307,450. The stack above uses the 4.00% pitch base.

Reverse-solve receipts (Y-1 rollup)

Show-side gross: 10,512,500 + 5,000,000 + 405,000 + 115,000 + 560,000 = $16,592,500
Show-side net: $16,592,500 − $7,250,000 = $9,342,500
Combined net: $9,342,500 + $5,286,600 = $14,629,100
Ripple share: $5,286,600 / $14,629,100 = 36.14%
Planning base: (3.00 / 4.00) × $5,286,600 = $3,964,950 ; $9,342,500 + $3,964,950 = $13,307,450

Math notesalgebraic + calculus▸

Displayed value (frozen)Show-side net $9,342,500 · Combined $14,629,100 · Ripple share 36.14%

Algebraic

Show gross 10,512,500+5,000,000+405,000+115,000+560,000=16,592,500. Net 16,592,500−7,250,000=9,342,500. Combined 9,342,500+5,286,600=14,629,100. Share 5,286,600/14,629,100=36.14%.

Calculus / continuous

Combined net C = (show_gross − production) + ripple_net. Continuous sensitivity dominated by ripple (see funnel log-diff). Share σ = N_r / C; ∂σ/∂N_r = (C − N_r)/C² > 0.

Residual riskAggregates residual risks of components

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§3 — Sensitivities (what moves the answer) — expand audit trail

Sensitivity table — base / down / up cases for the five dominant variables.
Variable	Base	Down	Up	Notes
Streamer L multiple	1.45×	1.30×	1.60×	Below 1.70×, take backend.
YouTube RPM	$13.50	$10.00	$18.00	Construction/lifestyle overlap drives top of band. Verifier recommends $11.50 downside mid-base sensitivity.
Lead → buyer	4.00%	2.00%	6.00%	Dominant sensitivity. Planning base = 3.00% (separate).
Cumulative reach	2.67M	1.80M	3.50M	Distribution mix dependent.
Sponsorship floor	$5.00M	$3.00M	$7.50M	Title-slot fill is the swing factor.

Reach + ripple cites: First-season reach[src] Additive margin[src] Printed-home ASP[src] Reality TV economics[src]

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