The Metro Channel (TMC) Presented to the Riders' Advisory Council - - PowerPoint PPT Presentation

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Presented to the Riders' Advisory Council

February 6, 2008

The Metro Channel (TMC)

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Board Action Requested for The Metro Channel

• Staff seeks Board approval to

initiate and award a state-of-the-art digital signage network that enhances:

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The Customer Experience

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Customer Information Access

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Metro Incident Communication

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Advertising Revenue

• The Metro Channel (“TMC”) allows

Metro to communicate with Customers in real time during normal operations and service disruptions.

• This capability is increasingly in

demand by our Customers, our regional partners, and the media

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Advertising revenue impacts

• Existing contract for static advertising with CBS Outdoor ends June 2010

– 10-year contract, with guaranteed revenue in excess of $35M – Winning proposer of this RFP would take over static advertising in 2010

• While The Metro Channel (“TMC”) would provide another avenue for

revenue generation, projections of potential revenue for Metro from TMC are widely variable depending on:

– Metro’s decision to assume or defer the financial risk of the project – The terms offered by respondents to the RFP

• The Metro Channel is unlikely to fully make up loss of existing guarantees
• Metro has a complete business simulation model projecting costs and

revenue from The Metro Channel.

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Financial responses to the RFP will be plugged into the business model to compare the financial benefits of each response

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If the proposal meets expectations, Metro intends to award all three areas of the RFP on a best value basis

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How does TMC relate to PI Ds?

• TMC and the PIDs will co-exist for

the foreseeable future

• TMC makes Customer information

available in additional locations

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At entrances of stations

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On buses and rail cars

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At bus shelters

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In displays that previously only showed advertising

• While TMC does not provide the

funding to replace the PIDs system, it does provide a visual and technical model which can be leveraged when PIDs reaches its natural end-of-life

PI Ds signage displays limited information. Metro anticipates that PI Ds signage replacements will not be advertising supported, but may resemble The Metro Channel screen designed for people with visual disabilities.

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The Metro Channel will be delivered throughout the Metro system

Wireless Location-Based Marketing Services

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Archive-Navy Memorial – Penn Quarter Station

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The Metro Channel will deliver three kinds of information to Customers

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Project is estimated to take four to six years to complete; first displays are expected by the end of

• 2010. Contract runs from award though June 2020.

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CY 2019

Stations Rail Cars Bus Finance System Produce Content Stations Rail Cars Bus Build System Stations Rail Cars Bus Operate System Sell Advertisement

CY 2020 CY 2018 CY 2017 CY 2016 CY 2015 CY 2014 CY 2013 CY 2012 CY 2011 CY 2010 CY 2009 CY 2008 Task Work Breakdown

Scope and Structure of the RFP

(1) Finance System (2) Design, Build (3) Operate, Maintain and Sell advertising The contract includes license to sell Metro advertising from mid 2010 through mid 2020 and potentially beyond. Separate proposals required for (1) financing, (2) design and build, and (3) operation of franchise Metro reserves the right to award (1), (2) and (3) independently from one another (or together) All proposals must be zero cost to Metro License to sell advertising includes existing static, rail station, bus shelter and bus advertising Award will be based on technical, financial and creative/advertising evaluations

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Next Steps

• Presented to and endorsed by

the Elderly & Disabled Committee

• n February 4, 2008
• Present to the Riders’ Advisory

Council on February 6, 2008

• Obtain Board approval to initiate

and award RFP

• Continue to gather customer

feedback through movable demo system

Mockups of how The Metro Channel might look at Verizon Center entrance of Gallery Place