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Learning Friends will offer an online subscription service for the home market using broadband and provide CD-ROMs with web updates for narrow-band customers. The company will generate additional revenue from sales of theme-related products. The Company will also offer premium fee-based services such as norm-referenced performance evaluations. 

Preliminary market research indicates vast consumer spending for U.S. children. Over $14.4 billion is spent annually on software, toys, books and entertainment for children ages 4-9, and $400M on software for schools. Learning Friends' conservative revenue projections are $12 million in the first year of sales, growing to over $112 million after three years. 

School

Learning Friends plans to generate business-to-business revenue by selling the service to schools. By forming alliances with enterprise portal companies and publishers, Learning Friends will be positioned for statewide adoption in schools. 

 

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