- Streaming
video-on-demand (SVOD) giants are ramping up spending on content
- Forecasts
for the global SVOD sector increased by 25 percent to $36 billion this
year
- Wonderfilm
recently appointed PCG Advisory Inc. as its advisor for investor relations
and strategic communications
Investors looking for opportunities in the booming mass
media sector will likely find Wonderfilm Media Corporation (TSX.V: WNDR) (OTC:
WDRFF) on their radars. Movies produced by Wonderfilm’s production team before
they joined together to form Wonderfilm include ‘Get Out’ (2017), which cost
$4.5 million to make and grossed $255 million at the box office;
‘BlacKkKlansman’ (2018), which grossed $93 million on a budget of $15 million;
and ‘National Lampoon’s Christmas Vacation’, which has grossed $71 million on a
budget of $25 million. With the global media-and-entertainment market forecast
to grow from $1.9 trillion in 2017 to $2.4 trillion in 2022 (http://ibn.fm/ZxClY), content
creators like Wonderfilm are positioned to capitalize.
Based on current trends, cable and video are out, and
streaming video on demand is in. Not so long ago, video rental shops were as
ubiquitous as delis. However, in just a decade or so, technological
developments have transformed America’s viewing habits. Mass adoption of
subscription video-streaming services such as Amazon Prime Video, Hulu and
Netflix continues to grow. As a result, global SVOD revenues are expected to
increase 25 percent to $36 billion in 2019 (http://ibn.fm/U0TI0).
The SVOD behemoths are sucking up huge amounts of content.
In 2018, Netflix spent $12.04 billion on content, up 35 percent from $8.9
billion in 2017, according to its fourth-quarter 2018 earnings report. In 2019,
Apple plans to spend $6 billion on content, while Amazon will spend $7 billion.
In this competition for eyeballs, content is a critical
factor. Wonderfilm is looking to provide what these giants need. The company
retains a continuing annual production slate worth millions to meet the
constant and growing need for content worldwide. Currently, Wonderfilm has 17
films ready to shoot with a combined budget of $58 million, featuring proven
box office draws John Travolta, Nicholas Cage, Guy Pearce, Ryan Phillippe, Ron
Pearlman, Steven Seagal, Anne Heche, Thomas Jane and Tyrese Gibson, as well as
MMA legends Tito Ortiz and Chuck Liddell.
Travolta stars in Wonderfilm’s newly produced movie ‘The
Fanatic’, which premiered in theaters across America in August 2019. Cage will
appear in ‘Primal’, premiering in November, while ‘Disturbing the Peace’ will
feature Guy Pearce in a lead role.
Earlier in October, Wonderfilm appointed PCG Advisory Inc.,
a leading investor relations and digital strategies firm, to serve as an
advisor for its investor relations and strategic communications. The change in
IR advisors reflects new market-driven opportunities for Wonderfilm resulting
from the unprecedented worldwide appetite for streamed media content (http://ibn.fm/ISmPz).
Earlier this year, Wonderfilm formed a film-and-television
sales/distribution joint venture with 101 Films. Launched at the 2019 Cannes
Film Festival, Wonderfilm Global will generate revenue through presales of
Wonderfilm projects and third-party films. The average Wonderfilm movie is
presold for $5 million, garnering from $500,000 to $750,000 per sale as a sales
commission. These commissions now stay in-house, with Wonderfilm Global
expecting to sell 10 to 12 third-party films over the next year, generating
roughly $6 million in commission income.
Wonderfilm is an entertainment company with offices in
Beverly Hills, California, and Vancouver, British Columbia. The company’s main
business is the production of high-quality feature films and episodic
television that offer international appeal.
For more information, visit the company’s website at www.Wonderfilm.com
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