- Wonderfilm
Media Corporation announced the co-marketing of a third-party asset-backed
debt facility
- Through
easier access to funds, the company will enhance its ability to deliver
content to streaming services, theaters and broadcasters
- The
market currently provides excellent opportunities to well-positioned
players like Wonderfilm due to the rapid expansion of the content
streaming segment
Wonderfilm
Media Corporation (TSX.V: WNDR) (OTCQB: WDRFF) announced on October
22, 2019, the co-marketing of a third-party, $50-million asset-backed debt
facility, designed to increase company revenue and its overall production
efficiency, according to a press release (http://ibn.fm/ZjZLf).
The facility will be a U.S.-based limited liability
corporation. It would exclusively support and be secured against specific
future Wonderfilm productions. Through the facility, Wonderfilm will benefit
from accelerated approval and scheduling of production and delivery of its film
and television slate. In addition, the company will benefit from the prospects
of rapid revenue generation and production by cash flowing all pre-sale movie
contracts. Through the facility, Wonderfilm will also finance government tax
credits and tax incentives.
The announcement is in line with Wonderfilm’s current growth
phase. The access to funds will greatly streamline the company’s ability to
deliver content to streaming services, theaters and broadcasters around the
world, Wonderfilm CEO Kirk Shaw said.
The Wonderfilm business model relies predominantly on
selling movies in packages. The term packaging refers to the acquisition and
development of a movie script, the hiring of a director and the cast of actors.
Once the cast of actors is chosen, the company announces the title and the
leads, entering contracts for film pre-buying on the basis of the complete
package. Once contracts are in place, Wonderfilm can apply for financing and
commence production. A loan can easily be repaid shortly after delivery, once
the contracted amounts have been transferred.
Wonderfilm’s revenue generation model is based on production
fees and selling to unsold territories. Overages above the pre-sale threshold
also create solid revenue streams.
Wonderfilm is a very young entity but its team consists of
Hollywood veterans who have packaged, produced and delivered an array of
profitable recent films like Get Out and The Hurt Locker. The company maintains
a continuing $58-million annual production slate to meet the growing
international need for content.
Content for streaming providers is one of the primary
drivers for growth in the industry. The global video streaming market is
anticipated to reach $124.57 billion by 2025, expanding at a CAGR of 19.6
percent over the forecast period (http://ibn.fm/Kl4TH). The popularity of streaming
platforms, coupled with the growing interest in on-demand streaming services, will
both fuel the expansion of the industry.
In 2019, video streaming consumption grew 72 percent on an
annual basis (http://ibn.fm/4OBy6).
The growth over the first quarter of the year alone was 49 percent. Nearly 64
percent of mobile video streaming is on-demand content, while the rest is
covered by live video. On PCs, on-demand content accounts for 57 percent of
streaming.
For more information, visit the company’s website at www.Wonderfilm.com
NOTE TO INVESTORS: The latest news and updates
relating to WDRFF are available in the company’s newsroom at http://ibn.fm/WDRFF
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