- Sixty-nine
percent of U.S. households now subscribe to streaming video services, up
from 55% in 2017, leading to higher demand for high-quality content
- Wonderfilm
already has 13 feature films and other content products lined up to meet
this constant and growing demand
- Company
expects to generate $100 million in revenue by 2021, $20 million in
deferred revenue early next year
- Global
entertainment and media consumer spending to increase at CAGR of 4.4% over
the next five years, industry’s global revenue to reach US$2.4 trillion in
2022
Wonderfilm
Media Corporation (TSX.V: WNDR) (OTCQB: WDRFF), a leading entertainment
company producing internationally appealing, high-quality feature films and
episodic television, is working on quality theatrical releases and
entertainment content to meet the fast-growing global demand for content caused
by the unprecedented expansion of streaming services.
The entertainment industry is going through a golden era of
streaming, with demand from major players such as Netflix, Amazon, Disney and
Apple being at an unprecedented high as they continue growing their customer
base to the detriment of traditional cable television (http://ibn.fm/enpmh).
According to Colling Media, almost a fifth of respondents in
a survey stated they had canceled cable television, while 39% of consumers
subscribed to streaming services between June and July 2019 (http://ibn.fm/ppyz3). Colling
Media CEO Brian Colling compares the choice of streaming entertainment services
over cable to that of cell phones over home phones. “Mobile, on-demand, and
customized choices triumph every time,” Colling says.
Deloitte analysts report that for the first time in history,
a higher percentage of U.S. households subscribed to a digital streaming
service than to traditional pay television. 69% of U.S. households now
subscribe to streaming video services, up from 55% in 2017 (http://ibn.fm/I6Prd), and PwC
research indicates that consumers are willing to spend more to get the content
they want, with total global spending on entertainment and media expected to
grow at a CAGR of 4.4% over the next five years to reach $2.4 trillion in
global revenue by 2022 (http://ibn.fm/Lq7DI).
Consumers’ willingness to spend more on the content they
want is an excellent opportunity for companies like The Wonderfilm Media
Corporation. To meet this constant and growing demand for content worldwide,
the company retains a continuing annual production slate of $58 million and
currently has 13 films in or going into production, six of which are scheduled
to be delivered in the first quarter of 2020. Eight feature films greenlit for
shooting that represent $60 million in production budgets include films such
as Amityville 1974, in theatres October 2020, and the action
film Inside Game with Tyrese Gibson, in theatres in the fall
of 2020. The company is also currently developing secured valuable IP rights,
including the Steve McQueen Story and the book
adaptation, Merchant of Death.
Wonderfilm makes money from producing fees that are added to
the production budget and from overages above the presale threshold. Wonderfilm
owns the films after their sale terms end. The company also profits from unsold
presale territories, which are countries or territories left off of a film’s
presale list.
With offices in Los Angeles and Vancouver, Wonderfilm brings
a number of key industry executives with well-established track records of
individual success into a new wider business model able to quickly finance and
flexibly produce fresh slates of film and television content for US and foreign
markets. The company expects $20 million in deferred revenue in early 2020
alone and is positioned to realize $100 million in revenue by 2021.
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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Editor@QualityStocks.com
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