- 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