Video streaming is still a rising phenomenon that continues to disrupt traditional media and entertainment providers. The ease and instant accessibility of streaming has sparked the “cord cutting” movement, which is slowly killing the over-priced cable service industry. Major players like Netflix, Inc. (NASDAQ: NFLX) and Amazon.com, Inc. (NASDAQ: AMZN)’s Prime Video are delivering quality original content that is taking audiences away from the big television networks.
Analyst reports indicate that we are still in the early stages of streaming video user penetration, which will lead to major growth over time. According to analysts at Statista, the global video streaming market is forecast to see revenues grow from $12.57 billion in 2017 to $18.65 billion by 2022. This represents a compound annual growth rate (CAGR) of 8.30%.
This growth motivates Netflix, Inc. and Amazon.com, Inc. continue to increase their annual budgets for original content, which according to a recent interview with Variety magazine, Netflix, Inc.’s executives were quoted saying, falls between $7 and 8 billion for 2018. This makes a strong case that smaller film and television producers that create original content, could be ripe for an acquisition.
Overview: The Movie Studio, Inc. (OTC Pink: MVES)
The Movie Studio, Inc. (OTC Pink: MVES) operates as a vertically integrated motion picture production and distribution company. The company has a full-service studio in Miami, Florida, which is complete with state-of-the-art equipment. The Movie Studio, Inc.’s (OTC Pink: MVES) studio even utilizes 4K HD “Red Dragon” cameras, which are widely used in major movies, such as “Jurassic World.”
On the distribution side, the company intends to operate theatrically through its recent acquisition Emerging Media Corp (dba Emerging Pictures) which currently has 150 theatres with digital servers which was acquired by The Movie Studio, Inc. (OTC Pink: MVES) in July 2017.
Emerging Pictures is an all-digital film and alternative content network of movie theaters. Through this digital method and its network of theaters, the company can digitally distribute critically acclaimed movies, documentaries, art films, foreign films, independent films, concerts, and more. By using social media and digital content delivery to theaters, Emerging Pictures can assist distributors and theaters in utilizing a more effective and informed method of distribution strategies and programming selections.
Through the acquisition of Emerging Pictures, The Movie Studio, Inc. (OTC Pink: MVES) gained a network of 150 theaters and is working to secure licensing rights to distribute “up to” 1,800 movies in the catalog. This is a major step for the company, in what appears to be a potential parallel to Helios & Matherson’s (NASDAQ: HMNY) MoviePass however The Movie Studio has access to legacy content, library content or new content “Owned” by The Movie Studio, Inc.
The Movie Studio, Inc. (OTC Pink: MVES) has had two new original motion picture releases on Amazon’s Prime video platform: “Exposure” and “Bad Actress.”
The suspenseful thriller, “Exposure” stars legendary actor Corey Feldman, which centers around the high fashion modeling industry where the models begin to go missing, was released on Amazon Prime Video back in October 2017. https://www.amazon.com/Exposure-Corey-Feldman/dp/B075XZW8WJ/ref=sr_1_1?s=instant-video&ie=UTF8&qid=1513130740&sr=1-1&keywords=exposure
The plot thickens as the company Levine Cosmedicals becomes suspect as it launches its LePonce face rejuvenation cream with the slogan, “We put the model in you”. The story climaxes as the bio-molecular compound of the product is exposed, which is actual “Models.””
“Bad Actress” was released on Amazon Prime Video in early November 2017 and stars Colombian actress Excelina, who was also in “Exposure.” Also starring in the movie is Michael Gibb (the son of Bee Gee’s Barry Gibb) and Lillie Nichole McCloud, who is an international recording artist, Broadway actress, and X Factor runner up.
The movie is the story of Valentina, who comes to “AMERICA” from a small village in Colombia to fulfill her destiny. Valentina loses everything and against all odds overcomes adversity and gives it all to the Columbian school of homeless girls.”
MVES: Recent News and Updates
- 17th– The Movie Studio, Inc. (OTC Pink: MVES) officially announces the release of the suspense thriller film, “Exposure” staring Corey Feldman. The original film was release on Amazon Prime Video.
- 19th– The company announces it has executed a five year content licensing and revenue participation agreement with Lotus Research for white label version of Vu-Me movie studio application.
- 1st– The Movie Studio, Inc. (OTC Pink: MVES) though Cinema Arts Entertainment was exhibited at the 2017 American Film Market in order to license worldwide distribution for its films “Exposure,” “Dancing On The Edge,” and “Exotic Bride.” The company also announced acquisition of Emerging Pictures.
- 8th– The company announces the release of “BAD ACTRESS” on Amazon Prime Video. “Bad Actress” is starring Excelina, Michael Gibb, and Lillie Nichole McCloud. https://www.amazon.com/Bad-Actress-Excelina-Ordonez/dp/B0774VJRM9/ref=sr_1_1?s=instant-video&ie=UTF8&qid=1513131004&sr=1-1&keywords=Bad+Actress
MVES: Financial and Industry Analysis
The Movie Studio, Inc. (OTC Pink: MVES) has a market cap of $484,331, as of December 2017 and maintains a share structure consisting of 750 million authorized shares, 403,609,979 million shares outstanding, and a float consisting of 52.93 million.
As of July 22, 2017, The Move Studio, Inc. (OTC Pink: MVES) also retired the Cid Galindo 8% convertible note from November 2015. In exchange for retiring the $28,354 note, the company provided 6 million shares at a price of $0.0001.
The Movie Studio, Inc. (OTC Pink: MVES) is positioned to be a great acquisition target for streaming providers that continue to invest billions of dollars in original content. Netflix, Inc. (NASDAQ: NFLX)’s content chief, Ted Sarandos, told Variety in an interview in August that the company “will spend $7 billion to $8 billion on content in 2018.” After successfully launching “Exposure” and “Bad Actress” on Amazon Prime, The Movie Studio, Inc. (OTC Pink: MVES) has a proof of concept and launch pad for further original content distribution.
Other movie production companies that could help provide a fair valuation for The Movie Studio, Inc. (OTC Pink: MVES):
Helios and Matheson Analytics, Inc. (NASDAQ: HMNY): The company, which also owns and operates the popular MoviePass app, utilizes a subscription-based model that allows consumers to see one movie per 24 hours. The technology is available in 91% of the almost 40,000 theaters across the United States.
MoviePass is a relatively similar concept to The Movie Studio, Inc.’s (OTC Pink: MVES) recent acquisition, Emerging Pictures and its ability to deliver commercial-grade video on demand services. The Movie Studio, Inc. (OTC Pink: MVES) now has a network of over 150 theaters in the US. As of December 2017, Helios and Matheson Analytics, Inc. (NASDAQ: HMNY) has a market cap of $113.6 million and a share structure consisting of 12.44 million shares outstanding and a float of 5.02 million shares. During the third quarter 2017, the company reported total revenue of $1.17 million and a net loss of $43.46 million.
RLJ Entertainment, Inc. (NASDAQ: RLJE): The diversified digital content channel company is engaged within the acquisition, development, production, and distribution of digital content and TV programming. The company operates three main subsidiaries: Proprietary Subscription-Based Digital Channels, Intellectual Property Licensing, and Wholesale Distribution. RLJ Entertainment, Inc. provides original and third party licensed programming to its content channels: Acorn, RLJE Films, Urban Movie Channel, Acacia, and Athena. As of December 2017, RLJ Entertainment, Inc. has a market cap of $53.46 million and a share structure consisting of 14.07 million shares outstanding and a float consisting of 3.43 million shares. During the third quarter, the company reported total revenue of $20.9 million and a net loss of $2.72 million.
Lions Gate Entertainment Corp. (NYSE: LGF): The company operates within the production and distribution of motion pictures, TV programming, home entertainment, and more. Lions Gate Entertainment Corp. operates three main segments: Motion Pictures, Television Production, and Media Networks. Furthermore, the company has become a household name after successful producing “The Hunger Games” series, “La La Land,” “The Expendables,” and the “John Wick” series. Lions Gate Entertainment Corp. has a market cap of $6.39 billion and maintains a share structure consisting of 81.27 million shares outstanding and a float of 67.50 million shares, as of December 2017. During the third quarter 2017, the company reported total revenue of $940 million and net income of $15.5 million.
Twenty-First Century Fox, Inc. (NASDAQ: FOXA): The film and television production giant is responsible for some of the greatest movies of last decades: “Star Wars,” “Independence Day,” “Avatar,” “Home Alone,” “Planet of the Apes” series, and countless others. The company’s television unit also produces some of the most well known shows on TV: “Empire,” “This Is Us,” “Modern Family,” “American Horror Story,” and many more. Twenty-First Century Fox, Inc. has a market cap of $61.53 billion and maintains a share structure consisting of 2.32 billion shares outstanding and a float of 1.04 billion shares, as of December 2017. During the third quarter 2017, Twenty-First Century Fox, Inc. reported total revenue of $7 billion and net income of $855 million.
The Walt Disney Company (NYSE: DIS): The diversified entertainment company operates three main business segments: Media Networks, Parks and Resorts, and Studio Entertainment. Within its Media Network business, The Walt Disney Company operates cable networks, such as ABC, ESPN, Disney Channel, Freeform, and various radio broadcasting outlets. The company’s Studio Entertainment business produces and acquires animated and traditional motion pictures through its well-known subsidiaries: Walt Disney Pictures, Marvel, Lucasfilm, Pixar, and Touchstone. As of December 2017, The Walt Disney Company has a market cap of $157.98 billion and maintains a share structure consisting of 1.51 billion shares outstanding and a float of 1.44 billion shares.
Overall, The Movie Studio, Inc. (OTC Pink: MVES) is well positioned to be acquired by one of the larger streaming entertainment companies, as they bolster their budgets in an effort to compete for top original content.
The company has produced numerous original films and content, which has been distributed all over the world. and is now breaking into the upper echelons after the successful release of “Exposure” and “Bad Actress” on Amazon Prime Video.
The recent rise of MoviePass proves that The Movie Studio, Inc. (OTC Pink: MVES) has the ability to succeed, by comparison of their technologies within the motion picture and theater industry. After acquiring Emerging Pictures, The Movies Studio, Inc. (OTC Pink: MVES) now has a network of 130 theaters and the rights to distribute 1,800 movies, procuring management’s vision to be a major player in the commercial-grade video on demand business, while on track to be a major benefactor from the growing streaming video industry.