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The Movie Studio, Inc. (MVES) Benefits from Explosion in Original Content Programming

  • The Movie Studio has benefitted from recent surge in demand for VOD platforms
  • Launch of new streaming platforms has led to increase in demand for original content, product differentiation
  • 44% of viewers are now opting to view original content unique to specific platform
  • MVES has monetized its film assets across a number of VOD providers and recently expanded its distribution to foreign markets

As theaters have been shuttered across the world in the wake of COVID-19, movie studios have had to find ways to reach moviegoers at home—a move that has created a windfall for video-on-demand (“VOD”) purveyors. Original content and film producers such as The Movie Studio (OTC: MVES) have been major beneficiaries of the recent surge in demand for online content.

AMC Theaters, the world’s largest cineplex operator, recently announced that “almost all” of its locations in the United States and Britain would reopen by July (http://nnw.fm/J7Ayd). The dearth of cinematic content as well as the lengthy lock-downs prompted by the COVID-19 pandemic has led to an explosion in growth for VOD platforms, with up to 12,000 consumers a day reportedly cutting ties with their traditional satellite and cable service in favor of online platform subscriptions (http://nnw.fm/Zt6z3).

In April 2020, Netflix released its first quarter results, revealing that the streaming platform had added 15.8 million new subscribers in the first quarter of the year – up 23% year over year and, remarkably, over double the 7 million new subscribers the company had originally forecast (http://nnw.fm/bDgX9). However, the launch of a spate of new streaming platforms – including the likes of Apple TV+, Disney, Comcast’s NBCU and AT&T’s WarnerMedia, and the growing need for product differentiation has led to a rising demand for original content programming.

A 2019 study by consultancy PwC found that video-on-demand VOD viewers spent 44% of their time watching content which was original to the platform it was viewed on (http://nnw.fm/M7amL). The rise in competition as well as the difficulty in sourcing licensed content has led to a surge of investment in to original content creation. Netflix alone is forecast to spend $17.8 billion on original content production in 2020, a 157% increase on its spend only five years prior (http://nnw.fm/d8iKr).

A beneficiary of the growing need of streaming platforms to secure original content, The Movie Studio has sought to carve out a niche for its unique brand of films by creating and distributing its content on major subscription VOD platforms without the expense of using recognizable movie stars; the strategy in turn has allowed the company to focus on increasing production quality and reduced its overall capital expenditure.

Thus far the company has successfully monetized its film assets on platforms such as Amazon Prime, tubi tv, Comcast and Showtime while entering into a number of distribution agreements to further bolster its commercial efforts going forward. In addition to its existing partnership with Filmhub for the licensing and distribution of its motion pictures, The Movie Studio recently announced that it had entered into a memorandum of understanding with BINGE Networks LLC, an award-winning streaming platform which has enabled MVES to syndicate and monetize its content globally.

“We are excited to leverage a digital platform for our current and future aggregated titles and to facilitate title recognition for upcoming movies,” stated The Movie Studio president and CEO Gordon Scott Venters. “This platform allows for geo-fracturing of worldwide distribution rights, isolating our potential revenue streams and allowing for the maximization and monetization of intellectual property rights” (http://nnw.fm/jOhv5). Venters went on to elaborate on the recent monetization efforts achieved through its collaboration with BINGE Networks, “We also recently announced that The Movie Studio has licensed several films, including ‘Bad Actress’ and ‘Exposure’ for distribution in Australia.” (http://nnw.fm/9qLmW).

With worldwide subscribers expected to top 1.1 billion by 2021 (http://nnw.fm/s1GMl), the global growth of VOD platform revenue is expected to rise from $69 billion in 2018 to $129 billion by 2023 (http://nnw.fm/y5dWg). The Movie Studio’s innovative distribution model, vast film library and wide array of feature films in pre-production has optimally positioned the company to capitalize on the continued surge in global demand for original content programming going forward.

For more information, visit the company’s website at www.TheMovieStudio.com.

NOTE TO INVESTORS: The latest news and updates relating to MVES are available in the company’s newsroom at http://nnw.fm/MVES

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