3. •Build on reputation as the best mini major
•Increase library by an average of 80 titles/yr
•Increase methods for distribution
•Produce low cost, high return films
4. Television Production
Motion Pictures
Motion Pictures
Theatrical
85% 46%
Video
Television
14%
TV 15%
International
Mandate Pictures
1% 4% 8%
12%
Other
5. •Increase profitability of operations
•Reduce risk in volatile production industry
•Increase library and distribution methods
6. Tactic 1 – Reduce Production Cost
Tactic 2 –Increasing Online Distribution
Tactic 3 – Alternative Revenue Streams
7. •Reduce the number of in-house productions
•Increase number of acquisitions
8. 2009
•Reduce to 6 theatrical in-house production
•Increase to 10 film acquisitions
2010
•Maintain 6 theatrical in-house production
•Increase to 12 film acquisitions
2011
•Maintain 6 theatrical in-house production
•Increase to 14 film acquisitions
9. 2008 2009 2010 2011 3 year
(in millions)
20 16 18 20 total
Releases
Produced $330 $180 $180 $180 $540
Acquired $162 $180 $216 $252 $648
Total $492 $360 $396 $432 $1,188
Expense
10. 2008 2009 2010 2011 3 year
(in millions)
20 16 18 20 total
Releases
Produced $355.92 $193.59 $193.59 $193.59 $580.77
Acquired $232.31 $258.12 $309.76 $361.37 $929.25
Total $587.22 $451.71 $503.35 $554.96 $1,510.02
Revenue
11.
12. •Currently only 2.5% of the 8000 film titles are available online
• Online movie downloading has increased from $114 to $245million
• Forecast to reach a high of $846 million by 2011
•39% increase in online rental subscriptions
increase in digital video downloads
•255%
•Low cost and risk
•Sharing revenues with online distributers
13. 2009
•Increase library titles from 200 to 400
•Increase market share from 4% to 5%
2010
•Increase library titles from 400 to 600
•Increase market share by 1%
2011
•Increase library titles from 600 to 800
•Increase market share to 7%
16. 2009
•Invest $250,000 in R&D in Smartphone distribution analysis
2010
•Invest $250,000 in R&D in Smartphone distribution testing
2011
•Invest $500,000 in R&D for Smartphone distribution implementation
• Achieve 2% of market share of the mobile video content market
17. •Smartphone use is forecast to grow 56% per year for the next 3 years
•Movement into mobile video services; 198% growth from 06 - 07
•23% of US consumers watch video on their mobile phones
•10.3 million watched video on their phone in the 3rd quarter 08
•mainly for entertainment
18. 2008 2009 2010 2011 3 year
(in millions)
total
Revenue $0 $0 $0 $1.64 $1.64
Expenses $0 $.25 $.25 $.5 $1.00
Gross $0 ($.25) ($.25) $1.14 $.64
Profit
19.
20. (in millions) Not Implemented Implemented
$64.33 $110.41
2009
$141.06 $140.76
2010
$169.78 $173.94
2011
$375.17 $425.11
Total