- Wonderfilm Media Corporation announced the co-marketing of a third-party asset-backed debt facility
- Through easier access to funds, the company will enhance its ability to deliver content to streaming services, theaters and broadcasters
- The market currently provides excellent opportunities to well-positioned players like Wonderfilm due to the rapid expansion of the content streaming segment
Wonderfilm Media Corporation (TSX.V: WNDR) (OTCQB: WDRFF) announced on October 22, 2019, the co-marketing of a third-party, $50-million asset-backed debt facility, designed to increase company revenue and its overall production efficiency, according to a press release (http://nnw.fm/iG0dJ).
The facility will be a U.S.-based limited liability corporation. It would exclusively support and be secured against specific future Wonderfilm productions. Through the facility, Wonderfilm will benefit from accelerated approval and scheduling of production and delivery of its film and television slate. In addition, the company will benefit from the prospects of rapid revenue generation and production by cash flowing all pre-sale movie contracts. Through the facility, Wonderfilm will also finance government tax credits and tax incentives.
The announcement is in line with Wonderfilm’s current growth phase. The access to funds will greatly streamline the company’s ability to deliver content to streaming services, theaters and broadcasters around the world, Wonderfilm CEO Kirk Shaw said.
The Wonderfilm business model relies predominantly on selling movies in packages. The term packaging refers to the acquisition and development of a movie script, the hiring of a director and the cast of actors. Once the cast of actors is chosen, the company announces the title and the leads, entering contracts for film pre-buying on the basis of the complete package. Once contracts are in place, Wonderfilm can apply for financing and commence production. A loan can easily be repaid shortly after delivery, once the contracted amounts have been transferred.
Wonderfilm’s revenue generation model is based on production fees and selling to unsold territories. Overages above the pre-sale threshold also create solid revenue streams.
Wonderfilm is a very young entity but its team consists of Hollywood veterans who have packaged, produced and delivered an array of profitable recent films like Get Out and The Hurt Locker. The company maintains a continuing $58-million annual production slate to meet the growing international need for content.
Content for streaming providers is one of the primary drivers for growth in the industry. The global video streaming market is anticipated to reach $124.57 billion by 2025, expanding at a CAGR of 19.6 percent over the forecast period (http://nnw.fm/oiVJ4). The popularity of streaming platforms, coupled with the growing interest in on-demand streaming services, will both fuel the expansion of the industry.
In 2019, video streaming consumption grew 72 percent on an annual basis (http://nnw.fm/A3yLF). The growth over the first quarter of the year alone was 49 percent. Nearly 64 percent of mobile video streaming is on-demand content, while the rest is covered by live video. On PCs, on-demand content accounts for 57 percent of streaming.
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://nnw.fm/WDRFF
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