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The Movie Studio Inc. (MVES) Joins New Digital Content Marketplace, Sees Number of Films Licensed Within Days

  • Video-on-demand (VoD) and streaming services have seen astonishingly high subscriber numbers in 1Q2020
  • The Movie Studio has sought to capitalize on rising demand for licensed content by joining online digital marketplace seeking to bring content vendors, distributors together within single platform
  • The company revealed that it had already licensed a number of films for territory of Australia within days of joining new platform
  • The Movie Studio’s recent licensing efforts as well its vast array of feature films in pre-production put it in good stead to benefit from rapid rise in demand for licensed content

In a recent survey of 2,600 people in the U.S., an astounding 64% of respondents said that they had either severed their ties with their television cable provider or were actively planning to – with the figure rising to 74% within the 18 to 34 age bracket (http://ibn.fm/bHXoK). The ongoing coronavirus pandemic has seen a stark and overwhelming shift by housebound consumers towards streaming video providers, and digital content providers like The Movie Studio Inc. (OTC: MVES) are positioned to capitalize on the shift in consumer demand.

The Movie Studio recently announced its integration with a digital content platform, which seeks to bring together content vendors and distributors into a single digital marketplace. The digital marketplace utilizes smart contracts and blockchain technology to enable its counterparties to transact in a seamless and cohesive manner. Simultaneously, this allows companies to bypass the oft cumbersome and time-consuming process of optioning film rights amongst the vast array of video-on-demand (VoD) platforms prevalent in today’s marketplace.

“We are excited to leverage a digital platform for our current and future aggregated titles and to facilitate title recognition for upcoming movies,” MVES President and CEO Gordon Scott Venters stated in a news release (http://ibn.fm/LeWRi). “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 while the platform eliminates marketing in the physical marketplace, allowing buyers to view our content perpetually in a digital marketplace.”

The VoD market has seen a surge of interest over the past few years, and data released by The Motion Picture Association of America (MPAA) last year revealed that the number of streaming video subscribers had surpassed cable customers for the first time in 2019. The trend has become even more pronounced in 2020, with Netflix announcing that it had added 15.8 million new subscribers in the first quarter of the year – up 23% year-over-year and startlingly, over double the 7 million new subscribers the company had originally forecast (http://ibn.fm/xKRsV). Meanwhile, a recent study carried out by consultancy PwC projected that revenues from digital streaming platforms, also known as over-the-top (OTT) streaming, would rise to over $72.8 billion by 2023 – an annual growth rate of 13.8% (http://ibn.fm/JIcPT). Remarkably, streaming is also set to account for 35.4% of total global TV subscription revenues by 2023, a dramatic increase from the 18.6% share it commanded in 2018.

However, the rapid proliferation of streaming platforms has also led to a sharp increase in demand, and price, for content. While the ongoing and rapid fragmentation of the industry has led to a surge of investment into original programming – Netflix alone is said to direct over 85% of its new content spend towards original and proprietary projects (http://ibn.fm/kTfIF) – PwC found that a remarkable 80% of content viewed within the US was licensed. “While licensed content still attracts many viewers, costs for such content are quickly rising,” concluded Mark McCaffrey, U.S. technology, media, and telecommunications leader at PwC (http://ibn.fm/Fo78k).

The Movie Studio’s unique content library as well as its recent marketing efforts have positioned it well to benefit from the surge of interest in licensed content. On May 22, only days following the company’s integration into the new digital content platform, The Movie Studio revealed that it had licensed a number of its films, including Bad Actress and Exposure, for the territory of Australia (http://ibn.fm/9KuZD). The virtual arms-race for licensed content coupled with the company’s integration into its online digital marketplace has allowed The Movie Studio to accelerate the monetization and revenue stream of its assets whilst simultaneously offering title discovery of feature films in pre-production to a worldwide community of licensors.

The Movie Studio’s efforts, however, have not been limited to its recent successes. In April, the company inked a licensing agreement with FILMHUB, with the latter company charged with distributing the Movie Studio’s extensive film catalog to its broad array of channel partners, including the likes of Amazon and Tubi, among others (http://ibn.fm/7PjQv). With The Movie Studio actively working towards expanding the geographical breadth and scope of its licensing and film library monetization efforts, the company’s recent achievements coupled with its vast array of feature films in pre-production have positioned it optimally to benefit from the breathtaking growth of the online streaming market.

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://ibn.fm/MVES

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