The United States motion picture industry is explained by The Merkin Group in this comprehensive resource article.

The Merkin Group are advising several  parties for the sole purpose of  raising capital and managing and acquiring and exploiting  the international distribution and certain other rights in approximately twenty eight (28) feature-length theatrical motion pictures (“Picture[s]”) over the next five (5) years for our client’s  proposed Film Acquisition Funds.

This plan  is based on immediate prior experience and financial success of both Sean Rothsey and other managers  and current negotiations with studios and networks globally . Personal relationships and an exceptionally  disciplined acquisition process dovetailed to the exploitation prospects have proven to be a successful formula in both bull and bear cycles over the past 15 years.

As background we have prepared the following.

Industry Overview:

 The United States motion picture industry can be broken down into the following principal activities:

(i)             Development of underlying literary material and the packaging of creative elements for a motion picture;

(ii)            The production/acquisition/financing of feature-length motion pictures; and

(iii)           The marketing and distribution of such motion pictures in a variety of media, including theatrical exhibition, video on demand and digital, home video, television and other ancillary markets such as non-theatrical, pay-per-view, airlines, cruise ships, music publishing, soundtrack albums, merchandising and new technology platforms on a worldwide basis.

The industry is dominated by the “major studios” that are members of the Motion Picture Association of America (“MPAA”). The current members are: Universal Studios, Inc., Warner Bros. (including Turner, New Line Cinema and Castle Rock Entertainment), Twentieth Century Fox Film Corp., Sony Pictures Entertainment (including Columbia Pictures), Paramount Pictures Corporation, and The Walt Disney Company (including Buena Vista, Touchstone and Miramax Film). These major studios have historically produced and distributed the majority of theatrical motion pictures released annually on screens throughout the country. The major studios are typically large diversified companies that have strong relationships with creative talent; exhibitors and others involved in the entertainment industry and have global film production and distribution capabilities.

Independent companies generally are more limited in terms of production and distribution capabilities compared to the major studios, and some “mini majors” such as DreamWorks, Relativity, Pixar, Village Roadshow, Lionsgate (including Summit) operate on a smaller scale, but together with “independent” motion picture production companies, have played an important role in the production of motion pictures for the worldwide feature film market. While the major studios have produced and distributed the majority of high grossing motion pictures annually in the United States, and have, therefore, accumulated substantial libraries, the independent companies have produced more motion pictures than the major studios on an annual basis at a lower cost per film. Independent companies may have limited or no internal distribution capability and must, therefore, rely on the major studios or other international distributors or end-users for distribution and financing.

 Development:

The creation of a motion picture typically begins with either the screenplay adaptation of a popular novel or other literary work acquired by a writer or a producer, or with the development of an original screenplay derived from an idea conceived of or acquired by the producer or studio executive.

During the development phase, the studio engages writers to draft and revise the screenplay and begins to obtain tentative commitments from a director and principal cast before ultimately deciding to “greenlight” (i.e. approving) the film for production. A proposed production schedule and budget may also be prepared during this phase. All of these activities must take place to ready the picture for production and due to the fact that the vast majority of development does not result in production, this is widely considered to be the most speculative part of the motion picture business.

Motion Picture Production:

The production of a motion picture occurs in three stages prior to initial theatrical release:

(i)             pre-production;

(ii)            principal photography; and

(iii)           post-production.

Preferably, financing for such production should be in place prior to the commencement of these activities.

Upon completing the screenplay, executing agreements with principal talent, and “greenlighting” the film based on a viable production budget and estimate of ultimate profitability, the film enters the pre-production phase. During pre-production, the studio:

(i)             employs creative personnel to the extent not previously committed;

(ii)             creates scene plans and the filming schedule;

(iii)           finalizes a detailed production budget;

(iv)          establishes filming locations, secures any necessary studio facilities, completes required set design and construction;

(v)           where applicable, secures production financing; and,

(vi)          prepares for the start of principal photography.

Principal photography, the actual filming of the screenplay, may extend from six to fourteen weeks or more, depending upon such factors as budget, location, and complexities inherent in the screenplay. Following completion of principal photography, the film is edited; visual effects are added, and voice, music soundtracks and the picture are synchronized during the post-production period. This results in the production of the film negative that is duplicated to create the release prints for shipment to theatrical exhibitors.

Production costs consist of acquiring and/or developing the screenplay, film studio rental, cinematography, post-production costs and the compensation of creative talent and other production personnel, until the end of the post-production period, including facilities (soundstage, film lab, editing room) and location rentals, equipment rentals, raw materials and other costs incurred in principal photography and postproduction. Virtually all money spent in the actual making of the film (generally not including the participations and residuals paid to creative talent) is included in the negative cost. Typically, the development and pre-production, principal photography and post-production phases of film account for approximately 20%, 60% and 20% of a film’s negative costs, respectively. Third party participations, typically a share of net profits or gross receipts if the film performs at a specific level, are not included as part of production costs but are paid as earned pursuant to the terms of the applicable talent agreement.

The terms of these participation agreements are generally not standardized and differ depending on the film’s projected performance, and the industry demand for the creative talent employed. Distribution expenses, which consist primarily of the costs of advertising and release prints, are not included in direct production costs.

 Financing:

The major studios generally fund production costs from cash flows from their motion picture and related activities or, in some cases, from unrelated businesses. Substantial overhead costs, consisting largely of salaries and related costs of the development, production, distribution and marketing staff and physical facilities maintained by the major studios, also must be funded. Studios sometimes acquire motion pictures for distribution through a customary industry arrangement known as a “negative pickup,” under which the studio agrees to acquire from an independent production company rights to a film upon completion of production.

In recent years, the major studios have also begun to establish “co-production” relationships or “co-financing” arrangements on selected films. In this fashion, a studio can share the costs and risks (as well as the revenue and upside) on a film with another studio, distributor or financier. Independent production companies normally finance production under financing arrangements with a combination of banks (or other lenders), guarantees from pre-sales of certain rights, and equity, in which the lenders are granted a security interest in both the film and the independent production company’s rights under its arrangement with the studio or independent distributor(s), and the third-party distributors will recoup their guarantees plus expenses and a fee before the independent company receives any overages. They tend to finance all or a portion of the direct production costs through “presales ”or “minimum guarantees” (i.e. licensing fees paid by third party distributors for the right to distribute the film in certain territories, markets, or media).

It is not uncommon to see two studios (or a studio and one or more independent companies) agree to co-fund, co-produce and co-distribute a specific film, dividing film profit (or losses) earned from their respective distribution responsibilities. Film production companies generally incur various third-party participations in connection with the distribution of a motion picture.

These participations are contractual rights of actors, directors, screenwriters, or producers, entitling them to share in net revenues or profit (as defined in the respective agreements) from a particular motion picture. Except for the most sought-after talent, participations are generally payable only after revenues collected exceed all distribution and marketing fees and expenses, direct production costs, and financing costs.

Motion Picture Distribution:

Motion picture distribution encompasses the exploitation of films in theaters and in ancillary markets such as home video, video on demand and digital, pays per-view, pay and broadcast television, and other markets both domestically and internationally.

A substantial portion of a motion picture’s total revenue is generated in its first distribution cycle (generally the first five to seven years after the motion picture’s initial U.S. theatrical release), which typically includes theatrical, home video, video on demand and digital, pay-per-view, non-theatrical and pay and free television. In addition, motion pictures continue to generate revenues from the re-licensing of distribution rights in certain media, including television, video on demand and digital and home video, and from the licensing of distribution rights with respect to new distribution platforms and emerging markets. Some motion pictures may even generate revenues from the creation of derivative works such as remakes, sequels and television series.

Theatrical Distribution:

Theatrical distribution of a motion picture involves the manufacturing and transportation of release prints, the promotion of the picture through advertising and publicity campaigns and the licensing of the motion picture to theatrical exhibitors. The size and success of the promotional advertising campaign can materially affect the revenues realized from the theatrical release of a motion picture. The costs incurred in connection with the distribution of a film can vary significantly, depending on the number of screens on which the motion picture is to be exhibited and the competition among distributors for theaters during certain seasons. Similarly, the ability to exhibit motion pictures in the most popular theaters can affect theatrical revenues. The distributor and theatrical exhibitor generally enter into an arrangement providing for the exhibitor’s payment to the distributor of a percentage of the box office receipts for the exhibition period, in some cases after deduction of the theater’s overhead or a flat negotiated weekly amount.

The distributor’s percentage share (“Retention Rate”) of box office receipts generally ranges from an effective rate of 35% to over 50%, depending upon the success of the motion picture at the box office. Distributors carefully monitor theater gross receipts to ensure that the exhibitor promptly pays all amounts due. Films are typically released theatrically in international territories between one and three months following initial domestic theatrical release. In recent years, however, studios have begun to capitalize on global media saturation and are releasing films in many of the larger international territories within the first month following domestic release; the trend toward “day-and-date” releases also serves to mitigate some piracy issues. International release patterns are dependent on local holidays and school schedules as well as the timing of competitive releases.

The majority of international theatrical revenues are earned from Japan, Germany, United Kingdom, France, Spain, Italy and Australia. Live action films are generally dubbed in French, German, Spanish and Italian and subtitled for the smaller territories. Animated films are dubbed in as many as 25 languages.

Home Video:

The home video distribution business involves the promotion and sale and/or lease of DVDs to local, regional and national video retailers (e.g., mass merchants, video specialty stores, kiosks, convenience stores, record stores and other outlets), which then rent or sell such videocassettes and DVDs to consumers for private viewing. Major feature films are usually scheduled for release in the home video market within three to six months after theatrical release to capitalize on the theatrical advertising and publicity for the film. DVD’s of feature films may be sold or leased to domestic wholesalers and retailers for either a sales price or a percentage share of the rental revenues (“revenue sharing”) DVDs are most often released “day-and-date”.

 Video-on-demand:

 VOD is a recently introduced method of content delivery, which allows users to select and watch video content on demand. IPTV technology is often used to bring video on demand to televisions and personal computers. Television VOD systems either stream content through a set-top box, a computer or other device, allowing viewing in real time, or download it to a device such as a computer, digital video recorder (also called a personal video recorder) or portable media player for viewing at any time. The majority of cable– and telco-based television providers offer both VOD streaming, including pay-per-view and free content, whereby a user buys or selects a movie or television program and it begins to play on the television set almost instantaneously, or downloading to a DVR rented from the provider, or downloaded onto a pc, for viewing in the future. Internet television, using the Internet, is an increasingly popular form of video on demand.

Derivations include Video On Demand (VOD) , Near Video On Demand (NVOD), Transactional Video On Demand (TVOD) and Subscription Video On Demand (SVOD).

Major  operators include the juggernauts Apple TV and Goggle,Amazon, Redbox Instant (owned by Verizon and Coinstar(,  and about 750 others including HBO Go (recently acquired by Apple), HBO (owned by Time Warner and signing a 10 year deal with Universal in January 2013), Roku, Netflix ( reporting 25 million subscribers in Sept 2012 and signing an exclusive deal with Disney which does not start until 2016).

IPTV  technology was hindered by low broadband penetration and by the relatively high cost of installing wiring capable of transporting IPTV content reliably in the customer’s home. However, residential IPTV was expected to grow globally as broadband was available to more than 200 million households worldwide in 2005.

In December 2009, the FCC began looking into using set-top boxes to make TVs with cable or similar services into network video players. FCC Media Bureau Chief Bill Lake had said earlier that TV and the Internet would soon be the same, but only 75 percent of homes had computers, while 99 percent had TV. A 2009 Nielsen survey found 99 percent of video viewing was done on TV.

In an interview with Beet.TV, Cisco’s VP for Marketing and Emerging Technologies, David Hsieh, points out that “video is invading all aspects of our lives.” He says, “Today over half of all Internet traffic is video—51 percent. November 1, 2011.

The number of global IPTV subscribers was expected to grow from 28 million in 2009 to 83 million in 2013. Europe and Asia are the leading territories in terms of the over-all number of subscribers. But in terms of service revenues, Europe and North America generate a larger share of global revenue, due to very low average revenue per user (ARPU) in China and India, the fastest growing (and ultimately, the biggest markets) is Asia. The global IPTV market revenues are forecast to grow from US$12 billion in 2009 to US$38 billion in 2013.

While all major western countries and most developed economies have IPTV deployments, the world’s leading markets for IPTV were Germany (by Deutsche Telekom) France (led by Free, then Orange, then Neuf Cegetel (now SFR); total of over 4 million subscriptions), South Korea (4 million subscriptions as of May 2011), United States (by AT&T), Hong Kong, Japan, Italy, Spain, Belgium, Luxembourg, Austria, Belarus, China, Singapore, Taiwan, Switzerland and Portugal (with meo, Optimus Clix and Vodafone Casa .

Services also launched in Bosnia and Herzegovina, Bulgaria, Pakistan, Canada, Croatia, Lithuania, Republic of Moldova, Macedonia, Montenegro, Poland, Mongolia, Romania, Serbia, Slovenia, the Netherlands, Georgia, Greece, Denmark, Finland, Estonia, Czech Republic, Slovakia, Hungary, Norway, Sweden, Iceland, Lithuania, Turkey, Colombia and Chile. The United Kingdom launched IPTV early and after a slow initial growth, in February 2009 BT announced that it had reached 398,000 subscribers to its BT Vision service.Claro has launched their own IPTV service called “Claro TV”. This service is available in several countries in which they operate, such as Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua. IPTV is just beginning to grow in Central and Eastern Europe and Latin America, and now it is growing in South Asian countries such as Sri Lanka, Pakistan and especially India but significant plans exist in countries such as Russia. Kazakhstan introduced its own IPTV services by the national provider Kazakhtelecom JSC and content integrator Alacast under the “iD TV” brand in two major cities Astana and Almaty in 2009 and is WENT nationwide starting 2010.  Australian ISP iiNet launched Australia’s first IPTV with fetchtv in 2010, backed by its Malaysian parent (40%)  Astro All Asia Networks,and is sold through partner Internet Service Providers (ISPs).

The first IPTV service to launch on the Chinese mainland sells under the “BesTV” brand and is currently available in the cities of Shanghai and Harbin.In India, IPTV was launched by Airtel and the government service provider MTNL and BSNL through tie up with AKSH and is available in most of the major cities of the country. Meanwhile, UF Group which is the franchise owner for UFO movies in Southern India plans to offer multiple host of services such as customer’s movies on demand, shopping online, video conferencing, media player, e-learning on their single IPTV set top box branded as Emagine.

In Pakistan, IPTV was launched by PTCL in 2008, under the brand name of Smart TV. This service is available in most major cities of the country.

In Malaysia, various companies have attempted to launch IPTV services since 2005. Failed PayTV provider MiTV attempted to use an IPTV-over-UHF service but the service failed to take off. Hypp.TV was supposed to use an IPTV-based system, but not true IPTV as it does not provide a set-top box and requires users to view channels using a computer. True IPTV providers available in the country at the moment are Fine TV and DETV. In Q2 2010, Telekom Malaysia launched IPTV services through their fiber to the home product UniFi in select areas. In April 2010, Astro began testing IPTV services on TIME dotCom Berhad’s high-speed fiber to the home optical fibre network. In December 2010, Astro began trials with customers in high-rise condominium buildings around the Mont Kiara area. In April 2011, Astro commercially launched its IPTV services under the tag line “The One and Only Line You’ll Ever Need”, a triple play offering in conjunction with TIME dotCom Berhad that provides all the Astro programming via IPTV, together with voice telephone services and broadband Internet access all through the same fibre optic connection into the customer’s home.

In Turkey, TTNET launched IPTV services under the name IPtivibu in 2010. It was available in pilot areas in the cities of Istanbul, İzmir and Ankara. As of 2011, IPTV service is launched as a large-scale commercial service and widely available across the country under the trademark “Tivibu EV”.Superonline plans to provide IPTV under the different name “WebTV” in 2011. Türk Telekom started building the fiber optic substructure for IPTV in late 2007.

In Iran, Shima is the first IPTV service provider, launched its pilot in 2011.

In Saudi Arabia, MAHEC is offering Hospitality TV (IPTV) powered by NEVRON with complete design, installation and maintenance services.

Suffice to say it is unquantifiable as to how far this delivery system will diminish other exploitation and how much new exploitation opportunities will be created.

 Map of IPTV penetration 2011 .Source wikipedia

 Pay-Per-View:

Pay-per-view television allows cable and satellite television subscribers to purchase individual programs, including recently released motion pictures and live sporting, music or other events, on a “per use” basis. The subscriber fees are typically divided among the program distributor, the pay-per-view operator and the cable system operator.

Pay TV:

Pay Television allows subscribers to view premium channels such as HBO (reporting 30 million subscribers on 30 September 2012 with deals signed with Summit,Fox and and Warners recently) , Cinemax, Showtime, The Movie Channel and Starz/Encore, domestically, and Canal Plus, BskyB, Telepiu, and RTL, internationally, that are offered by cable and satellite system operators for a monthly subscription fee.  The pay television networks acquire a substantial portion of their programming from the major studios. Most studios have negotiated output agreements with the major subscription pay services whereby the service provider must license for distribution all qualifying film product from the studio for a guaranteed fee typically dependent on domestic theatrical performance. The initial pay television window for theatrical product generally follows home video availability and precedes broadcast (free) television.

 Broadcast and Basic Cable:

Broadcast television allows viewers to receive, without charge, programming broadcast over-the-air by affiliates of the major networks or independent stations. Domestically, the major networks are ABC, CBS, NBC, Fox, UPN and the WB; and, examples of some leading International outlets are TF1, ProSieben, RAI and the BBC. Basic cable and satellite networks (such as USA, TNT, WTBS, domestically, and Cinefil, RTL9, Sky 1, and MoviStar, internationally) provide viewers with a package of programming for a subscription fee. In certain areas, viewers may receive the same programming via cable transmission for which subscribers pay a basic cable television fee. Broadcasters or cable system operators pay fees to distributors for the right to air programming a specified number of times. As with pay-per-view and pay television, broadcast and basic cable networks typically acquire a substantial portion of their programming through output agreements with the major studios.

Television networks, independent television networks, television stations and cable system operators generally license television series, films and film packages (consisting of theatrically released feature films and made-for television movies) pursuant to agreements with distributors or syndicators that allow a fixed number of telecasts over a prescribed period of time for a specified cash license fee or for barter of advertising time.

Pay and cable television services usually license pictures for initial exhibition commencing approximately 10 to 18 months after initial US domestic theatrical release or six months after domestic home video release.

Free to Air  TV:

Certain dynamics of Pay TV ( broadcast and basic cable) and FTA TV are the same but our  further thoughts and commentaries are reserved for our own purposes.

Other Markets:

Revenues also may be derived from the non-theatrical distribution of motion pictures to airlines, schools, libraries, hospitals and the military. Soundtrack albums and licensing of rights to perform musical works from film music can be a significant source of ancillary income. Other revenues may be generated from the licensing of rights to manufacture and distribute games, dolls, clothing and similar commercial articles derived from characters or other elements of a motion picture (i.e. merchandising and licensing).

 Industry Statistics and Trends:

 According to industry forecasters, the motion picture industry is expected to maintain a steady growth for the foreseeable future and, despite the many choices in entertainment options, admissions continue to increase year on year.

Domestic Box Office:

 U.S./Canada box office repeated its peak 2009 performance in 2010, reaching $10.6 billion, up 15% over five years ago. 3D was a key driver –21% of 2010 U.S./Canada box office ($2.2 billion) came from 3D showings, nearly double the 2009 total. 25 films released with 3D versions in 2010, up from 20 in 2009.

International Box Office:

The international growth is projected to continue due to an increase in the movie-going audience watching a greater number of films which will include local productions, co-productions and, of course, U.S. produced blockbusters.

Further, prior years’ investment in multi-plex theaters, mega-plexes and renovations have continued to increase audience satisfaction and the movie going experiences, as the basis number of screens worldwide continued to grow.  Emerging markets in regions such as Eastern Europe, Russia, China, India and parts of Latin America are currently under-screened and, therefore, motion pictures are under-exploited there, leading the industry to recognize these regions as future growth opportunities. A combination of additional traditional theatre construction and the eventual rollout of digital cinemas will accelerate this growth in the future.

Worldwide box office for all films released in each country around the world1reached $31.8 billion in 2010, up 8% over 2009’s total, boosted by box office increases in markets outside the U.S./Canada. International box office ($21.2 billion) made up 67% of the worldwide total, a slightly higher proportion than in previous years. International box office in U.S. dollars is up significantly over five years ago.

Box office for all films released in countries outside the U.S. and Canada increased 13% in 2010. As a result of significant growth in Asia Pacific (21%), in 2010 for the first time Europe, Middle East & Africa (EMEA) represented less than half (49%) of total international box office value. All major markets in Asia Pacific grew in 2010 in U.S. dollar terms, but the largest increase in overall box office value for all films, more than 40% of the Asia Pacific box office growth, occurred in China. However, China remains a highly restrictive market for foreign film distribution but presents many opportunities which we reserve for our own purposes.

Ancillary Market Revenue:

 The 2010 home entertainment market continued to be bolstered by the steady growth of Blu-ray as total U.S. home entertainment spending hit $18.8 billion to close the year. Blu-ray software sales rose 68 percent in 2010, while consumer spending on digital distribution grew 19 percent, making a notable contribution to the overall home entertainment mix. These and other home entertainment year-end figures were announced today by DEG: The Digital Entertainment Group at the International Consumer Electronics Show (CES). According to the DEG, with input from all major motion picture studios, leading consumer electronics manufacturers, IT companies and tracking sources, while overall consumer spending was down 3.3 percent for the year, Blu-ray continued its remarkable growth, with software sales of $1.8 billion. On the rental front, despite challenging market conditions, Blu-ray was up 34 percent in brick and mortar outlets. The DEG estimates that the number of Blu-ray playback devices in U.S. households soared to 27.5 million in 2010, up 62 percent.

“We continued to see strong growth in Blu-ray and significant gains in digital distribution this year, despite a tough economy,” said Ron Sanders, President, DEG and President, Warner Home Video. “We also saw a slight increase in consumer transactions, which is a clear indication that consumer demand for home entertainment remains healthy.”

Digital distribution contributed materially to the home entertainment sector in 2010, with consumer spending on broadband electronic sell-through (EST) and video on demand (VOD) up a combined 19 percent to $2.5 billion. VOD brought in $1.8 billion, up 20.8 percent for the year, while broadband EST grew 15.7 percent to $683 million. Further, VOD significantly offset the decline of the entire rental category in 2010. Without VOD, rental is down two percent for the year – with VOD, the category is back to growth, up two percent to $7.8 billion. The Hollywood-based trade group also reported that, in the U.S., consumer transactions for pre-recorded content grew one percent for the year.

Blu-ray Disc playback devices – including set-top box and game consoles – sold through more than 28.5 million units since launch. Some six million devices sold in the fourth quarter alone, bringing total units sold to 11.25 million in calendar 2010, according to numbers compiled by the DEG with input from retail tracking sources.

The DEG estimates that more than 91 million HDTV sets have sold to consumers bringing the number of HDTV households to nearly 56 million. The DEG further estimates that nearly 39 percent of these households have more than one set.

According to figures compiled by the DEG based on data from Consumer Electronics Association (CEA) retailers and manufacturers, an estimated 20.2 million DVD players were sold to U.S. consumers in 2010. Since launch in spring 1997, some 297 million DVD players, including set-top and portable DVD players, Home-Theater-in-a-Box systems, TV/DVD and DVD/VCR combination players, have sold to consumers, bringing the number of DVD households to approximately 90 million (adjusting for households with more than one player). The DEG estimates that 70 percent of DVD owners have more than one player.

According to figures compiled by Swicker & Associates on behalf of the DEG, in calendar 2010, more than 170 million Blu-ray Discs shipped to market. In the fourth quarter, some 73 million discs shipped to retail. Since launch, nearly 350 million Blu-ray Discs have shipped.

In the fourth quarter, nearly 343 million DVDs shipped to retail. More than one billion DVD units shipped throughout 2010 and more than 12.5 billion discs have shipped since the DVD format launched in 1997.

According to figures compiled by the DEG based on data from Consumer Electronics Association (CEA) retailers and manufacturers, an estimated 20.2 million DVD players were sold to U.S. consumers in 2010. Since launch in spring 1997, some 297 million DVD players, including set-top and portable DVD players, Home-Theater-in-a-Box systems, TV/DVD and DVD/VCR combination players, have sold to consumers, bringing the number of DVD households to approximately 90 million (adjusting for households with more than one player). The DEG estimates that 70 percent of DVD owners have more than one player.

According to figures compiled by Swicker & Associates on behalf of the DEG, in calendar 2010, more than 170 million Blu-ray Discs shipped to market. In the fourth quarter, some 73 million discs shipped to retail. Since launch, nearly 350 million Blu-ray Discs have shipped.

In the fourth quarter, nearly 343 million DVDs shipped to retail. More than one billion DVD units shipped throughout 2010 and more than 12.5 billion discs have shipped since the DVD format launched in 1997.

Sean Rothsey

Sean Rothsey  has founded , run, or provided advice and assistance to public and private enterprises since the early 1980s and is a global specialist in Private Equity and Corporate Finance and Investment Banking,  with experience in Equity Capital Markets (including IPOs and reverse listings), property, agribusiness, manufacturing, shipping and logistics, data and technology solutions, information and communications technology, diversified financial services, online trading solutions, institutional wholesale & retail stockbroking, film acquisition, financing & distribution, media & entertainment ranging from start up to +A$1Billion. In addition through The Merkin Group ( including Pinefilm Pty Ltd, Merkin Pastoral Holdings Pty Ltd, The Rothsey Family Trust, Pinefilm Entertainment Pty Ltd, Horizon One Entertainment Pty Ltd,Revolution Entertainment Ltd and numerous partnerships its related entities have acquired and managed or distributed in our own right , or in partnership some 400 films across all rights in many territories. They have been attending film markets and festivals and Hollywood for almost 15 years and have strong film financing , sales agents, film production and studio relationships. They  have co distributed and worked with MGM , Warner Bros , Buena Vista, Disney, Fox, Sony , Universal,Madman, Becker Film, REP, Polygram,UIP  and all the major sales agents and producers. They are successful creators, funders and managers of investor pools.

The capital raising from third party investors will be handled by BoxRED Corporate (a division of Merkin Pastoral Holdings Pty Ltd  ACN056384975) (“BoxRED”), solely for information purposes and for the recipient’s sole use and shall not be further transmitted to third parties. It is and will be based on information provided by our client or third parties .

BoxRED can offer advice and services where it is lawful to do so on an exempt and unlicensed basis in  an unregulated environment. BoxRED  can  facilitate introductions and outcomes through Government , business or financial service industry organisation  professionals and  qualified exempt sophisticated and professional investors in certain circumstances in certain jurisdictions where it is lawful to do so.  As consultants BoxRED can assist parties  in an unregulated and unlicensed capacity in a buy sell or other transaction but make no legal warranties or representations of any kind as to the Buyer, Seller or Transaction as to the Transaction.

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Sean Rothsey

About the core competencies and key strengths of the proposed manager:

Sean Rothsey has been a director of listed and unlisted private and public companies in Australia and NZ since 1981 and has been involved in the listing (IPO) or reverse listing (reverse takeover) and private placements of many companies in Australia , NZ  South Africa and London.

He is the immediate past chairman  and long time director of ASX listed diversified financial services company MDS Financial Group Ltd , whose subidiaries include an ASX Particpant (StockBroker) and a director  of two of three subisdiaries each holding Australian Financial Services Licenses issued by the Australian Securities and Investment Commission.As a founding Deputy Chairman and director of NISER Ltd he has represented the National Stock Exchange , the Bendigo Exchange and the Taxi Exchange in regional Queensland.

Also conversant with financial services regulations in Hong Kong , China  Sean and his network have particularly knowledge of  Funds Management structuring and compliance  in the Bahamas, BVI and the Cayman Islands.

The Merkin Group offer advisory and consultancy services in global business and asset management strategies including corporate governance,risk and compliance as well as facilitating outcomes through valued added solutions, introductions or capital.