Creative Content Finance (No. 279)

3  3750USD start bounty
3750USD current bounty
posted by josephinga
Loading...

Comments

White Paper Summary
Creative Content Finance

karlkarl Reputation: 203
Status: White Paper Owner
Send Message

Very interesting, thanks for submitting our first white paper in the TV industry.

fa5535c9ccf5d7667479b940f6ecd922
MX10178MX10178 Reputation: 75
Status: Bounty Hunter
Send Message
Automatic Claim Number - cla1559852232

Quote - INTERNATIONAL SALES PROJECTIONS SEASON ( 10 EPISODES)

Claim

International sales projections list no precedents (case studies), methodology, or source for arriving at the projected income.

Flags:

International Sales projections are based on industry standard of deriving a value for individual foreign territories in correlation to production budget. Each Foreign territory has a value based on a percentage of the production budget by josephinga on 2019-06-14 08:58:47

80ca24e1f152887b2cf5c42df7fee9ec
MX10178MX10178 Reputation: 75
Status: Bounty Hunter
Send Message

Looking forward to reading this, always liked the concept. btw it appears the wp is in a format that the text can't be quoted in claims. When trying to select text, nothing happens.

958610a740ef406aff2971a5887293f9
CryptoHunterCryptoHunter Reputation: 18
Status: Bounty Hunter
Send Message

hey all I'm still working on getting enough rep to make claims but I have to say this is one of the most credible entertainment industry financing ideas I have seen and I have see a few. The fact that it only applies to green lit shows is a big plus. Some explanation about how net profits will be verified maybe by audit would be helpful though.

a9d184fc540d3a4837f7a4296a11ed4b
madexcelmadexcel Reputation: 50
Status: Bounty Hunter
Send Message

This white paper is boring. Save written, how it should be. Just the ROI does not justify any investment.

5890dccd59d7ce33a09e2ef6b35ccfe6
edited June 11
MathildeMMMathildeMM Reputation: 61
Status: Bounty Hunter
Send Message
Automatic Claim Number - cla1560241596

Quote - The entity outside of the US will be organizedin a country with its own favorable tax treatment.

Claim

It is not very clear what the other entity outside the US will do as according to this WP, the US based one will raise the money AND contracts with US TV producer firms.
We underatand that the team seeks tax optimization here but it would need clarification as presented this way it might scares investors who can doubt the legality of such a structure.

Flags:

The foreign entity will raise the money. It will have no IP ownership. The US entity will be the agent of the foreign entity. There will be no common ownership between the foreign and the US entity The US entity will enter into the TV network and producer agreements by josephinga on 2019-06-14 09:13:26

023340a0e77fa3699c3f7eb46a02f70e
ShortyShorty Reputation: 5
Status: Bounty Hunter
Send Message

@madexcel whether or not the white paper is entertaining really isn't the point. It presents a need and a solution. It is up to us to decide if it is viable. I think the wp is credible but not thorough enough. It is not really possible to read this white paper and make an investment decision.

5a6d9984b6911e68ae4b981462f51223
MX10178MX10178 Reputation: 75
Status: Bounty Hunter
Send Message
Automatic Claim Number - cla1560459045

Quote - EXHIBIT A PREAPPROVED EXHIBITORS (INCLUDES US TELEVISION NETWORKS)

Claim

No real explanation of what 'approved' means here, or how or why these networks were approved. It seems to be simply a list of every credible US TV channel that might create original content. There is also the possibility of misunderstanding from the reader, thinking that these networks had somehow approved the Venture, and not the other way around.

Flags:

No comment was made that any of the Networks approved the Venture Just the opposite It is the Venture pre approving these networks And yes because the list provided are credible US TV networks that create content by josephinga on 2019-06-14 09:15:53

1272ef26e1a1754b2423fef5bfbf8603
MX10178MX10178 Reputation: 75
Status: Bounty Hunter
Send Message
Automatic Claim Number - cla1560553498

Quote - With the Financing Model presented here the investor knows that there will be a finished product that will be distributed to the public.

Claim

This statement is pretty generalized. Creative projects like film and TV can get derailed for many reasons -- a star becomes unable to perform due to injury, creative problems/disagreements, production delays due to weather -- these are just a few. Customarily a bond company will guarantee completion and seize control of a project is it is in trouble. There is no mention of this possibility, or contingency for it in the wp. This scenario is not altogether unusual either.83f1f8df8a89402cd85877c4f108aad2
unWEFunWEF Reputation: 1
Status: Bounty Hunter
Send Message

This looks like a credible venture and like @cryptohunter said, that it only applies to major greenlit projects is a huge plus. But I think the whitepaper does it a bit of a disservice by lacking thoroughness. This ambiguity leaves doubt where it actually isn't warranted. I'm not saying the wp should not be accredited, but I think it needs another pass with more substantiating information. Entertainment ventures in particular are met with a lot of skepticism, and this one has a lot of merits that are overshadowed by a sense of info lacking. Just my two cents.

6348d20bd3226bbabe9a84975e800cb7
MGlobalMGlobal Reputation: 87
Status: Bounty Hunter
Send Message

Although an explanation was provided above about how foreign sales projections were determined, there is no indication of the probability of any given US Show being sold to foreign territories. If a show gets made, what are the chances that it will be sold to at least the 5 biggest markets (UK, France, Germany, Japan, Italy)?

Also, would the sales revenue vary significantly between the shorter format episodes or the longer format? The budgets provided are not very clear about this and a quick review of a few articles on popularity of US series in France has indicated that the length of the episodes makes a difference in generating revenue to the French channel.

Finally, I admit that I am very far from being an expert on the film industry, but I could not find a substantiation of "Typically a TV show needs to have
50 completed episodes before it goes into syndication". Without knowing how to look for this exact data, I just see what the internet says: it takes 88 episodes on average.

743d33776e18a94f0d8c3722b136a8f9
BigfoodBigfood Reputation: 2
Status: Bounty Hunter
Send Message

I think this whitepaper represents a novel idea that could really take hold and evolve into real-world use. However I would have to agree with @MGlobal that the foreign sales projections are a best case scenario and not the norm. Also, this entire concept seems to be based on the idea of traditional US broadcast TV networks creating their own content, then selling it internationally. Not sure about the viability of that going forward. Streaming is obviously dominating and this venture doesn't appear to address that.

d409dc4e7dd3f416f8fb3049115605ea
WeedloverWeedlover Reputation: 0
Status: Bounty Hunter
Send Message

@Bogfood how come this concept cannot be used for productions backed by streaming services? It is true that Netflix does not need foreign sales because they are in every country. But the rest of the concept would apply you would just have to adapt the financials a bit

43388f0d700f4d13511c8b62d3a1ec4c
HARISIO185HARISIO185 Reputation: 55
Status: Bounty Hunter
Send Message
Automatic Claim Number - cla1562753770

Quote - To date no entities have been formed to in connection with this venture.

Claim

Entities have actually been created in the venture.The statement needs to be rephrased ''To date no entities have been created/formed in connection with this venture8091e6a2e5ddfde037e6be0fa1358449
HARISIO185HARISIO185 Reputation: 55
Status: Bounty Hunter
Send Message
Automatic Claim Number - cla1562754799

Quote - Revenue Projections are provided as an attachment to this writing showing Yields of between17 % and 21 % (Although the lower yield model does Return significantly more Profits in dollars)Jurisdiction for the venture will be California law

Claim

Requires rephrasal and use of punctuation marks8c6d896ca13e2dc58b282935d38854a8
HARISIO185HARISIO185 Reputation: 55
Status: Bounty Hunter
Send Message
Automatic Claim Number - cla1562756485

Quote - Any additional Production Cost Overages will be the responsibility of the Producers and/ orExhibitor

Claim

Spelling error cost coveragesc90d2439f4ffa72ace231aa860ed382e
HARISIO185HARISIO185 Reputation: 55
Status: Bounty Hunter
Send Message
Automatic Claim Number - cla1562756819

Quote - FEES/ PROFIT PARTICIPATION

Claim

phrasal error Profit participation can be rephrased into profit allocationb037350f24c05541afc308b4cdc7b709
HARISIO185HARISIO185 Reputation: 55
Status: Bounty Hunter
Send Message
Automatic Claim Number - cla1562757461

Quote - D) Being Granted Format Rights in Foreign Territories if a Deficit still existsThen the 20 % Profit Participation will begin

Claim

Phrasal error, Formal rights , capital D in defificit to be changed, Capital T on the word Then, Profit allocation for the correction of Profit Particiaptione46cd78f734bdd7078dc4c7fe1422e4c
HARISIO185HARISIO185 Reputation: 55
Status: Bounty Hunter
Send Message
Automatic Claim Number - cla1562758004

Quote - 1)With the Financing Model presented here the investor knows that there will be a finishedproduct that will be distributed to the public.2)The Creative Content Production Financing Model (US 65 % / ROW 35%) is the reverseof the Movie Production Model (US 35 %/ ROW 65 %) which is safer for investors sinceUS is covered by an Exhibitor (US TV Network)3)The Risk for the Venture can be reduced by Production Tax Credits which exist inMultiple States and in Canada4)With Exhibitor having a share of Net Profits Worldwide the Venture has a true Partnerwith US Distributor as economic interests are more aligned5)Creative Content Production Financing can result in an ongoing revenue stream from thesame opportunity with a successful program that goes on for multiple years6)There is the opportunity to acquire rights with Creative Content (Format Rights)

Claim

Phrasal error, correction of the spelling format of some concepts and other words within a phrase should be spelt in small letters 5af0e787721dd0b0ca63455393575695
ETHhupETHhup Reputation: 0
Status: Bounty Hunter
Send Message

@weedlover adapting this concept for productions backed by streaming services would require significant changes not only in the area of foreign sales. I agree that the wp should certainly address this though.

8c1187f4bbba6febd8da3576ef26b027
PierreAlexandreHPierreAlexandreH Reputation: 52
Status: Bounty Hunter
Send Message

Quote : "Joseph Inga is a CPA"
A quick search on the https://cpaverify.org/ yields two results for Joseph Vincent Inga in California. The first results mentions a cancelled CPA licence and the second one mentions the following statuts CLEAR, PROBATION, RESTRICTED and Enforcement, Non-Compliance or Disciplinary Actions against Joseph Inga. It would seem to be an important information to disclose and to understand actions that led to this measure from the CPA organisation.

82cbd3abf371d11c0f210be2515bb46c
PierreAlexandreHPierreAlexandreH Reputation: 52
Status: Bounty Hunter
Send Message

Quote : "The Investors will have an option (on a priority basis) to finance any subsequent season of a TV
Show it provides Season One Financing
The Investors will have an option (on a priority basis) to finance any new ventures that result or
are spin off from this Venture"

It would be interesting to have more details on that part. Will they have priority on full future funding opportunities? How will the future funding be split between investors? Eg if several investors are keen to invest more than total funding required, how much will each of them be entitled to invest? Pro-rata right based on first investment? What will be the financing (/ revenue share) conditions for subsequent seasons? Also will this option be a simple "gentlemen agreement" ( I have seen that before) or contractually binding?

3a81eda3e4b813d1282f065847c8398b
PierreAlexandreHPierreAlexandreH Reputation: 52
Status: Bounty Hunter
Send Message

General comment :
Also mentioning the risks related to the investments would give a better picture for potential investor of whether to invest or not and be aware of what to expect. Here only positive potential outcome are presented which gives a biased view on the opportunity

629196bd42d5ba845166d0fb6c4bff80
PierreAlexandreHPierreAlexandreH Reputation: 52
Status: Bounty Hunter
Send Message

Typo in the last page " Less distribution EXPENSES

0a6d2a72eb3b8d28ea7331e412a14ee0
PierreAlexandreHPierreAlexandreH Reputation: 52
Status: Bounty Hunter
Send Message

There is no mention of any fees paid by the investors (eg. Management fees) which seem unusual and if missing the financials would be a misleading view on possible ROI (which should at minimum read "before Management fees / investment comission)

ccf1a77d3898a08a7561e0341ff0cf52
PierreAlexandreHPierreAlexandreH Reputation: 52
Status: Bounty Hunter
Send Message

From a pure financial analysis standpoint, this could come from a lack of knowledge of the profitability mechanism in the industry, but it could be interesting to understand why the business plan expect margins to be lower with bigger productions (ie 14% annualised return for a 20m budget vs. 11% for a 50 million budget series)
This echoes other commentaries mentioning that the paper would benefit from having more documentation around the hypotheses of the financial BP. Some comparison with the market could also add value and help gaining trust in the offer.

c7f0cfd3742c53133eeca7570d788d08
OrigudeOrigude Reputation: 0
Status: Member
Send Message

I agree with others who have expressed that this wp needs a redo. The fundamental concept is quite interesting, but it seems quickly put together. Hopefully the comments from this thread can be put to use and the concept refined. The wp seems to be coming from a place of good faith it just needs much more work and the whole thing modernized and thought through

609a73cde862e2cd4f5af369904f9467
PierreAlexandreHPierreAlexandreH Reputation: 52
Status: Bounty Hunter
Send Message
Automatic Claim Number - cla1563784360

Quote - Joseph Inga is a CPA

Claim

A quick search on the https://cpaverify.org/ yields two results for Joseph Vincent Inga in California. The first results mentions a cancelled CPA licence and the second one mentions the following statuts CLEAR, PROBATION, RESTRICTED and Enforcement, Non-Compliance or Disciplinary Actions against Joseph Inga. It would seem to be an important information to disclose and to understand actions that led to this measure from the CPA organisation.c7a4309a65185ab1c865bbe6a62547c3
PierreAlexandreHPierreAlexandreH Reputation: 52
Status: Bounty Hunter
Send Message
Automatic Claim Number - cla1563784522

Quote - The Investors will have an option (on a priority basis) to finance any new ventures that result orare spin off from this Venture

Claim

It would be necessary to have more details on that part. Will they have priority on full future funding opportunities? How will the future funding be split between investors? Eg if several investors are keen to invest more than total funding required, how much will each of them be entitled to invest? Pro-rata right based on first investment? What will be the financing (/ revenue share) conditions for subsequent seasons? Also will this option be a simple "gentlemen agreement" ( I have seen that before) or contractually binding?16654f1dcecf41321c31ee0f8b7a61a2
PierreAlexandreHPierreAlexandreH Reputation: 52
Status: Bounty Hunter
Send Message
Automatic Claim Number - cla1563784633

Quote - CREATIVE CONTENT REVENUE MODEL FOR SEASON TV FORMAT (30 OR 60 MINUTES

Claim

There is no mention of any fees paid by the investors (eg. Management fees) which seem unusual and if missing the financials would be a misleading view on possible ROI (which should at minimum read "before Management fees / investment comission)cbb1a3e559395746361f4f998f454aa7
karlkarl Reputation: 203
Status: White Paper Owner
Send Message

@PierreAlexandreH pls provide link or screen shot to claim cla1563784360 as it seems important

354ca1b760c26c1ebddbab5502b638a4
PierreAlexandreHPierreAlexandreH Reputation: 52
Status: Bounty Hunter
Send Message

Hi Karl,

Regarding claim cla1563784360, here are the two screenshots found on the website https://cpaverify.org/ .

Sorry if there was a way to directly reply to you message, I could not find it.
Also it seems that I do not get a notification when you mentioned my name and I just saw your message when coming back to the article to check if new answers had been posted.

d6209989008f8f034e52b91a99c92271
Loading...
edited August 7
karlkarl Reputation: 203
Status: White Paper Owner
Send Message

@PierreAlexandreH we asked Joseph Inga to comment on this. Thanks for your info.

4a6a72bd9f4f69bada46c9f09ae23abe
marioortizmarioortiz Reputation: 52
Status: Bounty Hunter
Send Message

Was the whitepaper pulled?

8f4fa808e2570040427b6b3deb49b74b
karlkarl Reputation: 203
Status: White Paper Owner
Send Message

We are in contact and checking on it.

5b6d45701b42839afe486db5f3129521
Sign In or Register to comment.