Red Giant Entertainment, Inc. (fka REDG)

[37thirtyseven37]

REDG Shareholder VIDEO typed out! December 2014

https://www.youtube.com/watch?v=mZTt84OSJ88

Disclaimer, I typed this out and have not spellchecked it, honestly after 65minutes of 65words per minute, 3800 words and 7 pages, I am FRIED, I don’t ever want to type again! I also missed a few words, and its SLIGHTLY off from word for word.

Short Version Recap!

Delayed due to distributors DCD and TRU both had a few issues!

We have back up printing capability!

Nov delay we lost gaming advertisers, gained them back on the Dec delay!

MULTI BILLION dollar multimedia company has backed and partnered, will be buying 16-20 ads every month and serializing their IP into ads that become paying books that REDG shares profits! REDG will be able to capitalize on their IP for media they don’t use, and can help REDG produce REDG IP into bigger better media as well and will have first look into taking REDG IP and plugging into multi-billion dollar company.

Chris Longo brought on one guy with a huge Rolodex and he is bringing on some new contacts into the ad side.

Did not factor, will factor in future, a good thing!

HULU is HUGE! Up to $50cpm, its by popularity of clicks. REDG excels at bringing in clicks! Magika will be on HULU FREE (you don’t have to subscribe to watch!) Magika is only the BEGINNING! It is a test, and when it performs, REDG will roll out with more! On going money every click is money, forever!

NO REVERSE SPLIT! Does NOT want to hurt us!
Hardly any notes left to convert, 4 left, talk about below. NO NEW NOTES!

BANDAI NAMCO IS producing Wayward Sons game!
TV series ARE in the works! And more movies, last blood still ongoing!

MARKIPLIER WILL BE PROMOTING ON YOUTUBE TWITTER AND FACEBOOK FOR MAGIKA AND REDG!

New website sooner or later! Redgiantcomics.com
Magika to Dvd and blu-ray being looked at as well.
japan needs hero’s done, should be printing within 2 weeks.

benny personal opinion for himself only, not advice, still thinks REDG will/could obtain $1 a share value.

IDW and BOOM and DARKHORSE are some ads who will also be doing serial ads with their IP’s! This makes the comics more ‘content’ and less ‘ads!’

And Tony Stark got a shout out! ;)



LONG RECAP!

0:00 - Hello, it is working.
1:20 – Thank everyone for coming! Its been a while since we have done one of these. We do want to try to do more of these, more often, so there is less of a delay. Apologize for the slight delay in communication, in the past couple months, it was mainly because as we were trying to make the push for the GSL, things began happening both good and bad, many factors, taking place, until we had news that was concrete, so we waited until we could share.

2:30 – what are the delays and causes of the delay. It was the distribution, primary delay. One distributor primarily who needed more time, they got their stuff fixed and situated, and thought the other distributor was fine and the numbers came in and everything was great, and then we started to get some reports that things were going awry. Why didn’t we just notify everyone? We did not go to press because had we gone to press we would have been in trouble, so we worked with contingency plans. China is by far the cheapest plan. We do have some domestic sources, in case of a delay, if there is a need for more expedient printing, it costs a little more and they were looking at that, could they salvage half of the month of December, do 2 books in a week, or things like that. Anything they could do they were trying to get it going somehow. Up until they put out the word.

5:30 – They were trying to do everything they could to make the launch, it was outside of their control, but later on I will discuss some good things and in the long run will be fine.

6:00 – how did it affect advertisers? The November delay actually hurt them the most, they had a lot of really great advertisers, especially in the video game section, most of the video games that came out in Nov decided to leave from that delay. The Nov vs Dec launch hurt. What we are finalizing it looks like it will be April. To give you guys a quick break down, in specific, how the ordering system was handled by Diamond. Not yelling at Diamond, mistakes were made how it was presented to retailers and fulfillment. They are still working together, no bad blood. Its more of an opt in type thing and far less confusing on how to order and how to fulfill. Remove all the confusing things, and go with common sense approach, they were trying to work it in their old system. This is the peril of doing something new. New mechanism will be saving them some money overall, not the nicest, but still nice.

9:00 Books shipping in April doesn’t hurt us in the advertising section, Jan-Feb ads are all pretty much done anyways, so this gets them into a better cycle with advertisers. Some interesting things have occurred, so I will come back to the advertisers, really cool stuff is coming up. Its awesome. Smiles

10:00 Are the ads still valid? A lot of the advertisers are still coming on board, a lot that we lost in Nov are back in the mix and in a better way. For April. Multiple ads bought per company? Yes.
Chris Longo brought on one guy with a huge Rolodex and he is bringing on some new contacts. Daily contact with Chris Longo, closing a lot of these deals in tandem, pretty revolutionary.

11:21 – the factoring, we did not… we were hoping to do the factoring earlier, but the nature of what was going on when we get hit with the toys .. the other delay. We wanted to make sure everything was fine, the factoring is simple. It is a small discount on the life of the note, he himself has done marketing and used many factoring sources, and the factor sources are hungry to do that! When we factor a note, it puts it on REDG. So there was a little shake up with Nov and Dec to get put together, we started to weigh the issues and decided not to factor just in case, and are glad they didn’t. New launch will have ample time, and know where the kinks are, and will get it all in line. It will make sense in a minute.

13:45 – revenue? What is keeping us a float, part of that is what I will talk about later. Magika on Hulu, we have been working on this a while! Part of the hold up had to do with Hulu, owned by most Major networks and some of the best CPM out there! Phenomenal CPM, up to $50, which is unheard of. Cost per thousand. For every 1000 views of an ad you get $50. We do not fill those ads, entirely filled by Hulu, based on traffic! One of the things we wanted to do from the beginning. You have two types of Hulu, Hulu free and Hulu Plus (subscription), we just want more people viewing, in specific, we made certain that we were on for everything! Subscriber or not everyone can watch our content for free, so Magika, feature length film, with multiple commercial breaks and 1-3 commercials per break, about 20 ads average. Easily 20 if watched from beginning to end. On the online (free) and the plus. No matter if they watch the movie or not, but the watch the first break, every single click to the video makes revenue. What are we really good at? Driving traffic, through our comics and our website to get the lowest amount of money spent to get the biggest amount of clicks. I used to work at Priceline, and total solutions marketing, very familiar to drive online traffic. That is how we got wayward sons such a massive audience. And all our other comics as well, we were able to replicate because we know how to drive traffic, the more we bring in, the more we can direct back out, comic genesis and keenspot behind them. Our capacity to drive traffic to online and to the free magika is immense! Whether or not the watch the whole thing, doesn’t matter, we do make more when they do watch the whole thing. How good is it? Pretty good.

20:00 – Hulu has great clicks about what other people are watching, so when we hit high number of clicks, other people will see it trending and discover it as well. Our hope is that this can be a significant revenue stream, its not a one off thing, it is a continuous stream! This is why when we first mentioned about Magika, we felt this was the launching point, also Giant size line 1mil a month on Magika, because a steady continuous audience we can direct, this movie is just the beginning. Crawl, walk, run. So when we started the whole concept of GSL, it began with the online model, will people come, will people come for free, can we make ad money on that, can we sell it to people who see it for free, yes. Can we sell products with that, yes.

22:20 – the online was the smaller scale lesser cost version of the GSL. So with that in tow, what are our plans for Hulu, it is just another medium for REDG. Not only animated versions of their comics, that is an easy process to add more content quickly. But we also have a huge storehouse of pre-existing materials that is already done, sometimes we just have to dub them from another language, once we prove this model, we can bring in much more content. Each of these is a recurring constant stream. Magika is their test. Excited about what is happening with Magika. Kids are skeptical and 7 and 10 and both love the movie, all of the kids that they have tested have rated it very well, its not Disney caliber, even Disney wasn’t Disney on their first shot. It’s got a great story. Hulu is very good deal! Give an example, another instance where we would have loved to tell you earlier but we wanted to wait until concrete and our hands were tied. Tonight I will break that rule a little bit.

25:30 – is there a reverse split within the next 12 months? We have had that come up numerous times, what would happen with a reverse split. As REDG see’s it, it would hurt investors and they don’t want to do that, if in the future, somewhere down the road, it can make sense for all involved then it might be considered, but they don’t want to hurt us.

26:45 - Shareholder update every quarter, we will try to do them more often and not as long! We recognize we need to be communicating more with you guys, we don’t want to overpromise and under deliver, it kills us, you guys hate it, it feels like I let you down, I work all day everyday, and try to not do that to you.

27:45 – there are not very many notes left, only 4 holders out there left.
JMJ (haven’t really done a whole lot, 300million shares reserved, they aren’t really doing a lot and haven’t the last year.
JSJ has one traunch left and they are out.
Chicago Venture and LG Capital both same as JSJ.
All preexisting and once they are done with that, they are done. No new notes! We have stuck to that.

29:30 – board members speak on video? They can, for instance, David Campiti has put out previews and such from time to time, Chris Crosby is not his thing, Mark Fischbach that is his thing, Mark and Amy not really into it either, maybe as time goes by.

30:30 – why do we have to be on different pages on the launch? Everyone is in sync, the board is consulted on everything, we make the decisions together, board resolutions occur, phone calls conferences, or individuals letting everyone know. How can we as shareholder help REDG succeed, thank you guys, we love you guys, that is an nice question. I can’t solicit or tell you how to invest. If you are fans, help spread the word, the Hulu thing is a huge initiative, anything like that! I have seen the facebook fan page for the investors, you guys do a really good and incredible job on doing that! It is an amazing thing! I am doing the best I can, I am not perfect, I am not making excuses, I know there are times I let you guys down and I am sorry, I am working all day everyday, hopefully what I reveal in a little will make sense on that. Tony Stark on ihub does some great DD and funny things, I know not too happy with me, but we care about each and every one of you, even those that hate my guts, I am trying to make it better for you guys.

34:00 – Bandai Namco – delayed in launching their product that will be a skin of wayward sons IP, we are working on a wayward sons mobile app, free to play, based of one of their IP, extensive testing on that as well, and being worked on and developed. We are using a ton of assets they are working through internal things and publishing and all that getting it smoothed out. Phenomenal things there!

35:45 -will markiplier be involved in gaming or share about REDG. Let me talk about Markiplier real quick. He came onto the Board of directors, he also gave a capital infusion as part of that, he didn’t buy a board spot, it was kind of a 1-2 thing. As he approached us and we were talking he wanted skin in the game in a sense. His outlook is always positive, and no we haven’t spent all of it. What I wanted to focus on was the relationship. We met him at san Diego cc year or two ago, his brother does web comic of two kinds, vastly popular web comic, and broke a record on kickstarter and broke several hundred thousand. He talked about his youtube account starting up, and got advice from REDG. He is creative and smart individual, always been impressed with, always dynamic. When we were talking about him coming on board, it just makes sense. Each board member has their own specialties that they bring to the table, Amy and Isen have their TV and film, could not have done the Hulu deal without them! Same with Last Blood (still rolling along, cant talk about it yet, sometimes things move quick, others take time, we are happy with where that is.)

40:00 – Chris with Keenspot, one of the greatest researchers out there, very brilliant mind, David Campiti, started the snowball on this about building it into a company and Benny said darn it. The only person I would even consider this opportunity. He brings in a wealth of experience on the creative side. Mark brings in the social aspect such as youtube, he is very proven, very creative. Mark and his brother can bring in new creative ideas, and their own IP. It really made sense to bring him on board and we couldn’t be happier, phenomenal addition.

42:00 will MARKIPLIER promote the games and Magika? and all that?! ABSOLUTELY! He has his facebook, youtube and twitter! He will be building and promoting!!!!!!!!

43:00 active media, lowest cost printing, FCBD prints were from Active Media. If push comes to shove we have backup printers in the US and Canada Printers. All of these resources are what help. Mark is no different. Another major addition to the team.

44:00 – Other movie news – all I can say is stay tuned, there is a lot going on, I cant even count how many projects are in negotiations and developments on all the fronts, Katrina, Exposure, Duel Identity, Wayward Sons, yes they are all being worked on! Yes sometimes they will seem like the Hulu deal and come out of no where but we have to follow those rules.

45:00 We are co-producers, as with any films we are co-producing, it allows varying degrees of control and variation, however we are not falling to the same problems as marvel, in a lot of their early development, its much cleaner and better situation, we are not giving out the baby in the bathwater. (unlike what marvel did!)

46:00 TV in development? YES! There is new TV in development.

yes we are looking at Magika to DVD and Blu-ray. Crawl Walk Run, Lets see how everything runs on Hulu, and that makes everything easier from there. Magika on Netflix? Netflix is like a one off thing, they pay you and that is what you get. What we love about the the Hulu deal, we have the ability to build our own traffic and revenue. We are exploring Hulu first right now.

47:30 – Sec sanction? It stinks that it happened, it kind of surprised a lot of people, don’t want to talk about it too much who knows what SEC might get upset about. We didn’t see it until too late and we did find it and rectify it, and SEC said ok, no problem but heres the minimum fine. We could fight them but it would cost too much, so just pay it and move on, it’s a traffic ticket in essence.

48:45 – digital downloads, simple. Two tiers, after the line launches it will be available in an app form, two ways, future release. Available in digital form and also as a web comic.

49:25 – ALA – Medusa Daughter, is in the warehouse, they have 3000 of each version, total of 3 versions, no 2 versions of each, its very multifaceted deal. Doing something a little unique, a novel, a graphic novel and an illustrated book, collection version and a library edition. So illustrated book gets given away to everyone who buys the other two. Use them as a teaching aid for kids who have learning disabilities to read and such.

51:15 – JNH – Japan is printing next week, pretty much done.

51:40 – Main webpage never updated? I will pass that along to Chris, it does need an overhaul, we are doing a major overhaul to our own branded website in addition to keenspot, unveiling that soon and part of the launch. The URL will be:
Redgiantcomics.com

52:30 – JUMP INTO THE MAIN EVENT!

Ok so… as we were going through all this stuff with diamond, some interesting things were happening, we were approaching one of our bigger advertisers about doing something new and unique about their ad. Rather than 1 page or double page ad, what we know works best is content driven advertising. So we approached them about doing instead of something small, multi billion dollar multimedia company. Immense library of intellectual properties, you have all of these properties, some are dormant and don’t have the audience they should. Instead of an AD for XYZ, what if we did a serialized sequential story that runs each month across the line, part 1 in week 1, part 2 in week 2, and so forth. So by the time you are done you have 16-20 page story in the comics, that for the first time that we have seen, serialized across the line, and it really resonated with the company! And the idea grew!

55:30- a relationship formed instead of a 1 off for their IP, they said well what if this was a launch of an ongoing series. As we said the GSL is an IP incubator. Yes we make money, really good money, but where the real money comes from is the ancillaries. Here is this company with a MASSIVE LIBRARY of IP, how about we partner together and not only advertise, but you become our PUBLISHER! BUT THEY ALSO GET a first look deal to take REDG IP to develop into their media outlets! MULTI BILLION DOLLAR MULTIMEDIA COMPANY! It is such a perfect fit for REDG.

58:00 super exciting, more to reveal about this coming! We approached the other advertisers who have IP, about doing something new and unique. Not just a 1 off 1 month type thing. This partner would be every MONTH. A new IP Every month, that would later spawn a comic that they share revenue, so we make money on the advertising but also on the comic that will spawn, and it is a pay comic, licensing is one of the best money makers in comic, and now we have an IN to that! This allowed us to relook and Chris Longo and the team are looking at, there are a lot of companies out there that we can serialize 1-5 pages in a row! They are all responding gangbuster. They are not the same level of partnership, but are still interested in making their 5 page ad IP into comics.. IDW is one of those companies. BOOM, DARKHORSE! It is a nice revenue generator. And with the multibillion dollar company we are in talks of doing the media that they don’t. 64-72 page book.

1hour 1 minute. By doing more stories within, it cuts down the ratio of content to ad, so now its more content and less ads even though there are ads, they are more stories now. Makes a lot of sense for those companies, because it is tax deductible for them and reaches a MUCH bigger audience, content ads have the greatest buy in out there, so if people are engaged, then they buy, like GI JOE or transformers, they make money on their own, but then the kids can buy those toys. Same concept. This is in essence the big thing! It is not going to be us, it will be them that releases that news, or a joint release. It will be the instant they allow the news, everyone will be quite happy. I usually talk about this all in the future. But I did want to give you guys some news.

1 hour 4 minutes. We really are working hard, flying to new york making deals, on the phone constantly. For all these deals, it’s a constant daily occurrence. All of the board is WORKING for REDG.. We are sorry for the delays and the lack of communication, but we WILL come through for you guys, and for us! We are not in this to build for a day, we are not in this to grab and run, there is no dumping, we have not sold a single share. Someone, mentioned, sorry if I missed some, I know I have made in previous statements about $1 a share.

Again all disclaimers out there this is Benny only, personally, if Benny stills feel that way and how he would justify it. Even with the number of shares out there, yes I still feel that way personally, not advice! Opinion only. I was there when Marvel was in Bankruptcy; I got those letters for the company. A few years after that they sold all the rights to all their top IP. Spiderman and such were sold to Sony and (xmen? I think he said) To Fox. So by the time it came to Marvel to do their own IP were already sold off. The only other real big name was Hulk, and it had awful money. Wasn’t a huge success. Meanwhile we look and see years later, Marvel began to tap into their other IP’s and had great success, and then Disney bought them, for 4.7 billion dollars, which was a steal!!! And this was after they sold all their good IP’s! What did Disney see in Marvel, no one knew who Iron man was when it came out, Capitan America, Thor, Avengers, etc, they were not household names, they were good IP’s but that’s it! THAT is what REDG is doing, build audience through free content, and then capitalize, looking at Marvel as an Example.

do I think Benny Personally not the board, not REDG, but Benny personally believes REDg could be a billion dollar company. Disclaimer not investment help, or behind the company, this is just his own opinion on REDG

1hour 10 mins, - I will keep you guys more in the loop! Appreciate you guys and hope you have happy holidays! Thank you!