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rickn23

06/23/16 9:58 AM

#1284 RE: Trent Blair #1283

I think on a gross level the amounts are much higher, on a net level they may be lower. Netflix is in 190 countries, so whatever they are paying for an original first run production, should be more than enough to cover production costs.

I'm thinking gross revenue should be near a million an episode, but money goes to the production company first (before GNUS gets any). A old article I read suggests average USA production costs for a half hour animated show to be between $500-$700,000 (probably much lower in China). For "LLama LLama" licensing money would go to "LLama LLama's creator. Net profit would depend on costs.

In a 2014 shareholder's letter, Andy showed what broadcasters pay for animated content (page 5). Low end was about $5,000/half hour. I think most countries are in the low end market.

https://www.sec.gov/Archives/edgar/data/1355848/000101968714004311/genius_8k-ex9901.htm

$5,000 x 190 countries x 15 episodes(for LLama Llama) = $14.25 million

Subtract out production costs and the could be a few million left over.

The real profit kicks in when GNUS can sell it to broadcast TV stations, around the world (2018/2019, double dipping).

I think Andy mentions Marvel and Dreamworks for the valuation GNUS should get, but GNUS doesn't have near the aged, well known IP either company has (which increases their value).