I am excited and welcome Imperia Entertainment, Inc. to the advertisement family. Imperia Entertainment, Inc. has a good past history and looks like it's a company on the move. I am looking forward to profiling this company and news to readers. Watch for more Imperia Entertainment, Inc. updates throughout the week. There is so much information available I will need to send additional updates.
COMPANY OVERVIEW
Imperia Entertainment, Inc. (IPEI) (http://www.imperiaentertainment.com) is a company which has emerged as a player in the area of independent film production and distribution, once monopolized by the major film studios. In conjunction with its distribution subsidiary, Imperia International Distribution, the company engages in investing in and producing and distributing full-length feature films. Along with its equity interest in "All That I Need'' released in theaters in December of 2005, and which was realeased on DVD February 18, 2006, its feature film in production, "Say It In Russian", written by Larry Gross ("True Crime", "48 Hours", "Another 48 Hours''), directed by Jeff Celentano ("Primary Suspect", "Gunshy'') and edited by David Rawlins ("Saturday Night Fever''), and "Whiskers", the family movie about an intelligent seal, produced by Jordan Klein ("Flipper", "Jaws", "Splash''), the Company has amassed an impressive media library, including the award-winning "Autograph'' television series which airs on the Colours Television Network, and the newly acquired "Faces and Names'' television series.
Business Plan
Film Distribution
Perhaps the most lucrative aspect of our business is the recent formation of a distribution subsidiary, Imperia International Distribution, Inc., which has formed a strategic relationship with Regal Theater Group, the largest motion picture exhibitor in the United States, with 6,000 screens in their Regal, United Artists and Edwards Theaters. Finding distribution for a film is usually the most difficult step in marketing a film, and we are distributing our own motion pictures through our wholly owned company, Imperia International Distribution. This enables us to not only get our films into theatrical distribution, which greatly enhances their value, it also enables us to eliminate the sharing of revenues with a distributor. In our relationship with Regal, we split revenues pursuant to the same 50-50 arrangement theaters have with most traditional distributors. We also intend to take on films produced by other independent film production companies for distribution.
Film Production Library
In October 2003, we acquired from our principal shareholders the screenplay for the feature film, Worlds Apart, and the Autograph television series, in exchange for common stock. Worlds Apart is currently in pre-production. Autograph started airing on the Colours Television Network (Dish Network) in July 2005.
In November 2003, we entered into an investment agreement with Falla, LLC to acquire 20% of the equity interests in the feature film Fallacy, in exchange for an investment of $150,000, which investment has been completed. The agreement guaranteed us the return of our initial $150,000 investment, as well as a guaranteed profit in addition to our 20% equity interest. Fallacy, which has a budget of approximately $800,000 is currently being edited by Academy Award winning editor Scott Conrad.
In December 2003, we entered into an agreement with the Writer/Director of the feature film, Earhart, to purchase the screenplay and produce the motion picture. In exchange, the Writer/Director retains 10% of the equity of the film, and has the limited option to repurchase the film for $5 million. The option expired in July 2004 and we declined to renew it, in favor of concentrating on our own production.
In July 2004 we entered into a co-production agreement with M. G. P. Productions for the production of Miriam, pursuant to which we acquired a 32% interest in the film. In August 2004 M.G.P. Productions terminated our agreement.
In November 2004 we entered into an investment agreement with Hergott Productions, whereby we acquired 20% of the equity interests in the documentary feature, All That I Need. Since then, we have increased our equity interest to 40%. 10ù of the film is owned by our Chairman, Kenneth Eade, and 50% is owned by Hergott Productions, which is beneficially owned by our President, James Hergott.
In September 2005, we acquired a 90% interest in the feature film, Brothers, produced by Tarquin Gotch, the Executive Producer of Home Alone. This film is currently set to begin production in the Spring.
Motion Picture Production
Development of a motion picture begins when a company or individual purchases a literary property, usually a screenplay or a book. Once financed, through studio, equity or other financing, the project will move into pre-production, which involves engaging the creative personnel, finalizing the shooting schedule and the budget. Principal photography consists of the actual filming of the motion picture. After principal photography begins post-production, during which opticals, music and sound effects are added, and music soundtracks and picture are synchronized to produce the negative from which release prints are struck. Also during post-production, materials are created directly relating to the distribution of the motion picture, e.g., trailers for television and theatrical exhibition and advertising campaigns.
Theatrical Exhibition
Shortly after post-production, a motion picture is made ready for distribution. The economic life of a feature film may last for decades; but generally the bulk of the revenues will be earned over the first three-year period. The first year's revenues will consist primarily of theatrical revenues. The second year's revenues usually consist of mostly home video rentals, DVD sell-through and pay television revenues. The third year may consist of free television revenues and the continued DVD sell-through market.
Because a film's perceived value can be increased by theatrical status, even a small theatrical run can have a great impact on the revenue generated in the home-video rental, foreign, cable and DVD sell-through markets.
International Exhibition
Foreign territories continue to be a viable source of income for American filmed entertainment product. With carefully selected cast members, an independent film can generate more revenue overseas than it does domestically.
In many cases, a motion picture may see only moderate success in the United States but do better abroad. Some motion pictures are produced with the intention of distribution only in international markets, skipping the U.S. theaters entirely. It is important to remember, though, that a moderate domestic release still drives more international box office than no release at all.
Non-Theatrical Exhibition
Film Distribution
By exposing existing inefficiencies in the distribution and publishing of PM, it is clear that a successful business model can be developed to incorporate revenue streams from the production, publishing and royalty management of content.
The motion picture industry has gone through an evolutionary change in the last decade, where the bulk of revenue is now generated by home video, with the DVD sell-through market generating the lion's share. This is more the case for independent releases than it is for most big studio films. According to a recent article in The Hollywood Reporter, Home video is 50% of the revenues for Fox studio releases, but close to 75% of the revenues for releases from its independent specialty arm, Fox Searchlight. (The Hollywood Reporter, Dec. 2-8 2003) With this new trend, major studios and independents alike compete for coveted shelf space at mass-retailers like Wal-Mart and Best Buy, which helped Disney's "Finding Nemo" sell 15 million units in its first two weeks of release.
Pay-per-view and cable networks have become a major revenue source also, with pay-per-view channels receiving motion pictures at about the same time as video stores. Some pay and cable networks finance their own feature-length motion pictures. However, these motion pictures usually appear on television first and then may go into international distribution and the DVD sell-through market.
The television market has also changed considerably in the last few decades. There was a time when free television, especially the networks, acquired the rights to broadcast motion pictures before they were released on cable or video. Now, movies appear on network television after they have gone to the other ancillary outlets and often a year or two after they appear on cable.
The soundtrack of a motion picture may be separately licensed to a recording company to generate additional revenue. If the motion picture is well received at the box office, a lucrative deal can be struck for the soundtrack. And if the picture isn't a huge success at the box office, the release of a soundtrack featuring popular recording artists can be a great promotional tool to boost sell- through sales of the DVD.
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