Generating Revenue Through a Diversified Slate of 12 Stories
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Per App Revenue Generation
In the traditional studio system, development is a sunk cost. At Gramarye, we turn the development process into a revenue stream, earned before we shoot a single frame of film. Instead of starting with a deficit that must be added to the costs of the films that are actually made, we start with a return … while gathering meaningful, predictive data.
Low End Sales:
| Units Sold |
200,000 |
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| Unit Price |
$14.95 |
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| Gross Revenue |
$2,990,000 |
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| Production/Marketing |
-$1,000,000 |
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| Channel/Author |
-$1,290,000* |
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| Net Margin |
$700,000 |
Median Sales:
| Units Sold |
500,000 |
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| Unit Price |
$14.95 |
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| Gross Revenue |
$7,475,000 |
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| Production/Marketing |
-$1,000,000 |
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| Channel/Author |
-$3,363,750* |
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| Net Margin |
$3,111,250 |
Breakout Sales:
| Units Sold |
5,000,000 |
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| Unit Price |
$14.95 |
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| Gross Revenue |
$74,750,000 |
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| Production/Marketing |
-$1,000,000 |
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| Channel/Author |
-$33,637,500* |
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| Net Margin |
$40,112,500 |
This model assumes that we must sell all units through a third-party retailer and pay authors a standard 15 percent Royalty. Looking at typical results from traditional publishing, games, and movie studios, we predict that with every 12-title portfolio or slate will produce results like:
5 Produce Negative Return:
It is expected that not all titles will be revenue positive and our distributed model is designed to identify the lack of enthusiasm from audiences of some titles without breaking the whole slate.
7 Break Even or Better
Titles in group 2 will at least break even and 4-5 of them will generate enough revenue to carry the cost of deploying the entire slate. See the examples of “LOW” and “MEDIAN” sales above to get a better sense of the potential.
1 (Maybe 2) Are BREAK OUT HITS
1 or 2 titles will catch fire and ignite a community of fans. Note the revenue generated from a “BREAKOUT” App’s sales above. More excitingly, these are the titles that Gramarye will leverage to develop large franchise properties.