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Revenue Generation

Revenue Generation

Story Development from Beginning, Middle, to End

Incubation Revenue

Production Revenue

Distribution Revenue

Generating Revenue Through a Diversified Slate of 12 Stories

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
Unit Price

$14.95
Gross Revenue

$2,990,000
Production/Marketing

-$1,000,000
Channel/Author

-$1,290,000*
Net Margin

$700,000

Median Sales:

Units Sold

500,000
Unit Price

$14.95
Gross Revenue

$7,475,000
Production/Marketing

-$1,000,000
Channel/Author

-$3,363,750*
Net Margin

$3,111,250

Breakout Sales:

Units Sold

5,000,000
Unit Price

$14.95
Gross Revenue

$74,750,000
Production/Marketing

-$1,000,000
Channel/Author

-$33,637,500*
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.

Developing the Hits as Transmedia Franchises

While it is impossible to predict meaningful numbers, we project that the most meaningful returns will come from developing the break-through “hits” across media channels.

Transmedia is more than mere merchandising — it is a single story told through multiple channels, each of which:

  • Provides a new entry point for new audiences
  • Supports and promotes the others
  • Generates revenue

Cross-media franchises are worth $billions

Each channel supports and promotes the others

Each channel generates revenue

Investors participate in every exploitation across all channels in perpetuity