INVESTOR PRESENTATION | Cineverse |
A leading innovator in | |
(Nasdaq: CNVS) | |
entertainment technology since 2000 | July 2024 |
FORWARD-LOOKING STATEMENTS
Investors are cautioned that certain statements contained in this document, as well as some statements in press releases and some oral statements of Cineverse officials during presentations about Cineverse, along with Cineverse's filings with the Securities and Exchange Commission, including Cineverse's current reports on Form 8-K, quarterly reports on Form 10-Q and annual reports on Form 10-K, are "forward-looking'' statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act'').
Forward-looking statements include statements that are predictive in nature, which depend upon or refer to future events or conditions, which include words such as "expects," "anticipates,'' "intends,'' "plans,'' "could," "might," "believes,'' "seeks," "estimates'' or similar expressions. In addition, any statements concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future actions, which may be provided by Cineverse's management, are also forward-looking statements as defined by the Act.
Forward-looking statements are based on current expectations and projections about future events and are subject to various risks, uncertainties and assumptions about Cineverse, its technology, economic and market factors and the industries in which Cineverse does business, among other things. These statements are not guarantees of future performance and Cineverse undertakes no specific obligation or intention to update these statements after the date of this presentation.
Cineverse: Powering the Future of Entertainment
CINEVERSE AT A GLANCE*
A streaming technology provider empowering some of the world's most recognizable brands to launch, grow and future-proof their streaming business in an ever-evolving entertainment ecosystem.
Super-serving our network or fan channels - from direct ad sales partnerships to premium global content - we offer more of the stories that move us, and technology that moves us forward.
Ticker
Headquarters
Common Shares
Outstanding
Book Value Per
Common Share
Share Price
TTM Revenues
NASDAQ:CNVS Los Angeles
15.699 million
$2.05
$1.39
$49.131 million
* Information as of 12/31/2023
Key Investment Highlights
Our proprietary, next-gen | Organic growth with financial |
streaming technology | upside - focusing on high |
margin revenues |
Cost-streaming initiatives -
driven by offshoring and decreased content spends
Technology development originally began as in-house solution for delivering at scale - now on market as SaaS product suite to unblock content backlog for major Media Companies and Platforms
GenAI Search & Discovery tool cineSearch launched for consumers and as a B2B solution for platforms & Television OEMs
Product development and emphasis on innovation continues with AI products, features products and business lines to be announced in the coming weeks
71,000+ titles to more than 82 million unique viewers monthly
Extensive portfolio of fan channels with highly engaged audiences
Focused on high-return,low-cost initiatives using existing assets
360-degree marketing approach across mediums - AVOD, FAST, SVOD, TVOD, podcasts, theatrical, and editorial - maximizing ROI on limited spend
Cost-cutting initiatives include the launch of Cineverse Services India, with goal of achieving sustainable profitability and improved margins by end of FY 2024
Optimization efforts focus resources
on high margin channels and low cost content
Continual trading of lower margin revenue streams for higher margin and profit
The Opportunity: Today's Viewing Audience
Consumers are watching content at record-high volumes while making the switch to streaming and technology-driven viewing habits at unprecedented rates.
4+ hours | 86% | 59% |
Of U.S. households | ||
Average U.S. | have at least one | Of U.S. viewers |
TV-connected device | ||
already use an AVOD | ||
household watches | ||
(Source: Nielsen) | ||
service | ||
TV per day | ||
(Source: Nielsen) | ||
(Source: Nielsen) | ||
$109B
Ad revenue from AVOD and FAST expected by 2028 (Source:Nielsen)
Entertainment & Innovation:
Cineverse answers both consumer needs
Two Distinct but Synergistic Business Models - allowing us to exploit assets and leverage deep bench of experience in legacy media while future-proofingthe organization with forward-lookinginnovation and advanced technology strategies.
Streaming | Consumer Products |
Technology & Digital | & Legacy Content |
Content Distribution | Distribution |
Platform as a service (PaaS)
Managed services
(rev share)
Complementary Business Models:
High margin content distribution powered
by our proprietary technology
Digital content | OWNED CHANNELS | Consumer | Ancillary | |||
distribution | & PODCAST | Products | Sales | |||
Advertising | TVOD | FAST | Box | DVD | Retail | Ecommerce |
Services | Office | |||||
AVOD SVOD
The Cineverse Business Model: Diversified
Revenue Streams
CineverseTechnologies
Revenue Stream | Target Customer | Operating Margin | Business Model | Revenue Stream |
Matchpoint Platform as a | Media Companies, Video Service | High | PaaS | Monthly fee on packaged technology offerings |
Service (PaaS) | Providers, Enterprise | |||
Matchpoint Managed | Content Owners, Creators | Medium | Selling Channels into 3rd party | Revenue share (Advertising Fees) |
Services | platform partners (Tubi, Samsung, | |||
etc) AVOD, SVOD, TVOD, FAST | ||||
Digital Content Distribution | Streaming Platforms | Low | Selling Content In | License fees |
Advertising Services | Agencies, Studios | High | Direct & Programmatic Advertising | Revenue share (based on CPMs) |
Fees | ||||
CineverseEntertainment | ||||
Revenue Stream | Target Customer | Operating Margin | Business Model | Revenue Stream |
Owned Channels & Podcasts | Enthusiast Audiences | Wide range - higher for | SVOD, TVOD, AVOD, FAST | Subscription fees, Advertising revenue |
subscriptions / lower for | ||||
FAST/AVOD | ||||
Consumer Products | Collectors | Low | DTC E-Commerce, Retail, Theatrical | Consumer retail sales and B.O. |
Releasing | ||||
Ancillary Sales | Streaming Platforms | Low | Selling Content In | License fees |
The Cineverse Opportunity: Content Market is Expansive and FAST Growing - with Ample Headroom
Consumers are watching content at record-high
volumes while making the switch to streaming and technology-driven
viewing habits at unprecedented rates.
Market Size | Projected Market Growth |
TOTAL GLOBAL MARKET | |
~$60B+ | |
U.S. ENTHUSIAST MARKET | 13.4% |
$3B+ | |
CAGR1 | |
$45.3M | |
² |
- Source: PwC, Mirae Asset Securities; includes management estimates of enthusiast market of 5%.
- Cineverse's content-related revenue for the fiscal year ended, March 31, 2024, which excludes other non-recurring revenue.
The Cineverse AI Opportunity
THE AI MARKET | ||||
$250B | $2-2.5T | $165B | $55B | 30K |
Total AI Market | Total AI Market in | Generative AI in five | Video Gen AI | Fortune 500 mentions have |
next 8 years | years | segment | risen from under 500 in '22 | |
to 30,000+ in '23 |
The Cineverse AI Roadmap
Successfully launched Gen AI content search & discovery tool, cineSearch as a co-investment with Google Cloud Initial announcement led to our highest trading day ever at 32M shares - nearly 3x our 2nd best in '20 Matchpoint already employs advanced machine learning and computer vision to analyze video content for streaming
We have already developed 5 AI modules to automate tasks, and another 6 partnerships to extend the platform's AI capabilities - fully integrated into our product
Cineverse & AI: Where We Are Today
Our already developed next-gen technologies and infrastructure position us uniquely to serve emerging markets - offering unparalleled insights and data orchestration.
Continuing to take AI-powered products and business lines to market that address the needs of the entertainment and technology sectors - to address the growing pain points of content monetization and processing a vast backlog of video-centric data at scale
Driving innovation for the entertainment industry through GenAI including licensing for LLM training data
AI will act as disruptor for localization, QC, encoding, encryption, etc - We are primed to jump on this market opportunity
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Disclaimer
Cineverse Corp. published this content on 16 July 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 July 2024 20:49:06 UTC.