File - Eurasia Vegas

Company Overview
Fantazmus is a supernatural being and the word itself comes from
the Latin word… for something that has been apparently seen, heard,
or sensed, elusive or delusive, an image that appears only in the mind, an illusion,
fictitious. Fantazmus is also the visible representation of something abstract - ESP as
appearing in a dream or hallucination, existing in perception only. In Chinese it transslates as Noble Phantasm. The first kanji means Treasure and the second means Tool.
We believe that Classical Art, Music and Architecture are the real Treasures of our
society, creation of which has been neglected for at least two centuries.
.
This company is being created as a Tool to finance an effort to motivate artists, musicians and architects to create n ew Classical Art, Music and Architecture.
Company Overview
Fantazmus Studios (“Fantazmus”, “Studio” or “Company”) will cut
through the obstacles in the television business by building a company
based on experience and unparalleled access, responsible and forward thinking financing
models and the support of the industry’s most powerful television packaging agencies.
Fantazmus is an independent television production studio focusing on creating, packaging and producing original content television properties including, but not limited to,
scripted dramas, comedies, reality shows and game shows.
Fantazmus will create fully developed, packaged projects (“TV Properties”) for license
to broadcast and cable networks both domestically and internationally. The Company
will retain a significant equity portion in each of its respective TV Properties resulting in
a library of powerful television assets that will generate recurring high margin revenue.
will generate recurring high margin revenue.
Company Overview
The company uses forward thinking financing models and deft producing
and deft producing experience instead of writing deficit financing checks
to produce its TV Properties.
This results in significant ownership in each property for Fantazmus with limited to no
financing risk.
This model requires unique components to work:
• Experienced and trusted executives who can actually produce TV Properties themselves.
• An acute understanding of television financing.
• Working relationships with all of the broadcast and cable networks and the biggest international distributors.
• Unfettered access to, and support FROM THREE of the most powerful television packaging
agencies in the world CAA, ICM or WME.
Fantazmus has all of these components.
Company Overview (Cont.)
The marriage of these unique elements gives Fantazmus many advantages
including, but not limited to, the ability to operate as a lean company in
terms of overhead, the ability to develop TV properties for a lower development cost per
property than a major studio and it gives Fantazmus the ability to offer the most sought after
writers and show creators a better deal than the existing studios in terms of their equity
participation in the TV Properties they write and create. This means Fantazmus can be a
more attractive option to top talent as a producing partner than a major studio.
Fantazmus has access to Hollywood’s three marquee talent agencies CAA, ICM and WME.
CAA, ICM and WME are the industry’s largest and most respected talent agencies with
access to the deepest pool of premium talent including many of the most recognized actors,
writers, athletes and entertainment professionals internationally. CAA, ICM and WME have
a stellar record in the television industry and have packaged almost every single one of the
world’s most recognized shows including American Idol.
Company Overview (Cont.)
Fantazmus will work intimately with Agencies to produce
and package projects with select professional talent.
As a result of its deep industry relationships,
Fantazmus will have access to an unparalleled pool of creative talent,
entry into every major broadcast network and cable channel and access to
Fortune 500 sponsors, maximizing the likelihood of success for each project.
Company Overview (Executive Team)
Fantazmus executive team includes industry executives with
proven track records in developing & producing television content in
United States and abroad.
This translates into the management having deep relationships with the
presidents and executives of some of the major broadcast network, cable
channel, talent agency and physical production vendor in the industry.
Company Overview (Executive Team)
Fantazmus has access to (CDN) Content Distribution Network,
which is owned and operated by our European partners.
Their technologically advanced CDN has been designed, developed,
implemented and is currently delivering almost 500,000 films and other
TV programs over the Internet to more than 50 million subscribers around
the world in seconds!!!
This partner is a private company owned by Russian billionaires and we are
contractually forbidden to identify it to anyone who hasn’t signed an NDA
agreement.
We can tell you, however, that this partner, this company that is implementing
our Internet Content distribution is the world’s oldest, largest and
technologically advanced provider of entertainment and informational
programming over the internet.
It has been in business for two decades, has 30 times more programs in its
instant library than Netflix and has 2.5 times Netflix’s number of subscribers,
with each subscriber paying an average of more than $20 a month than
typical Netflix subscribers pay.
So, their track record is a very important factor in making Fantazmus Studios
a very low risk investment.
Current Situation
THERE IS A NEED TO CREATE AN INDEPENDENT STUDIO
• The business is broken. The opportunity has never been better.
• 5 Companies control the marketplace (ABC-Disney, News Corp,
NBC-GE, CBSViacom, Warner Bros.)
Current Situation (Cont)
• Writer’s strike has left writers frustrated with current
models and very open to creating new models.
Creative financing can force larger pick-ups and cleaner
profit sharing, both of which are very attractive to high-end talent.
• DVD business has become a “cash cow” and generates income
within 18 months of series launch.
• Global appetite for US television series has increased number
of revenue streams which pay average deficits down.
• Distribution will become increasingly digital, requiring smaller
staffs to distribute on a global scale.
The Solution
CREATE AN INDEPENDENT TELEVISION
STUDIO TO CREATE A PORTFOLIO WITH
LITTLE TO NO DEFICITS
• Capital to cover Executive Staff, Office Space, Development Funds.
• Research, design, develop and implement solution for production
financing via raising funds by selling Product Placement in any project
under development and/or consideration to be developed to finance
newly developed content and pay all the debts and all expenses
associated with production.
• A fund to provide bridge financing for shows through tax credits as well
as foreign sales.
The Solution
• Partnerships with producing partners that will help
eliminate deficits through tax reimbursements and credits
in places like Canada, New Mexico, Connecticut, Pennsylvania.
• Partnerships with foreign sales companies to utilize existing foreign
sales staffs to cost-effectively explore foreign pre-sales
in order to reduce deficits on 1st season shows.
• Accessing high-end talent with global brand appeal to generate
significant foreign sales.
• Offer talent cleaner ownership in their respective shows.
DVD, digital, merchandising/licensing, and ancillary sales.
The Plan:
FANTAZMUS STUDIOS WILL BUILD A LIBRARY
OF HIGHLY VALUABLE TELEVISION ASSETS BY
BUILDING A SMART AND RESPONSIBLE
COMPANY THAT CONSISTENTLY DEVELOPS,
SELLS AND PRODUCES TELEVISION AND AUDIO CONTENT.
• Develop TV content.
• Solicit scripted and unscripted pitches from top show
creators via CAA (as well as other top agencies)
• Develop scripted and unscripted projects internally.
• Develop proven international formats for US market.
• Package projects with CAA talent (as well as other top agencies).
The Plan:
• Sell assets to Networks, Cable Channels, Web Sites, etc.
• Fantazmus’s founders and CAA, ICM WME
have working relationships and personal friendships with the
presidents and executives at every network.
• Produce episodes of shows that are picked up
• Maintain creative and financial control.
• Retain ownership.
• Generate ongoing revenue streams from multiple
sources while building a valuable library.
Develop Shows – Scripted
Fantazmus will find and acquire promising scripted shows, both sitcoms and dramas,
package them, sell them to networks and produce them while retaining ownership.
Fantazmus will put an initial emphasis on half hour sitcoms such as:
of shows such as:
COSBY
NBC
THAT 70’S SHOW
FOX
3rd ROCK FROM THE SUN
NBC
ROSEANNE
ABC
•
Fantazmus’s top executives and relationship with CAA will yield a high probability of
developing many successful shows.
•
CAA represents many of the top writers in television; CAA’s equity stake will
motivate it to bring its best clients and their projects to Fantazmus.
•
Fantazmus’ independent studio model will be attractive to writers.
• Fantazmus will offer writers an equity stake in the shows they develop.
•
As an independent studio, Fantazmus will have fewer creative restrictions than a studio
connected to a network.
Develop Shows – Scripted
•
Each year, Fantazmus will utilize $1,000,000 of its development fund to develop 20-40
scripted properties.
•
Scripted properties includes half-hour sitcoms and hour-long dramas.
• Per show development costs for Fantazmus will range from $0 to $75,000.
•
Networks and cable channels pay what is known as a “penalty”, usually averaging
$50,000, if they do not produce a pilot they have bought an option to make during a
particular window of time (typically one year).
• Consequently, Fantazmus’ annual development fund will allow the company to
develop more shows each year.
Develop Shows – Unscripted
The unscripted television marketplace has exploded in the last decade and there is no
end in sight. Reality shows of all kinds – game shows, talk shows, docu-series,
competition shows, etc. – exist on every network and the formats are as varied as
American Idol, The Real Housewives, Judge Judy and so on. Fantazmus will be an industry
leader in supplying networks with reality shows, such as:
Deion and Pilar
Primetime Love: Oxygen
Ultimatum: Style
Channel
The Kentucky Kid: MTV
Burned: MTV
Branded Entertainment Initiative –
Network TBD
Trick It Out: MTV
Taildaters: MTV
Vegas Weddings
Unveiled: GSN
Ballbreakers: GSN
The Definite Maybe:
Independent Feature
Develop Shows – Unscripted
•
Each year, Fantazmus will utilize $1,000,000 of its development fund to develop 90-120
unscripted projects.
•
Unscripted properties includes game shows, reality shows, daytime and late night
talk shows and live specials.
• Development costs range from $0 to $10,000 per show.
Develop Shows – Talent
•
Fantazmus will work with CAA to package its shows.
•
“Packaging” refers to bringing together the best writers, actors and directors to
work with Iolite on a project before it is pitched to networks.
•
CAA is the largest talent agency in L.A., representing many of the top television
writers, directors, and actors
• Writers include John Wells (West Wing, ER), Paul Attanasio (House), Damon
Lindelof (Lost), and Anthony Zuiker (CSI New York, CSI Miami).
• Directors include Brett Ratner (Prison Break) and Ron Howard (24).
• Actors include Hugh Laurie (House), Eva Longoria (Desperate Housewives),
and Kelsey Grammer (Frasier).
CAA is considered the top talent and literary agency in the world. CAA
represents some of the biggest stars in the entertainment industry, including:
Develop Shows – Package TV Property
•
CAA packages over 40% of all the properties on the major networks during the
prime-time hours.
• CBS: CSI, CSI New York, CSI Miami
• NBC: The Office
• FOX: House, American Idol
• ABC: Lost, Grey’s Anatomy, The Bachelor
•
CAA is also an industry leader in packaging unscripted shows, including Late Night
with David Letterman (CBS), and Oprah (ABC).
It is a huge advantage for Fantazmus that CAA is their packaging agency as CAA
packaged shows are traditionally more attractive to buyers and distributors.
•
Sell Shows – Market TV Properties
Once its shows are packaged, Fantazmus will shop them on the open market and sell them to
the highest bidder.
•
CAA’s involvement will give Fantazmus access to every major network, cable channel
and other outlet.
•
Fantazmus’ independent studio model will allow the Company to pitch to multiple
networks without a conflict of interest, thereby maximizing the potential for the
show to be set up.
•
Given the caliber of its executives and creative talent, Fantazmus will set up a high
percentage of its shows at networks and cable channels.
Produce Shows
Fantazmus will produce all of its shows, allowing it to:
•
Maintain quality control;
•
Retain ownership; and
•
Benefit from production-related revenues.
However, Fantazmus will not finance the production of individual projects.
•
Most shows will be financed entirely from up-front network licensing fees.
•
In the event additional production cash is needed, known as deficit financing, Fantazmus
will raise financing from foreign pre-sales through its relationships with
international distributors, gap finance production tax credits and/or, in the case of an
expensive drama, lay off any deficit on the network’s sister studio while retaining an
ownership position.
•
Fantazmus has already approached the major studios owned in conjunction with the
major networks and determined that these studios will fund the deficit of a show to be
aired on its related network taking that risk off of Fantazmus’ plate.
Show Financing Models
The next four pages show examples of Fantazmus’ financing models. Models like these
allow the Company to build a library of television assets without deficit financing
shows. This allows Fantazmus to mitigate most of the financial risk associated with the
television business while capitalizing on the immense value that comes with owning
television shows.
• Comedy & Reality Series: Will be produced for the network license fee. No deficit
financing required.
• Cost Effective Cable Comedy: Will be produced with a combination of the network
license fee and international pre-sales in certain territories. The pre-sales cover any
deficit financing that may be required.
• Cable Drama Series: Will be produced for the network license fee and a combination
of state supported production tax credits and, if need be, international pre-sales and
DVD pre-sales. The tax-credits and pre-sales cover any deficits that may be required.
• Big Budget Broadcast Network Drama: Company would partner with respective
broadcast networks’ sister studio, reduce to 15 points of the back-end and assume no
financial risk during production. The networks’ sister studio pays the deficit financing
needed.
Show Financing Models
Comedy & Reality series produced for license fee
EXAMPLES: AMERICAN IDOL, THE OFFICE 1st season & 10 ITEMS OR LESS
THE OFFICE
1st Season: Budget was $1 million.
NBC paid a $1 million license fee.
PLUS Foreign sales.
PLUS DVD sales.
AMERICAN IDOL
1st Season: Budget was $850k per episode.
NBC paid a $850k license fee.
PLUS Coke paid $200k an episode for product
integration.
Series owned by Simon Fuller.
PLUS Renegotiation with NBC for subsequent years.
10 ITEMS OR LESS ON TBS:
Budget is $750k per episode.
TBS pays license fee of $650k per episode.
PLUS Product integration generates $200k per episode.
PLUS DVD sales.
Show Financing Models
Cost-effective Comedy
EXAMPLE: KROD MANDOON
Budget $1.1 million per episode with a guarantee of 6 episodes.
Comedy Central covers a $550k per episode license fee and will offer a larger
series order (6 episodes based on pilot script) in exchange for getting a $1.1 million
budgeted series.
Foreign pre-sale generated $600k per episode with only 3 territories cleared
(Germany, UK & France).
Goal is to clear additional foreign territories to increase profitability on individual
episodes.
Creatively the show lends itself to large DVD sales. DVD sales will be pure profit.
A successful series on comedy Central can drive 1 Million DVD units (SOUTH
PARK, DAVE CHAPELLE).
Show Financing Models
Cable Drama Series
EXAMPLES: THE BEAST & MAD MAN
Budget $2.4 million per episode.
Cable Co. (A&E/AMC) covers a $1.8 to $1.9 million license fee.
Tax reimbursements can reduce deficits. Up to 35% of the production budget can
be reimbursed in Canada if company follows Canadian production and creative
guidelines. Up to 14% of production budget can be reimbursed in New Mexico,
Pennsylvania, & Connecticut if company follows States guidelines.
Foreign pre-sales or sales will put series in profits.
PLUS DVD revenues.
PLUS Building library value.
Show Financing Models
Big Budget broadcast network comedy & drama
EXAMPLES: LOST, HEROES, 24, PRISON BREAK
Average license fee on a first year show can cover
50% of the budget. Budgets of these respective
shows can reach north of $3 million an episode
in a first year series. This ratio would make deficits
too risky for company.
Company would partner with respective broadcast
networks’ sister studio.
Reduce to 15 points of the back-end.
$35k to $50k per episode fee.
Negotiate control of foreign distribution if possible.
Mitigating risk at the same time allowing the
concept to see it’s full potential.
In success back-end points can each be worth several million.
Revenue Projections
•
Fantazmus’ projections are conservative and do not fully reflect potential revenues from
product placements and other advertising collaboration.
•
The projections also do not reflect any of the produced shows becoming top 20
shows, examples of which include these shows packaged by CAA (projected
values):
Revenue Projections and Library Values (estimated)
1st Year
(8 mo.)
REVENUE
($230,000)
LIBRARY
VALUE
$0
2nd Year
3rd Year
4th Year
5th Year
REVENUE
REVENUE
REVENUE
REVENUE
$27,960,000
$105,240,000 $368,840,000 $1,047,920,000
LIBRARY
VALUE
LIBRARY
VALUE
LIBRARY
VALUE
LIBRARY
VALUE
$60,000,000
$400,000,000
$1,200,000,000 $3,600,000,000
There are hundreds of spec scripts writen by CAA’s
’ stable of top television writers and show creators to which we
will have unfetered access. A spec script is like a spec house – it is a show that a writer writes without a studio
deal in hopes of selling it. It is a free IP of which we can try to make something.
Upon capitalizaton, FS will meet with dozens of top writers and show creators AND reality show creators who are
looking for a studio partner for their next great ideas. F/S can/will make deals with any and all.
______________________________________
The
Script examples on the next several pages are just examples of the caliber of projects Fantazmus has access to and
can get its hands on for litle to no money.
&$#%M'*0%#F&>-7#*%+,%0"#%.&7/3#$%+,%-$+M#.0*%<+7/0#%"&*%&..#
TYPES OF SCRIPTED PROJECTS AVAILABLE TO
FANTAZMUS FOR ACQUISITION VIA CAA IN 2012
*There will be an ongoing flow, these are just a few examples
Savior
One Hour Drama (a la
“Heroes”)
Potentially available to
(CAA package)
Developed by Stan Lee
Zone 5
One Hour Police Drama
Potentially available to
(CAA package)
Spec Script
Emergency
One Hour Supernatural
Medical Drama
Potentially available to
(CAA package)
Spec Script
Creator: Deran Sarafian
(Co-Executive Producer of
“House”)
Inland Empire
One Hour Youthful Horror
Series
The Watch
One Hour Supernatural
Thriller
Intervention
One Hour Medical Drama
Potentially available to
(CAA package)
Developed by Breck Eisner
Creator: Breck Eisner
(director of “Sahara”)
Potentially available to
(CAA package)
Spec Script
Potentially available to
(CAA package)
Spec Script
Untitled WWII Drama
One Hour Drama
Potentially available to
(CAA package)
Spec Script
Writers: Kevin & Dan
Hageman (“Hotel
Transylvania”)
Writer: Jason Cahill
(“Fringe”, “The
Sopranos”)
Writers: Aron Coleite &
Joe Pokaski (“Heroes”)
On The Couch
Hour Comedy
Potentially available to
(CAA package)
Spec Script – Family
Comedy
Writers: Alan Loeb (“21”)
and Craig Doyle
Detoured
Hour Comedy
Potentially available to
(CAA package)
Spec Script
Public Defender
Hour Comedy
Potentially available to
(CAA package)
Spec Script
Writers: Chris Pappas &
Mike Berier (“Unhitched”
for FBC)
Writers: Ross McCall &
Aaron Peters (“Just Shoot
Me”)
Creator: Stan Lee
(founder Marvel Comics,
“Spiderman”, “X-Men”)
Writer: Damon Lindelof
(“Lost”)
ALTERNATIVE ROLL IN PROJECTS
COMPANIES CAA
REPRESENTS
(POTENTIAL
CO-PRODUCTIONS)
FLOWER FILMS
DREW BARRYMORE
KATALYST
ASHTON KUTCHER
FOXXKING
JAMIE FOXX
PRETTY MATCHES
OVERBROOK
SARAH JESSICA
PARKER
WILL SMITH
DREAMWORKS
STEVEN SPIELBERG
FOREIGN SALES PROJECTIONS FOR TV MOVIE
Estimates
EUROPE
Benelux
300,000
200,000
France
500,000
350,000
1,000,000
750,000
Germany
Greece
50,000
35,000
Israel
40,000
20,000
500,000
300,000
Italy
Portugal
45,000
25,000
Scandinavia
400,000
250,000
Spain
850,000
700,000
Turkey
75,000
50,000
United Kingdom
1,000,000
650,000
Total Europe
4,760,000
3,330,000
EASTERN EUROPE
CIS
Eastern Europe
Total East Europe
1,200,000
900000
800,000
600000
2,000,000
1500000
NORTH AMERICA
Canada
N/A
United States
N/A
Total North America
N/A
N/A
-
-
ASIA
Pan-Asia PTV
120,000
65,000
China
240,000
200,000
Hong Kong
60,000
20,000
India
40,000
30,000
Indonesia
85,000
40,000
750,000
250,000
Japan
Malaysia
45,000
20,000
Middle East
75,000
55,000
Philippines
50,000
20,000
Singapore
40,000
25,000
South Korea
250,000
125,000
Taiwan
100,000
40,000
Thailand
100,000
40,000
1,955,000
930,000
400,000
250,000
Total Asia
LATIN AMERICA
Brazil
Sp. Speaking Latin America
650,000
350,000
1,050,000
600,000
South Africa
55,000
45,000
Total Africa
65,000
45,000
400,000
250,000
Total Latin America
AFRICA
East and West Africa
OCEANIA
Australia/New Zealand
Ancillary
500,000
300,000
TOTAL
10,730,000
5,455,000