Finally back from Cannes and London. We ran into some technical difficulties which precluded us from sending any further updates while we were travelling.
This was our most productive Cannes in a number of years. While the market was slow with very few deals announced at Cannes, we were very busy. The biggest news from Cannes overall may well be that independent domestic films now must realize most of their revenue from domestic sales, rather than from international sales as had been the case previously.
Buyers are looking for quality and attractive elements that will help them sell a particular title in their territory, and most of the product available did not deliver the quality or the required elements, which include at least some recognizable cast members. Even those titles that were selling, and they were few and far between, were commanding far less sales figures than in previous years in what was truly a buyers market.
As a result, budgets have to be very low, or high enough to attract major talent. Those films that are produced in the middle ranges can find it difficult, if not impossible, to garner any sales. This continues to cause consolidation at both ends of the market, and while there may be a lot of titles still waiting to be sold, the demand for new content that meets the buyers requirements continues to rise, and this creates significant opportunity for companies like Camelot that are positioned to produce and deliver that content.
During Cannes, we met with buyers, distributors, financial entities and filmmakers from around the world. We had very productive co-production meetings with a number of countries where we plan to produce some of our slates. We have enlisted expert assistance from various territories who will be guiding us as we work through the various complex packaging, production, distribution and deliverable requirements that will allow us to commence production. While here in the US we continue to embrace the digital revolution, most foreign territories are moving a lot slower, making it more imperative than ever to fully understand what they need and how they want it delivered.
We have decided, based upon the result of our meetings in Cannes and London, to set up our first international production hub in the UK. We have begun the process of determining who will head up our operations in the UK. The UK has an established production infrastructure in place, which will allow us to move rapidly on our first European production slate.
Here in the US, we are continuing to move forward with plans for our first domestic production slate under Camelot Films. This slate is in addition to previously discussed features being produced under Camelot Features. We hope to be ready to announce where the slate will be produced following upcoming meetings with various states.
The process of identifying and securing intellectual properties continues. We had several meetings in Cannes with filmmakers which we hope will result in our being able to acquire several more projects this year. We also have identified several potential acquisitions of completed films and will be working with their respective sales agents going forward.
On the financing front, we are preparing our S-1 registration statement in anticipation of securing the funding necessary to complete our initial slates here in the US and in the UK. Along with our attorneys, accountants, auditors and advisers, we are looking at solutions to the current stock price issue and what structure will work best as we move forward. We are reviewing all suggestions that have been made and continue to be made as we continue to move forward in implementing our business model.
In both Cannes and London we had extensive meetings with two companies that we are currently negotiating to acquire. As a result of these meetings, we anticipate being able to make formal announcements in the near future. We will be meeting with our investment banking team in early June and hopefully we will come away from those meetings with deal structures that will work for both sides.
Friday, May 15, 2009
News from Cannes. Following the stockholders meeting on Wednesday and later meetings with our auditors, attorneys and key advisors, it was off to Cannes and the film market. After arriving late Thursday, Friday was filled with meetings with filmmakers, international buyers and distributors.
The typical day here begins at 6 am and ends around midnight. With the world film business convening here in Cannes, there are more meetings and screenings of potential product acquisitions than there are hours in the day. The public hears about the festival and the stars, the red carpets and the parties. Behind all of that is the film market, and that is where the business of film takes place. Films are bought and sold, deals are made for future productions and the groundwork is laid for future deals as relationships are made and old acquaintances get caught up.
So far, this year's market is slower than recent years, due in part to the world economic issues and also due to a lack of quality product that the buyers are looking for to fill their release schedules. There are a lot of films available, but most are not up to the quality level that the markets now demand.
With the dvd market maturing and direct to consumer still finding its way, and with the high cost of releasing and distributing product, the need is greater than ever for commercial, high quality product with recognizable talent. It's not so much a function of budget as it is having a good script and getting the most for one's money up on the screen. So the paradox is on one hand you have a glut of product on the market, while on the other hand you have an ever increasing demand for more product that the buyers want and need in order to fill out their release schedules for theatrical, television, dvd, vod and all the other ancillary markets.
With the number of films being released by the major studios being cut back, and with many of the mid-sized companies being acquired or leaving the business all together, the marketplace appears to be reshaping itself into two distinctive segments. On the high end, large budget tentpole pictures with major stars and high concept commercial appeal, while on the low end, horror, action and thrillers that are well made and have some recognizable talent continue to do well. The middle of the road pictures, budgets north of a million up to ten to fifteen million, are in serious peril. Of course, there are exceptions to any rule, but for the most part the first full day here at Cannes has fairly well confirmed this.Dramas without a big name cast, comedies, and romantic comedies are having a tough time at any budget. Movies such as those made by Tyler Perry and others do extremely well in the states, but virtually have no marketability outside of North America.
For Camelot, all of this provides us with a great opportunity to meet the market demand for commercial, high quality films that can be made at a reasonable cost so those that invest in the films have the ability to realize a profit. It also provides us with the opportunity to acquire product and companies that have the same philosophy as we do. To accomplish our goals, we have to remained focused and realize that this is not a sprint, it is a marathon.
Tomorrow we will provide an update on the results of our first two days of meetings here in Cannes.
The typical day here begins at 6 am and ends around midnight. With the world film business convening here in Cannes, there are more meetings and screenings of potential product acquisitions than there are hours in the day. The public hears about the festival and the stars, the red carpets and the parties. Behind all of that is the film market, and that is where the business of film takes place. Films are bought and sold, deals are made for future productions and the groundwork is laid for future deals as relationships are made and old acquaintances get caught up.
So far, this year's market is slower than recent years, due in part to the world economic issues and also due to a lack of quality product that the buyers are looking for to fill their release schedules. There are a lot of films available, but most are not up to the quality level that the markets now demand.
With the dvd market maturing and direct to consumer still finding its way, and with the high cost of releasing and distributing product, the need is greater than ever for commercial, high quality product with recognizable talent. It's not so much a function of budget as it is having a good script and getting the most for one's money up on the screen. So the paradox is on one hand you have a glut of product on the market, while on the other hand you have an ever increasing demand for more product that the buyers want and need in order to fill out their release schedules for theatrical, television, dvd, vod and all the other ancillary markets.
With the number of films being released by the major studios being cut back, and with many of the mid-sized companies being acquired or leaving the business all together, the marketplace appears to be reshaping itself into two distinctive segments. On the high end, large budget tentpole pictures with major stars and high concept commercial appeal, while on the low end, horror, action and thrillers that are well made and have some recognizable talent continue to do well. The middle of the road pictures, budgets north of a million up to ten to fifteen million, are in serious peril. Of course, there are exceptions to any rule, but for the most part the first full day here at Cannes has fairly well confirmed this.Dramas without a big name cast, comedies, and romantic comedies are having a tough time at any budget. Movies such as those made by Tyler Perry and others do extremely well in the states, but virtually have no marketability outside of North America.
For Camelot, all of this provides us with a great opportunity to meet the market demand for commercial, high quality films that can be made at a reasonable cost so those that invest in the films have the ability to realize a profit. It also provides us with the opportunity to acquire product and companies that have the same philosophy as we do. To accomplish our goals, we have to remained focused and realize that this is not a sprint, it is a marathon.
Tomorrow we will provide an update on the results of our first two days of meetings here in Cannes.
Tuesday, May 12, 2009
Saturday, May 9, 2009
These are some of the items to be discussed during the question and answer segment of the stockholders meeting on May 13th. We encourage all stockholders to attend. If there is a topic or specific question not included on this list, please email bob@camelotfilms.com and we'll make sure to include the topic or specific question.
Stock Issuance's
Large Number of Outstanding Shares
Trading Activity
Market Makers
Reverse Stock Splits
Stock Price
Stock Buy Back Programs
Bonds, Preferred Stock
Registration Requirements
IPO's
Secondary Offering
Convertible Notes
Funding
Press Releases
Management
Anonymous Postings on Blogs, Chat Rooms
Discussions on Blogs, Twitter, Facebook
Fair Disclosure
Current Projects
Future Projects
Generating Revenues
Stock Issuance's
Large Number of Outstanding Shares
Trading Activity
Market Makers
Reverse Stock Splits
Stock Price
Stock Buy Back Programs
Bonds, Preferred Stock
Registration Requirements
IPO's
Secondary Offering
Convertible Notes
Funding
Press Releases
Management
Anonymous Postings on Blogs, Chat Rooms
Discussions on Blogs, Twitter, Facebook
Fair Disclosure
Current Projects
Future Projects
Generating Revenues
Shares do not trade for free. For example, some stock reporting services do not show any price below .001. So if a trade is executed at .0005, it might show up as .oo on the reporting service. Bid and ask quotations are not quoted below .0001. Shares are not issued for free. Shares do not trade for free.
Please remember to RSVP for the stockholders meeting if you plan to attend. Please email bob@camelotfilms.com. The meeting is this Wednesday, May 13th, 2009 at 8001 Irvine Center Drive, Suite 400, Irvine, CA 92618. The meeting will take place in the main conference room just off the main lobby beginning at 1 p.m. We expect to have call in information for those who cannot attend available on Monday, May 11th.
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