We are seeking first round financing for development funds of $10M that will start the process in setting up administration and development to release projects in the worldwide market place. The other funds discussed in this outline and business plans will be raised through international currencies, bearer bonds and trade platforms that are already in the works.
Nexxus Entertainment Media (NEM) is the parent and holding company that will provide funding and synergy to a cluster of seven divisions for worldwide family entertainment, music, distribution, gaming & software Companies along with partnerships. Some of the seven currently exist. They are currently doing business and possess products and assets. Upon funding, these will be folded into NEM. Then, those that do not now exist will be created.
The seven divisions include: 1) Brave New World International Films (BNWIF), 2) a TV production/distribution Company – Social Atmosphere TV ( SATV), 3) a merchandising and licensing Company – Master Licensing Group (MLG), 4) a retail distribution Company – For Your Home Distribution (FYHD), 5) a group of music recording labels – National Records Group (NRG), 6) music publishing Company’s – National Publishing Music Group and NEM Music (NPMG/NEMM), and 7) Animation, VR & Gaming and Software (AVRG).
Together, these subsidiary companies provide the means for NEM to create and/or acquire and distribute in a synergistic and coordinated fashion: a) family-oriented theatrical features and independent films (through BNWIF), b) TV content and distribution agreements (through SATV), c) merchandising & licensing agreements (through MLG), d) in-house retail distribution of branded merchandise (through FYHD), e) music and audio CDs and music downloads and audio recorded on other media (through NRG), f) music publishing rights, licenses, and other intellectual property products (through, NPMG/NEMM), g) video games and proprietary software tools (through AVRG ), h). These items from all divisions will also be NEM’s branded products and assets.
The monies sought will also provide the first two years of operating capital for NEM and the seven subsidiaries. Under existing agreements in place, NEM will either wholly own the subsidiary companies, or hold a controlling or substantial interest in them, and will control their operating budgets. NEM will supply initial funding to the subsidiaries, and collect their pre-tax profits. Then, it will return portions of this income to the subsidiaries to fund their operating budgets in subsequent years. Each of the subsidiaries has its own detailed business plan, available upon request. Highlights from each of these are presented in this Business Overview.
The synergy that results among the subsidiaries is, in part, due to The Company’s corporate family-style structure that provides uncomplicated shared access to needed products and expertise owned by each. Many large successful entertainment firms have developed or adopted a similar structure where each of their subsidiaries is a self-contained business, a piece of the entertainment industry pie.
But, when these pieces are integrated together on an in-house project, for example, it soon becomes apparent that they contain all of the resources and expertise necessary to maximize income and profits for the parent firm.
For example, assume for a moment that: a children’s film is produced by BNWIF and it features a popular and interesting character, such as an animated alien from a superior planetary civilization (think E.T. with a larger vocabulary) who, to his own peril, advises members of an earth family how to best get through their mundane and miserable lives. A television series is developed by SATV that extends the life of the alien to other stories. The alien character is licensed by MLG to a toy manufacturer which creates a plush toy, while the alien’s image is also licensed by MLG to a clothing manufacturer who creates a line of children’s clothing which bears the alien’s name and likeness. The plush toy and the clothing are distributed by several means, including FYHD’s retail direct mail catalogs, to the parents of viewers – the viewers being children of a specific age range who join the alien’s “little helper” club advertised in the television series. An up-and-coming musical performing artist (who is also the voice of the alien in the film and on the television series) is under contract to a division of NRG and makes a recording of a song from the TV series. The recording is released by NRG, becomes a huge hit single, and drives sales of the performer’s album. Other recording companies and artists buy licenses (from NPMG and NEMM) to “cover” the song. Finally, a video game and interactive software is developed by AVRG (and distributed by FYHD) about the alien’s adventures on other planets. Please note that all of the business activity taking place in this scenario occurs within NEM subsidiaries. That is synergy.
Also note that each step in the process is facilitated by representatives from each subsidiary involved. The emphasis is on cooperation and “helping.” The result is a win-win situation for everyone – and most of all for NEM. Typical relationships in “partnered” or “cooperative” projects really are synergistic – and more productive – than projects accomplished by isolated teams. More is often accomplished with less. Rarely, if ever, do these relationships become adversarial.
Another portion of the synergy among subsidiaries is due, in part, to the depth of experience and common sense possessed by the subsidiaries’ leaders and managers who come from the worlds of their content: film, TV, technology, animation, education, entertainment, merchandising/ licensing, first run and star-driven reissue music, music publishing, and video game production, as well as from the general business and financial communities. NEM’s leaders and managers are expected to be resources and consultants to each other. Each of the senior executives at NEM, and each of the senior executives in the subsidiaries, brings to the table over twenty-five years worth of experience, expertise, business relationships, connections, assets, and existing products. The sum total of these “human assets” will provide a superior Nexxus for working together and, in the beginning, for “jump starting” NEM and its family of companies.
NEM will describe the relationships and function of each member of the NEM “family” of companies. NEM will also briefly describe some of what NEM believes are well thought-out plans to insure the success and longevity of NEM and projects in the entertainment, marketing, music, film, TV, merchandising, software, and game development industries, while successfully manufacturing products for retail delivery by a variety of traditional and non-traditional means of distribution. Our diverse and talented management team collectively has many decades of executive management, marketing, and creative accomplishments to their credit. Several of NEM’s first-slated projects are designed to quickly generate income, as is NEM’s asset-based music publishing subsidiary. Plus, several software, educational, and game-related products are ready for market, and a strong catalog of manufactured consumer items exists. Thus, within days of start-up, this management team will be ready and able to generate significant revenue while longer term plans, projects, content, and products are completed. ll financial for the family of companies, debt service reflected in the Net Profit and the net profit amount itself does not contain amounts set aside for depreciation and income taxes.
The following Company and Subsidiary Divisions will be set up as LLC’s and or Corporations. The management team consists of Louis Nathan – Chairman, Sol Wahba – President, Bob Engelman – CEO/President of Brave New World International Films, Stuart Sheslow – Social Atmosphere TV, – Comedy, Dramatic, & Reality Programming, Internet Webisodes, and Interactive Websites. Mary T Duda – President of Animation, VR and Gaming – Blake Senftner – President/ Chief Technical Officer for The 3D Avatar Store, Facial Reconstruction 3D Technology for the personal and commercial advertising and gaming. Ita Golzman – President of Master Licensing Group – Danny Dimont – President of For Your Home Distribution, provides retail distribution for home and entertainment products – Eli Okun – Chairman for National Records Group, A first run digital label, mid-line label and Children’s Label. Clive Fox – Chairman for National Publishing Group/NEM Music – The Publishing subsidiary will administer publishing artists and catalogs along with purchasing music catalogs.
Allocated Funds per Division Subsidiaries: NEXXUS Entertainment Media, Holding Company – $5M Film Division – $300M Film Slate for Independent Films and Studio Pictures TV Production Division – $100M, includes funding Dramatic and Comedy TV – Reality based programming, Webisode Interactive Websites. Music Publishing Division – $25M, Licensing, Catalog, and Purchasing Song Catalogs – Animation, VR & Gaming abd The 3D Avatar Store – $150M, Core Operating System – for a number of innovative personal and commercial mobile, internet and virtual reality video game programming. Record Labels/Artist Management Division – $30M Merchandising Division – $15M Product Distribution.