Overview
About Pacific Gold Entertainment
PGE's mission is to garner worldwide exposure for all of its projects and create franchise potentials that generate long term income returns for its investors. PGE is a Canadian independent film production studio, which produces feature films, theme related video games and merchandise.
PGE has developed a brilliant strategy to take advantage of today’s entertainment industry by focusing on the 13-35 year old market demographic that has the largest component of disposable income spent on entertainment.
It has further refined its focus to develop a portfolio of film and gaming products specific focus is the ‘horror genre’ market -- the largest market segment for their target age demographic. |
Business Model
PGE is the first Canadian film studio that bundles films with revenue producing merchandise. Although our distribution and sales is targetted at US and International markets, we leverage the Canadian dollar and various tax credit incentives to produce cost effective films, video games, and merchandise. While most Canadian studios are focused on service producing US-owned features, we intend to create a demand for marketable Canadian films and video games with world wide appeal. This allows us to sell each product as a stand alone as well as all inclusive packages. This widens the revenue streams for each product with comparative advantages in production.
The PGE model is to make a quantity of lower budget independent video games and films for the growing gamer and DVD market. Where the average Canadian film costs about $4 million and takes about two years to complete, our average budget will be under $500,000 with a six month turn around. Most Canadian films fail to reach the international market. Our primary focus is the international markets, via our distributor. We also diversify our licenses, so we can create more revenue potentials within a brand. The Disney Company employs this model, so rather then spending $12 million on one film, they will produce four films for $3 million, for greater revenue potential. |
Production Trends
The industry is slowly shifting from financing individual film projects to financing film production companies with numerous planned productions (e.g. Lord of the Rings Trilogy). The DVD industry has also shifted the value creation within the film industry, enabling smaller independent studios to develop their own portfolio of film products. This intellectual property creates ongoing revenue streams which define an entirely new market value to film production companies.
The film industry has undergone significant change in the past few years including a shift in distribution with films released directly to the DVD market, thus avoiding the costly and often unprofitable theatrical release if warranted by the product and deal. This shift has increased the influence of the film distributors, who now offer minimum guarantees and significant upfront payments which can guarantee the profitability of an individual film, which lower the cost of overall production.
New technologies for film and game development, which substantially lower the cost of production are employed to create major efficiencies. The new trend is to release video games and ancillary merchandise directly related to a film project. Larger studios are creating films as a launch strategy for the games, as the video game market is massive and its revenue potential far exceeds that of film.
PGE’s productions are completed almost entirely in-house. The most modern digital technologies are employed, which cost a fraction of the older technologies still used in dated film production companies. Digital film production is far more efficient, and eliminates many unnecessary and costly steps. HD production has several major cost saving advantages over other types of production, and the adoption of digital filmmaking technology continues to be the trend, as evidenced by Hollywood productions such as “300”, “Sin City”, the Star Wars series, and many more. |
Team
PGE employs it own production team, eliminating the need to contract expensive industry personnel on a short term basis, which dramatically decreases the cost of an individual film. For example, there are no writing, directing, or producing fees, costs that typically represent approximately 25% of a film’s total production cost. Shooting on green screen studios reduces the production costs of location shooting, transportation and logistics, and set construction. In addition, post production costs, which include editing and sound design, can be reduced by a further 25%.
By having an in-house team using in-house equipment and being completely in control of its production scheduling and cost model, PGE estimates it can lower the overall costs of a film production by 50%. These cost savings do not compromise quality, and in fact ensure that the majority of a film’s budget ends up “on the screen” where it belongs. |
Retail Distribution
The demand for genre-driven video games and films for the video/DVD market has never been greater. PGE is capitalizing on the growing trend of creating franchises out of a single film or film series. The current slate of 5 feature films over two years will be packaged with Video Games, Soundtracks, and Graphic Novels. This packaging of each film opens access to the large chain (Target, Wal-Mart), which love to sell integrated mechanized film productions. |
Building Franchises
Starting with the creation or licensing of a commercial viable script, PGE secures backend distribution commitments before we add films to the production slate. This guarantees that even with minimal sales, each film will at least double its costs.
“…[S]tudios and retailers have no fear that scary movies can possess monster profit potential on DVD.” - Chris Gennusa, Variety Magazine. - Chela Johnson, executive VP of Marketing for Lionsgate |