Invest in the Future of Independent Film
Fearless Films (FERL) is a full service production company specializing in award-winning short films and feature films for television, film, and streaming platforms.
The Future Is Streaming
The days of appointment television viewing and trips to the theater are behind us and the world has entered a time where streaming on demand content is the status quo. This has spread the revenue brought in by the entertainment industry across multiple platforms, with more opportunities for both content providers and content creators.
In actual dollars and cents, that has translated to the internet streaming market dominating entertainment. By 2018, the video streaming industry was estimated at $38.56 billion, making fewer than $4 billion less than box office sales the next year. In 2020, with the influence of the Coronavirus pandemic and a greater reliance on internet streaming from home, box office revenue has continued to drop substantially while internet streaming revenue is expected to continue growing to $149.34 billion by 2026.
Growth Factors
Growing Market
We operate in a global streaming market that is projected to create $124.57 billion in revenue by 2025.
Streamers Need Content
Netflix alone spent almost $12 billion on “additions to streaming content assets” in 2020, buying professionally-made content from studios and production companies like Fearless Films.
Fearless Films has successfully written, produced, and sold its award-winning films to major distributors, and has a pipeline of scripts ready to be produced. In addition to creating independent film and television content, Fearless Films is building their own streaming platform, which will allow them to control content revenue from production to distribution.
Independently Successful
Capitalizing on the Opportunity
As mentioned, the distribution of film and television has evolved in the past two decades. That has had an undeniable impact on the businesses creating that same content. Fearless Films’ decision to build and launch a website capable of streaming their content as well as that of other filmmakers this year is a prime example of this evolution. The move, as they described, allows the company to have 100% control over its revenues.
“We are watching development in the social media and streaming media spaces carefully, and have come to realize that we need to have full control over the distribution of our media properties,” said Victor Altomare, CEO of Fearless Films. “At the same time, we also see a need for a platform for film consumers to interact with each other, without the nuisance of the general social media platforms.”
The shift from strictly producing content to also controlling distribution has potential for incredible growth. Streaming isn’t a saturated market patrolled exclusively by two or three industry giants. Specialized platforms focusing on niche content have proven to be viable and profitable across the industry.
“Crunchyroll, Inc., for example, is an American distributor of anime content with roots in streaming. Having grown to 100 million registered users since 2006, Sony acquired the streamer for $1.75 billion”
Or maybe rather than focusing on the subscription-based revenue model, we can strictly look at streaming rentals, a current feature of Fearless Films’ platform for its original content. Across the globe, the transactional video on demand model (TVoD) generated approximately $670 million in Q1 of 2020 alone. Digital sales of movies spiked 16% to nearly $3 billion, and those VOD rentals were up over 18.3% to $2.3 billion the course of the year.
Whether renting, buying, or subscribing to services, streaming is big business.
Independent With a Purpose
A Profitable Strategy
As mentioned, Fearless Films looks to have 100% control over the revenue of their content. While a streaming-capable website takes care of the distribution end, it’s worth looking at what the company is producing.
“Earlier this year, Fearless Films secured the rights to Young Gangsters of America, a feature film script about a mobster leaving organized crime to give his family a middle-class lifestyle. With a projected production budget of $30 million, the purchase of the script marked another addition to the company’s growing library of films, joining 2012’s The Great Chameleon, The Lunatic, Dead Bounty, and Only Minutes. ”
“Fearless Films is about high-quality productions and entertainment. The script for Young Gangsters of America has been in development for years. Now that it is ready for production, we want to add this to the asset base of the company and work with our production partners to bring it to fruition,” Victor Altomare, CEO of Fearless Films said. “This underscores our company plan to have a steady stream of projects ready for development.”
Massive Growth Potential for Content-Hungry Industry
A London-based research group published a 2021 report predicting global streaming services will spend as much as $250 billion securing the rights to new content. The report, titled “An Industry Transformed” even proclaimed there is “no imminent ceiling in sight” for the accelerated growth streaming has seen recently, both due to the Coronavirus pandemic dealing a massive blow to box offices and the shift toward streaming the world had witnessed before 2020.
Studios and networks, of course, can’t produce enough content themselves to fit that hefty tab. Now more than ever there is a reliance on independent filmmakers and production companies to go out and create quality entertainment, bringing it back to the streaming platforms with deep pockets.
Not only does a company like Fearless Films have a great opportunity to secure funding for big-budget productions, their business model based on controlling their content through every step of the process provides a great chance to profit on their hard work.
Upon completion of this round of funding, we have a strategy in place for the use of capital. Based on the percentage of our goal met, we’ve determined what pieces to concentrate on in order to receive the most value for our new investors, as well as our company as a whole. Below you can see how we’ve broken up our spending based on the percentage of our goal we fund.
A Three Pronged Approach
01.
We develop our own stories, specializing in the type of film that inspired us to become storytellers in the first place. By writing our own scripts, we have full control over the content, and can decide whether to produce a story in-house or potentially sell it.
When we look at the big names in content, many of their movies/shows are now made in-house. By owning the means of production, we don’t have to wait around for an outside studio to pick up a script only to let it collect dust on a shelf. If we want a movie made, we make it. This strategy allows us to keep a steady stream of content flowing from page to stage, and into the next steps.
Independently Successful
One of the ways we’re able to create efficiencies and bring value to our shareholders, is pre-sales. Basically, we are able to sell a film before it’s made to foreign markets or outside distributors to generate cash flow and ensure production budgets are healthy. We have experience in this area, and plan on both selling our finished films and scripts to distributors and studios, as well as using our own…
Sales
02.
Fearless Films is entering the streaming game! It’s clear that the future of film is streaming. In order to deliver the highest-quality product to our audience, we believe that we must build our own digital film platform. With the funds we generate from this opportunity, we plan on beginning the process of creating a film oasis for our movies. …
The Fearless Films streaming platform will be dedicated to providing audiences with our award-winning feature and short films, along with additional future content. Owning the distribution is a huge piece of the puzzle, as it ensures our product gets to market, and increases our margins. We know that this strategy will allow us to make the best films we can, for the biggest audience possible. …
03.
Distribution
Film With a Vision
We believe that an investment in Fearless Films is an investment in inspired story-telling. The life-changing movies from our youth like Godfather, Easy Rider, Apocalypse Now, and so many more lit the fire in our spirits to create legacy films that provide equal parts nostalgia and wonder. We hope that our efforts can help to foster the next generation of film-makers, while paying homage to those that walked before us. An investment in Fearless Films is an investment in the future of independent cinema.
Disclaimer
The offering is made only by means of the Offering Circular, which can be found here. An offering statement regarding this offering has been filed with the SEC. The SEC has qualified the offering statement, which only means that Fearless Films, Inc. (FERL) may make sales of the securities described in the offering statement. It does not mean that the SEC has approved, passed on the merits or passed upon the accuracy or the completeness of the information in the offering statement.
The securities offered by Fearless Films, Inc. (FERL) are highly speculative, investing in shares of common stock of Fearless Films, Inc. (FERL) involves significant risk.
Some of the statements under “Offering Summary”, “Risk Factors”, and elsewhere in the offering circular constitute forward-looking statements, which relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar matters, that are not historical facts. In some cases, you can identify forward looking statements by terms such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “potential”, “should”, “will” and “would”, or the negatives of these terms. or other comparable terminology. You should not place undue reliance on forward looking statements. The cautionary statements set forth here and the offering circular, including in “Risk Factors” and elsewhere, identify important factors which you should consider in evaluating our forward-looking statements.
Securities offered through Dalmore Group LLC, member of FINRA (www.finra.org) , member of SIPC (www.sipc.org), a broker dealer of record.
About
Invest in the Future of Independent Film
Fearless Films (FERL) is a full service production company specializing in award-winning short films and feature films for television, film, and streaming platforms.
Growing Market
We operate in a global streaming market that is projected to create $124.57 billion in revenue by 2025.
Fearless Films has successfully written, produced, and sold its award-winning films to major distributors, and has a pipeline of scripts ready to be produced. In addition to creating independent film and television content, Fearless Films is building their own streaming platform, which will allow them to control content revenue from production to distribution.
Independently Successful
Streamers Need Content
Netflix alone spent almost $12 billion on “additions to streaming content assets” in 2020, buying professionally-made content from studios and production companies like Fearless Films.