Engaging the movie goer in profound and exciting ways that resonate long after they leave the theater.
Making The Movies That Everyone Wants To See
Renaissance Studio, Ltd.
All of the above images represent characters, venues, themes and scenes from the Renaissance Studio, Ltd. film projects.
The 16 Renaissance Studio film projects represent a great adventure through the most compelling and terrifyingly plausible scenarios, characters, emotions and venues of the modern age. The slide show below offers a glimpse into a filmmaking vision that transcends the gratuitous realm of modern cinema.
The Future Of Filmmaking & Investment
Everyone is familiar with the recurring frustration of wanting to go to a movie, checking the listings and finding nothing that inspires them to go to the theater. Renaissance Studio, Ltd. ("RSL") has been created to exploit this reality by producing thought provoking and awe inspiring movies that engage audiences on a broad diversity of emotional, sensual, intellectual, visceral, romantic, poignant, intimate, artistic, humor, audio and visual levels.
RSL films are designed for the 85% of people who are not inspired by the shallow story telling, one dimensional characters and gratuitous action, violence, depravity, horror, animation and computer generated effects that dominate modern cinema.
RSL has invested many years in the research and development of a digital age business model to launch a going concern movie studio that exploits the many flaws and opportunities in the movie industry and the highly irrational valuation metrics that exist in the public equity markets. The goal of the RSL business plan is to convert $50 million of primary equity capital into $6+ billion of IPO proceeds in five years.
Full due diligence will reveal that this goal is not promotional hyperbole but a plausible investment end game that can deliver risk adjusted ROIs that dwarf other investment alternatives. A full understanding of the RSL value proposition will expose other movie industry investment scenarios to be far inferior if maximizing risk adjusted ROIs and IRRs are the investment goals.
RSL is on a mission to create thought provoking, entertaining, triumph of the human spirit stories that powerfully engage a broad spectrum of viewers on intellectual, emotional, visceral, sensual, visual, audio, artistry, life relevant, sociopolitical and poignant levels.
The RSL end game is to 1) inspire large global audiences with sensational stories and characters, 2) use movies to help light a path to a much better world and 3) deliver a risk adjusted ROI to RSL investors that dwarfs other investment alternatives.
Movie Industry Reality Check
Motion pictures offer the most exceptional risk adjusted ROI profile of any industry and the worst actual ROI performance of any industry. This strange reality exists because:
As a result of the above factors, 80%+ of movies lose money for production equity investors. In truth, investments in the prevailing business models of the movie industry are the risk adjusted ROI equivalent of a slot machine. If you play the “Hollywood” game long enough, you will lose everything.
Investments in the movie industry seldom produce positive ROIs but that does not mean that movie investment does not have very exciting investment potential. It just means that investments in the obsolete studio and “Indie” business models are irrational. In truth, the financial ineptitude of the industry business practices represents an exceptional investment opportunity for prescient entrepreneurs who can develop the methodologies to exploit the faulty status quo.
RSL recognized the exploitation opportunities in the movie industry and invested years of exhaustive analysis, research and development to create advanced movie concept evaluation metrics and proprietary methodologies of screenwriting, development, production, distribution, marketing, advertising, risk management, investment and business practices. These systems are designed to drive a sustainable going concern studio and a compelling IPO profile. The mission is to create a new audience and investor focused paradigm of filmmaking that:
RSL has identified movie industry flaws and capital market anomalies and has created proprietary methodologies to exploit them. The investment goal is convert $50 million of primary equity capital and $100 million of primary debt capital into $6+ billion of IPO proceeds in as little as 5 years. No, this is not a promotional fantasy. It is a plausible reality in search of sophisticated and prescient capital partners who will invest the time to fully understand the RSL value proposition. Yes, this is a big vision but it is grounded in profound intrinsic merit and extraordinary wealth creation potential with limited downside risks.
Why Invest In Motion Pictures?
The movie industry has a very poor reputation in the investment community because 85%+ of movie projects lose money for production equity. I would strongly advise against anyone investing anything in the prevailing business models in the movie industry. However, a close examination of the industry reveals deeply flawed business models, a faulty creative culture and irrational business practices as the sources of poor financial performance. In truth, a well conceived virtual movie studio business model offers the following attractive features that compare favorably to other investment options:
Collectively, the above realities represent an exceptional investment exploitation opportunity for visionary entrepreneurs and prescient investors who can think beyond conventional wisdom to the level of exploiting vulnerable global markets and irrational public equity market valuation metrics.
The Movie Market Opportunity
Everyone is familiar with the recurring frustration of wanting to go to a movie, searching the listings and finding nothing that inspires them to go to the theater. This odd reality is the great opportunity of filmmaking and investment.
Renaissance Studio. Ltd. ("RSL") was created to relieve the pervasive frustration of movie goers by producing sensational movies that will attract the overwhelming majority of people who are not inspired by the shallow story telling, one dimensional characters and gratuitous action, violence, depravity, horror, animation and computer generated effects that dominate modern cinema.
By extreme contrast to the "Hollywood" studios, RSL will produce awe inspiring and thought provoking movies that engage audiences with a diversity emotional, intellectual, visceral, sensual, artistic, romantic, life relevant, humor, intimate, poignant, visual and audio resonance elements that dwell outside the gratuitous realm.
The RSL mission is to make movies that almost everyone wants to see.
The Movie Investment Opportunity
RSL has conducted exhaustive analysis of all aspects of the motion picture industry. This analysis has revealed an industry that engages in pervasive, determined and faulty "group think" in its movie content sourcing, market research and business practices. This reality is a lucrative investment opportunity for prescient entrepreneurs and investors and RSL has developed a comprehensive strategy to exploit this situation to produce consistently profitable films, sustainable film franchises and exceptional risk adjusted ROIs.
The movie industry is almost singularly focused on producing incremental films and filmmaker/talent income rather than crafting movies that will resonate with broad spectrum global audiences and deliver strong earnings to investors. A close examination of the financial performance of movies reveals that almost no films offer positive risk adjusted ROI profiles to investors. Within the prevailing movie industry culture, investors are largely viewed as incremental earnings exploitation opportunities for the filmmakers and talent rather than capital partners who should be generously rewarded for their leap of faith.
This mercenary, incremental income, project focused culture completely ignores the opportunity to create going concern studios that produce strong earnings that can create a compelling IPO profile that can exploit the highly irrational investors who are currently offering 120x to 250x+ price/earnings ratios to Lions Gate Entertainment (“LGF”) and Netflix ("NFLX")..
The Lions Gate Entertainment (”LGF”) Template
Yes, movies must be structured to consistently make money but earnings at the movie project level are a small fraction of the earnings opportunity from creating a going concern studio that can exploit the public equity markets. The movie market exploitation opportunity is exponentially enhanced by highly irrational public equity market valuation metrics that offer 30x+ price/earnings multiples to Lions Gate Entertainment ("LGF.A" & LGF.B) on the NYSE. (See link below).
The additional link below demonstrates the incredible rise in the market capitalization of LGF from $1.1 billion in January 2012 to $5.5 billion in September 2013 and $6 billion in November 2015.
More amazingly, this 5x+ increase in the market equity value of LGF was achieved largely on the earnings success of a single film franchise: "The Hunger Games". Incredibly, LGF's 35x+ P/E ratio is persisting even though "The Hunger Games" franchise that expired in late 2015 and LGF has nothing major to fill the huge earnings void thereafter. This reality has taken its toll since the November 2015 and the market cap of LGF has since fallen by about 30%.
This 30% drop is not a negative for the RSL capital markets strategy but a reflection of the failure of LGF to create new film franchises to fill "The Hunger Games" void. By extreme contrast, RSL has already created 14 screenplays that are designed to launch up to 10 sustainable film franchises. Most of the RSL franchises have the potential to reach or exceed earnings levels of "the Hunger Games" films on much smaller production budgets.
The RSL investment goal is to follow the LGF capital markets template and convert $50 million of primary equity capital into over $6 billion of IPO proceeds in 5 years.
This RSL goal is not promotional hyperbole. It is a very plausible reality in search of sophisticated and prescient capital partners with the cognitive excellence to think at the level of exploiting major global markets with systemic flaws and highly irrational public equity market valuation metrics. The rewards of supporting the RSL vision will dwarf almost all other investment alternatives.
The Progression Of Renaissance Studio, Ltd.
RSL observed the 5x+ increase in LGF's market equity value in the 20 months after the release of "The Hunger Games" in march 2012. This inspired the development of a digital age business model and business plan to launch a going concern, virtual movie studio which will project a compelling IPO profile that will compare very favorably to LGF in 5 years.
The RSL investment goal could not be achieved within the confines of the faulty conventional wisdom, culture and business practices of the movie industry that produce movies that lose money for production equity over 85% of the time. Yes, LGF achieved great equity market success but a close examination of LGF reveals a company that achieved this success in spite of its business practices rather than because of them.
LGF required 20 years to create its first major film franchise that triggered the huge equity value appreciation. Almost every other film project that LGF has released over the last 4 years has flopped or far underachieved its earnings expectations. A rational and professional review of the LGF profile reveals "The Hunger Games" to be a very successful anomaly in a long term track record of mediocrity. In truth, "The Hunger Games" rescued LGF from insolvency.
Given the LGF realities, it was clear that RSL would have to conduct exhaustive movie industry analysis and develop a new business model, plan, content evaluation metrics and screenwriting methodologies that would allow RSL to avoid the pitfalls of the flawed industry business practices to achieve consistent financial success that would deliver a compelling IPO profile to investors. RSL would also have to write and develop an large initial inventory of screenplays that would launch sustainable film franchises.
The RSL Business Model
RSL has carefully reviewed the studio and independent filmmaking business models over many years. These flawed business strategies collectively produce movies that lose money for production equity investors over 85% of the time. Most of the 15% of movies that recover the costs of production are very large budget studio franchises that should only be produced by studios that are subsidiaries of much larger conglomerates that can absorb multi hundred million dollar losses that occur when big budget films fail to achieve adequate market acceptance.
Given the poor earnings track records of movies that emerge from the studio and "indie" systems, it would be irrational for any independent investor to invest anything in the existing motion picture production business models if their goal is to achieve an appropriate risk adjusted ROI. Therefore, it was imperative for RSL to develop a new business model that avoids the pitfalls of the prevailing business models to deliver consistent earnings and exceptional ROIs.
RSL has achieved this goal by developing a cost effective, digital age business model that exploits the faulty creative culture and business practices of the movie industry that so frequently disappoints movie goers and investors. The RSL business model contains the following key features:
In support of the above business model, RSL has invested many years in an exhaustive analysis of the movie industry and the research and development of:
These compelling, high concept films can all be produced on budgets of $30 million to resonate in the action/thriller/ clandestine genres that averages over $400 million in revenues per film to insure consistent profitability.
They are thought provoking, triumph of the human spirit stories that powerfully engage audiences with a diverse range of intellectual, emotional, visceral, romantic, artistry, humor, intimate, poignant, audio and visual resonance elements.
They all transcend the shallow story telling and gratuitous action, violence, depravity, horror and computer generated effects that dominate modern cinema. They all include sensational female protagonists who are designed to powerfully resonate with both genders and across cultures.
They all compare very favorably to anything in the movie theaters today and are designed to help light a path to a much better world.
The RSL Business Plan
RSL has developed and written a 180 page business plan progression that can be summarized as follows:
Other Investment Alternatives
Irrational fealty to existing investment parameters and conventional wisdom about venture capital and the movie industry are the only major obstacles to achieving this sensational end game. With very few exceptions, every one of the investment alternatives below involves greater risk and offers far inferior risk adjusted ROIs than the RSL value proposition:
In truth, irrational fealty to existing investment parameters that involve any of the above investments will produce far inferior risk adjusted ROIs and IRRs that the RSL value proposition. None of them offer a plausible path to above 10,000%, 5 year ROIs with manageable downside risks.
All of the key elements to execute the RSL business plan are in place except the primary capital. The primary capital raise is a major challenge because 1) RSL is a start up in an industry with a poor earnings track record, 2) the RSL executive team is not in place and 3) the capital markets are systemically incapable of thinking beyond conventional wisdom of existing investment parameters. However, full due diligence will reveal that RSL is grounded in a sound and professional analysis, research and development process that has produced a digital age business model and a highly exploitative business plan that will deliver risk adjusted ROIs and IRRs that dwarf other investment alternatives.
The proprietary RSL business model, metrics, creative methodologies and movie projects are, in truth, intellectual property that is equivalent of disruptive technologies in other industries with much higher risk profiles and much lower risk adjusted ROI potential.
The RSL challenge is finding visionary and prescient capital partners who are willing to think outside the box of conventional wisdom about venture capital and the movie industry and their existing investment parameters to achieve extraordinary returns on investment while helping to light a path to a much better world through sensational and thought provoking motion pictures.
These are investors who understand that tremendous wealth is earned by exploiting faulty conventional wisdom and the status quo rather than conforming to it.
These are highly sophisticated professionals who can think at the level of exploiting flaws and opportunities in vulnerable global markets and highly irrational public equity market valuation metrics.
These are analytical minds who are more focused on maximizing risk adjusted ROIs and IRRs than fealty to any investment business model
After 3 years of intense effort, all of the movie industry analysis, research and development to create the business model, the 164 page business plan, the advanced movie content evaluation metrics, the state of the art risk management strategies and the proprietary screenwriting methodologies are complete.
RSL has employed these elements to create an initial inventory of 16 movie screenplays that can be produced on $30 million budgets with a broad diversity of compelling resonance elements. These projects are designed to launch up to 10 sustainable film franchises in the action/thriller/clandestine genres that average over $400 million in global revenues per film to insure consistent profitability to drive a compelling IPO profile in year 5.
RSL is now in its capital formation phase. The goal is to raise $50 million of primary equity capital that will support $100 million of primary debt capital that will finance the execution of the RSL business plan. The RSL goal is to 1) return the $50 million of primary equity to investors by month 30 to eliminate primary equity risk thereafter and 2) pursue an IPO in year 5 that delivers extraordinary ROI to RSL investors that can exceed 10,000% if the base case goals are met.
These goals can be met if 1) the RSL movie projects in year 4 average 38% of the genre average revenues ($200 million per film) and 2) the RSL IPO achieves the 30x+ P/E ratio that LGF is currently receiving on the NYSE. There is a large margin for error in the base case assumptions and every RSL project has the potential to reach the genre ceiling revenues of $1.5 billion. As a point of reference only, the RSL base case can be achieved if the films average only 7% of "Avatar" revenues.