VANCOUVER, BRITISH COLUMBIA, January 29, 2014 - Gener8 Media Corp. (CSE: GNR) ("Gener8" or "Company") announced it has acquired a 48% interest in Reelhouse Media Ltd. ("Reelhouse") on a fully diluted basis. Reelhouse is a Vancouver start-up with a direct-to-consumer film distribution platform that has attracted the attention of both the independent film community and major Hollywood studios such as Warner Brothers. Since the inception of Reelhouse, Gener8 has been providing incubator support, including funding and management mentoring. The acquisition involved converting a promissory note of $1.125 million into Reelhouse shares.
Leading the Industry Shift to Great Online Experiences and Online Movie Sales
"Reelhouse burst on to the scene and unraveled a complex digital distribution problem for the film industry," said Rory Armes, CEO of Gener8. "Reelhouse is well-poised to help filmmakers share their art like never before, as well as help big studios take advantage of the industry shift towards high profit-margin online movie sales. Like other technologies developed within Gener8, Reelhouse has quickly emerged as a leader in their space. "
Independent Filmmakers Gain Control, More Revenue Share and Access to Crowdfunding
Reelhouse is an online video community that provides both independent filmmakers and larger movie studios complete control to distribute films directly to their viewers. Founded in November 2012, Reelhouse is the only platform that delivers five unique opportunities to independent filmmakers: 1) reach audiences directly 2) have complete control over distribution 3) gain a larger revenue share 4) generate additional revenue through physical and digital merchandising opportunities; and 5) access a tightly-knit and supportive community for crowdfunding.
Hollywood Studios Get Evergreen Marketing Efficiency and Data to Convert Renters to Buyers
For larger studios, Reelhouse delivers an all-in-one infrastructure to market a film efficiently from pre-theatrical to post-theatrical release. By giving a film one home during its lifecycle and capturing valuable data at each stage, the Reelhouse platform helps incentivize and shift consumer behavior from a digital film renter into becoming a digital film buyer.
According to data released by Digital Entertainment Group, digital movie purchases surged 47% in 2013 to $1.19 billion and was the fastest-growing category in the home-entertainment sector.
"We have been supported by Rory and the Gener8 team since day one," says Bill Mainguy, co-founder and CEO of Reelhouse. "Our partnership will continue to be a cornerstone in helping us build out our platform to support additional online movie formats, increase the speed in which we evolve and test ground-breaking ideas, and roll out our premium revenue models."
Gener8 is a media technology company with two divisions--a studio and a technology group. Its studio is an industry leader in 3D stereo conversion services for the entertainment industry, with many high profile credits including The Amazing Spider-Man, Ghost Rider 2 and Harry Potter. The technology division provides 3D technology and cloud-based data management and analytics to the entertainment industry. Gener8's head office is located in Vancouver, British Columbia and has approximately 140 employees across both divisions. The executive team draws on years of experience developing graphics technology in commercial software, video games and the film industry. To learn more, visit the company website: http://www.gener8.com/
Reelhouse is an open video sharing platform dedicated specifically for quality entertainment content. The platform offers a comprehensive toolset for filmmakers to self-distribute and market their content while providing a far more engaging experience for their viewers. The toolset includes various monetization, customization and social tools to help filmmakers build their fan base. Reelhouse is a vibrant community of multiple films and as a destination site also embeds a range of features specifically for viewers to facilitate discovery, ease of access, sharing and curation. Visit the company website at https://www.reelhouse.org/
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Forward Looking Statements
Except for statements of historical fact, this news release contains certain forward-looking statements within the meaning of applicable securities law. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" occur. In particular, forward-looking statements in this press release include, but are not limited to, statements with respect to: its relationship with Reelhouse. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements including, without limitation, risks with respect to: general economic conditions in Canada and globally; film industry conditions; potential delays or changes in plans with respect to deployment of services or capital expenditures; possibility that government policies or laws may change; the development, implementation and execution of the Company's strategic vision; and legal and/or regulatory risks.