- SUMMARY – We like the unique “out of the box” marketing plan being put forth by the AFOM management team. While the shares are speculative, we believe there could be very high potential returns for small investors. We believe there is somewhat of a supply/demand imbalance relative to high quality “Tween” and “Teen” music/pop culture- oriented film, which is the target of the Crazy for the Boys initiative. Several recent successes in the category have made investors hundreds of millions of dollars. There’s a strong proven creative team in place, the market is hot and macro developments in entertainment such as; the maturity of Social Media, the turnaround in the music industry (thanks to a streaming revenue model) and Movie Musicals coming back into vogue all benefit the All Or One Media platform. The movie segment of AFOM’s multi-media -project is currently in pre- production with shooting scheduled to begin this summer. Therefore, we issue this report with a rating of Speculative Buy.
- Tweens, individuals who are between 8 and 14 years of age, hold significant purchasing power and have unique buying habits. As the first generation to never know life without the Internet, marketing to the group poses unique challenges and opportunities for companies, such as All For One Media.
- The primary currently ongoing project for the Company is a full-length, coming of age musical film called Crazy for the Boys, which is modeled after other highly successful musical productions, such as Grease and High School Musical.
- There are a host of potential future revenue streams available to the Company should Crazy for the Boys be successful, including video-on-demand, pay-TV, DVDs, live performances, merchandise, and video and music.
ALL FOR ONE MEDIA (OTCQB:AFOM)
SUMMARY – We like the proven management team which has been carefully developed and is currently is in pre-production and cast rehearsals on building out their branded entertainment platform. While the shares are clearly speculative, we believe they are could be very high potential returns for small investors.
All for One Media Corp. is a unique public company. Originally organized as Early Equine, Inc., the Company changed its name during late November of 2015 to All For One Media Corp. and acquired the over-the-counter stock symbol AFOM.
The Company is a play on tween marketing and the significant interest this demographic has in social media, pop music, and music oriented movies and videos.
The Target Market – The “Tween”
Tweens are children who are “between” childhood and the teenage years. Typically, tween’s are between the ages of 8 and 14 years old. While the term “tween” has been around for many years, its use is being challenged by the term “Generation I”, which perhaps is arguably a better definition of the group.
Whether called tweens or Generation I (as in Generation Internet), its purchasing power and its influence on the purchasing power of parents is undeniable. It is estimated there will be more than 23 million tweens by the year 2020. While the actual market size for this demographic group is widely disputed by ad agencies, marketers, economists and analysts, it is thought that the market represents at least $1.2 trillion per year in worldwide buying power.
The estimates on the upper end of the scale also include the indirect influence these young people have on the buying decisions of their parents and on older relatives. Regardless of which estimates are used, the tween market clearly represents a substantial opportunity for savvy marketers of products and services.
Marketing to teens, however, is not easy. Members of the group are very impressionable and thus can change direction very quickly. There are some new absolutes, however, relative to this market that marketers can rely upon in order to reach this group.
§ Tweens are the first generation to never know a time without the Internet. Many sociologists and marketers believe this fact fundamentally changes the nature of marketing to this group.
§ Mobile Device and Texting – Tweens love mobile phones and when asked about their favorite activities a consistent answer is nearly always texting friends on their mobile devices.
§ Music – Each successive generation since World War II has shown a dramatic rise in interest in pop music. Today’s tweens have an intense interest in music, especially streaming music over the Internet.
§ Social Media – The statistics on tween’s and social media are dramatic. Over 65% of tweens use Snapchat on a mobile phone, nearly 24% of Pinterst users are aged between 8 and 15 years old. While several years ago there was a tween trend away from Facebook, this trend has reversed significantly with Facebook gaining in popularity with this group even considering Facebook’s official policy of restricting access those below 13 years of age.
Just as there have been in almost all past generations, there is a stark difference in the interest between tween girls and boys.
As is outlined in Exhibit One, tween girls are significantly more interested in music, dance, fashion, and pop culture in general, compared to boys who remain much more sports focused. One of the common threads remains, however, that being the Tween’s love of pop music.
Exhibit One – Tween Girls Vs. Boys
Source: AACLS Research, LP
While music, pop culture, social media, selfies, and friends are all certainly part of the average tween’s life, there is also a much darker and sinister part of the average life of a tween – It’s bullying and hate on the Internet.
The statistics on bullying relative to tweens are staggering. Of Tweens on SnapChat, 6 of 10 have been cyber bullied or sexting victims. Almost every tween or teenager has witnessed bullying with more than 25% of tween’s indicating they believe they have been victims of bullying at school and over 42% indicating they have been bullied online.
Of those within the 8 to 15 year old age group who have been bullied on line, nearly 20% have contemplated suicide as a result. Tween and teenage victims of bullying, according to Yale University, are between 2 to 10 times more likely to consider suicide than non-victims and it is clear that more than half of all suicides among young people are related to bullying, with girls 10 to 14 years old being most at risk.
The Marketplace & Crazy for the Boys
In many ways, the upcoming Crazy for the Boys compares very favorably to the hugely successful Pitch Perfect franchise. The original film, Pitch Perfect was released in 2012, with Perfect Pitch 2 hitting theaters in 2015. The sequel grossed over $280 million. With Pitch Perfect 3 currently scheduled for Christmas 2017 release, it should be noted that Pitch Perfect and Pitch Perfect 2 despite its modest beginnings has achieved combined worldwide box office grosses of in excess of $400 million dollars* (Boxofficemojo.com)
Remarkable was the way that the original film achieved its success. Opening on only about 330 screens, the original Pitch Perfect took in only $5.1 million in its first weekend. However, that quickly expanded as the audience heavily hit social media platforms talking about the film and texting friends. This grassroots promotion quickly expanded into viral status. The results were incredible with the film expanding to nearly 3,000 screens for the following weekend and bringing in an additional $110 million worldwide on an extremely limited marketing budget.
This social media generated success has not gone unnoticed by the All For One Media team and we believe a similar pattern could be followed relative to the launch of Crazy for the Boys.
While in terms of major motion pictures, $115 million at the box office is not particularly significant, but what one must realize is that Pitch Perfect 2 made a huge amount of money in total. The film was widely viewed on the home viewing circuit where it sold another $100 million worth of video on demand and DVD/Blu Ray-related sales. This means, the film grossed over $280 million, making it a huge budget to gross cost success.
After all, it’s not just the box office tallies that really count, it’s how much is left after costs. In this regard, we believe the low cost of Crazy for the Boys and its high revenue potential offer outstanding risk reward ratios for the risk adverse small investor.
Comparing Crazy for the Boys to Pitch Perfect
We believe there are many similarities between Crazy for the Boys and the Pitch Perfect franchise. For example, both were designed with relatively modest budgets. In the case of Crazy for the Boys, a $2.5 million budget has already been allocated. We believe the fact that Crazy for the Boys is already fully funded is significant. Many film projects have languished for years waiting for adequate capital. This appears not to be the case relative to this project.
With a relatively modest budget, the very strong team behind the project and the potential for very high box office and subsequent revenue streams, there could easily be significant sums left over after costs so that not only the team, but also the investors can reap benefits. In this regard, Crazy for the Boys and the Pitch Perfect franchise could be very similar.
Crazy for the Boys and Perfect Pitch have very strong teams behind the projects. While outlined elsewhere in this report, the Crazy for the Boys team is headed by industry veteran Brian Lukow. Wendy Starland has been brought on as Creative Consultant, Eden Shabtal as Choreographer, Krisha Bullock as Casting Director, and likely most important of all, Martin Guigul as Director.
The team also plans post theater marketing initiative similar to those of Perfect Pitch. Mr. Lukow plans to not only generate revenue via traditional movie sources, but also from domestic and international theatrical release, DVD, Blu Ray, video-on-demand, television/cable rights. Not to mention, of course, revenues from the soundtrack.
In some ways, there is also a similar plot between Crazy for the Boys and Pitch Perfect. While Pitch Perfect is a college story, Crazy for the Boys is about high school kids. While the age groups are different, it is likely the audience sets will be similar. Pitch Perfect was a huge success with tweens between the ages of 7 and 12 years old and we believe it will likely be the same for Crazy for the Boys. The films also have the theme of a group of diverse young people pulling together to overcome adversity.
While all of the above revenue streams could prove to be significant, it’s also important to point out that the film is really the marketing initiation for the girl group Drama Drama, which could generate an entirely new set of revenue streams for the management team and its investors.
We believe it is also very important to point out the vast market for films such as Pitch Perfect and Crazy for the Boys. Some of the top grossing films of all time have been musicals. Recently, Beauty and the Beast grossed nearly half $1 billion. Musicals, such as La La Land ($151 million), Grease ($189 million), Chicago ( $170 million), High School Musical ($90 million) and many others, have earned producers, film studios, and investors hundreds of millions of dollars.
We also believe there is somewhat of a supply and demand imbalance relative to musicals, especially related to the tween and teen market. Demand seems to be insatiable, but there also seems to be a rather limited supply of high quality films that combine the social media-oriented drama kids crave with strong music and dance. In this regard, we believe Crazy for the Boys could be the right film at the right time for the marketplace.
All For One Media’s Objective
All for one media is squarely focused on the lucrative tween marketplace. The primary currently ongoing project for the Company is a full-length, coming of age musical film called Crazy for the Boys. The film is modeled after other highly successful musical productions, such as Grease and High School Musical.
Please see Exhibit Two for a graphic for the logo for the film.
Exhibit Two – Crazy for the Boys Logo
Source: All For One Media, Corp.
While management plans for the film to be profitable in its own right, it is important to emphasize the project is simply an introduction vehicle for overall marketing of a five girl pop act. (See Appendix for graphics). We consider the film to be a 90-minute commercial for the group and the future marketing initiatives the Company plans to put forth.
According to management, the film is fully funded with a budget of $2.5 million. This funding was acquired from outside investors who, if the film is successful, will receive their $2.5 million of funding back with a added benefit of 30%. The remaining profits will be split 50% to 50% between the funding group and the investors in AFOM.
Management has assembled a rather impressive team to produce the film. Eden Shabtai and Dexter Carr have been recruited to lead choreography. These two individuals have worked with some of the biggest stars in music and television including, pop stars Ariana Granda, Demi Lovato, Marc Anthony, Chris Brown, Pit Bull and Lil Wayne, among others.
Martin Guigui has been recruited as the director and brings an impressive resume to the project, including numerous Billboard songwriting awards, a Caesar Award, and many other accolades.
The Company is also retained highly experienced casting directors for the film – Bullock & Snow Casting. This firm is clearly recognized as one of Hollywood’s top teenager and tween-oriented entertainment casting companies, with a string of recent successes.
Management has recently indicated that preproduction is set to begin in April, with a 20 day shooting schedule following thereafter. We would expect the release of the film sometime in the 2nd half of 2017. The movie is said to contain 16 original songs and highly choreographed dance scenes.
We believe timing could be right for a project such as Crazy for the Boys. Musicals have been hot in Hollywood over the past year with La La Land, producing over $450 million and Beauty the Beast producing $910 million and still growing. As is shown in Exhibit Three, there are many other huge successes with the movie musical format over the years.
Exhibit Three – Musicals – A Strong Format for Success
While in an initial budget of $2.5 million may pale in comparison to many other production efforts, we emphasize that the marketing of music and film has changed dramatically over the past few years. Whereas in the past, producers and distributors of film were forced to spend massive amounts of money in order to reach potential audiences, today a significant amount of heavy lifting can be done via social media. This is especially important considering the target demographic (tweens) for the film and the demographic’s love of social media.
We also think the storyline could resonate with the tween audience considering the coming-of-age story and the anti-bullying message contained in the movie.
We believe that much of the success of this project will rest on the strength of the music and choreography. Tween’s and teenagers are very smart consumers of media, so it will be very important to remain consistent to their interests.
There are a host of potential future revenue streams available to the company should crazy for the boys be successful, including video-on-demand, pay-TV, DVDs, live performances, merchandise, and video and music downloads.
Company Structure and Financials
With the Company being a publicly traded entity only since last year, the operating history is very limited. The Company, however, is fully reporting with all Securities & Exchange Commission with filings up-to-date. Considering the growing difficulties relating to audit completions and reporting requirements, management should be commended for maintain fully reporting status.
The most recent filing was on February 8, 2017 on Form 10-Q, which outlined the financials as of December 31, 2016. While the Crazy for the Boys project is fully funded with $2.5 million of investor money, other assets are limited. Total assets as of December 31, 2016 were $68,000 and total liabilities were $421,000. Much of the total liabilities, however, relates to accounting charges considering the convertible debt on the books. We believe it will be several quarters before investors will be able to perform any meaningful analysis on the Company’s reported financials as much of the future of the Company rests on the success of ongoing projects.
As of the most recent filing with the Securities & Exchange Commission on February 6, 2017 there were 17.7 million shares outstanding.
Brian Lukow – CEO
Mr. Brian J. Lukow serves as Chief Executive Officer, President and Acting Chief Financial Officer of All For One Media Corp. Mr. Lukow began his professional career on Wall Street. He was a Senior Vice President of Lehman Brothers from 1984 to 1991 and a Managing Director of Ladenburg Thalmann from 1992 to 1994. From 1994 to 1996 Mr. Lukow was President of Brirock Entertainment, a firm specializing in artist management. Mr. Lukow was the highly talented co-creator and co-producer of Huckapoo. He was the co-creator and executive producer of Dream Street, a very successful boy band and one of the best selling pop music acts in recent years, whose debut album reached number one on the Billboard Magazine Independent charts. In addition to his production credits, Mr. Lukow is also an accomplished songwriter. Among Mr. Lukow’s writing credits is the song “Jennifer Goodbye“ which was recorded by Dream Street on its first album; that album went on to sell nearly one million units. Mr. Lukow is a co-writer on five of the original Huckapoo recordings as well. He has been a Director of All For One Media Corp. since 2015. Additionally, Mr. Lukow is the Associate Producer of the motion picture “The Biggest Fan” starring Chris Trousdale, Cindy Williams and Pat Morita.
Wendy Starland – Creative Consultant
Wendy Starland was named VH1’s “Best Emerging Artist.” Starland was also honored by The Songwriter’s Hall Of Fame for her top 10 hit song, Dancing With the Sea. Her self-written & produced single was released in Europe alongside multi-platinum artists, Norah Jones, Feist, and Edie Brickell, to name a few. Her song landed at #8 on the charts, giving her opportunity to tour throughout Europe to thousands of fans. She was the opening act for Sheryl Crow, the Foo Fighters, Lady Gaga, and Jack White of the White Stripes. She also performed at the Toronto International Film Festival, at the premiere of Entourage star, Adrian Grenier’s movie, Teenage Papparazzo. On the publishing side, Wendy Starland is signed to BMG Chrysalis.
She is a lead vocalist on multi-platinum artist Moby’s Grammy nominated album, Last Night, which went to #2 on the Billboard charts. She has written and recorded duets with Lady Gaga, The Black Eyed Peas, Ben Lee, The Wu Tang Clan, and Capone of Island Def Jam’s Capone & Noriega. Starland has collaborated with Grammy winners such as: Stephen Bishop, Tony Levin and Jerry Marotta.
Starland was solely responsible for discovering multi-Grammy winner, Lady Gaga, and landed her a production deal with Rob Fusari (Beyonce, Jessica Simpson, Whitney Houston, etc.) that resulted in Gaga signing major label record and publishing deals. Wendy and Lady Gaga have written songs together over the years while Starland was also helping to develop Lady GaGa’s creative and marketing strategy.
Her songs have been heard in countless movies and TV shows, including MTV’s hit series’ “The Hills,” “Jersey Shore,” the lead promos for 2 NBC primetime series, “Las Vegas” and “Hawaii,” “Daily 10,” E! News Live,” and “E! True Hollywood Story, and ABC’s “Regis and Kelly.”
Eden Shabtai – Choreographer
Since her arrival to Hollywood, Eden has worked on networks such as NBC, ABC, BET, CBS, VH1, CW and even MTV. She has worked on several nationally televised shows, including the Video Music Awards, The Grammys, Billboards Awards, I Heart Festival, iHeart Awards, BET Awards, Soul Train Awards, X Factor, Wango Tango, The Ellen Show, The Soul Man, American Idol, Jimmy Kimmel, Jimmy Fallon, Jingle Ball and choreographed advertisements for major companies such as Hasbro, Office Max, Office Depot and Clark’s. Eden also has worked with artists such as Chris Brown, Ariana Grande, Demi Lovato, Pit-Bull, Jason Derulo, Jamie Foxx, Ne-Yo, Lil Wayne, Jay Sean, Marc Anthony, Tyga, Flo-Rida, Brandy, Omarion, Miguel, Pia Mia, Litle Mix, Sevyn Streeter, No Doubt, Snoop Dogg, kehlani, Katy Tiz, Janelle Monae, Fleur East, pryianka Chopra, Tinashe, Ester Dean, Jack&Jack and more.
Today Eden works as a Choreographer, Artistic Director, Artist Developer, Artist Consultant, and of course a dancer, who is very versatile and believes that with hard work and a will everything can happen and the phrase “There is nothing better then seeing your visions and dreams come to life” applies just as much to the creative process and fulfillment of choreography as it does to the life journey of this little girl from a kibbutz.
Martin Guigui – Director
Martin Guigui is an award winning Filmmaker and Grammy nominated music Producer.
Krisha Bullock – Casting Director
Krisha Bullock has over seventeen years of casting experience, specializing in youth programming and entertainment, from commercials to television to feature films. She currently casts Nickelodeon’s “Henry Danger”. Some of her other credits include the shows, “Victorious” “iCarly”, “Drake and Josh”, “Zoey 101”, “All That”, “The Amanda Show”, “Kenan and Kel”, Sam and Kat, the feature film “Alice Upside Down”, the TV movie “Merry Christmas, Drake & Josh,” as well as the television pilots for, “Victorious”, “True Jackson V.P.” and “C3.” Her expertise in youth casting led her to be the choice Casting Director in a nationwide search for a music project with Simon Fuller, Perez Hilton and Jamie King. Outside of Casting, Krisha has been a mentor and teacher to thousands of hopeful young people, helping them break into the industry by teaching them the do’s and don’ts of auditioning and navigating them toward a professional career.
She has guided many up and coming actors such as the Oscar nominated Hailee Steinfeld, who still utilizes her advice today. Undeniably, the biggest tween stars in the world including Ariana Grande, Selena Gomez and Victoria Justice would not have the mega careers they have today, if not for Krisha Bullock and her associate Jamie Snow.
THE CHARACTERS FOR CRAZY FOR THE BOYS
Meet The Girls
Rebellious rocker, Sydney is a social outcast at JFK High. Her hardcore punk style seems the appropriate match for her sarcastic, defiant and often hostile attitude. When the popular star quarterback Jake Roberts becomes infatuated with Sydney, the social order at school begins to unravel.
Sydney will be portrayed by Ana Golja
Modern day flower child Stella is the JFK Student Council Vice President. Though only in high school, Stella is best described as an old soul. She’s always a loyal friend whose nature is to see the good in every situation. That is until her best friend Chad starts dating Madison Peters.
Stella will be portrayed by Amelia Demilo
Veronica is the daughter of an auto mechanic who rides a Harley. That might explain Veronica’s preference for leather pants and biker boots to more conventional high school attire. Charmingly naïve she is the nicest girl you will ever meet. That is, unless you get on her bad side… as someone is about to find out.
Veronica will be portrayed by Carlye Tamaren
A natural born leader, ultra confident and independent thinking Mo is immune to peer-pressure. Mo is going to be a hip-hop star and nobody can convince her otherwise. Thus, when the idea of entering a talent contest is proposed and seems totally un-cool to the other girls, Mo jumps at the opportunity to perform without hesitation.
Mo will be portrayed by Te’ahnna Wallace
Popular, pretty and preppie London is strictly A-list at JFK High. The captain of cheerleaders and the homecoming queen has grown accustomed to getting what she wants. What London wants however is Jake Roberts and Jake seems to have other ideas. Senior year is certainly turning out different than London ever imagined!
London will be portrayed by Ana Golja
We do not own these shares and have no plans to acquire, purchase, sell, trade or transfer these shares in any manner. Any opinions we may offer about the Company are solely our own, and are made in reliance upon our rights under the First Amendment to the U.S. Constitution, and are provided solely for the general opinionated discussion of our readers. Our opinions should not be considered to be complete, precise, accurate, or current investment advice. Such information and the opinions expressed are subject to change without notice. Separate from the factual content of our articles about the Company, we may from time to time include our own opinions about the Company, its business, markets and opportunities.
The information used and statements of fact made have been obtained from sources considered reliable but we neither guarantee nor represent the completeness or accuracy. We did not make an independent investigation or inquiry as to the accuracy of any information published by the Company, or other firms. The author relied solely upon information published by the Company through its filings, press releases, presentations, and through its own internal due diligence for accuracy and completeness. Statements herein may contain forward-looking statements and are subject to significant risks and uncertainties affecting results.
This report or article is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed. This publication does not take into account the investment objectives, financial situation, or particular needs of any particular person. This publication does not provide all information material to an investor’s decision about whether or not to make any investment. Any discussion of risks in this presentation is not a disclosure of all risks or a complete discussion of the risks mentioned. We are not registered as a securities broker-dealer or an investment adviser with FINRA, the U.S. Securities and Exchange Commission or with any state securities regulatory authority.
ALL INFORMATION IN THIS REPORT IS PROVIDED “AS IS” WITHOUT WARRANTIES, EXPRESSED OR IMPLIED, OR REPRESENTATIONS OF ANY KIND. TO THE FULLEST EXTENT PERMISSIBLE UNDER APPLICABLE LAW, TWO TRIANGLE CONSULTING GROUP, LLC WILL NOT BE LIABLE FOR THE QUALITY, ACCURACY, COMPLETENESS, RELIABILITY OR TIMELINESS OF THIS INFORMATION, OR FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL, INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES THAT MAY ARISE OUT OF THE USE OF THIS INFORMATION BY YOU OR ANYONE ELSE (INCLUDING, BUT NOT LIMITED TO, LOST PROFITS, LOSS OF OPPORTUNITIES, TRADING LOSSES, AND DAMAGES THAT MAY RESULT FROM ANY INACCURACY OR INCOMPLETENESS OF THIS INFORMATION). TO THE FULLEST EXTENT PERMITTED BY LAW, TWO TRIANGLE CONSULTING GROUP, LLC WILL NOT BE LIABLE TO YOU OR ANYONE ELSE UNDER ANY TORT, CONTRACT, NEGLIGENCE, STRICT LIABILITY, PRODUCTS LIABILITY, OR OTHER THEORY WITH RESPECT TO THIS PRESENTATION OF INFORMATION.
Information, opinions, or recommendations contained in this report are submitted solely for informational purposes. The information used in statements of fact made has been obtained from sources considered reliable, but we neither guarantee nor represent their completeness or accuracy. Such information and the opinions expressed are subject to change without notice. This research report is not intended as an offering or a solicitation of any offer to buy or sell the securities mentioned or discussed. The firm, its principles, or the assigned analyst may or may not own or trade shares, options, or warrants of this covered Company. We have received compensation of $2,000 for distribution and production of this report. If additional compensation is received, future version of the report will be updated to reflect this compensation. Globe Small Cap Research, has not in the past received compensation for the production of previous reports. The party responsible for the production of this report owns no common stock and/or warrants in the subject Company, in any way, shape, or form. The views expressed in this research Company report accurately reflect the analyst’s personal views about any or all of the subject securities or issuers referred to in this Company report, and no part of the analyst’s or the firm’s compensation was, or will be directly or indirectly related to the specific recommendation or views expressed in this report. Opinions expressed herein reflect the opinion of Globe Small Cap Research and are subject to change without notice. We claim no responsibility to update the information contained in this report. Investors should consider the suitability of any particular investment based on their ability to accept certain levels of risk, and should not rely solely on this report for information pertaining to the Company covered. We can be contracted at email@example.com.