Gratwick Productions was formed to capitalize on the tailwinds driving the creator economy and in response to existing challenges creators have in commercializing their projects.

While 70% of consumers have at least one major OTT subscription — Netflix, Amazon Prime Video, or Hulu — many look to other media outlets to fulfill their content demands. Gratwick intends to step up to fill important gaps that are totally unaddressed, not only to end content consumers, but to the content producers and other key stakeholders that have been, to this point, overlooked by the legacy film and television industry.

Our vision is to evolve the entertainment business into a more ethical, inclusive and financially efficient industry. We intend to establish a world-class entertainment production infrastructure and ecosystem that is stakeholder focused, and stakeholder owned.

We are embracing emerging OTT technologies and streaming content models to usher in the next generation of storytelling.

Rather than invest extensively in content rights acquisition, pre-production, post-production and distribution BEFORE starting the process of recouping investment dollars and toward profitability, our plan is to generate revenues on day one and throughout the production process, resulting in acceleration of the path to making each project profitable.

In addition, we are introducing a highly engaging model to prospective viewers that allows them a voice in the creative process, assisting in the determination of which projects get the green light.

Our value proposition to content creators is an open and transparent framework that maximizes their continued ownership and agency over their creations and insurance that they will not be subjected to the characteristic opacity related to payouts so commonly associated with “Hollywood Accounting” – the current economic paradigm for project accounting.

Finally, we are a social impact business. A condition on any project being green lit in our ecosystem is the commitment to give back up to 5% of project profits to a curated list of causes, vetted by the Gratwick Community.

2020 was a transformative year for the Film & TV industry. Amidst the global pandemic, audience demand, production spending and TV budgets reached all-time highs. Over the next several years, demand for streaming services is expected to see strong growth.

What is OTT?

When we talk about OTT, we’re generalizing about any standalone, streaming content that bypasses traditional media distribution channels like cable TV providers or telecommunications networks and uses the internet instead

With traditional pay-tv in freefall and the rise of OTT options, it’s never been a better time for content creators and brands to connect with their audiences. Subscription video on demand (SVOD) services put out more original shows than broadcast or cable for the first time ever in 2018. The content produced and distributed by Gratwick will be part of and will amplify this next generation.

OTT video ranks second in compound annual growth to virtual reality (VR), with a steady 14% projected growth through 2020. Experts say OTT app usage will grow to a $120 billion industry by 2022, and $200 billion by 2024, finally beating out pay-tv within the next few years. As findings from the PWC Global Entertainment & Media Outlook for 2019-2023 show, the pay-tv subscription model will continue to decline in the US (dropping to $81.8bn), despite pared-down bundles, advanced set-top boxes, and 4K TV.

• • More than 51 million US households regularly stream content from an OTT platform.
  • 46% subscribe to two or more OTT services (most average 3.4 subscriptions), a 130% increase since 2014.
  • People spend over 100 minutes on OTT apps every day and pay an average of $8.53 per month per service.
  • The global OTT video market will double in size by 2023.

We are disrupting the legacy content production and distribution paradigm in the Film and TV industry by hosting curated live stream content that will entertain and engage viewers throughout the production cycle:

• Pre-production Live Streaming programs.
• Production Live Streaming programs.
• Post-production Live Streaming programs.
• –> Curated Content.
• –> Creates Audience Awareness of the Project and Builds Momentum for Distribution.
• –> Enhances Licensing Value by Demonstrating Content Viability.

Driving viewership to our live streaming programs will unlock revenue streams (ad revenues and sponsorships) that will subsidize production expenses and accelerate each project’s path to profitability.

“Gratwick is delivering a significant contrast to legacy content production that is expense intensive and doesn’t begin to recoup investment until the distribution phase that is typically two years and more after the project start and pre-production begins.” – Kris Hulbert, CEO

Our Plan:

We intend to change the way content is produced and distributed. Initially, our focus is on long and short-form content film and television content. But our platform will ultimately accommodate and enhance the content creation process across all digital content including music, eBooks, games, and AR/VR experiences.

Key Differentiation:

In addition to the differentiating factors mentioned above, we are leveraging the capabilities of the most current leading technologies to change the economics of content creation by streaming each phase in the process, from pre-production to premier release for consumer consumption and monetizing viewership through a CPM ad-based model and sponsorship support. In addition, we will license the final product out to third-party channels. Because we are turning the production process into a profit center, our path to breakeven and cash flow profitability on a project-project basis is dramatically accelerated.

Project Pipeline:

Key to our strategy is that we encourage the Gratwick community, ranging from viewers, subscribers to services providers, partners, and content creators to submit projects for review and vetting for onboarding into the Gratwick production lineup.

The Process:

Our goal in creating a more open and community-inclusive project submission process is to both increase the project deal flow into our pipeline, thereby increasing the potential to onboard high-quality content through the meritocratic review process.

Kris Hulbert. Founder and CEO. Kris brings a thoughtful and innovative approach to setting the pace and driving the vision of Gratwick Productions. In 2010, as a filmmaker, Kris wrote, produced, and directed ‘The Perfect House’, an independent film that was well-received by cornerstone distributors in the Hollywood establishment. He sought out and initiated a deal to become the first movie to ever premiere on Facebook. He did it in a way that would see point-of-sale royalties immediately delivered to the artist – something that, a decade later, still has not been accomplished in any widely adopted manner. His experience to date has reinforced his passion to create an ecosystem of content creation that is more transparent and efficient for stakeholders, creators and their communities. Kris studied Business at Buffalo State College.

Mike Dirmyer. Chief Operating Officer. Mike has operated 6 bowling alleys in California, Illinois, and Arizona for Brunswick Bowling. In 2012, he received an Executive Award for Center Operational Excellence and was also a member of the Brunswick Retail Presidential Advisory Committee. As the training General Manager in the state of Arizona for Brunswick, Mike also served as a Consumer Sales Executive for Graebel Van Lines. Mike is a proven leader who has built and managed strong teams. Mike has an Associate Degree in Business Administration.

Josh Miller. Chief Financial Officer. Josh has over 10 years of accounting experience. He earned his Bachelor of Arts in finance and later earned a Master of Business Administration in Accounting. Josh began his accounting career in a large regional CPA firm focused on tax returns and tax law. He found his area of expertise in corporate accounting where he has scaled small start-ups to managing large scale accounting Real Estate portfolios. Currently he is an accounting manager overseeing a 1B and growing Real Estate portfolio in the Western United States.

Ryan Jones. Chief Marketing Officer. Born and raised in Baltimore, Maryland Ryan Jones is a former US army green beret, who upon transition from the military entered into sports entertainment. He spent time as a semi professional poker player before taking on the role of operations director at Fox Sports. Ryan graduated from the University of Maryland and holds a bachelors degree in cyber security. He also spent time playing semi professional football in Stuttgart Germany.

• Gratwick Productions Investor Brief

• Gratwick Productions Investor Deck

• Gratwick Productions Disclosure Doc

• Gratwick Productions Sub Agreement

We intend to generate revenues through live streaming advertising and sponsorships, primary and secondary content licensing and through content subscriptions.

Advertising. We intend to drive traffic to the site organically through social campaigns and via paid search. Each streaming event aired on the Gratwick platform will offer advertisers the opportunity to purchase brief ads within the show.

Sponsorships. Sponsorship benefits include brand and product placement in Live Streams, business development and sell-through opportunities into the Gratwick ecosystem and providing brand visibility in production and at special events.

Subscriptions (Recurring Revenue Stream). We intend to provide incentives to
viewers to sign-up and subscribe to a growing library of content produced and
distributed at Gratwick, for a monthly fee of $4.99. In addition to great content, subscribers (“Gratwick Community Members”) will enjoy the ability to participate in determining (“Greenlighting”) projects that will be on boarded by Gratwick in addition to influencing the beneficiaries of Gratwick’s Give-Back program (up to 5% of subscription revenue to be allocated to local organizations).

Industry is seeing a pivotal shift in ad budgets from broadcast TV to streaming. The upshot of this trend is that U.S. digital advertising spend is expected to increase to approximately $70 billion by 2025, driven by AVOD, the fastest growing segment.

Source: IAB, Canaccord Genuity Estimates

Licensing and Distribution. We employ a three-tiered release strategy:

Tier 1: Pay-Per-View (First 6 months). This period will start with an exclusive PPV window on the Gratwick branded app before reaching 3rd-party markets.

Tier 2: Licensing deals with 1 to 2-year terms (6-24 Months). Depending on the amount offered this could be exclusive or non-exclusive agreements with 3rd-party platforms. Eventually, this will include an exclusive period on the Gratwick branded app.

Tier 3: Ad-based or promotional (25 months and beyond). Free to watch VOD offering content will be monetized based on impressions for ads/commercials along with tertiary licensing deals that use this model. Eventually, this window will be a promotional tool for a free-to-watch or ads-based VOD offering in the Gratwick branded app.

Key to driving viewership to support the model is our ability to engage hosts for each live stream that have large social audiences in their own right, which can be leveraged through “influencer” marketing tactics by our hosts to drive traffic to each live stream. We intend that the same rationale extends to cast members on projects and even to extended team members and project personnel.

In addition to the final product, we intend to edit and repurpose short-form content that can be packaged for commercial distribution purposes. We estimate each production will yield more than 150 hours of content.

Pro Forma Financial Forecast:

This forecast is a representation of a single project, which is the primary source of use of proceeds from the current offering as a “proof of concept”. After we successfully demonstrate the model, we intend to onboard additional projects that will be capitalized through equity, debt, mezzanine, or other strategic means (see “Project Contribution at Scale” table below). *

*The projections herein assume, amongst other things, the timely completion of the offering contemplated herein. Failure to do so will result in a material adverse impact to these projections.