Formed in 2017
Public March of 2018
The company was formed to bring together top film makers to produce major motion pictures using a unique risk adverse business model. Divergent of the film industries notorious financial black hole business practice. Wonderfilm differentiates itself by eliminating the downside risk by setting each film up in a single purpose entity packaged for upfront sale before any money is spent. The film is sold based on script, writer, and cast for each separate production. Once sold they use these proceeds as one of the tools to finance production. In addition, Wonderfilm capitalizes on tax credits provided by the state they choose to shoot the film. They use these credits as an asset to bank against for an upfront loan to complete the financing.
Wonderfilm has 4 main sources of revenue, the first is generated by in house sales of their own films and third party films to distributors. The average film is pre sold for $5M and Wonderfilm receives $500,000 to $750,000 per sale as commission. After recently on-boarding an in house sales agent, they act as brokers to third party films that retain their sales team. Wonderfilm expects to sell between 10 to 12 third party films this year generating roughly $6M in commission income for the company.
The second source of revenue is derived by production fees charged on each film ranging from $100K to $500k based upon the films total budget. Before they begin production, these fees are included in the production budget and flow directly to Wonderfilm.
Once the film is distributed, if revenue generated from theatrical sales exceeds the guaranteed average $5M sales price, Wonderfilm typically works on a 50/50 upside split. An example would be a film purchased for $5M that does $20M in box office sales, Wonderfilm would be entitled to 50% of the $15M generated above the guaranteed $5M.
The final source of revenue is derived by online streaming of Wonderfilm’s catalogue. The catalogue is comprised of 250 films, of which approximately 100 are currently streaming on the Netflik’s platform. In 2019 they have entered into an agreement with one of the largest streaming platforms in the world to add their entire catalogue to the platform during the latter half of 2019. The company expects additional revenue from this relationship.
Currently Wonderfilm has approximately $75M in production across multiple films this year. These films include A List stars such as John Travolta, Nick Cage and Guy Pearce. In the case of John Travlota, his career gross box office total is $2,404,381, 964, with an average gross sales of $52,269,173 per film according to box office mojo. Nick Cage career gross box office total is $2,408,268,641 with an average of $41,521,873 per film. While Guy Pearce career gross box office total is $1,213,244,955 with an average per film gross of $35,683,675.
Wonderfilm has plans to produce two psychological thrillers in 2019. These films have a much lower production budget then typical films and have massive upside potential. The average box office sales of 2,537 horror/psychological thriller films are $47,712,832 according to box office mojo.
Considering the average gross sale for each A List Actor on Wonderfilm’s production timeline plus the psychological thrillers in production, there appears to be a tremendous opportunity to catch a windfall of revenue generated by these films in 2020 and 2021.