Cable companies have seen their customer base evaporate over the past decade, but the streaming giants putting them out of business are facing their own set of problems. The high cost of producing new content and consumer subscription fatigue is hurting the top- and bottom-line results of many popular streaming services.
Authentic Holdings Inc. (AHRO) is taking a unique approach to the media industry. Rather than investing in creating new content, the company is acquiring existing media assets and breathing new life into them using a combination of new and (growing) old technologies. And recently, the company closed its largest media acquisition yet, adding 15,000+ new assets.
A Massive Media Catalog
Authentic Holdings completed a landmark acquisition of Goliath Motion Pictures Promotions on June 20, 2023. Over the past 17 years, Goliath built a massive catalog of over 15,000 full-length movies and serial television shows from every genre starting from the 1940s through 2021. And it continues to add hundreds of movies each month to increase its breadth and depth.
The acquisition provides the company with a substantial asset base for its media business, and sets the stage for the next phase of growth. With these assets in place, shareholders can reap the benefits of monetization without any further cost, as the company finds ways to generate high-margin revenue from the already-produced content.
Moveover, the company made the acquisition by issuing 100,000 shares of a Series D preferred stock that’s non-convertible for three years. In addition to putting a $5.3 million asset on its balance sheet, the acquisition didn’t add any up-front dilution for existing shareholders, giving the company time to extract value from the asset before any dilution takes effect.
Anti-Subscription Company
Authentic Holdings’ Maybacks Global Entertainment Network – acquired earlier this year – provides an ideal distribution platform for the newly acquired content. Unlike subscription-based services, the company’s over-the-air network provides free television, generating revenue from advertisements rather than charging consumers a subscription fee.
While cable companies lose customers and subscription services burn through cash creating content, the company’s Maybacks Global business benefits from a resurgence in over-the-air antennas, which grew to 18.6 million households in 2022 from 18.4 million a year earlier. These figures represent about 15% to 20% of all U.S. households.
In addition to over-the-air programming, the company hopes to complete its Smart TV, iOS and Android apps within six to eight weeks and soft launch in a test market by the end of August. These apps will provide access to the lucrative Video on Demand (VOD) market, creating even more opportunities to monetize its media assets.
Unlocking Value with Tokenization
Authentic Holdings plans to realize even more value from the acquisition by tokenizing the 15,000+ media assets on its NFT platform. By doing so, movie lovers will be able to own a piece of their favorite films as secure digital collectibles. At the same time, the company can generate extra revenue above and beyond any ad revenue it receives from Maybacks Global.
Tokenization also makes it easy to distribute content to platforms in the U.S. and overseas without the risk of piracy and payment for services. The company can release content custom tailored for another network that wants its content or a VOD subscription from an individual that allows customization of content they want. The NFT holds the blockchain harbored links that make security air tight.
What’s Next?
Goliath is Authentic Holdings’ second acquisition in two months – but it’s not the last. The company says it’s in the final stages of negotiations to either “exclusively license” or purchase a music catalog of more than 10,000 master recordings, enabling it to tokenize and monetize even more assets through record sales and/or limited-editing music NFTs.
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