Boxo Productions – Building the Content Pipeline

The BOXO Productions structure provides Livento shareholders and partners with a unique opportunity to be part of American creative content.  What do we mean by creative content? Most of the creative content that we produce are, Movies, TV series and Books. It also includes other content that has a monetary value with revenue potential such as newspaper articles, TV clips and in future when the market has matured NFTs.

We are building and developing a content pipeline by acquiring the IP (whole or in part). This Content pipeline builds what we call internally our IP (intellectual property) bank. The content (assets) that we acquire from script writers and develop further have a lasting value that we monetise on an ongoing basis. This is an essential component of the criteria we use before making the decision to acquire and develop the content.

How is it developed? When the IP is acquired, the scriptwriter who brought to us the original idea is contracted to develop a full script. The BOXO Production team (Ara, Petr, Martin) then develop the strategy and team to package the project. There are lots of moving parts before it can be realised fully and reaches a stage where a Primary distribution partner is appointed who pre-sells the content nationally and internationally. At this stage key partners such as Production Studios, Special Effects Studios, and Casting Directors have been appointed so that the content can move forward to the full production stage.

Does our stake in the project change? Our revenue share for the finished product is agreed upon upfront and it is usually 20%. The deal structure is negotiated with the primary distributor and the result of that negotiation may result in a change in the amount of revenue share we receive in the project moving forward. This varies based on the level of achieved pre-sales to fully develop the movie. To bring a movie to the big screen there are many players involved. Next time you watch a movie, look at the credits! The bottom line is that BOXO’s stake does not usually drop below 15%.

As part of the deal structure, BOXO receives packaging revenue from the presales which allow us to repatriate the initial works on the script and the whole movie package. At this point, the IP is in the BOXO IP Bank, and the development funds are in the bank account with profits ready to be deployed to another project

Why do we invest in so many movies a year? This is a question we are often asked and it’s simply about risk, reward, and diversification. If for example, $10m is allocated to acquire content, what would you consider a safer investment? $10m in 2 movies or $10m across 30 for example? Another way to look at this is that if you wanted to invest in the stock market would you invest in 1 stock or a basket of stocks?

The Value of IP in the Bank.

We continually buy and develop content. Certain aspects of our business model we consider to be ‘secret sauce’ but adding new content ensures that our revenue pipeline continues to strengthen as we add licence fees and reoccurring monthly revenue. This revenue comes from the big screen as well as platforms like Amazon prime, Apple TV and Netflix.

Why do we emphasise that the initial capital outlay is returned? This is because this capital being returned reduces any normal risks that exist with the project such as filming, editing or delays in releasing to the big screen. This is not so dissimilar to seeing a stock that you bought rise 40% and you taking some profit out and letting the investment run.

Glossary of terms

IP – Intellectual property

NFTs – Non-Fungible Tokens