Cosmo DeNicola Companies News

Friday, November 15, 2019

Chicken Soup for the Soul Entertainment Reports Record Q3 2019 Revenue of $17.0 Million

Chicken Soup for the Soul Entertainment, Inc. (Nasdaq: CSSE), a growing media company building advertising-supported video-on-demand (AVOD) networks and a provider of video content for all screens, today announced its financial results for the third quarter ended September 30, 2019.

Third Quarter 2019 Financial Highlights

Total revenue of $17.0 million, compared to $6.6 million in the year-ago period
Net loss of $13.3 million; with a net loss of $12.4 million before preferred dividends, compared to a net loss of $0.2 million in the year-ago period and a net income of $0.2 million before preferred dividends
Adjusted EBITDA was a loss of $0.4 million, compared to positive adjusted EBITDA of $3.4 million in the year-ago period
Online networks, which includes Crackle, Popcornflix and Pivotshare, generated $14.4 million in revenue compared to $1.8 million in the year-ago period

Recent Business Highlights

Crackle Plus delivers solid results in first full quarter
New Crackle original series, ‘Going From Broke’ drives unprecedented engagement
Launched Landmark Studio Group in partnership with entertainment industry veteran David Ozer
Foresight film library acquisition expands Screen Media library and enhances distribution capabilities

“Our record third quarter results show the early promise of our transformation of our company into a leading AVOD network operator,” said William J. Rouhana Jr., chairman and chief executive officer of Chicken Soup for the Soul Entertainment. “Crackle Plus is performing as expected, and our new original series ‘Going From Broke’ provides initial evidence of our growing network reach and engagement potential. We are also reinventing our distribution and production business to support our networks under a capital-light model focused on innovative studio launches, library content acquisitions and sponsor-funded original productions. We already see significant positive business momentum in the fourth quarter, where we expect to see a combination of all our primary strategic pieces in place for the first time, setting the stage for potentially significant growth in 2020.”

Gross profit for the quarter ended September 30, 2019 was $3.2 million, or 19% of net revenue, compared to $4.0 million, or 62% of net revenue for the year-ago period. The reduction in the percentage of gross profit was a result of an increase in online networks revenue which has a lower gross profit percentage.

Operating loss for the quarter ended September 30, 2019 was $9.6 million compared to an operating income of $0.9 million for the year-ago period. The quarterly operating loss reflects certain non-cash or one-time expenses including $4.7 million in non-cash amortization, $1.6 million of transitional expenses related to the Crackle Plus joint venture, and $1.2 million in film library amortization. If such expenses were excluded from SG&A or cost of revenue, the company would have reported a quarterly operating loss of $2.1 million.

Net loss was $13.3 million, or $1.11 per share, compared to a net loss of $0.2 million, or $0.02 per share in the prior-year third quarter. Excluding preferred dividends, the net loss in the third quarter of 2019 would have been $12.4 million, or approximately $1.03 per share, compared to net income of $0.2 million, or $0.02 per share last year.

Adjusted EBITDA for the quarter ended September 30, 2019 was a loss of $0.4 million, compared to $3.4 million in the same period last year.

As of September 30, 2019, the company had $6.2 million of cash and cash equivalents compared to $7.2 million as of December 31, 2018, and outstanding debt of $16.0 million as of September 30, 2019 compared to $7.9 million as of December 31, 2018.

For a discussion of the financial measures presented herein which are not calculated or presented in accordance with U.S. generally accepted accounting principles (“GAAP”), see “Note Regarding Use of Non-GAAP Financial Measures” below and the schedules to this press release for additional information and reconciliations of non-GAAP financial measures.

The company presents non-GAAP measures such as Adjusted EBITDA and Pro Forma Adjusted EBITDA to assist in an analysis of its business. These non-GAAP measures should not be considered an alternative to GAAP measures as an indicator of the company's operating performance.

Conference Call Information

Date, Time: Thursday, November 14, 2019, 4:30 p.m. ET.
Toll-free: (833) 832-5128
International: (484) 747-6583
Conference ID: 4392318
A live webcast is available at http://ir.cssentertainment.com/ under the “News & Events” tab

Conference Call Replay Information

Toll-free: (855) 859-2056
International: (404) 537-3406
Reference ID: 4392318

Wednesday, October 16, 2019

Chicken Soup for the Soul Entertainment Launches Landmark Studio Group with Industry Veteran David Ozer

Chicken Soup for the Soul Entertainment, Inc. (Nasdaq: CSSE), a growing media company building online video-on-demand ("VOD") networks that provide video content for all screens, today announced the launch of Landmark Studio Group ("Landmark") in partnership with 30-year entertainment industry veteran, David Ozer.

Landmark, which will be headquartered in New York with offices in Los Angeles, is a fully integrated entertainment company focused on ownership, development, and production of quality entertainment franchises. Ozer will serve as Landmark's chief executive officer. In addition to Chicken Soup for the Soul Entertainment, Cole Strategic Partners has committed funding to Landmark.

Landmark will develop, produce, distribute and own all of the intellectual property (IP) it creates, building a valuable library. The studio will be independent, having the ability to sell its content to any network or platform, while also developing and producing original content for Chicken Soup for the Soul Entertainment's recently acquired Crackle, a leading ad-supported VOD ("AVOD") network. Landmark will control all worldwide rights and will distribute through Chicken Soup for the Soul Entertainment's Screen Media division.

Landmark has several television and film projects in development, including:
THE FIX - A scripted drama series that explores the most explosive story of sports corruption in a generation based on the book by Declan Hill. The Fix is written by David Dilley and produced by Calamity Jane's Ellen Pompeo and Laura Holstein.

THE HISTORY OF GANGSTER RAP - A documentary series based on the bestselling book by Soren Baker, who serves as producer along with Jorge Hinojosa and Ice-T, and features Dr. Dre, Snoop Dogg, Ice Cube and many others.

SAFEHAVEN - Directed by Brad Turner (Homeland, 24), Safehaven, a supernatural horror series based on the graphic novel about a female comic book artist whose drawings come alive to haunt her. Safehaven is produced by Turner, Thomas Vitale (Pandora), Jessica Petelle (V-Wars, Hawaii Five-0), James Seale (30 Below), Kevin Duncan and Michael Bay's 451 Media.
Landmark will also be producing various stand-up comedy specials and animated series.

"All of us at Chicken Soup for the Soul Entertainment are thrilled to be in business with David Ozer. He has the ability and talent to turn Landmark into a high-volume content production operation that we anticipate will provide an additional revenue stream for our company while mitigating production risk," said William J. Rouhana Jr., chairman and chief executive officer of Chicken Soup for the Soul Entertainment. "We expect Landmark to provide valuable original content to Crackle and the other six AVOD networks that are part of our Crackle Plus subsidiary, as well as our other Chicken Soup for the Soul Entertainment divisions."

"It's incredible what Chicken Soup for the Soul Entertainment is creating in the AVOD space, and I'm excited to launch Landmark as an important studio operation for tomorrow's media consumers," said Ozer. "With the support of Chicken Soup for the Soul Entertainment, we are poised to become a significant player in the global content marketplace."

"We are thrilled to join forces with Bill and David to launch Landmark, which we anticipate will become a major force in the entertainment industry," said Simon Misselbrook, president of Cole Strategic Partners.

As chief executive officer of the newly formed studio, Ozer will spearhead its content development and production operations. During his time at IDW Entertainment as founding president from 2013-2018, he oversaw the independent mini-studio's overall operations and focused on developing, producing, and distributing content that appeals to a broad global audience. Ozer is credited with the independent mini-studio's expansion, and the success of its two most prominent series, overseeing the development and production of three seasons of Wynonna Earp for Syfy, and two seasons of Dirk Gently for BBC America. He also oversaw the development of Locke & Key and V-Wars for Netflix. Ozer has also held executive level positions at multinational media corporations, including executive vice president of television at Starz Media; senior vice president of domestic television at RHI Entertainment; head of worldwide distribution at Sonar; senior vice president of sales at DIC Entertainment and vice president of sales at Sony Pictures Television.

Monday, September 23, 2019

AT $1.5 TRILLION AND GROWING, AMERICA'S MOUNTING STUDENT DEBT CRISIS TAKES CENTERSTAGE IN NEW CRACKLE ORIGINAL ‘GOING FROM BROKE' LAUNCHING THURSDAY, OCTOBER 17

It’s an epidemic of huge proportions. As a nation, over 44 million Americans collectively owe a whopping $1.5 trillion in federal student loan debt, a number that grows each year and is second only to mortgage debt in America. Upon graduation, those entering the professional world face mounds of bills, a shrinking pool of employment opportunities, a lack of financial skills and a constant, crippling weight of oppression keeping them from reaching for their dreams.

Tackling this issue head on is a new Crackle Original, Going From Broke, a new series from executive producer Ashton Kutcher, Matador Content and Chicken Soup for the Soul Entertainment, launching Thursday, October 17th exclusively on the free streaming service. Leading the charge to support millennials in overcoming their crippling financial struggles is host Dan Rosensweig, Chegg CEO, and financial expert Danetha Doe who go one on one with young people living in pricey Los Angeles, what they thought would be The City of Dreams, to change their habits, gain financial confidence and become CEO of their own lives. Although they all come from different backgrounds and circumstances, each of the participants have one thing in common-- extreme debt.

Rosensweig and Doe challenge millennials to address everything from savings and spending to taxes, bills, co-loans and more. Ultimately, each of the subjects are given “homework,” tailored next steps meant to be tackled within a specific and timely window. It’s not comfortable, it’s not easy, but it’s necessary if they want financial stability. Throughout each of the 10 half-hours, viewers also get valuable insights and advice from several leading and trusted experts including award-winning personal finance journalist Jean Chatzky and Farnoosh Tarobi, bestselling author and podcast reporter.

Each installment is both relevant and relatable. For example:

● Obi Nwankwo, a former college track star who has a degree in finance and runs his own company. Between his student loans and extravagant living expenses, he’s continued to fall farther behind on his bills, even as his business grows.
● Max & Megan Foster, a married couple with two young children and debt that is putting a strain on both their pocketbook and their marriage. Both currently unemployed, they’re having trouble keeping from going under.
● Miracle McKinney, who chose to pursue her dreams of playing the violin professionally. Without a high-paying job, she’s confronted with massive college debt and no way to get ahead.

William J. Rouhana Jr., Chairman and CEO, Chicken Soup for the Soul Entertainment, comments: “We couldn’t be more pleased to be partnering with Ashton on a project that addresses such a serious issue in our country. This Crackle original series, ‘Going From Broke’, isn’t just entertainment; it also provides real tools and takeaway for viewers. We’re excited to premiere the series on Crackle since it’s a completely free, ad-supported platform available to stream on any device. It’s the perfect place to reach viewers who may also be saddled with debt and watching every dime they have. It’s the right message on the right platform at the right time.”

“The student debt crisis in America is devasting to young people and their families,” adds Rosensweig. “We need real solutions, in real time, to end the vicious cycle of debt and get hardworking young people on the road to financial freedom. My hope is that the stories in this show shine a light on the crippling impact debt and financial instability has on our kids, our future workforce, and our economy.”

“Going From Broke” is executive produced by Ashton Kutcher, William J. Rouhana Jr. and Michael Winter for Chicken Soup for the Soul Entertainment. For Matador Content Todd Lubin, Jay Peterson, Joel Relampagos and Jerry Carita also serve as executive producers.

Crackle is available on all top streaming platforms, connected TVs, game consoles, Crackle mobile apps (IOs, Android) and at Crackle.com. Follow #GoingFromBroke on Crackle's Facebook and Twitter pages. Visit goingfrombroke.com for more information about the show.

Thursday, September 19, 2019

Saturn Awards And Kevin Feige Tribute Head To Crackle In On-Demand Exclusive

EXCLUSIVE: Screen Media Ventures has acquired exclusive on-demand rights to tonight’s Saturn Awards, which will feature tributes to Hollywood heavyweights Jon Favreau and Kevin Feige.

After tonight’s livestreams of the show across Twitch, Pluto TV, Nerdist and other platforms, Screen Media will make it available late next week on Crackle. Exclusive behind-the-scenes footage will be blended with the main awards production.

Screen Media parent Chicken Soup for the Soul Entertainment took control of Sony Crackle last spring in a deal with Sony. The transaction resulted in a rebrand of the service as Crackle, with Sony remaining a partner in the free, ad-supported streaming outlet it acquired in 2006.

The 45th annual edition of the Saturns, which honor sci-fi, fantasy and horror films, will be hosted by Aisha Tyler. In addition to Feige and Favreau, those scheduled to appear on the show include Melissa Benoist, Gina Torres, Gina Carano, Jon Cryer, Cameron Cuffe, Jamie Lee Curtis, Dean Devlin and George Takei.

Crackle, which has about 10 million monthly active users, will feature the awards on its genre-oriented Saturn Awards Channel. The channel’s lineup will also include past Saturn winners and nominees including, Crouching Tiger, Hidden Dragon, Daredevil, Looper and House of Flying Daggers.

“Our mission has always been for the most fans possible to enjoy this amazing show and the brilliant people behind our favorite TV and films,” Saturn Awards executive producer Justin W. Hochberg said. “Partnering with Crackle for the VOD window just proves how strong demand is for genre programming and a new kind of award show.”

Screen Media president David Fannon, who is also EVP of distribution for Chicken Soup, said the deal is “the first of many content acquisitions” planned for Crackle. The Saturn Awards, he added, “fits perfectly on a specialized channel on Crackle devoted to genre films.”

Original Article Found at: https://deadline.com/2019/09/saturn-awards-kevin-feige-tribute-crackle-plus-on-demand-streaming-1202734251/

Wednesday, August 14, 2019

Chicken Soup for the Soul Entertainment Reports Record Q2 2019 Revenue of $12.2 Million

Chicken Soup for the Soul Entertainment, Inc. (CSS Entertainment) (Nasdaq: CSSE), a growing media company building online video-on-demand (VOD) networks that provide video content for all screens, today announced its financial results for the second quarter ended June 30, 2019.

Second Quarter 2019 and Recent Business Highlights
(Results reflect Crackle Plus joint venture closed on May 14, 2019)

• Total revenue of $12.2 million
• Net loss of $5.9 million; $5.1 million before preferred dividends
• Adjusted EBITDA of $1.3 million
• Crackle Plus streaming video joint venture launched
• Release of The Man Who Killed Don Quixote, a much anticipated film directed by Terry Gilliam
• Began production on Season 2 of Chicken Soup for the Soul's Animal Tales

Total revenue for the quarter ended June 30, 2019 was $12.2 million compared to $3.1 million in the year-ago period. The year-over-year increase reflects 45 days of Crackle contribution.

• Online networks, which includes Crackle, Popcornflix and Pivotshare, generated $10 million in revenue
• Television and film distribution generated $2.0 million in revenue
• Television and short-form video production generated $0.2 million in revenue

"In the second quarter total revenue was a record $12.2 million, reflecting only 45 days of our ownership of Crackle. Our increased scale is driving advertiser interest," said William J. Rouhana Jr., chairman and chief executive officer of CSS Entertainment. "Our ads served on our owned-and-operated networks increased to 681 million in the second quarter, up from 33 million in the year ago quarter, validating the consolidation strategy. Crackle's eCPM rate is 27% higher than Popcornflix's and we expect to increase our ad rates across all of our online networks over time as we close the gap between Popcornflix and Crackle. These results underscore our excitement for this joint venture."

Gross profit for the quarter ended June 30, 2019 was $3.6 million, or 30% of total revenue, compared to $1.2 million, or 39% of total revenue for the year-ago period. The reduction in the percentage of gross profit was a result of an increase in online networks revenue which has a lower gross profit percentage.

Operating loss for the quarter ended June 30, 2019 was $3.0 million compared to an operating loss of $1.6 million for the year-ago period. The quarterly operating loss reflects certain non-cash or one-time expenses including $0.7 million in non-cash amortization, $1.2 million of transitional expenses related to the Crackle Plus joint venture, and $1.6 million in film library amortization. If such expenses were excluded from SG&A or cost of revenue, the Company would have reported quarterly operating income of $0.5 million.

Net loss was $5.9 million, or $0.49 per share, compared to a net loss of $1.7 million, or $0.14 per share in the prior-year second quarter. Excluding preferred dividends, the net loss in the second quarter of 2019 would have been $5.1 million, or approximately $0.42 per share, compared to a net loss of $1.7 million, or $0.14 per share last year.

Adjusted EBITDA for the quarter ended June 30, 2019 was $1.3 million compared to $0.2 million in the same period last year.

As of June 30, 2019, the company had $5.2 million of cash and cash equivalents compared to $7.2 million as of December 31, 2018, and outstanding debt of $7.1 million as of June 30, 2019 compared to $7.6 million as of December 31, 2018.

Wednesday, June 19, 2019

Chicken Soup for the Soul Entertainment Announces Appointment of Two New Directors, Cosmo DeNicola and Martin Pompadur

Chicken Soup for the Soul Entertainment, Inc. (“CSS Entertainment”) (Nasdaq: CSSE), a growing media company building online video on-demand (“VOD”) networks that provide video content for all screens, today announced two new appointments to the Company’s board of directors, Cosmo DeNicola and Martin Pompadur effective June 12th, 2019.

Cosmo DeNicola has founded and grown several national companies to market-leading positions. Mr. DeNicola founded the Cosmo DeNicola Companies, a portfolio company that holds a diverse range of businesses in the healthcare, technology, publishing, professional sports, and entertainment industries. In 1981, Mr. DeNicola founded Amtech Software, a provider of software and hardware solutions for the corrugated manufacturing industry. Mr. DeNicola founded Futura Services Inc., a technology support company, in 1992, and currently serves as its chief sales and marketing officer. He co-founded enterprise mobility provider of wireless/RFID technology, InfoLogix Inc. in 2001 and served as its chief executive officer until the 2006 merger of InfoLogix with New Age Translation, Inc. In 2011, Mr. DeNicola co-found international SAP services company, LogiStar Solutions, and served as its chairman until LogiStar was sold to Ernst & Young in 2014. In 2014, Mr. DeNicola co-founded Pursuit Healthcare Advisors, and served as its chairman until Pursuit Healthcare Advisors was sold to Atos in 2017. In June 2018, Mr. DeNicola was awarded with Ernst & Young's Philadelphia Region Entrepreneur of the Year. In 2019, Mr. DeNicola was honored by the Fox School of Business as one of 100 world-wide entrepreneurs and visionaries who have helped shape the Fox Business School and the business world.

Martin Pompadur has more than 50 years of experience in the media and entertainment industry. Mr. Pompadur began his career at ABC, Inc. in 1960, holding a variety of positions including general manager of the Television Network, vice president of the Broadcast Division, president of the Leisure Activities Group, and vice president of ABC, Inc., culminating with his becoming a member of the ABC, Inc. board of directors. From 1977 through 1982, Mr. Pompadur served as president of Ziff Corporation. Mr. Pompadur was then head of RP Companies from 1982 to 1998. Mr. Pompadur joined News Corporation as executive vice president of News Corporation, president of News Corporation Eastern and Central Europe and a member of News Corporation’s Executive Management Committee in 1998. From January 2000 until November 2008, Mr. Pompadur served as chairman of News Corp Europe. He served as global vice chairman, Media and Entertainment at Macquarie Capital from 2009 to 2016. Mr. Pompadur has served as a director of Nexstar Media Group (Nasdaq: NXST) since November 2003. Previously, Mr. Pompadur served on the boards of IMAX Corporation, ABC, Inc., Ziff Corporation, News Corporation Europe, Sky Italia, News Out of Home, BSkyB, and Metromedia International Group.

“We are thrilled to have Cosmo and Marty join our board of directors,” noted William J. Rouhana Jr., chairman and chief executive officer. “They are seasoned experts with impressive careers and bring with them extensive knowledge of finance, mergers, and acquisitions for media and other companies.”

In connection with the changes to the board of directors and in order to be able to take a more active role in advising the company on a series of initiatives, Peter Dekom stepped down as a member of the board of directors.

“We look forward to working with Peter even more closely in the future. His 40 years of media and entertainment legal, consulting, and entrepreneurial experience will continue to be a major asset to the company. We thank him for his service to date,” said Mr. Rouhana.

ABOUT CHICKEN SOUP FOR THE SOUL ENTERTAINMENT

Chicken Soup for the Soul Entertainment, Inc. (Nadsaq:CSSE) is a growing media company building and acquiring streaming video-on-demand networks (VOD) that provide content for all screens. The company owns a majority stake in Crackle Plus, a joint venture with Sony Pictures Television, which owns and operates a variety of ad-supported and subscription-based VOD networks including Crackle, Popcornflix, Popcornflix Kids, Truli, Pivotshare, Españolflix and FrightPix. The company also acquires and distributes video content through its Screen Media subsidiary and produces long and short-form content through its Chicken Soup for the Soul Originals division and through APlus.com. Chicken Soup for the Soul Entertainment is a subsidiary of Chicken Soup for the Soul, LLC, which publishes the famous book series and produces super-premium pet food under the Chicken Soup for the Soul brand name.

FORWARD-LOOKING STATEMENTS

This press release includes forward-looking statements that involve risks and uncertainties. Forward-looking statements are statements that are not historical facts. Such forward-looking statements are subject to risks (including those set forth in the offering circular) and uncertainties which could cause actual results to differ from the forward-looking statements. The company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the company’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based. Investors should realize that if our underlying assumptions for the projections contained herein prove inaccurate or that known or unknown risks or uncertainties materialize, actual results could vary materially from our expectations and projections.

INVESTOR RELATIONS
James Carbonara
Hayden IR
james@haydenir.com
(646) 755-7412

MEDIA CONTACT
Kate Barrette
RooneyPartners LLC
kbarrette@rooneyco.com
(212) 223-0561

Tuesday, May 14, 2019

Sony Pictures Television and Chicken Soup for the Soul Entertainment Launch Joint Venture "Crackle Plus" and Announce Closing of Related Transactions

Sony Pictures Television (SPT), one of the television industry's leading content providers, and Chicken Soup for the Soul Entertainment, Inc. (CSS Entertainment) (Nasdaq: CSSE), a fast-growing media company building online video-on-demand (VOD) networks that provide content for all screens, today launch their new streaming video joint venture named "Crackle Plus" and announce closing of related transactions.

Crackle Plus is expected to have a combined audience of nearly 10 million monthly active users on its owned and operated networks, as well as millions of additional users from its ad rep business, positioning the new company as one of the largest ad-supported VOD (AVOD) platforms in the U.S. Each company brings its respective audience and its video-on-demand and content expertise to the joint venture.

SPT and CSS Entertainment are each contributing assets to establish Crackle Plus. SPT's contributions to the joint venture include Crackle's U.S. and Canadian assets including the Crackle brand in those territories, its monthly active users and its ad rep business. SPT and the joint venture also entered into a license agreement for rights to popular TV series and movies from the Sony Pictures Entertainment library, including Crackle's original content library. In addition, New Media Services, a wholly-owned subsidiary of Sony Electronics Inc., has contracted to provide the technology back-end services for the newly formed joint venture. CSS Entertainment contributions to the joint venture will include the rights to six owned and operated AVOD networks (Popcornflix, Truli, Popcornflix Kids, Popcornflix Comedy, Frightpix, and Espanolflix) and subscription video-on-demand (SVOD) platform Pivotshare.

Under the terms of the agreement, announced on March 29, 2019, CSS Entertainment will own the majority interest in the joint venture. Additionally, CSSE will issue to SPT four million five-year warrants to purchase Class A common stock of CSS Entertainment at various prices.

Ladenburg Thalmann & Co. Inc., a subsidiary of Ladenburg Thalmann Financial Services Inc. acted as sole advisor to CSS Entertainment in this transaction. Moelis & Company LLC acted as exclusive financial advisor to SPT in connection with the transaction.

Monday, May 13, 2019

Chicken Soup for the Soul Entertainment Announces Second Season of Chicken Soup for the Soul's Animal Tales

Chicken Soup for the Soul Entertainment, Inc., a growing media company building online video-on-demand ("VOD") networks that provide video content for all screens, today announced a second season of its pet-themed TV series, Chicken Soup for the Soul's Animal Tales.

"Chicken Soup for the Soul has a long history of creating pet-related content and products," said William J. Rouhana, chairman and chief executive officer. "Chicken Soup for the Soul consistently encourages the well-being of animals and created this series to highlight incredible animals and the inspiring people who go above and beyond to care for them."

The second season of Chicken Soup for the Soul's Animal Tales will consist of 15 half-hour episodes and will be sponsored by Chicken Soup for the Soul Pet Food.

"Chicken Soup for the Soul Pet Food is thrilled to sponsor another season of this series," said Chris Mitchell, chief executive officer of Chicken Soup for the Soul Pet Food. "This series is in line with our mission to help all pets eat well, whether by making super premium pet food that is affordable or donating millions of meals to shelter pets every year. The series tells the stories of amazing and inspiring people who go above and beyond to care for, love, help, and defend animals everywhere as well as how animals can change our lives."

Friday, March 29, 2019

Sony Pictures Television and Chicken Soup for the Soul Entertainment Form Joint Venture "Crackle Plus"

Sony Pictures Television ("SPT") one of the television industry's leading content providers, and Chicken Soup for the Soul Entertainment, Inc. ("CSS Entertainment") (Nasdaq: CSSE), a fast-growing media company building online video-on-demand ("VOD") networks that provide content for all screens, today announced the signing of a definitive agreement to establish a new streaming video joint venture to be branded "Crackle Plus".

SPT and CSS Entertainment will each contribute certain assets to establish Crackle Plus and position the new company as a leading AVOD streaming platform. Each company plans to bring its respective audience and its video-on-demand and content expertise to the joint venture.

SPT's contributions to the joint venture include Crackle's U.S. assets including the Crackle brand, its monthly active users and its ad rep business. SPT and the joint venture will also enter into a license agreement for rights to popular TV series and movies from the Sony Pictures Entertainment library. In addition, New Media Services, a wholly-owned subsidiary of Sony Electronics Inc., will provide the technology back-end services for the newly formed joint venture. Ownership of Crackle's original content library will be retained by SPT but will be made available for licensing to the joint venture. CSS Entertainment plans to include in the joint venture six owned and operated AVOD networks (Popcornflix, Truli, Popcornflix Kids, Popcornflix Comedy, Frightpix, and Espanolflix) and subscription video-on-demand ("SVOD") platform Pivotshare.

Crackle Plus is expected to have:

- A combined audience of nearly 10 million monthly active users on its owned and operated networks, as well as millions of additional users from its ad rep business, positioning it as one of the largest AVOD platforms in the U.S.
- Over 38,500 hours of programming
- More than 90 content partnerships
- Over 1.3 billion minutes streamed per month
- An offering of over 100 networks, both ad-supported and subscription-based, including networks owned by Crackle Plus and third-party networks distributed via Pivotshare

"Crackle is a valuable asset and we feel confident it will thrive and grow in this new environment with CSS Entertainment," noted Mike Hopkins, chairman of SPT. "We were drawn to CSS Entertainment as our partner in this venture because of its aggressive, entrepreneurial approach," said Hopkins. "The CSS Entertainment team have the enthusiasm and strong business acumen to ensure Crackle Plus is poised to maximize the growing opportunities in the AVOD marketplace."

"This transaction positions CSS Entertainment as a leader in the high-growth AVOD business," said William J. Rouhana Jr., chairman and chief executive officer of CSS Entertainment. "Creating a new platform that brings together CSS Entertainment's VOD assets with SPT's Crackle brand and AVOD assets, establishes a compelling offering for viewers and advertisers. Consistent with our business plan, we plan to build Crackle Plus aggressively and profitably through organic growth and, potentially, acquisitions."

AVOD streaming services like Crackle Plus are growing in popularity with consumers. With the expansion of smartphone adoption and the explosive growth of content consumption on mobile devices, the number of non-pay TV households in the United States reached an estimated 24.9 million in 2017 (Rapid TV), and the number of cord-cutters is projected to grow to over 55.1 million by 2022 (eMarketer).

"With the increased demand for free online video content as well as a need for advertisers to reach consumers, AVOD networks such as Crackle Plus are positioned for substantial growth," Hopkins noted.

Under the terms of the agreement, CSS Entertainment will own the majority interest in the joint venture. Additionally, SPT will receive four million five-year warrants to purchase Class A common stock of CSS Entertainment at various prices. The addition of the Crackle assets is expected to more than double CSS Entertainment's overall revenue and add meaningful EBITDA.

Ladenburg Thalmann & Co. Inc., a subsidiary of Ladenburg Thalmann Financial Services Inc. (NYSE: LTS) acted as sole advisor to CSS Entertainment in this transaction. Moelis & Company LLC acted as exclusive financial advisor to SPT in connection with the transaction.

Tuesday, March 19, 2019

Chicken Soup for the Soul Entertainment Appoints Industry Veterans

Chicken Soup for the Soul Entertainment, Inc. ("CSS Entertainment") (Nasdaq: CSSE), a growing media company building online video-on-demand ("VOD") networks that provide video content for all screens, today announced the appointment of three leading industry executives to CSS Entertainment's rapidly expanding business units.
Philippe Guelton has been named executive vice president of Chicken Soup for the Soul Entertainment, and president of VOD networks.
David Fannon has been promoted to executive vice president of distribution for Chicken Soup for the Soul Entertainment, and president of Screen Media.
George Lansbury has been named executive vice president of content strategy for Chicken Soup for the Soul Entertainment, and president of Chicken Soup for the Soul Entertainment originals.
"The entertainment industry continues to evolve. As consumers look for new ways to find the content they enjoy, Chicken Soup for the Soul Entertainment is uniquely positioned to benefit from this evolution," commented William J. Rouhana, Jr., chairman and chief executive officer. "We have created our own ecosystem to produce and distribute content both on a business-to-business basis, as well as directly to audiences. This structure creates logical homes for our content brands like A Plus, Popcornflix, and Truli, as well as future companies. Just as importantly, this structure will help us lower our costs to acquire customers and will allow us to operate more efficiently. Recruiting Philippe Guelton and George Lansbury to CSS Entertainment is a noteworthy achievement, speaking to the progress we have made. We are also particularly pleased to announce the promotion of David Fannon, who has proven his value to our organization. We have set the stage with the team to meaningfully accelerate our growth in the near-term."

Video-On-Demand (VOD) Networks:

As the president of VOD networks, Mr. Guelton will oversee all of CSS Entertainment's properties that monetize video content directly to audiences. This will enable the company to improve efficiency and flexibility by consolidating all VOD operations including Pivotshare, Popcornflix, and Truli, and lay the groundwork for future acquisitions.

Mr. Guelton was formerly the chief executive officer at SheKnows Media (now She Media), a mission-driven digital media company with a reach of 60+ million monthly unique visitors and over 350+ million social media fans. Penske Media Corporation acquired SheKnows Media in 2018. Previously, Mr. Guelton served as president of Thrillist Media Group, a leading men's lifestyle digital brand now part of GroupNine. Mr. Guelton was also chief operating officer at Hachette Filipacchi Media U.S., where he oversaw print and digital platforms for brands such as Elle and Woman's Day. Prior to that, he led the acquisition and was the chief executive officer of Japanese publishing company Fujingaho (now part of Hearst).

"Philippe is the right leader for our online networks business, bringing a wealth of experience and a diverse history of growing and profitably managing leading media properties," said Elana Sofko, chief operating officer. "Philippe's extensive media background and business acumen will help us significantly accelerate the growth of our VOD networks business, and expand our overall media business portfolio."

"CSS Entertainment has quickly positioned itself in the VOD space with six owned and operated advertising VOD networks (Popcornflix, Popcornflix Kids, Frightpix, Popcornflix Comedy, Espanolflix, and Truli) as well as its subscription VOD technology platform Pivotshare, serving paid video subscribers across hundreds of independent channels," said Mr. Guelton. "I am very excited to join a talented team to drive growth, both organic and external, through the constantly disruptive and evolving media ecosystem."

Distribution:

David Fannon, currently president of Screen Media, assumes leadership of all of CSS Entertainment's distribution and content acquisition initiatives. He first joined Screen Media in 2005 and over the course of his 14-year tenure, Mr. Fannon has been intimately involved with the growth and expansion of Screen Media from a home video company to a truly digital pioneer. Screen Media acquires the rights to TV series, films and other video libraries, and monetizes these assets by licensing those rights to companies that deliver video to their own audiences. The team sells the content worldwide across a comprehensive range of video platforms, including theatrical releases, cable TV, local TV, digital platforms, DVDs and CSS Entertainment's own VOD/Online Networks.

In addition to his role as president of Screen Media, Mr. Fannon has recently been named executive vice president of distribution for Chicken Soup for the Soul Entertainment. Prior to joining Screen Media, Mr. Fannon spent nearly a decade on the legal team at A&E Television Networks where he oversaw all business affairs for the network's growing slate of original productions.

"David has steered Screen Media into impressive growth during his time with the company," noted Ms. Sofko. "He has been intimately involved with every major deal entered by Screen Media and we are confident he will lead CSS Entertainment's distribution successfully through changing landscapes."

"The Screen Media distribution business has had great success operating as part of CSS Entertainment since being acquired in 2017," said Mr. Fannon. "I look forward to working with this incredible leadership team to grow our distribution business by increasing the number and quality of TV series and films we acquire and by acquiring valuable content libraries."

Production:

CSS Entertainment has established a unique and sustainable presence creating original television series as well as short-form videos across a range of topics, funded primarily by sponsors. George Lansbury assumes leadership of this function. Mr. Lansbury brings a successful history of multi-platform programming and production, coming most recently from Fusion Media Group as senior vice president of programming, production and operations. As part of the team that launched FusionTV, Mr. Lansbury was instrumental in the expansion of Fusion Media by increasing distribution and ratings while collectively earning over 75 television and journalism awards. He was also responsible for integrating the Gizmodo Media digital brands, including The Onion, The AV Club, The Root, and Jalopnik, and developed multi-platform programming and editorial opportunities. Prior to FusionTV, Mr. Lansbury worked on original projects with YouTube and was employed by AMC Networks, Cablevision and MTV Networks.

"George brings broad, creative management to CSS Entertainment," said Ms. Sofko. "He has a proven track record and unique background in creating engaging and successful content across platforms. As the digital and linear distribution worlds combine, we'll be able to create content that works well in each of these areas."

"I'm excited to join the CSS Entertainment leadership team," said Mr. Lansbury. "CSS originals traverse between digital and linear distribution networks. They have already appeared on major networks such as A&E, The CW, CBS, TLC, Discovery Life, Discovery Family and Netflix, and their related content has reached hundreds of millions of digital video views. The changing media landscape offers a great opportunity to build more multi-platform alternatives by utilizing CSS Entertainment's core strengths of quality production and positive storytelling. I look forward to working with this talented team, our sponsors and many others to extend the brand further with relevant premium content and to drive viewers to our own networks in the future."

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