Rounder Inc. Subsidiary BGGR Inc. Acquires Controlling Interest of GCSN
Rounder Inc. (Pink OTC Market: RNDR) subsidiary BGGR, Inc. ("BGGR") has acquired controlling interest (50.1%) of Gravity Collection Sports Network, Inc. (GCSN), a marketing and development company of premium action sports films, including content for television, feature length films for alternative and digital distribution.
Norman Birmingham, CEO of Rounder Inc., points out that Gravity Collections, Inc. (GCI) has successfully rolled up seven premium action sports companies and in addition has purchased various other content to bring their (GCI) library to over 900 titles. This library has a third party appraisal of $185,000,000. GCI's library along with new series productions are available to stream to multiple platforms including connected televisions, Blu-ray players, game consoles, mobile devices and PCs. This distribution method is done on a subscription basis. The revenues that are forecasted be realized by Rounder Inc., are substantial. As the agreement that is in place calls for 15% of the Thirty Million Dollar advertising budget to be paid for services rendered by BGGR Inc., Rounder Inc.'s subsidiary, which equates to $4.5 million dollars.
The company also markets its advertising for distribution on carriage contracts with Dish Network and Direct TV. These agreements are already signed by Gravity Collections, Inc. Several other contracts with cable companies are being negotiated by GCI and are expected to be completed. The goal CEO Norman Birmingham said “is to reach 100 million households with substantial ad revenue. The initial contracts have more than 34 million households under subscription, reaching our target demographic consisting of 13-36 year olds."
GCI already has program distribution active in Europe via Sky TV, as well as in China. Mr. Birmingham further went on to say, "That even though we won't participate in that portion of GCI's business operations, Rounder shareholders should take note to the fact that the programming is being well received.” The type of programming currently being offered to subscribers is action/extreme sports television along with other licensed sports related movies.
The CEO of Rounder Inc. also said “The opportunity for growth within this market segment shows great promise.” As of this press GCI is actively engaged in further expansion of its platform by seeking additional licenses to market even greater premium content to its subscriber base and further bolstering its advertising and promotional capabilities.
Surveys show that within the above mentioned demographic that 88% of people are interested in action sports, with 72% of them involved in the action sports lifestyle. An overwhelming number 94% of action sports participants watch televised broadcasts of such events. While 63% watch online or on mobile devices and 69% attend live action sports events. “These market demographics indicate substantial demand for the content that BGGR Inc. and GCI market and distribute. The target set by GCI is 14 to 16 million subscribers of their premium channel package which is priced at an affordable rate of between $5.95 to $7.95 per month. This exposure derived form GCI subscribers will allow for the marketing of a wide and diverse set of products. We anticipate a wide array of companies to utilize GCI's programing to advertise their products and or services as a means of penetrating this demographic that has been estimated to have an enormous buying power over of $200 billion annually. This genre may very well be the last major growth segment in content distribution."
BGGR, Inc. has several irons in the fire as it continually seeks other marketing opportunities to expand its core entertainment business to make the entertainment division of Rounder Inc. a substantial revenue center with high net profit margins. In closing, Mr. Birmingham wishes to thank all shareholders who have taken the time to participate in not only his most recent conference call, but also Mr. Parilla's initial call.
Safe Harbor This press release contains forward-looking statements. Such forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause the Company's actual results to differ materially from those projected in such statements. Forward-looking statements speak only as of the date made and are not guarantees of future performance. We undertake no obligation to publicly revise any forward-looking statements.
Kent Thomas, 631-824-7661