Matrixx Entertainment Corporation was co-founded by Lee Garmes and James Jaeger with a mission of establishing a new studio system - the world's first virtual studio - that draws on talent from all countries to develop, produce and market an ongoing slate of high quality, reasonably-budgeted, motion pictures to an ever-increasing, digital-delivery, global market.
Because the Company operates upon the basis of multiple production output (structured in a similar fashion as the major and Mini major studios), revenues are not dependent on any single production.
Although movies, and other forms of entertainment, generate the second largest net export revenues for the United States and are expected to be a high-growth industry in the '90s where an older, family-raising, worldwide audience will look to smaller independent pictures that deliver good stories and likable characters, MEC believes the experience of creating state-of-the-art motion pictures does not have to originate in Hollywood, or for that matter, even particularly in the United States.
Through motion picture production, as well as several additional profit centers, the Company believes it can generate significant aftertax net profits for international partners in the expanding global entertainment markets and niche theatrical markets not fully exploited by the major studios.
One of the reasons the Company believes it will succeed is because it has obtained license to use a proprietary new management technology which was developed over the course of many years of trial and error. This trade secret technology is a codification of the production and film administration processes which is enabling the Company to provide the administrative and technical support to entrepreneurs, novice and name talent world wide that wants to break-in to directing and/or producing features on a gradient, within a safer learning curve and with quality that has long been exclusive to Hollywood.
While retaining a modest interest in each enterprise the company sets up, this new "studio-system" will enable Matrixx Entertainment to establish numerous, semi-autonomous production entities, any one (or many) of which could produce the next important features, allowing the Company to participate in gross revenues which may be significant over the long-term. In this sense, as well as others, Matrixx Entertainment is the world's first virtual movie studio.
In addition to utilizing known personalties as appropriate, Matrixx Entertainment intends on developing its own "name talent" and retaining an option on future services from the world talent pool, much of which is being accessed via the Internet. By doing this, the Company hopes to bring back a portion of the "old studio system" which was less ad hoc and more sympathetic to new talent, than the system today. This includes helping existing "Stars" develop careers in directing and producing features, through the production company franchise program, as mentioned above.
In the future, the Company intends on holding a portion of its assets in real estate. It is anticipated that such real estate will include the construction of office/production buildings and later digital, studio complexes with ENA sound stages in various countries.
The Company is active in developing, optioning and selling screenplays, establishing spin-off movie companies, offering courses and manuals on film production, providing production, editing and computer services and developing name talent from a global pool. To this end, MEC is organized into several specialized divisions which have been named for easy reference as follows:
Matrixx Entertainment Corporation ("MEC"), is a Delaware corporation incorporated on November 19, 1990 for the primary purpose of producing and marketing feature length motion pictures.
The main business of the Company is the production of feature length motion pictures. The Company is initiating production on one or two features the first years of operation and plans to increase output by about one feature each fiscal year. Initial productions are being financed by the Company from the private capital markets with and without negative pickups.
The Company will endeavor to arrange third party matching funds on selected projects making initial production budgets between $500,000 and $5,000,000 each.
In order to accomplish third party financing (such as pre-sales, joint ventures or royalty financing) for any single project, the Company believes that at least twenty (20) quality projects must be continuously promoted to at least twenty (20) bone fide financing entities, such as major studios and major distribution companies, by not only MEC, but by domestic and foreign "franchise" production companies as well.
Each "project" must consist of at least a recommended screenplay. In some cases, projects include a production budget, and in still other cases, the Company will have to arrange for elements such as a director and acting talent in order to pre-sell the "package."
The Company will endeavor to produce movies that are of interest to its stockholders, managers and international partners on a wide range of mainstream subjects as well as niche markets and offbeat markets. Whatever the subject or genre, emphasis will be placed on production of high quality films, efficiently produced with reasonable budgets - films that emphasize the upside of the Life or that depict how the negative-side of Life can be avoided.
Without consideration for cost of production, genre, major or independent origination, the type of films the Company will aspire to develop and produce in the long term are films that emphasize believable characters and solid story lines, while being entertaining and enlightening to the audience. The Company considers the following films as examples of quality filmmaking:
ABYSS - THE AFRICAN QUEEN - AGE OF INNOCENCE - A ROOM WITH A VIEW - ALIEN - ALIENS - APOLLO 13 - THE ARRIVAL - BACK TO THE FUTURE - BEFORE AND AFTER - BEING THERE - BILOXI BLUES - BLADE RUNNER - BODY HEAT - BOOMTOWN - BOYZ IN THE HOOD - BRAVEHEART - BRIDGES OF MADISON COUNTY - BRIDGE OVER THE RIVER KAWI - THE BUTCHER'S WIFE - CAPTAIN BLOOD - CASABLANCA - CASSINO - CHARIOTS OF FIRE - CARLITO'S WAY - CHINATOWN - CITIZEN KANE - CONTACT - CRIMSON TIDE - CRYING GAME - DAVE - DEAD MAN WALKING - DEAD POETS SOCIETY - DEEP IMPACT - DINER - DON JUAN - DR. STRANGELOVE - DUNE - ENCHANTED APRIL - EXECUTIVE DECISION - FAIL SAFE - FALLEN ANGEL - FALLING DOWN - FAR AND AWAY - FARGO - FEARLESS - FERRIS BUELLER'S DAY OFF - FIRST KNIGHT - THE FLY - FOR LOVE OR MONEY - FORREST GUMP - FOUR WEDDINGS AND A FUNERAL - THE FULL MONTY - THE GAME - GARDING TESS - GHANDI - GONE WITH THE WIND - GREASE - THE GREAT DICTATOR - GREEDY - GROUNDHOG DAY - HEAT - HE SAID,SHE SAID - HONEYMOON IN VEGAS - HOPSCOTCH - HOUSE OF GAMES - HUNT FOR RED OCTOBER - IMORTAL BELOVED - INDIANA JONES - THE IN-LAWS - IN THE MOUTH OF MADNESS - JAMES AND THE GIANT PEACH - JUDGEMENT NIGHT - LAST DANCE - LAST OF THE MOHICANS - LAST SUPPER - LEAVING LAS VEGAS - LEGENDS OF THE FALL - THE MILAGRO BEANFIELD WAR - THE MALTESE FALCON - THE MAN WHO WOULD BE KING - MARY REILLY - THE MATRIX - METROPOLITAN - MILLER'S CROSSING - MODERN TIMES - THE MONEY PIT - MR. HOLLAND'S OPUS - MR. SMITH GOES TO WASHINGTON - MRS DOUBTFIRE - MULHOLLAND FALLS - MURIEL'S WEDDING - THE MUSIC OF CHANCE - MY COUSIN VINNY - MY LEFT FOOT - THE NATURAL - THE NET - NINE MONTHS - NIXON - NO WAY OUT - ONE FLEW OVER THE CUCKOO'S NEST - OF MICE AND MEN - PARADINE CASE - PARADISE - PASSION FLOWER - PEGGY SUE GOT MARRIED - A PERFECT WORLD - POWDER - PRIMAL FEAR - PULP FICTION - THE QUICK & THE DEAD - RAINMAN - RAMBLIN' ROSE - THE REF - RETURN OF THE SECAUCUS 7 - REVERSAL OF FORTUNE - RISKY BUSINESS - ROCKY HORROR PICTURE SHOW - ROMEO & JULIET - ROMEO IN LOVE - ROXANNE - SAY ANYTHING - THE SCARLET LETTER - SCHINDLER'S LIST - SILKWOOD - SIXTH SENSE - SECRET LIFE OF WALTER MITTY - SENSE & SENSIBILITY - THE SHAWSHANK REDEMPTION - SIX DEGREES OF SEPARATION - SPEED - STAND BY ME - STAR TREK IV - STAR TREK GENERATIONS - STAR TREK VII - STAR WARS - TENDER MERCIES - THREE DAYS OF THE CONDOR - TITANIC - TOY STORY - TRIP TO BOUNTIFUL - TRUE LIES - 12 MONKEYS - THELMA AND LOUISE - TIN MEN - TRADING PLACES - USUAL SUSPECTS - WE'RE NO ANGELS - WHEN HARRY MET SALLY - WHITE MAN'S BURDEN - WITNESS.
Any person who has seen at least 80% of the above list and who does not like such films, might not be interested the Company.
Although it is impossible to predict what any given feature will gross, a few things about the movie industry hold as long term truths. Lower budget independent features generally generate a better rate of return than high-budgeted features. Production of motion pictures can be high risk; however, one successful movie can recoup five or ten unsuccessful movies and still give an overall return on investment better than a good mutual fund.
Because each film also has many times the upside potential of most other business as well as the other profit centers of the Company, the Company's strategy will be to diversify risk by allocating about half of all net proceeds to film production and the balance to generate revenue through the other profit centers such as Mini Mogul Enterprises, dNa DevelopMent and BackBone Enterprises.
It is anticipated that after tax net can be stable or increased modestly to the degree the Company can continuously create a library of quality pictures which at least break even until a very successful picture (or series of successful pictures) comes along and generates returns significantly above the costs of production and marketing.
To diversify risk and create additional profit centers other than motion picture production, the Company will generate additional revenue through the following other products:
In future years, the MEC plans on exploring additional profit centers and the possibilities of owning real estate - such financed from the production and distribution of entertainment. This may also be in the form of purchasing or constructing office/studio complexes as well as high-tech movie theaters, which the Company has coined, "HDTV Theaters."
The Company is currently in the process of consolidating and expanding its operations and by bringing into focus years of research, development and pilots as above described, as well as the talents of those who have been connected with the company for over ten years. By providing opportunities for talent, filmmakers, executives, investors and entrepreneurs to develop, package, produce and distribute motion pictures over the Internet, Matrixx Entertainment is piloting a grand, world-wide, cultural experiment in the tradition of the earliest filmmakers -- such as Thomas Edison, inventer of the motion picture camera -- who launched the entire movie business from the Greater Philadelphia Area. That's one reason MEC's corporate headquarters is here.
But that's only the physical part, a movie studio has nothing to do with bricks and mortar - it has everything to do with ideas and talent - and ideas and talent are, and are appreciated, virtually everywhere the Internet reaches this world.
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