EXECUTIVE SUMMERY
LONGROAD ENTERTAINEMENT
CREATING A NEW ROAD IN INDEPENDENT FEATURE FILMS
LongRoad Enternainment Corp (The Parent Company) is a Los Angeles based business formed in 2003 to develop, manage, produce, market, and to distribute all entities of entertainment media, focusing primarily on feature motion pictures.
LongRoad Entertainment was created out of the belief that business can be conducted with a satisfying and trust-filled experience unlike the reputation that precedes the “Industry entertainment business”. We do things differently because there is a choice, and we choose to be successful and profitable without the endless rhetoric and stepping on others to get ahead. We are not reinventing Hollywood, just redefining how it’s done, by doing the right thing.
Company Mission
Safe • Decent • Good • Worthwhile
LongRoad Entertainment’s current focus is to develop and produce 1.5 to to 9.5 million dollar feature motion picture films while sustaining our operations through our work in motion picture marketing and short form productions. LongRoad Entertainment will advance a library of projects- developed and packaged specifically for the industry studios, production companies and distributors. We have built LongRoad Entertainment on our Business Principals (Vision, Integrity, and Profitability). These three words are engraved into our establishment and are the foundation in which we are growing and building upon.
Business Principals:
Vision: We are constantly looking ahead at where we can gain new ground and pave the way for innovative entertainment.
Integrity: There is an unwavering commitment by each employee of Longroad Entertainment to uphold the utmost degree of integrity.
Profitability: We make sound business decisions that generate revenue for each and everyone involved.
Services
Since 2003 LongRoad Entertainment has been strongly committed to developing, managing, producing, marketing and distributing its own projects for the entertainment industry. With a golden standard to mentoring other filmmakers.
Disclaimer
This document contains certain confidential and/or proprietary information regarding “Longroad Entertainment”. This Executive Summery is submitted on a confidential basis, solely for the purpose of evaluating this plan. The recipient, by taking possession of this document, agrees not to disclose or promulgate any information contained herein, except to advisers or employees who may need to know the contents for purposes of evaluating this plan, and who are bound by similar agreements respecting confidentiality. All information herein, including documents, financial statements, procedural information and technical information, and all copies in any media, remain the property of and will be returned to Longroad Entertainment upon request.
The Executive Summery plan is an offer to potential investors for investment opportunity and or a partnership, limited or other consideration.
The forecasts included in this Executive Summery are based upon Longroad Entertainment’s current best understanding of the markets and technologies involved, but it is highly likely that actual results will differ in many and substantial ways from those forecast due to changes both within and outside the company’s control.
LongRoad Entertainment is pleased to present our features in development, “Humble Rose”, a drama, “My Favorite Blonde” a romantic comedy, “The Rave”, a drama horror, “Robo Teen”, a comedy. And additionally, our motion picture production currently in development” THE DEVIL MADE ME DO IT”. A comedy written by Raul Gomez and Co-Writer Adam Sharp, the screenplay is about a greedy stockbroker whom the Devil puts a claim on his soul, but is not allowed to take it, so he takes half of it. Which the stockbroker seeks help from an old friend to get it back and so the chase begins into a 30 day run of mayhem and laughter.
The Director of the film is to be determined, because we need to find just the right one for this very special project.
“THE DEVIL MADE ME DO IT” is a comedy slated to commence principal photography in the summer of 2011 and will be shot in the Los Angeles area. The project is expected to be released by a major U.S. studio, mini major or distributor by the summer of 2011, with the total invested funds for this project ranging from $5.5 to $10.5 million. Our investors have the opportunity to purchase shares in this film, earn a generous return, and serve as an integral team member in helping “LONGROAD ENTERTAINMENT” rise to the surface.
You are invited to review this Executive Summary and consider participation in this unique investment opportunity. The complete Offering is available for your deeper review. We are hoping to secure this financing by January 2011.
Thank You,
Raul Gomez
Producer/Director
RAUL GOMEZ
Partner, President, Executive Producer, Producer
Raul Gomez is responsible for the day-to-day oversight of the sales and marketing affairs of the company including the coordinating of sales activity, development of general and account-specific marketing campaigns and trade advertising. He will be working closely with industry and retail partners on cross-promotions, and product packaging, pricing, positioning and value-added enhancements. Raising capitol for project productions. With 25 plus years promoting, producing and building industry relationships in U.S. and Mexico, he is no stranger to the trade.
Writer
Raul Gomez
Raul Gomez is a Producer, Writer and upcoming Director, with an expanding challenge in acting. He has thirty years experience in the entertainment industry, including twenty years in Marketing and Advertising.
Raul Gomez has worked with top Latin American artists, singers and film stars. During many years he produced Mexican rodeo events and concerts in every major city in the United States and Puerto Rico.
He has produced major concert tours for “Menudo”, the top Puerto Rican Pop rock group. For Mexican film and singing super star Antonio Aguilar, Raul Gomez produced his “National Mexican Festival and Rodeo”, taking it successfully to the Los Angeles Sports Arena, the Madison Square Garden in New York, the Cow Palace in San Francisco, the Hollywood Arena in Miami, and many other major cities in the United States.
Raul Gomez arrived in Hollywood in November 1977, and ever since, he has been moving back and forth between the Mexican and American entertainment industries. Michael Landon became his mentor, and icons like Ron Howard and Robin Williams have been very inspiring with wise words of advice and direction.
In 1993, Raul Gomez wrote, produced and directed a two-hour documentary about the trials and tribulations of a young Latino singer in Forth Worth, Texas. He has written three screenplays: “The Devil Made Me Do It”, a comedy; “Humble Rose”, a drama; and “My Favorite Blonde”, a romantic comedy, “The Rave”, a drama/horror, “Robo Teen”, a comedy,. All five works are currently under development, with “The Devil Made Me Do It” first in line for production.
Raul Gomez attended the University of Houston where he majored in Communications and Drama. In Hollywood, he attended UCB College of Business, where he received a diploma in computer study. And will be participating in a mentoring program at The Los Angeles Film School.
When the production of a feature film is in place, Raul Gomez likes to surround himself always with top professionals of the industry and A-list talent, this is paramount.
Investment Objectives
Please keep in mind that the financial investment is for Longroad Entertainment and all it’s motion picture projects and any and all other entities Longroad Entertainment holds.
Much like a corporation, the bottom line goal of the Producers is to maximize returns for the investors of “The Devil Made Me Do It”. We believe in our ability to create a successful Box Office comedy that will also yield high rates of return for our investors.
LONGROAD ENTERTAINMENT Is looking for private equity investments totaling 1.0 to 1.5 million. Each investor will be given participation percentages of their share on the net profits. The producers will form a limited liability corporation (“LLC”), Raul Gomez Productions LLC, and Raul Gomez Films, LLC. Forming an LLC is standard practice in the entertainment industry for legalities and tax measures. Financial controls will be immediately implemented to ensure a successful progression of Longroad Entertainment budget.
We are in the process of attaching talent. Our budget would allow at least four significant stars to be attached to “The Devil Made Me Do It”. It only takes one star with the guidance of a quality Director to make a project successful on the levels that we are forecasting in this project.
In addition to private equity, we may seek co-financing in the form of matching or finishing funds from industry production, financing and Distribution Entities. With the necessary capital, and the attachment of talent, “The Devil Made Me Do It”. Will be poised to hit the market with a tremendous impact as possible and, thus, turn a substantial profit for the private investor(s).
THE OPPORTUNITY
Return On Investment
Investment in the film business is a speculative risk. Much like the securities industry, return levels cannot be guaranteed. However, return levels can be forecasted from analysis of comparable data, management experience, talent and multiple revenue sources. With our investment on “The Devil Made Me Do It”, speculative risk is mitigated, with the Investors expected to recoup the original private equity investment within the first two years. Within five years of the investment, private investors are projected to have returns in excess of 222% to 312%.
The return on investment from private equity investors comes from a variety of markets. These market segments have a release sequence within a five year time frame otherwise known as “Windows”, return on investment is predicated on the theatrical performance of “The Devil Made Me Do It”. Theatrical performance is the driver for all other revenue streams such as home video, pay-per-view/cable, and television. The theatrical participations are only the beginning for equity investors to see their returns. In addition to the Theatrical Participations Forecast, the net profits for the secondary markets of home video and television.
TOTAL RETURN ON INVESTMENT
With all forms of revenue streams, we forecast the aggregate of the private equity investor to make SUBSTANTIAL returns on “The Devil Made Me Do It”, and all other projects currently in development.
CREDITS
All private equity investors will be given “Executive Producer” credit to the production of “The Devil Made Me Do It” if a significant sum of investment is provided. The Producers look forward to a long-lasting relationship with the investors on future Longroad Entertainment projects developed for both International and U.S. markets.
Theatrical Participation
Based on Average Box Office Comparable estimate of “The Devil Made Me Do It” Medium is Average Comparable Estimate. Low is 25% under Medium Estimate. High is 25% above Medium Estimate. Worldwide is inclusive of domestic and international Box Office gross.
Rentals is the exhibitor’s collection of 50% of Box Office gross.
Distribution Fee is industry standard.
Predicated on the distributor, Studio P&A expenses (prints and advertising) 3,500,000/ print x 1,000 prints (screens) is 2.5 million plus a conservative estimate of 1 million in advertising. Advertising is a variable factor and depends on the distributor, studio involved.
Predicated on back end points for attached talent, Director, Writer, and Producers. First Dollar Gross Points is based on Stars and supervision with merit.
Projections
Projections are predicated on market expenses and earnings as they currently exist. Historical data affirms the constant shift in expenses and earnings, responding to such factors as consumer preferences and spending, changes in technology, and global market shifts, all of which are difficult to predict and are beyond the control of the General Partner. In the process of time, the General Partner will conform these projections to the Partnership’s actual performance. The Partnership’s actual performance may be materially higher or lower than the projections. Consequently, the General Partner assumes no responsibility for the accuracy or validity of the Offering’s projections and inclusion of these projections should not be regarded as an accurate indication of future events.
Feature Film Production Timeline
We estimate the standard timing in the Producing of an entire Project (Motion Picture) from start to finish and into Theaters.
Pre-production
(3 months) This time frame accounts for the scheduling of talent that we will attach. In addition, we will establish a crew for the film location as well as have the scheduling of the script in order. Also, during this period, the script will be polished.
Production
(2 months) 30-60 days the Production time frame is predicated on the film’s location and is the accurate variable to predict as the schedule of a film is usually locked.
Post-production
(2 to 4 months) Post primarily depends on the distributor. Every Distributor has a system of quality checks before releasing a film. Distributors will often time the release of a project to maximize Box Office grosses.
Theatrical Release
A film is typically released within a 3 month time frame after Post Production is completed; however, the distributor makes the final decision on the release date. After the theatrical release window of 30 to 60 days in the theaters (U.S./domestic) ( foreign, world wide), the film moves onto other distribution channels including pay-per view, home video, and cable.
Distribution Windows
The average theatrical window typically is from three to six months, including both U.S. domestic and international release windows. The next market is pay per-view, which typically has a 30 to 60 day window just prior to home video. In the last two years, home video in the U.S. and internationally has been the primary market for distributors/studios to target, especially with the advent and popularity of DVDs.
Pay television is the next window, with the license period lasting from 12 to 18 months. If a movie is not licensed, then it will not run on network television. The television syndication is the last to be exploited and usually runs in perpetuity. The license periods will be from 2 to 5 years, and if the movie is ;popular, it can be re-licensed for cycle after cycle.
Box Office
Theatrical performance is the benchmark for any film’s revenue streams. There has been a steady increase in the U.S. total gross Box Office. In 2001, 462 new films were released. The total Box Office gross in the U.S. reached $8.4 billion, an increase of 9.8% over 2002-2003, according to the Motion Picture Association of America.
Home Video
Home Video revenues have radically altered the income landscape for theatrical motion pictures. An Electronic Industry Association U.S. national consumer survey recorded that 36% of their respondents described movies rented from video stores as the most enjoyable way to watch a movie. And, 65% of hose respondents considered movies rented from retail stores as the best entertainment value for the money spent.
A large part of Home Video’s growth in the last few years was DVD. According to the Motion Picture Association of America, over 12 million DVD players were shipped by dealers to consumers with over 13,000 titles available. DVD players increased in shipments/sales from the prior year by 49.5%. The low and high were less and greater than the medium estimate by 15%. Expenses total approximately 34% of the revenue.
Television & Pay Per View / Cable
According to the Motion Picture Association of America, there are over 105 million households that have a television. Of the total households in 2001, 73 million households had pay cable (premium channels). The average viewing hours per household per week is 49 hours. With much time spent on viewing television, there is a significant market for movies to be licensed for revenue on the networks or cable. The licensing fee is determined by the performance of a film and/or the popularity of talent.
Licensing fees for films can be valued up to 20% of Theatrical Gross Revenues, according to the “Going Rate” in the Hollywood Reporter.
www.longroadentertainment.net raulgomez21@yahoo.com
