AN INTRODUCTION TO ALLIED ARTISTS INTERNATIONAL, INC.
Entertainment is big business and when managed correctly and responsibly, can and will be extraordinarily profitable. In today's industry, the entertainment corporation that can utilize a business model with the ability to build a foundation of consistent releases over many channels (film, video and music) while integrating cross-marketing platforms to exploit these properties within a global economy, will realize success. ALLIED ARTISTS INTERNATIONAL, INC. is just such a company. The ALLIED ARTISTS' name is well recognized with more than 90 years of history behind it. With its Music Group subsidiaries ALLIED ARTISTS RECORDS, BRIMSTONE RECORDS and ALLIED ARTISTS MUSIC AND VIDEO DISTRIBUTION, and the Film Group subsidiaries, ALLIED ARTISTS PICTURES, MONOGRAM PICTURES, and ALLIED ARTISTS FILM DISTRIBUTION, ALLIED ARTISTS INTERNATIONAL, INC. encompasses all the subdivisions and auxiliary channels necessary to capitalize on this growing and increasingly competitive industry.
The story of the pre-recorded music industry over the last two decades has been one of transformation: from physical to digital; downloads to streaming; ownership to access. The industry is finally working with its partners on another ongoing transformation: from years of decline to sustainable growth. Indeed, in 2016 the global recorded music market grew by 5.9%, the fastest rate of growth since the International Federation of the Phonographic Industry (IFPI) began tracking the market in 1997. This was a second consecutive year of global growth for the industry, with revenue increasing in the vast majority of markets, including nine of the top ten. (Source: IFPI, Global Music Report 2017: Annual State of the Industry). Estimated retail revenues from recorded music in the United States grew 11.4% in 2016 to $7.7 billion. The primary driver of that growth was a doubling of paid streaming music subscriptions which helped the American music business experience the largest gain since 1998. At wholesale values, the industry was up 9.3% to $5.3 billion. Although the Recording Industry of Association of America (RIAA) 2016 revenue report catalogues substantial overall improvement for the industry, revenues are still only about half what they were in 1999, and revenues from more traditional unit-based sales (physical products and digital downloads) continued to decline significantly. (Source: RIAA). However, as CD and digital sales have declined in the wake of streaming services like Spotify and Pandora, vinyl record sales are actually on the rise. In fact, the vinyl format has seen 260% growth since 2009. It seems millennials have discovered the wonders of vinyl records. While CDs sit on shelves, vinyl supply is having a hard time keeping up with demand. As unlikely as it appeared 10 years ago, vinyl is making a comeback. (Source: Forbes). ALLIED ARTISTS MUSIC GROUP stands as a group of independent boutique labels ready to service niche markets. The Music Group has the potential for unparalleled success in an evolving industry of crossover music and burgeoning foreign sales. For music, the biggest growth in retail sales is found in the international markets, where ALLIED ARTISTS established itself as the premier record label dating back to the 1960's.
Likewise, involvement in the film industry can be equally advantageous. Of course, the ALLIED ARTISTS and MONOGRAM PICTURES names have a long history in the motion picture arena. Star-studded, larger budget action films are normally "popular" by virtue of their star power alone, but not always profitable. Therefore, it is necessary to craft an intelligent crossover merchandising plan, while capitalizing on post-market revenue and non-box office sources, in order to ensure profitability. The global film industry shows healthy projections for the coming years, as the global box office revenue is forecast to increase from about 38 billion U.S. dollars in 2016 to nearly 50 billion U.S. dollars in 2020. The U.S. is the third largest film market in the world in terms of tickets sold per year, only behind China and India. Just under 1.2 billion movie tickets were sold in the U.S. in 2016. There are about 5,800 cinema sites in the U.S. as of 2016. According to a recent survey, 13 percent of Americans go to the movies about once a month, seven percent go see movies in the movie theater several times a month, whereas 31 percent go less than once a year. This is a considerable share taking into account the 52 percent of American adults who prefer watching movies at home. Film entertainment is big business in the United States. It is expected that the film entertainment business will generate 35.3 billion U.S. dollars in revenue by 2019. ALLIED ARTISTS INTERNATIONAL, INC. has all these avenues covered. Its flagship brands, ALLIED ARTISTS PICTURES and MONOGRAM PICTURES are re-emerging as the industry force they once were!
There is a synergy between record production and distribution and film production and distribution that today are both timely and profitable. ALLIED ARTISTS INTERNATIONAL, INC. and its subsidiaries have the ability to pair Music Group recording artists with Film Group productions, thereby further exploiting motion picture soundtracks for more gross revenue. Also on track for use as an auxiliary promotional, sales and marketing tool is a multi-task Internet website where users can hear music, view music videos and pre-order both music from our catalog and corresponding merchandise. Internet promotion creates efficiencies and eliminates wasted time. Technological innovation will be the future's competitive differentiator, and given that, ALLIED ARTISTS INTERNATIONAL, INC. is re-establishing itself to the forefront of the entertainment industry.
ALLIED ARTISTS INTERNATIONAL, INC.’S MISSION
Our mission is to entertain the masses. Although ALLIED'S origins are in motion pictures, the Company has additionally concentrated on music - recording artists, compilations and motion picture soundtracks. We are an entertainment business which can produce big or small budget feature films, home videos, streaming films, music, music videos, streaming music and theme merchandising. Our keys to success include securing the following resources:
“Quality Talent … Quality Music … Best Music Producers and Engineers … Best Film Producers and Directors … Quality Scripts … Comfortable Working Environment Conducive to Creativity … Common Goals in the Workplace ... A hands-on, working board of directors ... Employees with a Vested Interest in the Welfare of the Company ... Solid Distribution Alliances ... Solid marketing, sales and promotional campaigns … Marketing Dollars to Chase Product ... Accessibility of music and film catalog … Internet as an Essential Promotional, Sales and Marketing Tool”
OBJECTIVES
ALLIED ARTISTS INTERNATIONAL, INC. prides itself on cost-effectively creating quality products with an eye toward innovation. The Company's plans for a strong, fiscally sound future embrace the tenets of all successful businesses; technical excellence, financial security, business savvy, and moral and ethical responsibility. Keeping these in mind, we set forth the following goals:
1Acquisition of name talent and artists, and securing viable scripts and music:
Using our many resources and strategic alliances, we will continue to aggressively seek out name artists, quality music, scripts and film projects.2Production of product:
We will utilize all the resources available to us and to our subsidiaries to produce quality product, both in the music and film industries, in a timely and responsible manner.3Bringing product to market:
We will utilize all the resources available to us and to our subsidiaries to introduce our product to the public market, both in the music and film industries, in a timely and fiscally responsible manner.4Marketing product:
Our goal here is to build brand identity and brand awareness for the ALLIED ARTISTS name, while responsibly promoting and marketing our product. Utilizing sound marketing campaigns, tie-in promotions, tours, endorsements, sponsorships, print, radio and television media exploitation and any other necessary tools we have available to effectively publicize our product.5Internet promotion:
We believe the dramatic growth of the Internet is indicative of a burgeoning promotional resource. We are currently exploiting our website as an auxiliary marketing and sales tool in order to promote pre-orders and merchandising in both the music and film industries. Presently, our website is enjoying well over a million visitors annually. Obviously, visibility is the key to promotion, and any mechanism reaching more than a million people per year is an effective tool.
ALLIED ARTIST’S INTERNATIONAL, INC. MANAGEMENT
ALLIED ARTISTS INTERNATIONAL, INC. and all its subsidiaries will acquire, develop and distribute commercially viable entertainment for the global market place. As the surviving division and successor-in-interest of the venerable MONOGRAM PICTURES / ALLIED ARTISTS PICTURES companies formed between the era of silent films and the emergence of the talkies, we have a colorful and varied past that serves as inspiration for the future. ALLIED ARTISTS INTERNATIONAL, INC. will take its place among its multi-media competitors and will emerge as a technology conscious leader within the entertainment industry.
ALLIED ARTISTS INTERNATIONAL, INC. consists of four divisions: ALLIED ARTISTS MUSIC GROUP (records, publishing, soundtracks, distribution, etc.); ALLIED ARTISTS FILM GROUP, consisting of ALLIED ARTISTS PICTURES; ALLIED ARTISTS FILMS & MONOGRAM PICTURES; ALLIED ARTISTS BROADCASTING (television production) and ALLIED ARTISTS MUSIC & VIDEO DISTRIBUTION. The parent corporation is administered by a Board of nine Directors. The corporate structure is as follows:
Chairman of the Board and Chief Executive Officer:
Kim Richards possesses over 30 years of experience and a distinguished history of accomplishments in the music, film and television industries. He has earned more than 100 gold, platinum and diamond records, as well as numerous Grammy and Emmy nominations. Chief among his credits is Pink Floyd's "The Wall," which has been certified diamond at 23 million copies, making it the third highest grossing album of all time, behind only the Eagles Greatest Hits and Michael Jackson's Thriller. Mr. Richards' video productions have won at both the New York and Cannes Film Festivals. In the 1970's, while simultaneously working towards his undergraduate and law degrees, Mr. Richards worked in Artist Development and Productions at RSO Records, leaving for CBS Records in 1979. On loan from CBS, he became Special (music) Projects Producer in 1981 for ABC Television in Hollywood. In 1983, Mr. Richards began his association with Allied Artists, as Vice President of Productions. He was rapidly promoted and by 1987, he was named Chairman and CEO of Allied. Throughout his career, Mr. Richards has worked with literally thousands of artists across a wide variety of genres, including such notables as Pink Floyd, Andy Gibb, Queen, Styxx, Renegade, ELO, The Spinners, David Naughton, Steely Dan, Robbie DuPree, Luis Cardenas, Iron Butterfly, Exodus, Mike Pinera, Brad Delp (Boston), Alice Cooper, Kevin DuBrow (Quiet Riot), The Osmond Brothers, Donny Osmond, Andy Williams, The Fifth Dimension, Neil Diamond, Jermaine Jackson, Carol King, Crosby, Stills, Nash & Young, Blues Image, Della Reese, Glen Campbell, Paul Anka, Tom Jones and Engelbert Humperdink.
Mr. Richards is a voting member of the National Academy of Recording Arts and Sciences, and has held advisory positions with the Recording Industry Association of America (RIAA) and the National Association of Recording Merchandisers (NARM). As a member of the RIAA technology committee, Richards helped establish the standards for, and introduction of Compact Discs. At the time, industry insiders were reluctant to displace traditional vinyl records by introducing a radically different technology (digital) that required completely new hardware. Detractors argued that cassettes had all but destroyed the sale of 8 tracks and that the small size of CD's reduced consumer shelf visibility. Mr. Richards and a narrow majority of his fellow advisory board members successfully argued that CD's were a necessary technological advance that must be embraced by the industry. Mr. Richards was the architect of a compromise that established over-sized packaging that permitted record companies to realize the same amount of package advertising visibility that had previously been available on 8 track tapes.
Member, Board of Directors; Finance:
Bonnie Nelson currently serves as a member of the Board of Directors of Allied Artists International, Inc., where she lends her formidable expertise in corporate finance planning, structure and execution. Bonnie has served as Executive Vice President of Business Strategy at BioPower Operations Corporation. Ms. Nelson served as Board Advisor of Clenergen Corp. since April 2010. She served as Director of Business Strategy of BioPower Operations Corp. She was Owner and Chief Executive Officer of the Wall Street brokerage firm, Vanderbilt Securities, Inc. At Vanderbilt, she was specifically responsible for taking companies public, OTC trading, mergers and acquisitions, and the development of joint ventures and strategic alliances for her clients. With a career spanning over 20 years of investment and merchant banking, she has extensive experience in consulting and corporate finance for public and private companies. She has been a Senior Executive in Business Development, responsible for developing and guiding many corporate turnarounds, joint ventures and strategic alliances. She has been a Director at BioPower Operations Corporation since September 3, 2010.
President, International Affairs:
Dean Dahab joined Allied Artists in 2009, bringing with him a wealth of experience in international affairs, the entertainment industry and strategic planning, having previously held management posts at the IATA and Infinity Multimedia International, a Northrup Grumman contract unit. At IATA, Dahab negotiated and administered bilateral agreements with the Egyptian, Kenyan, Indian and the United States Governments. Among his many accomplishments is the marketing of highly sophisticated 3D monitors (without glasses) during his tenure at Infinity Multimedia. During his career, Dahab was appointed head of International Affairs for Solec International, by its late founder Ishaq Shahryar. Dahab previously served as a United States representative to the GIIB International Bank, and as an international liaison for several Royal Families in the Arab Gulf. Dahab attended the International Civil Aviation Organization (ICAO) Post-Graduate Institute, obtaining an MBA degree in Marketing and Air Transport Economics
President of Allied Artists Film Group:
David Richter brings more than 20 years of experience in film and broadcast television to the Allied Artists Film Group, joining Allied Artists in 2011 as a Senior Vice President of the Film Group. Prior to joining Allied, David worked as a Production Executive at Global Universal Film Group. David graduated from Colorado State University in 1991 with a Bachelor's of Arts degree in Communication / TV Production, having paved his way with a prestigious writing scholarship in fiction. Richter began his career in broadcast television, working as a producer at CBS affiliate KKTV in Colorado Springs, his home town. David moved to Los Angeles in 1994, where he worked in motion pictures, television and broadcast advertising. In 1998 Richter founded his own production company, going on to specialize in the automotive industry, getting advertising nods from Ford, Chevrolet and other major brands.
President of Allied Artists Music Group:
John Velasco is an entertainment veteran; As a young person he began in the theatre and from there managed to become PR rep for Theo Cowan, working with, Sammy Davis Jr, Peter Sellers, Joan Collins, Judi Dench and others, he met Jimmy Webb and Canopy Music was begun. In the 60’s, he worked with the leading artists of the day from The 5th Dimension to Tony Orlando, Richard Harris and Thelma Houston.
He formed the publishing division for management group, Hemdale, was based in London and LA, signings included Yes, Gentle Giant and Black Sabbath. He became the U.K. head of the E.H. Morris publishing company, shows signed included “Grease” and “Hello Dolly”, he signed writers including Scott English and the hit team of Vanda and Young. John was appointed head of United Artists Music UK, signings included Abba and ELO, he acquired major catalogues and produced music-based TV programs. John then created the UK division of a new music-publishing house for Bertelsmann (now BMG), Interworld , he acquired top writers including Hall and Oates and purchased several major catalogues. During that time, he also personally represented and launched Tina Turner in the U.K., organizing her touring together with record, and video deals. He then formed his own consultation and music company. Over the next six years he represented in either or both management and publishing; Tommy Boyce, Hal David, John Denver, Randy Edelman, Marvin Gaye, Davy Jones, Tom Paxton; Produced albums and soundtracks for Disney, American Greetings and assisted Parker Brothers in their integration into the European entertainment market, producing and forming their publishing companies throughout Europe. Hit projects included Care Bears and Cabbage Patch Kids. In 1985 CBS Songs appointed him as Vice President and relocated him to New York. He worked on the Michael Jackson purchase of the Beatles catalog owned by ATV. John also restored the classic MGM catalog of music masters. He later joined his friend, the late Joe Raposo (song writer and co-creator of Sesame Street), managing his extensive publishing, including the Sesame Street Songs catalogue. Together as MPI they represented Sesame Street records, signed major licenses with DC comics, Marvel, Archie and Care Bears for which John produced many audio products. He was appointed VP of Acquisitions for Ten Strike/Sonopress, a Bertelsmann Company and was executive producer of the DVD series of American Idol. In 2016 John produced the sell out “Leadbelly Fest” at Carnegie Hall. Recently he was music supervisor on award winning movie “Leaves of the Tree and “Back in the Day” with Alec Baldwin and Danny Glover. He created the music and entertainment division and consulted with Moondog a leading commercial post and production house. John has recently built publishing and production assets together with film distribution deals for his company MD25, in partnership with Moondog owner, Pete Kasko. They have also launched a new TV channel, “Terror TV”. He is Chairman of RADD, member of The National Academy of Popular Music, The National Academy of Recording Arts and Science and Songwriters Hall of Fame.Director of Public Relations:
Jerry Sifuentes, a veteran of Allied Artists, returns to help steer the company during this period of growth and re-development. Mr. Sifuentes began his career with Allied in the 1980's, having headed the company's internal security division. During Mr. Sifuentes' prior tenure, he was responsible for reducing losses and increasing productivity by as much as fifty percent.
Vice President, A & R / Artists Relations, Allied Artists Music Group:
Danny Ramos began his career with Allied Artists as a successful musician and song writer in the early 1980's. Throughout the years, Danny has helped formulate the careers of numerous recording artists, using his formidable songwriting skills together with his appreciation for talent, to spot diamonds in the rough. Mr. Ramos administers all International Music Group A & R and artist relations operations.
Vice President, Chief Technical Officer:
Greg Hammond brings his 20 years of technical expertise in software and web design with Arco Products Company, A Division of Atlantic Richfield Co., to ALLIED where, in addition to designing Allied's online presence, Greg developed the Music Group's proprietary CDMM technology which enables ALLIED to embed music videos on ordinary CDs.