Chicken Soup for the Soul Entertainment, Inc. · OTC:CSSEQ
Chicken Soup for the Soul Entertainment — Investor Presentation (August 2023)
21 slides from Chicken Soup for the Soul Entertainment's investor presentation, Aug 21, 2023
Slide 1: Investor Presentation August 2023
INVESTOR PRESENTATION August 2023
Slide 2: Forward-Looking Statements
FORWARD - LOOKING STATEMENTS This presentation (the “Presentation”) relates to Chicken Soup for the Soul Entertainment, Inc. (“CSS Entertainment”, “CSSE”, or the “Company”). This presentation contains various information and projections regarding the Company’s business, including its operations thro
Slide 3: Leading Provider of Premium Entertainment for Value Conscious Consumers
LEADING PROVIDER OF PREMIUM ENTERTAINMENT FOR VALUE CONSCIOUS CONSUMERS 3
Slide 4: We Have the Ingredients for Success
~ 180 FAST Channels 29k Nationwide DVD Kiosks 60m Owned & Operated MAUs 42m Redbox Loyalty Members ~ 160 Distribution Touchpoints $400 - $450m FY23 Revenue Top 5 AVOD Platform 1 4 WE HAVE THE INGREDIENTS FOR SUCCESS 68k Content Library Assets $75 - $100m FY23 Adj. EBITDA Top 4 TVOD Platform 2 (1) So
Slide 5: Poised to Capture Massive AVOD Opportunity
5 The US AVOD market is expected to overtake the traditional TV market in revenue by the end of 2025 1 (1) Dataxis, 2022 (2) TiVo Video Trends Report Q2’22 AVOD accounts for 22% of total viewing time across television, compared to only 10% in Q4’21 2 AVOD accounts for 32% of overall share of video u
Slide 6: Widely Distributed Digital Offerings
WIDELY DISTRIBUTED DIGITAL OFFERINGS Crackle is a leading, free to use video entertainment network featuring full length movies, TV shows and original programming A free ad - supported streaming television service with nearly 180 channels On - mission content: entertaining, uplifting, and informativ
Slide 7: Meeting Consumers Everywhere They Make Viewing Decisions
MEETING CONSUMERS EVERYWHERE THEY MAKE VIEWING DECISIONS Rapidly expanding viewership with ~ 160 distribution touchpoints Distributing FAST channels across our broad touchpoint network Launching new VOD and linear platforms across all brands LINEAR CHANNELS & VOD EXPERIENCES ACROSS: 7
Slide 8: Nationwide Kiosk Network
LOYALTY MEMBERS WEEKLY RETAIL IMPRESSIONS 340m 42m 29k NATIONWIDE KIOSKS 8 Growth Drivers: • Return of feature film releases • Broadening access to original content across kiosk network • Cross - advertising opportunities NATIONWIDE KIOSK NETWORK
Slide 9: Steady Stream of New Releases Fueling Redbox
9 STEADY STREAM OF NEW RELEASES FUELING REDBOX
Slide 10: TVOD Performance Reflects a Strong Slate
TVOD is a leading indicator of title performance at kiosks. Redbox saw two record breaking weeks in TVOD performance this year alone. Record Breaking TVOD Performance 10 TVOD PERFORMANCE REFLECTS A STRONG SLATE WoW Revenue Increase + 36 % YoY Revenue Increase + 15 % WoW TVOD Orders WoW Average Check
Slide 11: Production & Acquisition Capabilities
11 Increasing rights ownership combined with partnered approach to production enhances margin and mitigates risk Content Rights Ownership Sonar Film and Television Library Original & Exclusive Content Production PRODUCTION & ACQUISITION CAPABILITIES
Slide 12: Originals & Exclusives Are an AVOD Differentiator
Original & Exclusive content drives viewership and margins Draws sponsors to custom opportunities at higher CPMs Addition of TVOD, FAST channels, and kiosk network offer new windows for monetizing Originals & Exclusives 12 ORIGINALS & EXCLUSIVES ARE AN AVOD DIFFERENTIATOR Originals & Exclusives Acco
Slide 13: Large Content Library & Award-Winning Programming
LARGE CONTENT LIBRARY & AWARD - WINNING PROGRAMMING Total Film Titles 28k+ Episodes of Television 40k+ Films drive customer acquisition TV series drive customer retention 105 Emmy Awards 457 Emmy Award nominations 15 Golden Globe Awards Content Library Awards Original Series 7 series have received o
Slide 14: World Class Sales Organization
Direct to brand across all our AVOD networks with data - driven consumer targeting capabilities DIRECT SALES Offer advertisers access to premium long form video in real time across our network PROGRAMMATIC OTT has been an enhancement for the local resellers, and we provide these operators with local
Slide 15: International Growth Opportunity
Partnering with European - based social media company TaTaTu on content licensing and innovative tech and rewards integration Partnered with KC Global , a leading entertainment network and multi - channel operator in Asia, on content licensing and distribution Expanded internationally through partne
Slide 16: Revenue and Cost Synergies
16 • Cross - selling and marketing across combined company customer bases • Increased revenue opportunity from incremental Screen Media Ventures titles in Redbox Kiosks • Greater TVOD transactions, increased AVOD engagement and watch time from combined customer base • Fully established CTV ad sales
Slide 17: Near-Term Victories Drive Path to FCF
Positive Free Cash Flow Adj. EBITDA $75m - $100m Revenue $400m - $450m Compelling Synergies Capital Expenditure Savings Rental Rebound 17 NEAR - TERM VICTORIES DRIVE PATH TO FCF
Slide 18: Historical Performance
18 HISTORICAL PERFORMANCE Note: Information above is derived from our Annual Reports on Form 10 - K. See such reports for the years ended December 31, 2022 , 2021, 2020, 2019, 2018, 2017 and 2016. Adjusted EBITDA is a non - GAAP measure. See such reports for a reconciliation of the years indicated t
Slide 19: Historical Performance 1H22 vs. 1H23
19 HISTORICAL PERFORMANCE 1H22 vs. 1H23 Note: Information above is derived from our Quarterly Reports on Form 10 - Q. See such reports for the quarters ended June 30, 20 23, and 2022. Adjusted EBITDA is a non - GAAP measure. See such reports for a reconciliation of the years indicated to net revenue
Slide 20: Former Redbox Debt Restructured on Favorable Terms
No Financial Covenants for 2+ Years 20 5 - year Maturity Ability to PIK Interest for first 18 Months FORMER REDBOX DEBT RESTRUCTURED ON FAVORABLE TERMS
Slide 21: Summary Highlights
21 SUMMARY HIGHLIGHTS LEADING PROVIDER OF PREMIUM ENTERTAINMENT FOR VALUE CONSCIOUS CONSUMERS Leading Streaming and Consumer Brands Large and Rapidly Growing Viewership with Broad Distribution Valuable Content Library and Risk Mitigated Production Strategy Best - in - class Advertising Sales Organiz
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