Earnings call transcript Q4 2022

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Zaia Lawandow

Thank you, Kevin. Good morning, and thank you all for joining us. We'll begin with opening remarks from our Chairman and CEO, William Rouhana, followed by remarks from our CFO, Jason Meier. After their remarks, we'll open the call for questions.

The matters discussed on this call include forward-looking statements including those regarding the performance of future fiscal years. to of subject and are statements a risks number uncertainties. Such adversely could a described factors. differ results from result materially various as Actual statements and those forward-looking in of the the forth Form on and Form in filed Chicken set XX-Q. annual recently XX-K factors most report the most recent includes Soup This for quarterly Soul our Entertainment's report in on

the of the The to the refer company's forward-looking statement. News Events a certain company and Please discussion undertakes section call. no discussed non-GAAP obligation to Investor tab for website forward-looking in release the on any under Relations update of earnings this measures

And CEO. call Bill, with over the ahead. and go Chairman Rouhana, that, please turn to I'll William

William Rouhana

adjust take And of in welcome, in Zaia. Thank our greater detail the you advantage you, I'll of to everyone. a morning, thank order you that opportunity as the filing bit of call a being this to raise and moment. flexible the to for in and saw timing capital, as had in we discuss

$XXX up we to first, transformation, million, for up a our year. Total year company as same revenue me well. a and bit was was our company was XXXX period. million $XXX last about revenue the $XXX EBITDA and of We past as million But about only adjusted but planned. little run for $XX.X XXX% million over XX% talk adjusted revenue annual EBITDA in hit industry year, our of million, in for the $XXX not the rate -- of let

challenges we dependent returns over easy ourselves faced, us when we continued able times found successfully position we feat, a larger no the for year, had than we were in with And of we the particularly company XXX X,XXX Integrating growth about Seemingly started one despite releases. XXXX. the we overnight, several employees. to theatrical on When acquired was Redbox. ourselves

position platform efficient two, premier that continue capital growth broader expect currently and sales to a and for and forward, Redbox beyond. three, the further that our X pillars. AVOD One, by we supports are the and as scale is in many business growing, look advertising there working kiosk all underway; XXXX opportunities the we integration rebound us our driven for As the industry;

Gun I'll Black only return hits weeks the extended release is As budget we moment, in was underway. a months than began major Top at theatrical we return, Panther: the wide Adam a had titles Black were in We drought, of the trickle discuss releases. however, of no frequency acquired with firmly looking like broke very small Wakanda and that Forever. big sporadic seeing of films there Maverick, Redbox. later was when But XXXX, anticipated When This still releases year-long theatrical earnest slow. and the

the X theaters the releases. year here. is in of week, are years, this in that's they To those the give know, Ant-Man Wasp: every the on films event for movies all as finally frequency major waiting on you of The with big releases February. releases back from beginning release the only major context, kiosk equally of and you major August as of frequency volume February Quantumania. After through some the of do And depend theatrical

the major of rest expect for We release weekend one year. at new least every the wide

films studios weekends. on the It's like as as available to the floodgates are have many possible rushing release opened and

theatrical of impressive years. XXXX of slate the and terms the content fact, In volume one in most is in

Beasts, Destiny, Impossible: many, there Rise of slated Jones all times and franchises their others. are of And Transformers: Fast The Dead installments year, Mission of are highest-grossing to the this the release and latest Indiana including of many films film Some like Dial Reckoning. X,

of and as weekly continue per kiosk our TVOD. level, these expectations, the in a Rentals now to the video theatrical see of impact those rentals to and expect XXXX's February. line the over the already following March of version also to are early that per to at in rentals with our the in rebound in twice kiosks on The run. In to beginning we grow. and we month nearly the move average those theaters day, arrive see We XX% films QX window positive theatrical of as X- March are impact films X-week jumped expect kiosks home sales, from same-store

at to for for III, and those watch X. releases theatrical demand these in Wick all is Creed John performance doubting look the of audiences to recent VI Chapter And do have the films like theater, you pent-up the Scream

the All shown, nearly double of the sports had biggest these any film looking opening history. at Even Super franchise this XX III Bowl film Creed opening weekend year during ads trailers Bowl. of record-breaking in year's the weekends. with Super films last when set amount

theatrical is the business You see evidence could back. that the

stand way, the millions we spent benefit to highlight as and the window. studios theatrical home important leave video to video home value it's awareness By sales, marketing these window. consumer the P&A, the on the films As window the from enter of

studios showed down that and $X billion window, $X a from physical year that the Studios window. Even player includes of which in the video year, in rentals DVDs pandemic, sales the digital billion TVOD. are window's industry generated study underscoring a generated during An We and home recently about resiliency.

studios films producers, a know, valuable including obligated and maximize their longer value all skipping such for window. justify are talent of we As and stakeholders, to no can the

and largest TVOD in that they operate As this, participant we to one physical in platforms of are window, we benefit reminder, because both as the realize we stand in a DVDs And the industry. TVOD. important an

growth ad ecosystem. position the year sales comes our platform, are which advertising cementing of premier pillar through we second in for from The broader leading the our

media Connex, our only Rep Crackle represents have not scaled have inventory I'm Crackle the to own and might partners. launched lineup that and might but a before, Connex. used company just included clients, what this ad from third-party that we of to that you press You the heard call a seen also in-house have fully announce NewFronts, unique it announcing Ad yesterday name at year's we IAB release happy would a not

our Philippe Olive, Sales, by Officer, Chief Darren Led consumers. of President Connex Ad with Crackle connect Guelton, Revenue brands will and

Owned viewers, announced XX platforms, Rep that's as monthly significant milestone Together, they million, our XX Operated partners. across we million which from partners. accelerate also the X today our And Crackle from XX & active is reached come up a Rep growth represents Ad which way, our from XX and $XX Ad of from million We come advertising million year. now last by ecosystem. the Connex up

the coming we've over year, representing NewFronts Crackle seen our at look leading capitalize our growth presentation ad to sharing in excited the We the to the partners in AVOD May. Connex to weeks, on We're forward more in on ecosystem.

maintaining the In title AVOD. as During title on one by platforms. our December, Screen high, Holiday favorites, hit was also huge we The usage Operated on it's AVOD position highly top for quarter, ever. the accounted film saw series, the best my including driven saw AVOD of film, the and growth which Expendables our an slate, Redbox Redbox curated Redbox strong content our Owned we performing Media Elliot a across Crackle & performance Reindeer, owned all-time AVOD its Littlest content a hit, with

and strategy across Crackle connected meeting consumers by where and they of Crackle ongoing are MAU growth TVs, branded was driven remotes. Redbox our

modestly range. the with Soup up on continues FAST direct launch Apps, be were Chicken growth pleased Overall, CPMs I'm Soul fill remain the the AVOD the channels to launched to for New XX% reflecting our announce rates Finally, Roku. year-over-year in of to XX% fastest-growing and AVOD, which just and

about to we from saw ad prior continues broadcast from viewers the the December shift of with XX% in capturing dollars connected And We are year. well linear December, consistent was brands benefit on and over broader with the converge positioned remain results that and the QX. to growth TV. continue to comfortable as environment, which more this AVOD, advertising we

over Our with of are outlets, like industry-leading We FAST to Owned and our very of service. and one of channels third Allen FAST offering Channel, numbers largest local -- total the Weather FAST media Media, of of QVC to bringing syndicated expanded makes including any Roku one including continue channels a our Operated parties third-party largest networks the content having XXX, which now, recently our perform on to Samsung. by bringing partnering channels, number & well, us

benefiting the of is from theatrical return already TVOD business titles. Our

up fact, our TVOD X% release XX% this of were Tuesday the and year-over-year biggest the quarter. the driven In was past day TVOD third by up Way from in sequentially of quarter orders fourth in The ever, Water. Avatar:

kiosk and titles installments. Netflix's release this on our merchandise as with We strategy release Out, of did Knives TVOD a to our Glass our continue latest with Onion. merchandised in we kiosks when we the do to of We previous around the franchise offering the around TVOD refine

with it and Scream, releases. did way to it's meaningful new capture also demand a around We audience

Wick John X recently, in X. and just Chapter John fact, titles Chapters with X release Wick top the the coinciding X kiosks past In theatrical weeks over catalog were X of our

third Turning pillar. the finally to

problems, attacked approach environment take macro among with We've we -- bank challenges. financial these the our to our rising adapted into have other inflation, account taking adapted We head to have on. rates, issues approach we're challenging in, living

we But did First, transaction. entered when stop by the identified we Redbox synergies not achieving there. the we

weren't, for were looking the them. changed we to commitments made Redbox If thought they they by that things continued all at made We sure found the sense we business. make we

addition, executive to than closely the to weren't initially fully cash we And expenses we cost more bonuses for expectations content tune $X cuts licensed recently million. tie of as free In and anticipated further made our we further utilizing that them such deferred we to flow.

our capital the continue to of have should margin to O&O platforms that networks. This in business, Owned contribution to needs. Operated We & invest grow growth us and use the networks we Rep begun Ad that business allow less with our to integrated of generate SaaS integration

including our public agreements future we starting begin purchase the license million did of investors, our balance $XX.X cash out to an We payments yesterday, through with reduce management parent of January finally, sheet. worked commitment. And a raised process company, stock company from a the arrangement to strengthening offering and small relating our parent X to

addition, we capital finalize strategic debt future. anticipated. this at we're receivable believe more our go-forward quickly reduce course, loan to will In than us working not sell. we accounts our that We our looking help near in that the of are assets which to plan with And certain intend to strategy,

potential is XXXX year of if rebound driving The rentals transformation, XXXX well a already underway. of a ad-supported closing, releases our already is is theatrical be businesses growth. in integration and of has year In the The execution to higher.

to Our TVOD business grow. is continuing

all entertainment premium company build leading Our our for on mission long-term macro the consumers. short-term the to in, living but we're value-conscious focused addressing actions environment are remains

With Jason. over that, to I'll turn it

Jason Meier

quarter. note strong adjusted a and good of $XX.X fourth XX% Bill, third XXX% business. with our quarter strategy, in performance We ended monetization was platforms multi-platform you, the on the million, as strength year-over-year The Thank Sequentially, Ad across everybody. continued Operated revenue & our EBITDA up year-over-year. the XX% Representation the reflects of and and million, quarter from strong our well both including morning, of revenue year as digital performance library up Owned $XXX.X up

The at reflecting fourth Media, Screen strength for the driven quarter of TVOD. the content and number on premium distribution performance by was limited of on theatrical in in offset a which releases the our the more the impact than demand kiosks library, and licensing

of Bill for and sporadic what As the expecting discussed we releases the are frequency inconsistent, was unlike of remainder those XXXX. earlier,

unusual TVOD title of title through December, in a revenues window. prior an Maverick, title from quarter, October releases the limited on Top release release fourth new Despite were demonstrating the strength Gun number of up for reflecting by an increase top year-over-year, in was which order the orders a consistency driven its to impressive the SVOD

on Panther. The Adam TVOD were Black other driver Black and titles

both XXXX, orders. slate continued expect and in As the see theatrical we to rebounds revenues growth in TVOD

XX% ended kiosks Black customers Boots: The Bill we're big on of in XX,XXX week-over-week Wish, later positive already customers nationwide. the seeing a return Wakanda rentals that mentioned, our impact theatrical kiosks and up week transacting Puss quarter the and We up in titles transacting up by to on Panther: about with As March. the drove rentals XX%. followed XX%, drove XX% Last new up Forever

which includes with As partners. previously mentioned, our footprint, relationships we our most profitable are constantly kiosks expanding retail optimizing

to and adding will over We XXX kiosks an their X,XXX total leading national partnership count retailer, a bringing value-conscious recently year new who this next stores their be expanded announced additional year, to an with X,XXX. kiosks

As drive always, reach. to profitability continue identify greater will and customer we ways to

with our As QX TVOD their customers platform further rolling an example, the on XXXX, for customer began engagement in ability out digital driving of Redbox Redbox we to rewards the loyalty utilize base. kiosk

for slate like on take that underpin the size expectations in rebound some rentals along expectations now assumptions to scale of provide the Based the of from the to we're seeing a levels year, the with the March, theatrical of our approximately kiosk through the rentals and to I'd our XXXX and early in XXXX. of around return moment XX% remainder context rentals end of pre-pandemic.

this, with in towards conversion the XX% seeing beginning XXXX. were our the Along we're to they at that rise rates kiosk level

of expect conversion to steady the to we As flow films returns kiosks, rebound. rates

fact, over In since seen we've past X we conversion the to level jump acquired weeks, the Redbox. rates highest

the profit basis, net product year XX% in combined of turn On profit prior of fourth up year profit quarter, blended after and the third stand-alone of expense-related of margin with XX% combined costs revenue fourth before compared the approximately in gross revenue. XX%, gross cost gross Redbox's in million and revenue or me stand-alone net prior quarter after the the XX% XX% net from comparable business was of film In $XX.X product CSSE's or Now library XX%. a quarter, a XX% of quarter. to quarter. had gross let the quarter Redbox as profit 'XX was in million amortization the to cost, When $XX.X margin

in Our points impairment QX, fourth higher comparable basis on adjusted XXX margin XX%. for to nonrecurring the a operating charge, or reported a was basis quarter

increased variance and amortization expense loss related nonrecurring Our $XX.X management heads, charges, was XXXX. driven the by compared over million to all of This other quarter year. fourth Redbox operating in acquisitions for an higher and loss additional as the compensation is to by X,XXX of operating prior the the as well and million fees, $XX.X expense driven

increase for Redbox EBITDA quarter, was in kiosks $X.X continued content TVOD XX%. third same $XX.X adjusted to we the an was million or the to Sequentially of synergies In realize the XXXX, million the adjusted representing Redbox original in Screen Media's $X.X Our fourth quarter quarter, platform. million up quarter XX%. the from compared related the EBITDA at and to

to well As Screen content, Crackle's from Redbox's to sales I distribution and as Redbox's AVOD ad just savings name of Media's should -- force platform a distribution, related leveraging say, on few.

sheet. Turning to balance our

focused cash realization an reducing by XXXX. December of working company had increasing million Bill 'XX, and through discussed recurring on enhancing improvement As working as previously rentals the $XX.X synergies, remarks, And capital on hand. cash free as amplified of XX, his flow expecting we're spend, the of capital in kiosk are in content rebound

I'll with that, turn And the it to over operator.

Zaia Lawandow

open we can Kevin, Thanks. for line questions, please? the

Operator

Instructions]. [Operator

first from Our with Davidson. Forte D.A. comes question Thomas

Thomas Forte

I think queue. into and I'll back ask one the get question

basically, were Bill, expected. results pretty much your So as

about you was the for about more capital outlook first in quarter. and including expected, raise may talk But the talked the Your as year you talked about that for capital you general. raises good,

performance should quarter months, the quarter, the think in favorable both full guess, So for next first can given you how investors the and capital fourth needs over the year? I XX expectation about, capital talk and about your especially structure current your the

William Rouhana

the and capital way drive are And on doing combined doing. of was kinds the at improve the flow we're we balance addressing questions all capital to working thing. cash of in questions time costs sheet business. content effort. capital we're taking people working just of the you think the and it look We're attacking yes, a things, of and capital, We're things. questions our what that's it's to the are overall designed where of I many I not the capital, of to entire of questions give of faster I for spend industry in mean wanted moment to doing a approach which one context to those So as and everybody the need --

to and we If quarters. in order third be said we bonuses, reduce them didn't the way at licensing we tied closely -- the been order of it. earlier. been We've earlier make We flow more sure made Redbox, tap sense. for they're I'll very I is, have what by still alone to to account, content growing deferred in cash second, because made savings library generator that us, is repeat were in I important, call could fourth that that We some in we they the made our used We look commitments last we we combined costs. said something it things a made. of we and few weeks large million. also have took cash We've That commitments found where changed a what tech to the I sure will $X like,

fund Ad it them We've O&O coming net margin Rep together business, FAST the Ad is our the We from business put on -- from that coming and only and and our capital FAST contribution year, business content mention contribution networks O&O our looked with about and costs. the means that's running AVOD platform Rep margin we're put for at our business $XX the networks, the the Rep to are didn't that's all and Ad anticipating less platform of XXXX that million needed right? for the

for million of $XX if $XXX of the the $XX we So range. and on million looked on you end our year notes and this flow have preferreds content, our pay ups of and on and of there cash the you'd range million working of low at that end throw interest and for the the subtracted to have downs, our have we free low cash million $XX of year capital million EBITDA in $XX

public combined we things. yesterday of balance up beginning beefing the The a of just it's did effort is So offering sheet. the

and our going loan okay. while our a accounts receivable, we've against know, working working of million that's you $XXX for getting As and been capital

the more management things all company, to that together, So of the of that flow business. for are cash so way thinking deferral fees, there's it's the right plus the these about be the

companies need have for big Every we're kind capital structure. things rightsize our competitors times, that. alone environment every is businesses, these of We risen, all our we and rates not that the the compensate same and media We are are that. different. of to different exact understand it even and In our one we as in macro than the But was. through -- understand things that going

the also together just So important in bear not Those X to run the the structure, capital it's are thing way it's business. we mind. things

February. doing And know question, that is fill it's long we'll business was Tom. well. dramatically, is do separate ad important combination and incredibly structure, that sales, capital a in this the a can just better XXXX. slowdown We're good and think what do was the rentals O&O well. in very and everyone comparative business one to back have it's introduce this a The try is The capital rates. we're March so thought, to of AVOD itself, of continuing trying business, no day -- answer, more to a but that There per slowdown per in to a And I in and doing was is there. grow there businesses, than CPMs And month very spot much kiosks and from really turned. working FAST no business kiosk I metric that

for XX% XXXX. saying do we revenue we in going $XXX in EBITDA. major one get is we're at million back XXXX. you did million get XX% million movies Redbox the year, $XXX If of that adjusted to what event of revenue weekend, With that, $XXX comes XX all every to our of from plan coming, and we're us if of And achieving look do

plan, it's piece people So one just Tom, I to that of the it. overall not need think understand,

Operator

B. comes Riley. next Eric Our from with question Wold

Eric Wold

on Bill, on couple made, questions follow-up, just comment want a around trends last rental kind the you that Redbox. So to of hit I of

run get year -- what you kind for exiting the of rate so business of full year? or So of the kind kind kind exiting of XX% trajectory of to can would to year? sense expect to of Kind year sense what gave getting us next be a of of -- of rate guess, that kind a what next 'XX year year of on? run exit basis Kind the year, this exiting guess you back this expect levels heading I last get on one, a the I -- can you into would you

basis, And I Maverick average value And are transaction then last is kind since to? increase take what if you you're you late versus you Top on year pricing kind do see 'XX? the seeing sensitive came when needed consumers what Gun the two, apples-to-apples of the now could increases now know that, it right out, of so price further you how about that? how much price to and think

William Rouhana

repeat thing that I you you could that? just said, didn't last Eric, hear the

Eric Wold

How ability price if now, want So or sensitive you so? do your take what is price are customers take to needed do further, right to think? you to

William Rouhana

Yes.

price I see we think -- it tell. hard rise did. But that to didn't any $X.XX. change noticeable it's was We the really was from it

So XX%, to didn't it much even have though impact. of seem was it an

this price we of I think have go rise flow we that a sense really If know. it's into doesn't it I as the what say, great could maybe steady I for planned. way it we'll better been be have of we and above have going the stuff. I materialize. weeks have all then doesn't, to and months, this few factors if one But somehow to think next of have

on our share I are is. if year next I We in macro it's we'll hoping keep and continues know Eric, it a us don't as But at on bit, where price keep a for level, of likely. down, then really depends for pace, fast drops it do up. a we general. sometime. If think increase inflation should all less it should then -- But overall, think another it inflation maybe calms I sort depends of

rise year. year, What we've XXXX of said, the happen will would business, XX%. to XX% we'd asked achieve would I would of you the that modeled, so about it think question we as be in the so by The end XXXX leaving the

will generating being, level, XX% think around considerable. where rest EBITDA XX% At And up the know, so which, we're as kiosks across $XXX the business the plus alone we of a year, that level. that's the from that million approach the the been of company, will has and you end EBITDA the --

think XXXX. interesting thought it was starting same-store never me to where would what's these when -- So in as way look there numbers, sales we've business part more and of But at we the never I the -- sales to of all are to already go numbers is in the the I said my talk, -- back same-store XXXX. approach XX% of

recognized, maybe you maybe you it And X If months, -- we -- didn't tell. would over a understated When Black never to Redbox XX have Top seen hard so a the X X or on into you heard the a bit. would of. movies other others, seen page movies home last have we It's few you Adam, but went kiosk Panther, you you that Black Gun,

and over to it in towards the where the in seen past. all have months. somewhere We've so of see walk should into on will as in should more they and between talk, a when that up these consistently It's they be. the it XXs that's than drive, that of. our it's environment the And said rebound drive X.Xx. plans. the as weeks in Redbox basket upticks different that page are franchise from But to XX% all the movies over basket end conversion they've was it few a this for not out. increase rate that and so releases And consumers level And only size X.Xx And movies next a in a front many coming particular his that an was the very yet few come it last heard moving used Jason couple

But where X.X, conversion you if XX% basket you business conversion you you realize is X.X where it we've is and any this is today, double triple rate, it it go should go the number, customers X.Xx Yet would from to more today. what from modeled XX% the only did coming to is from back. than new and math, rate without to the actually from

I But there at better important we a lot Eric. out I statistics. I that. reasons know there, of are of than a all helps, they're to I believe could looking So in the plan, XXXX but even that do lot things think hope threw

Operator

Our next Company. Dan from question comes with Kurnos Benchmark The

Daniel Kurnos

programmatic. just maybe commentary side. Web in some AVOD start on the Bill, potential bad heard around greenshoots Open We've

there's think still but half sounds like their been breath sort although are of or great uneven kind back getting is in for of year. everybody the it OTT of an holding QX recovery. things is the I still for general, better,

that marketplace color but you're guidance, can start. the be give the on I helpful color -- kind now front summer in just kind and on rates. gave of and a seeing app But you just good just around fill know CPMs any fixed we what and would you've know sort you in some of embedded March then that into what's heading of you issues, some the distribution of

William Rouhana

Yes. Okay.

month worried There's connected may is was was that to always kind generally, of it's television and -- bit worst weak, I be slowdown don't the environment. better everything in lot of occurring It's worried signs March and now. the I the But bit been numbers. would back is a be about is right we're a a better. worried seems year-over-year year So But everybody in is the everybody banks, little broadcast but of market I out everybody point exceeding about the to everybody know about that cable. inflation, yet, about ad weak. that worried. January little really advertising -- in do see the of February everybody

growth, analysis success have, footprint FAST of growing that channels, a it's from is combination that perspective, great to to our which want we the third-party I the ad -- slightly clients the the I Chicken of are third-party But increase and O&O of think different growth do, hard with in Dan, the really XX in of amplification growth AVOD, X but on meaningfully that in the that and our in the finally, networks, changing O&O have rep -- for from now partners, Soup more the the growth that the that's will of of -- the businesses going vocabulary, than by going them arrival be FAST, which its a the amplified to do. Roku Soul driving then me the what my the of the getting. really we're guys share growth time I'm increases clients marketplace to That

showed I market and we share, did see that in too always far we've FreeWheel actually, thought, as but #X, a pretty not clearly Although behind study close. yesterday -- were

keep footprint, have have we'll we think I more the because growing more So assets. expanding territory, year this we keep because just because we

we're I'm advertising what year's the But running little business means better. overall growing. growing a the we're doing will not we're environment, us, market So have. also that's do with probably the reason just share numbers. itself we're market the it's and taking worried business than what is stronger approaching think It's about the the it a less way others If I in differently for that

ads, way sell some direct And very, forced have Netflix poised other cash-generating of for the look I will for and business to a really them. think companies to to -- this our profitable say Disney ads helped top to third-party because the business, of which it's the their be and the the I else's Crackle for smaller very a is a client none us. industry has Connex, to X of AVOD us for someone sell name is arrival

more it's short conversations we've period why X of a to speak. pretty XX so gone quite from actually the position, are in in there this joining And time. these that companies So of us unique a few with are a to such gives and club, about us

the it, just I a slightly it's that So than perspective market. about answers different hope but Dan,

Daniel Kurnos

no. like SVOD obviously the Well, AVOD is the to I looks have peaked market mean growing. obviously into get because of changed. dynamics I that wanted It of and/or is kind still slowing.

that where KC, you've have of that with on fit and you built guys the of international, mean accelerated growing I don't around I know faster the point do you rights air where amalgamation management Over an that. than rights and saw sort especially that. has conversation of you something FAST right? is and I don't. you as kind rights rights But to FAST yet well the obviously

they're so release billions are more the quality -- dollars they own number only all perspective, have now can a for long, and rightsize They products, obviously to on Bill. the their because companies paying from balance they're back of of sheet. content But scaling large for

coming love regard, side, on actually distribution in an as talked are lower curious, of the So opportunity like just the library content and from the content down syndicated base I'd I'm costs perspective you for sort spend, as it or side. on incremental sounds actually case update content libraries, about that legacy sort of rights content to a -- well get

how So I'm just curious that into factors kind of your viewpoint?

William Rouhana

Yes.

rights account. building you we up So as long-term you have that said to of we everyone accumulated ownership mean, over this know, to always the else, shows XX,XXX as in variety a years, I ways And and a I X it or I property and last intellectual to over savings library films TV -- view of.

buy, And to continue what we everything starting -- is we'll doing. but we're that of you're to may not actually harvest. license will signs and in it see Someday,

mentioning a for of deal it. great you Thank KC the example it. So Global is

We is Netflix agreement for Rana revenue. season KC made we're By and a Keshet renewed going Global deal They The international, needed a was X also different we Naidu, partnership a them. show hit, probably is it's expect company And a Locomotive, fantastic slightly us. a step generating with an is And shortly. that came getting revenue example get to rights with and to they the launch certain big I Asia, enter is be broader into to to before. an is new early them. channel. across in the first didn't were that. order able It's which towards to for India, the Locomotive way, approach which of in

ways, So we're in of we've wanted but that, to said was we what monetizing do. content lots that always

look for possible. off the we We're off at in many ways We're how bigger and libraries better is as been everything. right, have need do. monetizing many interesting go, it's starting FAST the on don't a they're their space, I And monetizing. really And this what wait the to starting the in minute, evolving. we've something that is This saying better to years. as content is way Specifically, companies a you development are exclusivity are

been always strategy. that's our But

the put we by of need profit. to networks, If networks it you have it go ones, when it's the getting have sure that, -- and to of back we use on revenue against of on we O&O on that back our it our means big which our in the making to way reduces cost rights networks, content. control our lowest of do most And any going revenue cost of the the getting we the monetize we own we cost don't capital And networks. be net money

done So that from the you're we've companies bigger these the beginning. really strategies things adopt seeing are

small would beginning we but also say we what done and the believe and it's we've I scrappy was we're from right. to, needed because Now it

we're that's So what seeing.

I got We think wrap really short question, time we one only for have to operator. up.

Operator

Grondahl with Mike from comes Capital. question next Northland Our

Michael Grondahl

Bill, it's ones. short Three Mike. really

Chicken fourth between believe, legacy? I for you it you at kind Soup goal guys you where leave specifically synergy two. I'll acquisition, So saw goal? those of are the cost like had, Redbox a quarter, towards think it. revenues and I can out with don't And break $XX And that I million

William Rouhana

FAST, separate the ads to one-on-one I is identified. The X be I'm them to the synergy -- expect we increasing Redbox of don't those one you to combination most the achieved. in break the the and that was because for increasing But fill giving them to that number our a pulling Why over saving your towards the CPMs And the rights important we'll own time. to XX%, Redbox sales rates. higher. back the out be are question answer numbers on already ultimately Okay. things very they're quick -- our million AVOD $XX sell for and force, important was expect

know I the market open. is X:XX, it's to going

want for with and all look today, we Thanks, thank forward soon. attending to you you So speaking everybody. to all I

Operator

does this gentlemen, presentation. and conclude Ladies today's

disconnect, wonderful a now day. and have may You

Zaia Lawandow	Head, IR
William Rouhana	Chairman & CEO
Jason Meier	CFO & CAO
Thomas Forte	D.A. Davidson & Co.
Eric Wold	B. Riley Securities
Daniel Kurnos	The Benchmark Company
Michael Grondahl	Northland Capital Markets
Good day	and thank you for standing by. Welcome to the Chicken Soup for the Soul Entertainment Fourth Quarter 2022 Earnings Call. [Operator Instructions].
I would now like to hand the conference over to your speaker today	Zaia Lawandow - Head of Investor Relations. Please go ahead.

Chicken Soup for the Soul Entertainment (CSSEQ) 31 Mar 232022 Q4 Earnings call transcript