FrankSpeech Network MLMC

FrankSpeech Network, Inc. is a media company that focuses on developing digital content for online distribution. On September 3, 2015 the company completed an acquisition agreement under which it acquired all equity interests of Stimulating Software, all common stock of Inner Four, Inc., and all common and preferred stock of Play Celebrity Games, Inc. On June 30, 2016 the company closed these subsidiaries after determining that the acquired business model did not meet projected expectations. Following the closures, FrankSpeech Network, Inc. shifted its efforts to building an online movie channel that offers video on demand and a 24 hour streaming internet TV station. The channel is designed to provide limited free content to attract viewers while also offering a subscriber based model for premium access. The company also plans to generate additional revenue from video on demand programming that is not part of the free offering.

The company reports that its revenue has been minimal to date. For the three months ended March 31, 2017 FrankSpeech Network, Inc. recorded revenue of $17. For the year ended December 31, 2018 the company reported total revenue of $1,400. Revenue is derived from the online movie channel’s limited free content, which may generate advertising income, and from the subscriber based model that charges viewers for premium access. Additionally, the company anticipates earning revenue from its video on demand programming that is offered on a pay per view or subscription basis. No other significant revenue streams are disclosed in the filing.

FrankSpeech Network, Inc. operates in a highly competitive digital media and entertainment sector where large established platforms such as Netflix, Hulu, Amazon Prime Video and Disney+ dominate subscriber bases and content libraries. The company’s current scale is modest, reflected in its low reported revenues, and it does not possess the extensive content libraries or global distribution networks of its larger rivals. To differentiate itself, FrankSpeech Network, Inc. emphasizes niche programming, including original television shows, a variety of screenplay genres and partnerships with independent production entities. The company has entered into discussions with Mancuso Martin Productions for screenplay properties that cover suspense thrillers, horror, comedy, romance and sports themes. It is also developing a weekly television show titled "The Car Flip Guys" and has completed work on two of seven planned online full length movies. Strategic alliances with Leading Edge Radio Network and Mancuso Martin Productions provide access to radio and internet TV distribution channels that are not fully controlled by the major streaming services. These relationships are intended to help the company reach specific audience segments and generate advertising or subscription revenue.

The company’s primary audience consists of viewers who access its streaming internet TV station for free or paid content. Subscribers to the video on demand service form a paying customer base that expects exclusive or premium programming. In addition, FrankSpeech Network, Inc. serves radio and television broadcasters who use its platform, provided through Mancuso Martin Productions, to host their own shows via Internet TV and radio. The company also targets advertisers who wish to reach its niche audience through commercial spots placed within its free streaming content or sponsored segments in its video on demand offerings. While the filing does not list specific customer names, it indicates that the company’s users are primarily located in the United States and are interested in independent film, television and radio programming.