PEARL FILMS - TRAITORS: BUSINESS PLAN

(From: I. CROSSING AT THE INTERSECTION: Prospectus pg. #3)

Hispanics are now the leading minority group in the United States. When Hollywood’s previous efforts to portray these communities have fallen short, it has been because of insensitive casting and tactless storylines. Dedicated artistic integrity, regard for authenticity, cultural relevance and avoiding stereotyping is vital in gaining acceptance and reaching this, increasingly more sophisticated, population.

(From: VI. MID/LOW BUDGET FILM’S MARKETING CRITERIA: pg. #27)
Overall, Hispanics nationwide spent $595 billion in 2002, up from $490.7 billion in 2000 and $223 billion spent in 1990 (in 2000, 3.6% or $1,179 per/person on 'entertainment'.) Far exceeding the non-Hispanic growth-rate increase, it is projected to balloon to $926.1 Billion by 2007 and $1 trillion by 2008. Yet U.S. Hispanics remain the most underserved group in today's American media.
Current censuses have recorded the large growth of the US Hispanic population, which now comprises 40 million, 12.5% of the total US population. According to a recent survey by the Motion Picture Association of America (MPAA), the Latino audience spends $110/person on going to the movies alone, seeing an average of 10 movies a year, which makes-up 15 percent of total US film-theater admissions.
In the new millennium, this rapid Hispanic expansion continues, to grow five times faster than the general US population and is expected to reach 33% of the U. S. population by the year 2040. Currently however, the native Spanish-speaking population already exceeds 370 million.
Seventy-six percent of the US Hispanic population primarily resides in the metropolitan centers of six states: CA/33%, TX/21%, NY/11%, FL/6%, IL/5%, AZ/5%.

An intelligently conceived and executed marketing campaign would strategically target these six core US Hispanic audiences statewide and would expand its marketing and distribution from this core.

For film marketing to be successful, it should be well conceived and wisely executed. The film and marketing, as intended for TRAITORS , will very significantly improve on the normal risk vs. returns Hollywood standards.

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Although US Hispanics have concentrated in six states, their population has been increasing rapidly in nationally. Nevertheless, Spanish-language media still offers one of the best buys in the marketing world, at far lower ‘costs-per-thousand’ (CPMs) than general-audience media with attractive volume discounts in television, radio and print. Its genre and promotional advantages, will avail TRAITORS' cost-effective marketing, minimizing costs and maximizing its risk/profit perspective.

MPAA's C.E.O. also went on to note that the largest film audience by age is the 12-to-24 bracket, accounting for 39% of attendance. The Hispanic population is a youthful one, with a median age of 25.9 compared to 37 for the total US population. Currently, over 70% of U.S. Hispanics are under forty.

The use of the available Internet marketing possibilities, some currently provided by several prominent Spanish-language & Hispanic-oriented, English-based ISPs, allows for further initial savings, again increasing crossover momentum and profit potential to the investor.
In 2003, reaching a mere 5% of the U.S. Hispanic potential, at an average $8.00/ticket, translates to over $16 million in theatrical box-office-only receipts. 2003 U.S. video sales and rentals outpaced theatrical spending 2.7-1, across the board. Thus, 5% of that Hispanic-only spending would translate to $40-$50 million in U.S.- only, video revenue. Finally, reaching 5% (at $2.50/ticket average) of only Hispanics, worldwide, would translate to $50 million in box-office-only, Hispanic-only sales!
The above, all leads to the conclusion that an articulate, Hispanic, bicultural, youth, marketing approach for TRAITORS can serve as financially prudent promotion criteria to precede its successful, broader, and multinational potential for crossover expansion.

Appendix: A-{1-2}: 'News Clippings' & B-{1-4}: 'Film Script Endorsements' Web-page (or Abridged Plan Summary: link below).

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