Tax Rebates And Product Integration
The Company initially intends to produce its content in Canada. In and of itself, the exchange rate between the US Dollar and the Canadian Dollar make it attractive to produce programming in Canada, but in addition, virtually all of the provinces and the Canadian federal government offer incentives, mostly in the form of tax rebates, although other incentives might be available depending on the show. For instance, Manitoba offers between 45% and 65% tax refund of the labor costs for Manitoba residents, as well as certain others “deemed’ residents, which can be used in conjunction with a federal tax refund of 16% of Canadian resident labor costs. The Company intends to design its productions to maximize the available incentives.
The incentive structure may change, both in Canada and elsewhere in the world. The Company reserves the right to produce in other locations with an eye towards maximizing the available incentive, consistent with the high quality of production sought.
We create television shows around brands that can subsidize the cost of the shows we produce through product integration. Brands like GM, Mercedes Benz, Heineken, Adidas, Hugo Boss, Samsung, Red Bull, Monster, Patron, Gatorade, Rolex, Net Jets, Ray Ban, Under Armor, Poker Stars, MGM, Caesars Palace, Tide, Budweiser, Coke, Pepsi, Dominoes, Papa John’s and many more are very familiar with product integration and pay significant sums to have their products and brands featured in television and film productions. The Company intends to create its programming with product integration at the forefront, involving brands at the earliest possible point in time, so that the product integration is organic and seamless and not thrown in as an afterthought.
When we produce our shows, each episode will feature a prominent actor integrating a sponsored product into the dialogue and in the action of that episode. We plan to do this for more than one product and/or sponsor each episode.