Facebook, Groupon, Youtube. All three companies involve 1 main revenue driver. Have an idea? If you guessed advertising, you’d be right. These companies drive traffic to destinations who pay for increased exposure. The industry has exploded from simple print ads to what we now know today as Digital advertising and “advertainment”. Customers want more out of their products and more out of the people vying for their hard earned money and for that reason, advertisers have to get more creative in how they deliver their message.
In today’s day and age, digital and mobile media campaigns rely on the social appeal in order to deliver an action driven message that has a long lasting effect on those exposed to it. I’ve come across a company that has put all three of these strategies in place, acquired the right mix of complementing subsidiaries, and has just begun to build its nationwide brand strategy.
Beta Music Group, Inc. (OTCBB: BEMG) is a marketing and media holding company that provides digital media marketing, social and mobile marketing, strategic media planning as well as other specialty communications services. Through its subsidiaries, the Company has begun to establish itself within the space, generate revenues, and build a stronger client base.
At the center of BEMG’s business model is its Viewpon subsidiary, which is a lifestyle entertainment show and online listing service. Viewpon offers small businesses the ability to build deeper relationships with their clients through enhanced value coupons available by clicking on the digital coupons to watch an interactive commercial video from the small business. After watching the commercial clients receive digital coupon offers to receive immediate savings and incentives from the small businesses.
Viewpon has approximately 20,000 registered users and has produced roughly 375 television shows & approximately 5,000 digital media broadcasts. As a result of the acquisition of Viewpon, BEMG is expecting to become a premier provider of digital media marketing, online programming, social and mobile marketing, and strategic media planning for small and large businesses across various sectors.
But let’s not get caught up in the idea of this being “just another Groupon”… BEMG is much more dynamic than that and has not only announced new developments but the company will now take the advertising and coupon model and spin it into a media producing machine. This not only generates revenue from coupon sales but more importantly it creates a much larger user base. Through the webisode model the company can engage even more users, data mine information, and implement targeted advertising to this group of users. This in turn creates a broad array of exposure for BEMG’s advertising clients.
BEMG employs assets of its Side-show Entertainment, Inc subsidiary to not only connect small businesses with content creators and advertisers, but they’re also the team producing these short online and digital broadcasts we see almost every day when we’re online. Founder & Executive Producer of Sideshow Entertainment, Michael Orkin is an 11-time Emmy award-winning television producer and for over 25 years and he’s been producing one hour & half-hour television shows that have won awards to be sure, but also draw viewers which is critical in the success of BEMG’s business model. During his tenure as Executive Producer of CBS-5’s Evening Magazine Michael found himself with one of the top rated shows in its time slot. With that he is the perfect partner for BEMG and it’s one of only several directions that he will be guiding the company toward.
From a Financial Standpoint, what does BEMG look like? Net Income for three months ended June 30, 2014 totaled $2,568,945 compared to $61,800 in net losses for period ended of June 30, 2013. BEMG states that the net income is primarily due to net non-operating income of $173,642 regarding the acquisition of Viewpon and reduction in derivative expenses of $3,013,854. Moreover, Beta also realized an increase of nearly $370k in assets and a decrease of more than $4.1M.
The results seem to speak for them selves as the Viewpon acquisition has been credited with bringing added value to BEMG’s financial landscape. As with any investment, BEMG doesn’t come without risk. The obvious at this current time is lack of trading history and the overall lack of real revenues being generated by the company. On the other hand, lack of trading also suggests that there may be no larger sellers in the market which could offer much more upside potential than some of the other small cap companies which lack immediate trading.
It seems evident that over the past year, Beta has been putting the pieces together in order to build a real company. The heavy lifting through acquisitions and partnerships has been completed and CEO Jim Ennis is spearheading operations. In a more recent press release, Mr. Ennis states that, ““BEMG plans to expand Viewpon’s operations to the Northeast, Southeast and across United States. Our strategic plan is for Viewpon and Sideshow Entertainment to offer interactive and digital media, online television production, social media and mobile marketing and specialty communications services to serve small businesses.”
INVESTMENT HIGHLIGHTS:
- Multiple revenue streams in place.
- Expansion toward a national footprint.
- Experienced Television production team.
- Television shows promoting platform products.
- Expansion agreements.
After having entered into even more cities over the last few months, it seems as though Beta has adopted an aggressive sales and marketing strategy to align itself with municipalities to not only help local small business but to create a destination for increased viewership; a platform for added user engagement and in turn, more ad revenue generation. Finding the “diamond in the rough” has been the mantra for many OTC investors and being able to look into a company before it goes viral is a key strategy many employ to capture the most profit. I feel that BEMG has begun to build a national footprint and it may be only a matter of time before every city in the country has Viewpon deals and small business webisodes airing every weekend. For these reasons BEMG is a company that should be worth the time for due diligence especially as the advertising industry continues to see compounded growth.
Disclaimer
Don’t ever invest based on what I say. Do your own research and consult with a licensed profession before investing. Any statements and opinions given are amateur and biased and should be treated as such. Past performance does not indicate future performance in any way. The performance of all alerts uncompensated and compensated in no way predict the performance of current and/or upcoming alerts. Check the latest SEC filings before investing, and research other information on the risks of investing in microcap companies at www.sec.gov. TradeThesePIcks, has been compensated a total of two thousand dollars by the company for this blog report and market coverage on BetaMusicGroup. For important information concerning this email, including applicable disclaimers, compensation consideration, and additional information please make sure to read the information contained within. To view our full disclaimer, click HERE.
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