Medient Studios, Inc., has announced strong revenues for 2012, and issued a shareholders letter as part of its annual report.
For the year ending Dec. 31, 2012, the company recognized $3,267,485 in revenue, resulting from the release of its horror genre film “Storage 24.” In addition, long-term liabilities were significantly reduced in the fourth quarter of 2012 and the first quarter of 2013, resulting in a improved stronger balance sheet, according to Medient.
In a letter to Medient investors, studio chairman and CEO Manu Kumaran discussed the changes and direction the studio expects to encounter.
“Medient is in the throes of big change and hopefully our transformation will help change the way films are made around the world,” he said.
In March, Medient announced it will build a $90 million film, DVD and video game production facility in Effingham County. A hotel, shopping and recreation complex also is part of the studio’s plans. The company also recently announced a $40 million deal with Prime Focus, a maker and supplier of film industry equipment.
When Medient and the Effingham Industrial Development Authority announced their memorandum of understanding, the first step of many to building the studio, Kumaran said he wanted to change the way movies are shot.
“Over the years, through the many, many days that I have spent on the sets of various films in many different cities in many different countries across continents,” Kumaran wrote in his letter to shareholders, “one thing remained common — the extraordinary amount of wastage that plagues the film production process. It remains a source of wonder why no one in the film industry ever talks of the extent of squandering in our business even as most movies lose money in every single language. This in spite of the fact that revenues remain robust and the industry continues to grow and the opening of the Chinese market will increase revenues significantly.”
Kumaran said Georgia and Effingham County were partners in the studio’s “game-changing plan” to make movies more efficiently and cheaper.
“Our plan for centralized production is borne of a belief that there has to be a way of making better movies at lower costs,” he said. “(O)ur goal is to dramatically reduce movie production costs while continuing to generate high quality content in the most successful movie genres. Further, the scale of resources available to us will also enable a solid and sustainable business model with predictable and consistent revenue streams.”
Kumaran said the studio’s production plan will focus on action, horror, sci-fi fantasy and thrillers, which are the most profitable segments of the film industry. It also means the studio won’t have to spend money on star power.
“Interestingly, these genres are also the most indifferent to the star system,” he said. “Most studio tent pole releases over the past few years have featured unknown or relatively lower level stars in the leading role.”
Medient produced “Storage 24,” a horror film shot in Great Britain, last year, and it was picked up by some of the industry’s top movie distributors. Kumaran also pointed out it received strong reviews from British critics.
The studio’s first Hollywood production, the Nick Cassavetes-directed “Yellow,” was showcased at the Toronto International Film Festival. It also was screened at the Tokyo International Film Festival and at South by Southwest (SXSW) in Austin, Texas. Kumaran said the movie has been given rave reviews.
Medient’s management team also has grown to prepare the company for its growth, Kumaran said.
“Several highly skilled and experienced experts in various facets have joined the team inspired by our vision,” he said. “So, as we enter the most exciting phase of Medient’s history I promise you that we are ready for this momentous challenge and we are confident that we will achieve our goals, lofty as they are.”