Technological change has affected just about all markets. Some have been affected to a positive end while others to a negative end. Being able to adapt to this change with speed and acumen is critical to survival. It is also a key to taking advantage as others waffle. If an investor can find a company that is structured in such a way to take advantage of change, with flexibility and acumen, a profit will be sure to follow.
Genius Products Inc., a home entertainment products company, works to distribute a full range of digital entertainment products to a full range of retail and commercial entertainment outlets. These outlets include: electronic stores, rental outlets, bookstores, mass merchants and wholesale distribution outlets. Currently, the company’s entertainment library consists of 3,550 feature films and over 4,000 hours of television programs.
Although the company derives a majority of its revenue from the distribution of its library catalog, it also finds sizable income being generated from its production and licensing activities. From a general point of view, the company is a leading provider of all the entertainment content that the average consumer might want, from video games to educational teaching disks. Not to exclude some of the larger entertainment customers, the company’s leading clients include: Discovery Kids, World Wrestling Entertainment, Independent Film Channel, ESPN, Animal Planet and Sesame Workshop.
In a numbers sense, The Weinstein Company Holdings LLC controls and operates the company as a managing member, holding a 30% stake. This particular aspect of Genius Products’ structure yields several benefits, chief among them access to The Weinstein Company Holding’s extensive distribution system and experience. This relationship also enables the company to maintain a certain flexibility as the entertainment market continues a dynamic shift in several different directions. Technological change has affected – and continues to affect – consumers’ entertainment choices in ways that can vary quarter to quarter. Having the flexibility to adapt to these changes is a very large advantage in a competitive business. Regardless of direction, however, Genius Products is well positioned and ready to profit.
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