Liquid Media Group Ltd. (the “Company” or “Liquid”) (Nasdaq: YVR),
delivered a quarterly update for shareholders today, July 23rd
2019.
Dear Shareholders of Liquid Media
Group,
It has been said that we are living in “a golden
age for video games,” and as we take stock of the current market,
we see it’s with good reason. Today, there is a worldwide
audience of 2.4 billion gamers spanning multiple generations,
giving rise to soaring revenue projections for 2019 of USD$152
billion. Add to this the game industry’s move to the cloud,
expected to create enormous growth potential for companies
operating in this market, as well as the promise of Google Stadia
launching in November and Apple Arcade in Fall 2019. Given these
undeniable developments, we feel confident that Liquid’s Gaming
Division is positioned for success.
At the same time, the convergence of media,
entertainment, gaming and technology continues, with intellectual
property (IP) flowing more naturally across platforms. Netflix’s
recently reimagined Carmen Sandiego is a great example of the
long-tail, recurring revenue model that a great story possesses; as
well as how to take a franchise across platforms. Carmen
Sandiego began as an educational video game series in the 1980s,
followed in the 1990s and early 2000s by a number of game shows, an
animated TV series, a comic book series and more than a dozen
additional video game releases. Modernized again in 2011 with a
Facebook game and in 2015 with its first iOS app, the tale is just
as relevant 30 years later in the latest telling and, no doubt, the
upcoming film.
The decades-spanning audience affection for
Carmen Sandiego readily evidences the modern era of nostalgia in
video games and, inevitably, film and TV. Given that the
average age of gamers is on the rise, alongside studies that point
to older adults experiencing nostalgia more frequently, we see no
sign of slowing in this market category.
Key Achievements
In this quarter, Liquid achieved the following
milestones:
- Executed a successful experiential marketing event at AlienCon
Los Angeles, bringing Ancient Aliens: The Game® to fans in
partnership with A+E Networks, generating awareness, press and
increased engagement. • “Our partnership with Liquid
Media Group has already proven its value with a highly successful
activation at our latest AlienCon event in Los Angeles,” said
Nestor Nieves, Director of Product, Games and Emerging Platforms at
A+E Networks. “Not only did the team create an amazing display,
beloved by just about every fan as they entered the exhibit hall,
but we also managed to generate a lot of positive press across
various news channels and entertainment publications.It is
encouraging to see our Ancient Aliens and Knightfall products in
good hands. We are very excited to continue working with Liquid and
look forward to seeing how far they can grow our brands in the
gaming space.”
- Announced the appointment of Nancy Basi, Executive Director of
the Media & Entertainment Centre (VMEC) for the Vancouver
Economic Commission (VEC) and Vice President of the VR/AR
Association’s Vancouver Chapter, to Liquid’s Board of Directors,
effective May 28, 2019.
- Signed a collaboration agreement with VR vanguard YDX
Innovation Corp. (“YDX”), adding their immersive technology
expertise and capabilities across VR, e-sports and interactive
experiences to Liquid’s shared network of services. This
relationship enhances our ability to tell stories across platforms,
engaging with our audiences in new and innovative ways while
generating strong value for shareholders and partners alike. YDX
recently announced a licensing agreement with The Walt Disney
Company Brazil to develop a new Arkave Arena experience featuring
the iconic Mickey Mouse®️.
- Acquired additional assets through Liquid’s relationship with
Dell, investing in an Isilon™ 6 modular storage platform which will
provide a multi-faceted storage solution for our IP library and
serve as the backbone of our IT infrastructure. This system
provides industry leading storage and compute capacity to power our
IP strategy, providing the foundation to create, process,
transport, store, and protect consumer data, and provide Liquid
with an end-to-end solution.
- We are thrilled by the significant progress on Coba: Tale of
the Moon, on track for its upcoming release. Liquid has believed in
the story from the beginning, and the team at Dinosaur Games, led
by Co-Founder and developer Jesse Sosa, has exceeded our
expectations in both art and gameplay. As a company, we can’t wait
to bring the rich story of Itzel and her friends, immersed in the
beautifully rendered world of Maya mythology, to audiences
worldwide.
Industry Outlook
Children’s animation is driving user retention
for streaming platforms, prompting industry giants like Netflix,
Hulu and Amazon Prime to invest heavily in original content.
Outside the US, shows with international appeal are experiencing
strong growth.
The global video game market is expected to
reach USD$179 billion by 2024, with mobile and online distribution
of games leading the way.
Coming off the biggest quarter for mobile to
date, mobile gaming accounted for 35% of the 30.3 billion app
downloads globally, and nearly 75% of the USD$22.6 billion consumer
spend across iOS and Google Play.
The global VR market is expected to reach
USD$44.7 billion by 2024, driven by its use in the gaming and
entertainment sectors.
Growth Strategies
Liquid continues to build out our gaming
division, executing on our dual strategy of publishing our own IP
and licensing established brands to publish across gaming
platforms. The Company currently has upwards of 15 games sold
across platforms garnering favorable profit share, two mobile games
in partnership with A+E Networks - Ancient Aliens: The Game®️ and
Knightfall: Rivals®️ with 50/50 profit participation, and our
upcoming original game Coba: Tale of the Moon, nearing release.
Work is also continuing on our Retro Reboot
Initiative with Miss Kwirk, the follow-up to the popular 1990s game
Kwirk, and further developing our IP library of over 200 titles.
Liquid is primed to explore opportunities for developing
third-party publisher relationships presented by the aforementioned
Google Stadia and Apple Arcade coming online, along with other
paradigm-shifts in the industry.
As noted in our milestones above, Liquid has
developed an array of strategic partnerships. We are building upon
the strength of our alliances and continue to grow our network,
thereby enhancing Liquid’s offerings and expanding our reach. In
the gaming space, we will continue to identify talented developers
with great designs and establish partnerships; our ultimate aim is
to bring these stories to life across media, including television,
film, streaming and VR.
As we move forward, our Studio-as-a-Service
offerings are driving our push into what we see as the next
generation of the content creation pipeline. We are excited to
leverage the industry leading capabilities of the StratusCore
platform and the cloud hosting capabilities of Open NuAge.
On behalf of the Board of
Directors,
Joshua Jackson, Chairman
About Liquid Media Group
Ltd.Liquid Media Group Ltd. (Nasdaq: YVR) is an
entertainment company with a strong portfolio of content IP
spanning creative industries. Originating in Vancouver’s media and
entertainment supercluster, Liquid’s mission is to empower
storytellers worldwide to develop, produce and distribute content
across channels and platforms. Additional information is available
at www.LiquidMediaGroup.co.
Further information:Daniel CruzLiquid Media
Group Ltd.+1 (416)
489-0092pg@liquidmediagroup.co
Media requests:Adam BelloMedia & Analyst
Relations ManagerPrimoris Group Inc.+1 (416) 489-0092 x
226media@primorisgroup.com
Cautionary Note
Regarding Forward-Looking StatementsThis news release
includes statements containing certain "forward-looking
information" within the meaning of applicable securities law
("forward-looking statements"). These statements should not be read
as guarantees of future performance or results. Such statements
involve known and unknown risks, uncertainties and other factors
that may cause actual results, performance or achievements to be
materially different from those implied by such statements. Such
factors include, but are not limited to: regulatory actions, market
prices, continued availability of capital and financing, and
general economic, market or business conditions and trends.
Investors are cautioned that any such statements are not guarantees
of future performance and actual results or developments may differ
materially from those projected in the forward-looking statements.
Forward-looking statements are based on the beliefs, estimates and
opinions of the Company's management on the date the statements are
made. The Company is under no obligation, and expressly disclaims
any intention or obligation, to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as expressly required by
applicable law.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/f7d3dc2d-3c57-4e2b-b441-91ce651494a2
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