8-K: Authentic Holdings Reports Strong Ad Revenue Growth and New Streaming Partnerships

Authentic Holdings is experiencing rapid growth in ad revenue from its Over the Air channels and is launching a new streaming revenue model with Whale TV.

Summary

• Authentic Holdings has transitioned to an accrual-based accounting system for ad revenue, allowing for direct invoicing and recognition of receivables.
• The company collected $36,195 in ad revenue from insert ad sales in October and November 2024.
• Bauza Media booked $99,821.35 in ad sales for October and November, which will be recognized as revenue upon collection.
• For the first week of December, $82,209 in ad sales have been booked, with three weeks remaining in the broadcast month.
• The company is launching a streaming ad program with Whale TV, which operates on over 400 Smart TV brands, reaching over 41 million homes globally.
• A similar program is expected to launch with VIDAA, a division of Hisense, in January 2025.
• Management believes the streaming ad opportunity could be significantly larger than the insert ad and OTA markets.

Sentiment

Score: 8

Explanation: The document conveys a strong positive sentiment due to the rapid ad revenue growth and new streaming partnerships. The company's future outlook is optimistic, although there are some risks associated with new ventures.

Positives

• The transition to accrual accounting allows for better revenue recognition.
• The company is experiencing rapid growth in ad revenue from its Over the Air channels.
• The new streaming ad program with Whale TV has significant growth potential.
• The upcoming partnership with VIDAA further expands the company's reach in the streaming market.
• Management is optimistic about the potential of the streaming ad market.

Negatives

• The previous partnership with LocalBTV failed to launch, highlighting potential risks in new ventures.

Risks

• The company's actual results may differ from projections due to various uncertainties.
• The success of the new streaming ad programs is not guaranteed.
• The company is reliant on third-party partners like Bauza Media, Whale TV, and VIDAA.
• The company has a history of failed launches in the Vast Tag area.

Future Outlook

The company anticipates significant growth in ad revenue from both its Over the Air channels and new streaming partnerships, with plans to expand its channel offerings and streaming partnerships in 2025 and beyond.

Management Comments

• Management is very encouraged by the rapid growth in ad revenue for the three Over the Air channels being marketed.
• Management believes the streaming opportunity with Whale TV could be significantly larger than the insert ad and OTA markets.
• Management is optimistic about the potential of the new streaming partnerships.

Industry Context

The move towards streaming and digital advertising is a broader trend in the media industry, and Authentic Holdings is positioning itself to capitalize on this shift. The company's partnerships with Whale TV and VIDAA align with the industry's focus on connected TV and targeted advertising.

Comparison to Industry Standards

• The company's move to an accrual-based accounting system is a standard practice in the industry, providing a more accurate picture of financial performance.
• The partnership with Whale TV, reaching 41 million homes, is comparable to other companies leveraging connected TV platforms for advertising.
• The previous failed launch with LocalBTV highlights the challenges in the digital advertising space, where partnerships can be unreliable.

Stakeholder Impact

• Shareholders are likely to react positively to the reported ad revenue growth and new streaming partnerships.
• Employees may benefit from the company's growth and expansion.
• Customers may see new advertising opportunities on their Smart TVs.
• Suppliers and creditors may benefit from the company's improved financial performance.

Next Steps

• The company will continue to market its existing Over the Air channels.
• The company will add additional channels to its marketing efforts in 2025.
• The company will launch its streaming ad program with Whale TV in late December 2024.
• The company will complete the on-ramping transition with VIDAA in January 2025.
• The company will explore additional opportunities with Whale TV.

Key Dates

Keywords

ad revenue, streaming, Vast Tags, Over the Air, Whale TV, VIDAA, Bauza Media, iCowboy, Movie Giant, iDreamCTV, Smart TV, digital ads