Chicken Soup for The Soul Entertainment Inc (CSSE) 2023 Q1 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Chicken Soup for the Soul Entertainment's First Quarter 2023 Earnings Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded.

美好的一天，感謝您的支持。歡迎參加心靈雞湯娛樂2023年第一季度收益電話會議。 （操作員指示）請注意，今天的會議正在錄製中。

I would now like to hand the conference over to your speaker today, Zaia Lawandow, Head of Investor Relations. Please go ahead, sir.

現在我想將會議交給今天的發言人、投資者關係主管扎亞·拉萬多 (Zaia Lawandow)。請繼續，先生。

Thank you, operator. Good afternoon, and thank you for joining us. We'll begin with opening remarks from our Chairman and CEO, William J. Rouhana, followed by remarks from our CFO, Jason Meier. After their remarks, we'll open the call for questions.

謝謝你，接線員。下午好，感謝您加入我們。首先由我們的董事長兼首席執行官 William J. Rouhana 致開幕詞，然後由我們的首席財務官 Jason Meier 致辭。在他們發言後，我們將開始提問。

Matters discussed on this call use forward-looking statements, including those regarding the performance of future fiscal years. Such statements are subject to a number of risks and uncertainties. Actual results could differ materially and adversely from those described in the forward-looking statements as a result of various factors. This includes the risk factors set forth in our most recent annual report on Form 10-K and in our most recent quarterly report on Form 10-Q. The company undertakes no obligation to update any forward-looking statements. Please refer to the earnings release in the Investor Relations section of the company's website for a discussion of certain non-GAAP forward-looking measures discussed on this call.

本次電話會議討論的事項使用前瞻性陳述，包括有關未來財政年度業績的陳述。此類聲明存在許多風險和不確定性。由於各種因素，實際結果可能與前瞻性陳述中描述的結果存在重大和不利的差異。這包括我們最新的 10-K 表年度報告和最新的 10-Q 表季度報告中列出的風險因素。該公司不承擔更新任何前瞻性陳述的義務。請參閱公司網站投資者關係部分的收益發布，了解本次電話會議中討論的某些非公認會計準則前瞻性措施的討論。

With that, I'll turn the call over to William Rouhana, Chairman and CEO. Bill, please go ahead.

接下來，我會將電話轉給董事長兼首席執行官威廉·魯哈納 (William Rouhana)。比爾，請繼續。

Thanks, Zaia. Good afternoon, everyone, and thank you for joining us. I'm pleased to report that we had a good start to the year with revenue and adjusted EBITDA coming in within our guidance range. Consolidated revenue for the quarter was $110 million. Adjusted EBITDA was $20 million. And as many of you know, we only reported the fourth quarter 6 weeks ago, so there hasn't been a lot of time since that report, but it's probably worth highlighting some of the progress we've made since then.

謝謝，扎亞。大家下午好，感謝您加入我們。我很高興地向大家報告，今年我們取得了良好的開局，收入和調整後的 EBITDA 都在我們的指導範圍內。該季度的綜合收入為 1.1 億美元。調整後 EBITDA 為 2000 萬美元。正如你們許多人所知，我們在 6 週前才報告了第四季度的情況，因此自該報告發布以來沒有太多時間，但可能值得強調我們自那時以來取得的一些進展。

The media landscape continues to shift in a way that pushes more people to free ad-supported streaming. I'm sure you've all seen the news coming out of media earnings with studios now simultaneously removing content and increasing prices on their subscription services, forcing consumers to pay more for less. It's paying for the privilege of watching ads in most of these cases.

媒體格局不斷發生變化，促使更多人使用免費的廣告支持的流媒體服務。我相信你們都已經看到了來自媒體收入的消息，工作室現在同時刪除內容並提高訂閱服務的價格，迫使消費者花更多的錢獲得更少的錢。在大多數情況下，它是為了獲得觀看廣告的特權而付費的。

The value proposition of our totally free ad-supported digital services and our low-cost physical rentals is greater than ever. And our kiosk rentals remain the most affordable way to watch premium new release theatrical movies anywhere. As we progress through the year, we're encouraged by what we see as 3 ways we're growing. One is the rebound we're seeing in kiosk rentals. The second is our position as a premier ad sales platform. And the third is our plan to drive free cash flow through the expansion of our services businesses, and I'll talk some more about that in a few minutes.

我們完全免費的廣告支持數字服務和低成本實體租賃的價值主張比以往任何時候都更重要。我們的信息亭租賃仍然是在任何地方觀看優質新上映影院電影的最實惠的方式。隨著這一年的進展，我們對我們成長的三種方式感到鼓舞。一是我們看到自助服務終端租金出現反彈。第二是我們作為首要廣告銷售平台的地位。第三是我們計劃通過擴展我們的服務業務來推動自由現金流，我將在幾分鐘內詳細討論這一點。

I said on our last call that we expected the studios to rush to release many films theatrically. And that's what we're seeing. There's been a -- we finally reached a steady state where films are constantly arriving at the kiosks. Looking at the summer, we've got some really interesting things coming. Starting tomorrow, Ant-Man and the Wasp: Quantumania arrives in kiosks. Next week, we'll have both Creed III and Shazam! Fury of the Gods, followed later in May by Dungeons & Dragons: Honour Among Thieves, 80 for Brady and 65.

我在上次電話會議上表示，我們預計製片廠會急於在院線上映許多電影。這就是我們所看到的。我們終於達到了一個穩定的狀態，電影不斷到達售貨亭。展望夏天，我們將迎來一些非常有趣的事情。從明天開始，《蟻人2：黃蜂女現身：量子狂熱》將登陸售貨亭。下週，我們將同時推出《Creed III》和《Shazam！》 《諸神之怒》，5 月晚些時候推出的《龍與地下城：盜賊榮耀》，布雷迪分別獲得 80 分和 65 分。

In the first 2 weeks of May, we had 2 theatrical releases. And during the rest of the month, we'll have 6 additional major theatrical titles at our kiosks with a combined box office of nearly $650 million. And that's just May.

5 月的前 2 週，我們上映了 2 部電影。在這個月剩下的時間裡，我們的售貨亭還將有 6 部主要影院上映，總票房接近 6.5 億美元。那隻是五月。

Arriving in kiosks in June, we have Renfield releasing early in the month. I'm excited about mid-June where we're going to have The Super Mario Bros. Movie and John Wick: Chapter 4, followed later in the month by Avatar and Evil Dead Rise. In all, we're anticipating 11 theatrical releases to arrive in the kiosks in June with a combined box office of nearly $1.6 billion.

Renfield 於 6 月抵達售貨亭，並在本月初發布。我很高興六月中旬我們將推出《超級馬里奧兄弟大電影》和《疾速追殺：第四章》，隨後在本月晚些時候推出《阿凡達》和《邪惡死亡崛起》。總的來說，我們預計 6 月份將有 11 部電影上映，總票房將接近 16 億美元。

In July, we'll have 8 theatricals arrive in kiosks, including Scream VI, Are You There God? It's Me, Margaret. And for those of you not keeping count, that's 27 theatrical releases arriving between May and July, with a combined box office of nearly $2.5 million -- $2.5 billion, sorry. And August is shaping up to be just as impressive. It's exactly what we were looking for when we first took over Redbox, but we've only seen 3 major event movies from August to February. So keep in mind the title counts I mentioned don't include originals or direct-to-video titles, it's just the big ones. Including those, these new title counts come in from May through July at 48.

7 月份，我們將有 8 部戲劇抵達售貨亭，包括《驚聲尖叫 VI》、《上帝你在嗎？》是我，瑪格麗特。對於那些沒有統計過的人，5 月至 7 月期間有 27 部院線上映，總票房接近 250 萬美元——抱歉，25 億美元。八月也將同樣令人印象深刻。這正是我們剛接手 Redbox 時所尋找的，但從 8 月到 2 月我們只看過 3 部重大事件電影。因此請記住，我提到的標題數量不包括原創或直接視頻標題，而只是大標題。算上這些，5 月至 7 月期間的新書數量為 48 種。

Our second pillar of growth is our position as a premier ad sales platform. We just came out of a very successful NewFronts presentation a couple of weeks ago, which you'll be able to watch on our website in the coming days. And I suggest you do it. It's very impressive. There's some really good stuff there. You'll see Redbox streaming, you'll see Crackle streaming, Chicken Soup for the Soul streaming, and a lot of interesting innovative ad techniques we've launched.

我們的第二個增長支柱是我們作為首要廣告銷售平台的地位。幾週前，我們剛剛完成了一次非常成功的 NewFronts 演示，未來幾天您將可以在我們的網站上觀看該演示。我建議你這樣做。這是非常令人印象深刻的。那裡有一些非常好的東西。你會看到Redbox流媒體，你會看到Crackle流媒體，心靈雞湯流媒體，以及我們推出的許多有趣的創新廣告技術。

We're thrilled with the response to our Crackle Connex platform and we continue to build it out as a leading supplier for independent AVOD services and digital out-of-home networks. In fact, we now represent over 10,000 digital out-of-home screens through our deals with Coinstar's adPlanet Retail Media Group and Velocity MSC. We have the potential and the scale to be a large participant in the digital out-of-home business, which in turn can be a tailwind to revenue generation on our kiosks, adding in another revenue stream to our business.

我們對 Crackle Connex 平台的反響感到非常興奮，我們將繼續將其打造成獨立 AVOD 服務和數字戶外網絡的領先供應商。事實上，通過與 Coinstar 的 adPlanet Retail Media Group 和 Velocity MSC 的合作，我們現在代表了超過 10,000 個數字戶外屏幕。我們有潛力和規模成為數字戶外業務的重要參與者，這反過來又可以成為我們自助終端創收的順風車，為我們的業務增加另一個收入來源。

We've also presented a new -- a number of new and renewed projects through our branded entertainment group. Series like At Home with Genevieve Gorder; Just For Kicks, a brand-new show about the hottest new sneaker drops; and new seasons of our original hit series from executive producer Ashton Kutcher, Going From Broke; as well as Inside the Black Box; Pet Caves; and Wedding Talk. As you know, we partner with leading national advertisers like the General Insurance, PetSmart and Men's Wearhouse, among many others, to mitigate the costs and risks associated with production.

我們還通過我們的品牌娛樂集團推出了一些新的和更新的項目。與吉納維芙·戈爾德一起在家等系列； Just For Kicks，一個關於最熱門的新款運動鞋的全新節目；以及執行製片人阿什頓·庫徹 (Ashton Kutcher) 製作的原創熱門劇集《走出破產》的新季；以及《黑匣子內部》；寵物洞；和婚禮談話。如您所知，我們與 General Insurance、PetSmart 和 Men's Wearhouse 等領先的全國廣告商合作，以降低與製作相關的成本和風險。

Beyond brand's entertainment, Crackle Connex is also developing a number of data and technology partnerships that will allow for targeting, execution and measurement of ad campaigns across platforms. Later this year, we'll be rolling out interactive ads through Amazon Publisher Direct to Amazon DSP advertisers. The ads will connect viewers directly to check out by using their voice or remote control to add items to cart and complete purchases. We've also announced partnerships with measurement companies, Upwave and Geopath to measure positive ad lift in both series and digital video screens, respectively.

除了品牌娛樂之外，Crackle Connex 還正在開發許多數據和技術合作夥伴關係，以便跨平台廣告活動的定位、執行和衡量。今年晚些時候，我們將通過 Amazon Publisher Direct 向 Amazon DSP 廣告商推出互動廣告。這些廣告將直接連接觀看者，通過使用語音或遙控器將商品添加到購物車並完成購買來結帳。我們還宣布與測量公司 Upwave 和 Geopath 建立合作夥伴關係，分別測量連續劇和數字視頻屏幕上的積極廣告提升。

Our ability to provide exceptional service to our ad rep partners is complemented by the depth and quality of our film and television catalog, which remains in high demand. And I'm pleased to announce what I'm hoping will be the first of many announcements with TaTaTu, a leading European-based social media entertainment company. We'll bring our film -- our extensive catalog of films and television series to their innovative platform as they roll out internationally, allowing us to expand our global footprint. This is the first platform of scale that rewards audiences for viewing and engaging with content, and I couldn't be more excited to explore ways to incorporate their tech into our networks.

我們為廣告代表合作夥伴提供卓越服務的能力得到了我們電影和電視目錄的深度和質量的補充，這些目錄的需求仍然很高。我很高興地宣布，我希望這將是與歐洲領先的社交媒體娛樂公司 TaTaTu 發布的眾多公告中的第一個。當我們的電影——我們廣泛的電影和電視劇目錄在國際上推出時，我們將把它們帶到他們的創新平台上，使我們能夠擴大我們的全球足跡。這是第一個獎勵觀眾觀看和參與內容的規模平台，我非常興奮地探索將他們的技術融入我們網絡的方法。

Finally, generating free cash flow remains a priority and will continue to be driven by the rental rebound we're seeing along with continued cost management initiatives. Additionally, the success we're seeing with our service businesses, both our kiosk and ad rep has encouraged us to look at our entire business to identify other opportunities to apply the service model and generate incremental revenue that can be immediately converted to cash flow.

最後，產生自由現金流仍然是一個優先事項，並將繼續受到我們看到的租金反彈以及持續的成本管理舉措的推動。此外，我們在服務業務、信息亭和廣告代表方面所取得的成功鼓勵我們審視整個業務，以確定應用服務模式的其他機會，並產生可立即轉化為現金流的增量收入。

As you know, our kiosk service and ad rep business continues to scale, providing greater value for our B2B clients. Our ad rep clients have grown to 22 leading independent AVODs and digital out-of-home networks. We've grown the number of kiosk service customers to 4, including EcoATM, Kimi, Pokemon and Amazon, with whom we have a long-standing partnership. In addition to these partners, we have a full pipeline of potential new customers with many pilot programs in or near launch. The low Upfront investment combined with synergy opportunities makes these service businesses very attractive, and we continue to look at the rest of our overall business to find other opportunities to create additional service revenue.

如您所知，我們的信息亭服務和廣告代表業務不斷擴大，為我們的 B2B 客戶提供更大的價值。我們的廣告代表客戶已發展到 22 個領先的獨立 AVOD 和數字戶外網絡。我們已將自助服務終端服務客戶數量增加到 4 個，其中包括 EcoATM、Kimi、Pokemon 和 Amazon，我們與他們有著長期的合作夥伴關係。除了這些合作夥伴之外，我們還擁有完整的潛在新客戶渠道，以及許多正在或即將啟動的試點項目。低前期投資加上協同機會使這些服務業務非常有吸引力，我們將繼續關注我們整體業務的其餘部分，以尋找其他機會來創造額外的服務收入。

In closing, I'm excited by the results we're seeing early in the year and look forward to updating you on our progress in the months to come. Now I'll turn the call over to Jason, who will walk you through the financials.

最後，我對今年年初看到的結果感到興奮，並期待在未來幾個月向您通報我們的最新進展。現在我將把電話轉給傑森，他將向您介紹財務狀況。

Thank you, Bill, and good afternoon, everyone. As Bill mentioned, we began the year on a very strong note, with both revenue and adjusted EBITDA coming in within our guidance range. First quarter revenue was $110 million, up 275% year-over-year, and adjusted EBITDA was $20 million, up nearly 450% year-over-year. Sequentially, although revenue was down 4% from a seasonally strong fourth quarter and adjusted EBITDA was up 37%. Performance in the quarter continues to reflect the strength of our multi-platform strategy, especially the monetization of Screen Media's library. In the first quarter, excluding the impact of acquisitions year-over-year, revenue increased $33 million, more than double the first quarter of 2022, reflecting demand for our premium content library. As we previously mentioned on past calls, we continue to view Screen Media's library as an extremely valuable asset that generates future cash flow for our business.

謝謝比爾，大家下午好。正如比爾提到的，我們以非常強勁的勢頭開始了今年，收入和調整後的 EBITDA 都在我們的指導範圍內。第一季度營收為 1.1 億美元，同比增長 275%，調整後 EBITDA 為 2000 萬美元，同比增長近 450%。隨後，儘管收入較季節性強勁的第四季度下降了 4%，但調整後的 EBITDA 卻增長了 37%。本季度的表現繼續反映了我們多平台戰略的優勢，尤其是 Screen Media 庫的貨幣化。剔除收購的影響，第一季度收入同比增長 3300 萬美元，是 2022 年第一季度的兩倍多，反映了對我們優質內容庫的需求。正如我們之前在過去的電話會議中提到的，我們繼續將 Screen Media 的庫視為一項極其寶貴的資產，可以為我們的業務產生未來的現金流。

Further to our multiplatform strategy, year-to-date, our TVOD business continues to accelerate. Coming out of April, which had the largest TVOD revenue week in our history, we saw continued growth in May with year-over-year revenue up 14%. In fact, over the past week alone, TVOD revenue was up 13% week-over-week. We're excited about the TVOD growth we are seeing as it is a leading indicator of films that will be hitting our kiosk network in the coming weeks.

根據我們的多平台戰略，今年迄今為止，我們的 TVOD 業務繼續加速增長。 4 月份是我們歷史上 TVOD 收入最高的一周，5 月份我們看到了持續增長，收入同比增長 14%。事實上，僅過去一周，TVOD 收入就環比增長了 13%。我們對所看到的 TVOD 增長感到興奮，因為它是未來幾週內將在我們的信息亭網絡上播放的電影的領先指標。

In the first quarter, our gross profit was 12%, a 14% sequential increase over the fourth quarter. Our gross margin in the first quarter was adversely impacted by a decrease in kiosk rentals year-over-year, largely attributable to lack of films, a consequence hitting the kiosks on a consistent basis. With a number of event films and the cadence of films expected over the remainder of 2023, we expect our gross margin to improve in the future.

第一季度，我們的毛利潤為 12%，比第四季度環比增長 14%。我們第一季度的毛利率受到自助終端租金同比下降的不利影響，這主要是由於電影的缺乏，結果對自助終端造成了持續的影響。由於預計 2023 年剩餘時間內將有大量活動電影上映，電影的上映節奏也將加快，我們預計未來的毛利率將有所改善。

In our physical kiosk network, we ended the quarter around 30,600 kiosks nationwide. Daily rentals per kiosk or our version of the same-store sales remained strong in April. On average, daily rentals per kiosk for March and April were nearly 20% higher than in January and February, underscoring the positive impact of the return of theatrical titles and kiosks.

在我們的實體信息亭網絡中，本季度結束時，我們在全國范圍內擁有約 30,600 個信息亭。每個售貨亭的每日租金或我們版本的同店銷售在四月份仍然強勁。平均而言，3 月和 4 月每個信息亭的日租金比 1 月和 2 月高出近 20%，凸顯了影院影片和信息亭回歸的積極影響。

Our operating loss for the first quarter was $38.5 million compared to an operating loss of $10.8 million in the prior year. The variance is largely driven by the mix of revenues, along with increased compensation expense and higher amortization expense, both related to the merger with Redbox and the acquisition of 1091 Media in 2022.

我們第一季度的運營虧損為 3850 萬美元，而上一年的運營虧損為 1080 萬美元。這一差異主要是由收入組合、補償費用增加和攤銷費用增加造成的，這兩者都與 2022 年與 Redbox 的合併和收購 1091 Media 有關。

Our adjusted EBITDA for the quarter was $20.1 million compared to $3.7 million in the prior year quarter, representing an increase of $16.4 million or nearly 450%, which includes the equitization of $3.45 million of CSS management and license fees. More to come on that in a moment. Excluding the impact of the CSSE equitization, adjusted EBITDA for the [first quarter] would have been $16.6 million.

我們本季度調整後的 EBITDA 為 2010 萬美元，而去年同期為 370 萬美元，增加了 1640 萬美元，即近 450%，其中包括 345 萬美元的 CSS 管理和許可費的股權化。稍後還會有更多內容。排除 CSSE 股權化的影響，[第一季度]調整後的 EBITDA 將為 1,660 萬美元。

Turning to items impacting our financial position. As you will recall, in late March, we announced a public offering of our Class A common stock that closed in early April, raising $10.8 million. Also in late March, we entered into a modification agreement with our parent company, Chicken Soup For The Soul LLC, related to our management and license fee agreement. Under the modification, the company was able to equitize up to $16.2 million of future fees through the issuance of our Class A common stock, subject to certain defined terms. Under the agreement, $3.45 million was equitized in the first quarter of 2023, as I previously mentioned.

轉向影響我們財務狀況的項目。您可能還記得，3 月底，我們宣佈公開發行 A 類普通股，並於 4 月初結束，籌集了 1,080 萬美元。同樣在 3 月下旬，我們與母公司 Chicken Soup For The Soul LLC 簽訂了一份與我們的管理和許可費協議相關的修改協議。根據修改，公司能夠通過發行 A 類普通股來平衡高達 1,620 萬美元的未來費用，但須遵守某些明確的條款。正如我之前提到的，根據該協議，2023 年第一季度將有 345 萬美元股權化。

More recently, credit rating agency, Egan-Jones reiterated its BBB rating on both the company and our senior secured notes, underscoring the strength of our capital structure. As a reminder, we retained favorable debt terms under our HPS credit facility with no financial covenants for 2.25 years and the ability to pick interest through February 11, 2024, giving us plenty of runway, given our expectations around the expected timing of increasing operational cash flows.

最近，信用評級機構 Egan-Jones 重申了對該公司和我們的高級擔保票據的 BBB 評級，突顯了我們資本結構的實力。提醒一下，我們在 HPS 信貸安排下保留了優惠債務條款，2.25 年沒有任何財務契約，並且能夠在 2024 年 2 月 11 日之前選擇利息，考慮到我們對增加運營現金的預期時間的預期，這為我們提供了充足的跑道流動。

We continue to focus on further streamlining our organization to result in more cost effective, coordinated and efficient approach to our operations. As Bill previously mentioned in his remarks, we're evaluating ways to replicate the service aspect of our ad sales and kiosk service organizations across other parts of our business to drive future revenue and scale, resulting in increased future cash flow. Additionally, we continue to look at assets that we own that are not strategic to our go-forward strategy, which we may choose to sell or partner with others to raise additional cash flows in the future.

我們繼續致力於進一步精簡我們的組織，以實現更具成本效益、協調和高效的運營方式。正如比爾之前在講話中提到的那樣，我們正在評估如何在我們業務的其他部分複制廣告銷售和信息亭服務組織的服務方面，以推動未來的收入和規模，從而增加未來的現金流。此外，我們繼續關注我們擁有的對我們的前進戰略不具有戰略意義的資產，我們可能會選擇出售這些資產或與其他人合作，以在未來籌集額外的現金流。

In closing, we're already seeing the results of our cost-cutting initiatives and an increase in the number of event films available in the kiosk starting in late May, and we expect the combination of these factors to significantly increase our operational cash flows.

最後，我們已經看到了成本削減舉措的成果，以及從 5 月底開始在售貨亭中提供的活動影片數量的增加，我們預計這些因素的結合將顯著增加我們的運營現金流。

Now I'll turn the call back over to Zaia for Q&A.

現在我會將電話轉回 Zaia 進行問答。

Thank you, Jason. Operator, can we please open the call for questions?

謝謝你，傑森。接線員，我們可以打開電話提問嗎？

(Operator Instructions) And our first question comes from the line of Jason Kreyer with Craig-Hallum.

（操作員說明）我們的第一個問題來自 Jason Kreyer 和 Craig-Hallum 的線路。

Bill, so you had your first NewFront presentation as Crackle Connex last week or maybe it was a couple of weeks ago. You highlighted it earlier, but just wanted to see if there was any other important takeaways, any feedback that you've heard from marketers since that presentation? And then I'll just ask you my follow-up now. So you've talked about Redbox getting back to about 1/3 of 2019 levels. It looks like by the numbers we track that theaters are already at least on par or well over 2019 levels. So just curious if you look at the relationship between new releases and box office volumes and how frequently customers are utilizing your kiosks, would that put you on the right path to achieve those targets?

Bill，上週您以 Crackle Connex 的身份首次在 NewFront 進行了演示，也許是幾週前。您之前強調過這一點，但只是想看看是否還有其他重要的收穫，自該演示以來您從營銷人員那裡聽到了任何反饋嗎？然後我現在就問你我的後續情況。所以你談到 Redbox 恢復到 2019 年水平的 1/3 左右。從我們追踪的數字來看，影院的影院放映水平至少已達到或遠高於 2019 年的水平。因此，如果您查看新版本和票房量之間的關係以及客戶使用您的信息亭的頻率，這會讓您走上實現這些目標的正確道路嗎？

Okay. Let me see if I can do one -- the first one first. The NewFronts were great, and I really do encourage anybody who has an interest in our company to take a look at the video that we've got posted on our website in the next couple of days. We've got -- we had a lot of very impressive stuff that we rolled out there. A lot of it was programming related, but also a lot of it was ad tech related. A lot of ad tech, a lot of new ad tech that was really exciting for people and encourage people. And by that, I mean advertisers to do business with us.

好的。讓我看看我是否可以做一個——先做第一個。 NewFronts 很棒，我真的鼓勵任何對我們公司感興趣的人觀看我們在接下來的幾天內發佈在我們網站上的視頻。我們在那裡推出了很多令人印象深刻的東西。其中很多與編程相關，但也有很多與廣告技術相關。很多廣告技術，很多新的廣告技術確實讓人們興奮並鼓勵人們。我的意思是廣告商與我們做生意。

The other thing that was -- and so that was one takeaway, Jason, that came from the NewFronts. There was a real sense that we were doing some innovative stuff in the ad tech side, especially with the shopping stuff. And also some of the contextual understanding of the impact of programming on advertising's impact on viewers. There's a lot of stuff that was pioneered by a guy named Bill Harvey, a long time ago, a good friend of mine, where we talked about the importance of content on the way in which people absorb advertising.

另一件事是——傑森，這就是來自新陣線的一個收穫。我們確實在廣告技術方面做了一些創新的事情，特別是在購物方面。還有一些關於節目對廣告對觀眾的影響的上下文理解。有很多東西是很久以前由一個名叫比爾·哈維（Bill Harvey）的人開創的，他是我的好朋友，我們在其中討論了內容對於人們吸收廣告的方式的重要性。

Certain types of content make people much more receptive to certain types of advertising, at least that's what's been found. And contextual advertising is becoming a bigger and bigger part of today's -- important to advertisers today. We're on that in a really serious way. And that was one thing that came out of the NewFronts.

某些類型的內容使人們更容易接受某些類型的廣告，至少我們發現是這樣。上下文廣告正在成為當今廣告業中越來越重要的一部分——對當今的廣告商來說非常重要。我們非常認真地對待這個問題。這是新陣線的一件事。

The other thing that came out of NewFronts was the quality of our programming, the diversity of our networks, people's excitement about having a place where they could go to buy from a whole bunch of diversified AVODs in one shot. In other words, our ad rep business or I guess as we call it now Crackle Connex, that people liked. They like the idea that they could get a variety of different networks in one spot. And that business can -- that just continues to grow as a business and an activity. And I love it because it's cash flow. It's all cash flow. It's all contribution margin. There's no incremental cost to run that business, but there's incremental benefit, both for us and our ad rep partners because selling volume generates higher CPMs, bigger fill rates. It's better for everybody. So that was the -- I would say that's the other takeaway from the NewFronts.

NewFronts 帶來的另一件事是我們的節目質量、網絡的多樣性以及人們對有一個可以一次性從一大堆多樣化的 AVOD 中購買的地方感到興奮。換句話說，我們的廣告代表業務，或者我想我們現在稱之為 Crackle Connex，受到了人們的喜愛。他們喜歡這樣的想法：可以在一個地方獲得各種不同的網絡。而且該業務可以作為一項業務和一項活動繼續增長。我喜歡它，因為它是現金流。都是現金流。這都是邊際貢獻。運營該業務沒有增量成本，但對我們和我們的廣告代表合作夥伴來說，卻有增量收益，因為銷售量會產生更高的每千次展示費用和更高的填充率。這對每個人都更好。這就是——我想說這是 NewFronts 的另一個收穫。

In a few weeks to a couple of months, we'll start getting commitments from people. We'll see how that goes. And of course, as we get them, we'll let you know what we're seeing. That's the NewFront.

在幾周到幾個月內，我們將開始得到人們的承諾。我們會看看情況如何。當然，當我們得到它們時，我們會讓您知道我們所看到的。這就是新陣線。

The kiosks. I think -- I kind of go back to what I said in my remarks. We are going to have an incredible array of movies, literally starting tomorrow. Ant-Man and The Wasp, Creed III, Shazam! Fury of the Gods, Dungeons & Dragons, 80 for Brady, 65, Renfield, Super Mario Brothers, John Wick: Chapter 4, Avatar, Evil Dead, Scream VI, Are You There God? It's Me, Margaret. This is what we said we wanted. This is what we've gotten. This is where we are. $2.5 billion of combined box office through July. And August is going to be just as big. It's going to be just as big as the other months.

信息亭。我想——我有點回到我在講話中所說的話。從明天開始，我們將會有一系列令人難以置信的電影。 《蟻人2：黃蜂女現身》、《信條 III》、《雷霆沙贊！》諸神之怒、龍與地下城、布雷迪 80、65、雷菲爾德、超級馬里奧兄弟、疾速追殺：第四章、阿凡達、鬼玩人、驚聲尖叫 VI、上帝在嗎？是我，瑪格麗特。這就是我們所說的我們想要的。這就是我們得到的。這就是我們現在的處境。截至 7 月份的總票房為 25 億美元。八月也將同樣重要。它會和其他月份一樣大。

The movies are here. We believe people will rent them because they've been renting them on TVOD. One of the interesting things we've seen is the jump in TVOD revenue, as Jason said in his remarks, seems to be sort of an early indication of the success of kiosks. We saw this in March, where we had a big jump in TVOD revenue and then a big jump in rentals. If this follows suit now with all these movies, this will end up being exactly what we hoped it would be.

電影都在這裡。我們相信人們會租用它們，因為他們一直在 TVOD 上租用它們。我們看到的有趣的事情之一是 TVOD 收入的猛增，正如傑森在講話中所說，這似乎是信息亭成功的早期跡象。我們在三月份就看到了這一點，當時我們的 TVOD 收入大幅增長，然後租金也大幅增長。如果現在所有這些電影都遵循這一點，那麼這最終將正是我們希望的那樣。

So I understand, Jason, that the movie theaters are now back to where they were in 2019 or closer to it. And that our 30% guests versus 2019 seems very conservative, but that's all we need in order to make this very successful. So that's what we're targeting.

所以我知道，傑森，電影院現在已經回到了 2019 年或接近 2019 年的水平。與 2019 年相比，我們的 30% 客人似乎非常保守，但這就是我們使這次活動非常成功所需要的。這就是我們的目標。

And our next question comes from the line of Eric Wold with B. Riley Securities.

我們的下一個問題來自 Eric Wold 和 B. Riley Securities 的對話。

A couple of more follow-up questions on Redbox. As you've seen the number of big theatrical titles come back to the kiosk and kind of the cadence of releases get closer to normal, maybe talk about what other trends you're seeing of rental behavior. Are you seeing the basket sizes increase? Are consumers also renting some of the older library titles along with new releases that presumably have better margins? And then I know in the past, during [loss] in releases, kind of marketing tend to shift to be more promotional and discounts and offers to get in back to kiosks. Are you able now to kind of pull that lever back and really kind of promote the titles as opposed to maybe hurt margins, discounting the rentals?

關於 Redbox 的更多後續問題。正如您所看到的大型影院影片的數量回到了售貨亭，並且發行節奏越來越接近正常，也許可以談談您所看到的租賃行為的其他趨勢。您是否發現購物籃尺寸增加了？消費者是否還會租用一些較舊的圖書館圖書以及可能利潤更高的新書？然後我知道，在過去，在發布[損失]期間，營銷往往會轉向更多的促銷、折扣和優惠，以回到售貨亭。您現在是否能夠拉回槓桿並真正推廣這些遊戲，而不是可能損害利潤，打折租金？

Okay. That's a lot of things, Eric. I'll do my best. I don't think we yet have enough of a clear pattern to be able to answer the first part of your question about whether or not people are buying new titles and old titles. I've got a feeling that with all these new titles that are about to hit the boxes, it's going to be hard for people to take new titles and old titles because there are so many new titles. But for the moment, we don't really see a pattern. But we haven't had this kind of cadence of big movies.

好的。事情有很多，埃里克。我將盡我所能。我認為我們還沒有足夠清晰的模式來回答你的問題的第一部分，即人們是否購買新遊戲和舊遊戲。我有一種感覺，隨著所有這些新遊戲即將上市，人們將很難接受新遊戲和舊遊戲，因為新遊戲太多了。但目前，我們還沒有真正看到任何模式。但我們還沒有看過這樣的大電影節奏。

We had a little bit of life in March. You saw what happened, things jumped 43% over February. April, about the same as March. What I hope to see now in the second half of May is this big jump from this pacing of big titles. So I think maybe you're just like a month ahead of where I can really answer the question for you. I guess there's something else in there, so I'll give you another chance to finish your thought because I've forgotten the second half of your question.

三月我們過得有點充實。你看到發生了什麼，比 2 月份增長了 43%。四月份，和三月份差不多。我現在希望在五月下半月看到的是大型遊戲的節奏的巨大飛躍。所以我想也許你只需要提前一個月我就可以真正為你回答這個問題。我想裡面還有別的東西，所以我再給你一次機會來完成你​​的想法，因為我忘記了你問題的後半部分。

It was just on promotions and if you've been able to kind of pull back you've -- kind of discounts.

這只是促銷活動，如果你能夠退縮，你就會得到某種折扣。

So I'm up 2 minds on this, Eric. I understand your point. And we do have -- we've done some interesting new promotions that I think have turned out to be pretty profitable. One has been a free night when you return to get somebody to take another disk so that they don't leave empty handed, and that seems to have worked pretty well. And we've done one other one where you get a second disc for free. But what happens is when people keep them and they pay for them for a couple of nights, and there's been a decent promotion. And in the end, that promotion, what appears to be a promotion, actually makes us more money than it cost us. So sometimes promotions appear to be discounts but actually may not be.

所以我對此有兩個想法，埃里克。我明白你的意思。我們確實做了一些有趣的新促銷活動，我認為這些促銷活動非常有利可圖。有一個晚上是一個空閒的夜晚，當你回來讓某人拿走另一張磁盤時，這樣他們就不會空手而歸，這似乎效果很好。我們還做了另一件事，您可以免費獲得第二張光盤。但當人們保留它們並支付幾晚的費用時，就會發生這樣的情況，並且有一個不錯的促銷。最後，這次促銷，看似促銷，實際上讓我們賺到的錢比花費的多。所以有時促銷看起來是折扣，但實際上可能不是。

In terms of what to do now. I want to see how many people start coming back. I'm going to be looking at session levels pretty closely because if I see -- if I don't see sessions starting to increase, then I might go the other way, Eric. I might do a day where every disc is free for one day, just to get all your people to go to the kiosks and rent because we do need to make sure -- we don't want to miss the opportunity to bring people back. If we just kept people where we are today and the basket size went up and the conversion rate went up, yes, we make these numbers. But shouldn't we try to do better is really the question.

就現在該做什麼而言。我想看看有多少人開始回來。我將非常密切地關注會話級別，因為如果我看到——如果我沒有看到會話開始增加，那麼我可能會採取其他方式，埃里克。我可能會有一天，每張光盤免費一天，只是為了讓所有的人都去亭子租，因為我們確實需要確保——我們不想錯過讓人們回來的機會。如果我們把員工留在今天的位置，購物籃規模增加，轉化率上升，是的，我們會取得這些數字。但我們是否應該努力做得更好才是真正的問題。

So maybe some kind of cool promotion might be a good way to get people back who have not come back. So I think we're thinking about both approaches. Obviously, we don't want to be giving discounts forever and thereby costing ourselves money. But there are some things that some promotions might actually do for us that make sense. I hope that answers your question.

因此，也許某種很酷的促銷活動可能是讓那些還沒有回來的人回來的好方法。所以我認為我們正在考慮這兩種方法。顯然，我們不想永遠提供折扣，從而浪費自己的錢。但有些促銷活動實際上可能為我們帶來一些有意義的事情。我希望這能回答你的問題。

And our next question will come from the line of Brian Kinstlinger with AGP.

我們的下一個問題將來自 AGP 的 Brian Kinstlinger。

You made announcements that you're increasing your -- with kiosks, one was with Dollar General, the other, I think, was unnamed. So my first question is, can you talk about when you expect each of those moves to largely be complete?

你們宣布要增加信息亭，其中一個是 Dollar General，另一個我認為是未命名的。所以我的第一個問題是，你能談談你預計這些舉措何時能基本完成嗎？

And then my follow-up question is you look back in 2018 and 2019, what was the average contribution from a major title during the first 6 months when it hit your kiosk? And how long generally do rentals stay at elevated levels?

然後我的後續問題是，您回顧 2018 年和 2019 年，一個主要遊戲在您的信息亭上架的前 6 個月內的平均貢獻是多少？租金通常會維持在較高水平多久？

Okay. You asked about Dollar General and what else? What was the other one?

好的。您詢問了 Dollar General 以及其他什麼？另一件是什麼？

The other one, I think, was unnamed because you said you were -- in the press release. So basically both of those.

我想，另一個人沒有透露姓名，因為你在新聞稿中說過你是。所以基本上都是這兩個。

Okay. So 1,000 of the Dollar General kiosks should be in by the end of the year and 500 should go in early next year. So they go in a couple -- they go on 100 and then a couple of hundred a month for a while and then 100, 100, 100. So it's probably 300 in the first half of the year and 700 in the second half, Brian. And the other one, I don't have the schedule in front of me, but we can give it to you later.

好的。因此，到今年年底，Dollar General 的售貨亭將投入使用 1,000 個，明年初將投入使用 500 個。所以他們會一對一地進行——他們會先每月 100 個，然後一段時間每月幾百個，然後是 100、100、100。所以，上半年可能是 300，下半年可能是 700，布萊恩。另一方面，我面前沒有時間表，但我們可以稍後給你。

I have no idea what happened in 2018 when a new title came out. So we're going to have to go back and try to talk to somebody who has kept those kind of records for us and see if we can find that for you. I understand the question. I mean, what we focused on more is what's happened in the last year when the new titles come out. And there, we've seen a threefold increase in rentals in the first couple of weeks for those titles over the -- before those titles were there. So they drive a very significant increase in rentals, very significant. And I'm going to...

我不知道 2018 年新遊戲問世時發生了什麼。因此，我們將不得不回去嘗試與為我們保留此類記錄的人交談，看看我們是否能為您找到這些記錄。我明白這個問題。我的意思是，我們更關注的是去年新遊戲推出時發生的事情。在那裡，我們看到這些遊戲的租金在最初幾週內比這些遊戲出現之前增加了三倍。因此，他們推動了租金的大幅增長，非常顯著。我要...

Maybe a different way to put it, and then I'll get back, is maybe in the last year, 1.5 years as a new title has been added to your kiosks, what has been the average contribution in that, say, first couple of months?

也許用不同的方式來表達，然後我會回來，也許是在去年，1.5 年，當一個新的標題被添加到你的信息亭時，平均貢獻是多少，比如說，前幾個幾個月？

I don't really know how to answer that either. What we've done is we've seen the overall impact. If you mean the overall impact as compared -- are you talking about individual title or overall impact, Brian? What are you trying to...

我也實在不知道該怎麼回答。我們所做的是我們已經看到了總體影響。如果你指的是比較的整體影響——你是在談論個人頭銜還是整體影響，布萊恩？你想做什麼...

Individual titles. I mean, you're adding 48 new titles of which you mentioned how many are majors. I don't have the exact numbers. So does a new title add $10 million in rentals during the first month or 2? Does it add significantly less? Obviously, I have no idea, so my numbers may be way off.

個人頭銜。我的意思是，您添加了 48 個新標題，其中您提到了其中有多少是專業的。我沒有確切的數字。那麼，新遊戲第一個月或第二個月的租金會增加 1000 萬美元嗎？它的添加量是否顯著減少？顯然，我不知道，所以我的數字可能相差很大。

No, It's not that kind of number. It's lower than that. I'll need to -- we're going to have to go look in order to give you an accurate answer. I don't have that information quite that way. What I have -- what I have seen is the increase in overall performance has been very dramatic. And I feel like that's probably the more important thing as compared to the individual titles.

不，不是那樣的數字。比那個低。我需要——我們必須去看看才能給你一個準確的答案。我沒有這樣的信息。我所看到的是整體性能的提高非常顯著。我覺得這可能比個人頭銜更重要。

Although no, I think that when you start to have the kind of cadence that we're about to have that you're going to have kind of a buildup of rental activity that compounds rather than just goes title by title because when people come back, if there's something they want to rent, they will rent it. Whereas up until now, they've come back and there's been nothing to rent that they really wanted, that they recognized.

雖然不是，但我認為，當你開始有我們即將擁有的那種節奏時，你將會有一種租賃活動的積累，這種租賃活動會復合，而不僅僅是一個又一個的標題，因為當人們回來時，如果他們想租什麼東西，他們就會租。然而直到現在，他們回來了，卻沒有找到他們真正想要的、他們認識到的可出租的東西。

Now when you have -- you take a look at something like this where you're going to have Ant-Man and Creed and Shazam and Dungeons & Dragons, all in the boxes, all at the same time more or less for the first time. And people come and rent one, and they come back and they say, oh, I wanted to see this other one, too. They'll rent that, whereas before, there was no other one they wanted to see.

現在，當你看到這樣的東西時，你將擁有《蟻人》、《信條》、《雷霆沙贊》和《龍與地下城》，所有這些都在盒子裡，或多或少是第一次同時出現。 。人們來租一間，回來後說，哦，我也想看看另一間。他們會租用那間房子，而在此之前，他們沒有想看的其他房子。

And so I think it's really more of a compounding effect from having a good group of titles in the box. We have a slide in our presentation deck. I can't remember what the -- it's a picture with all of the covers of the DVDs. That slide, to me, is the visual representation of what is about to happen, where you're going to come to our kiosk and instead of seeing 1, 2 or 3 covers that you recognize, you're going to see 30 that you recognize or that you wanted to see. It's 11. Slide #11. I suggest everybody look at it because if you can imagine going to a rental kiosk with that screen as the opening screen compared to what there has been for the last year, which is 1, 2 or 3 movies that you would have recognized, and then 25 or 26 that you never heard of, it's a completely different experience for the person coming to rent. So...

所以我認為這實際上更多的是因為盒子裡有一組好的遊戲而產生的複合效應。我們的演示文稿中有一張幻燈片。我不記得是什麼了——這是一張包含所有 DVD 封面的圖片。對我來說，這張幻燈片是即將發生的事情的視覺表示，您將來到我們的信息亭，而不是看到您認識的 1、2 或 3 個封面，您將看到 30 個您熟悉的封面。認識或你想看到的。現在是 11。幻燈片 #11。我建議每個人都看看它，因為如果你能想像去一個以該屏幕作為開頭屏幕的租賃亭，與去年的屏幕相比，你會認出 1、2 或 3 部電影，然後你從未聽說過的25或26，對於來租房的人來說是完全不同的體驗。所以...

And our next question comes from Dan Kurnos with the Benchmark Company.

我們的下一個問題來自 Benchmark 公司的 Dan Kurnos。

So we'll take them one at a time to keep it simple. ACS certification has been pretty involved lately. It's a nice new add-on in the release, access to the Amazon DSP, which it seems like they're opening. Kind of interesting what's going on in sort of the broader DSP SSD market right now, but kind of your thoughts on sort of either the consolidation on both of those sides of the equation, what it means for demand sources for you or incremental opportunities to be sort of a kind of premier partner with the right demand providers?

因此，為了簡單起見，我們將一次只處理一個。 ACS 認證最近非常活躍。這是該版本中一個不錯的新附加組件，可以訪問 Amazon DSP，看起來他們正在開放。目前更廣泛的 DSP SSD 市場正在發生的事情有點有趣，但是您對等式兩邊的整合有何想法，這對您的需求來源意味著什麼，或者增量機會某種與合適的需求提供者的首要合作夥伴？

Yes. So this comes back, I think, Dan, to the never-ending question of programmatic advertising versus direct sales one way or the other. What keeps us -- what I think keeps us interesting to the -- what you call, demand sources is the fact that we don't really need them. And now that we're consolidating so many AVODs in our little network, I don't know how else to describe it in Crackle Connex, we become a more and more important potential customer for them. And we're seeing that manifest itself in a couple of different ways.

是的。所以，丹，我認為這又回到了程序化廣告與直接銷售之間永無休止的問題。是什麼讓我們——我認為讓我們對——你所說的需求來源感興趣，是因為我們並不真正需要它們。現在我們在我們的小網絡中整合瞭如此多的 AVOD，我不知道如何在 Crackle Connex 中描述它，我們成為他們越來越重要的潛在客戶。我們看到這以幾種不同的方式體現出來。

But I probably I am not going to be able -- I probably shouldn't go into it because it's stuff that is kind of -- I think it's confidential stuff. We should keep it confidential. But I will say this, our relationship with those parties are getting stronger, and it makes sense because we've got 22 partners now who are buying through us. And a lot of them are buying programmatically as well as direct. So what's your next question, Dan?

但我可能無法——我可能不應該討論它，因為它是——我認為這是機密的東西。我們應該保密。但我要說的是，我們與這些各方的關係正在變得越來越牢固，這是有道理的，因為我們現在有 22 個合作夥伴通過我們進行購買。他們中的很多人都通過程序化和直接方式購買。那麼你的下一個問題是什麼，丹？

I guess, in general, Bill, just your thoughts on the impact of the writer strike? Fewer green lit programs. It's kind of an interesting dynamic because sort of fewer major titles are being ordered as all of the -- we've talked about this, what, 100 times, Bill, with the streaming losses?

我想，總的來說，比爾，您對作家罷工的影響有何看法？綠燈節目較少。這是一種有趣的動態，因為隨著流媒體損失，我們已經討論過這個問題 100 遍了，比爾，訂購的主要影片有所減少？

But the flip side is that there's really not been a flow-through to legacy libraries because they're having to monetize them more frequently, so the lower -- I wouldn't call it lower end, but I guess the legacy stuff is actually going for less per episode than the premium stuff is going for more per episode. So is that impacting you? And are they trying to do anything with the economics to try to save their own hides at this point?

但另一方面是，確實沒有流向遺留庫，因為他們必須更頻繁地通過它們獲利，所以較低的——我不會稱之為低端，但我想遺留的東西實際上是每集的費用比高級內容的費用要低，而每集的費用會更高。那麼這對你有影響嗎？他們現在是否正在嘗試在經濟上採取任何措施來挽救自己的利益？

What's the day? Which day are you talking about, Dan, because there's a lot of days...

今天是什麼日子？你說的是哪一天，丹，因為有很多天......

Take a streamer content provider that's losing a lot of money, Bill.

以一家虧損大量資金的流媒體內容提供商為例，比爾。

Yes. So yes, they are. They are trying to do things. I mean, it's manifested itself in a bunch of different ways, Dan. So a number of these guys have gotten aggressive in the FAST business, setting up their own FAST networks. And that actually is -- I'm glad you asked me that question because I wanted to focus on the fact that we announced a pretty important deal this morning with AMC to bring some of the most important FAST channels that are out there to our FAST service, including The Walking Dead, which a lot of you probably know is a pretty popular show, and it's now available for free on our Redbox Live TV service, along with Portlandia and some others.

是的。所以是的，他們是。他們正在努力做事。我的意思是，它以多種不同的方式表現出來，丹。因此，其中許多人在 FAST 業務中積極進取，建立了自己的 FAST 網絡。事實上，我很高興你問我這個問題，因為我想重點關注這樣一個事實：我們今天早上宣布與 AMC 達成一項非常重要的協議，將一些最重要的 FAST 頻道引入我們的 FAST服務，包括《行屍走肉》，你們很多人可能都知道這是一個非常受歡迎的節目，它現在可以在我們的 Redbox Live TV 服務上免費觀看，還有《波特蘭迪亞》和其他一些節目。

But this is a good example of the sort of taking high-quality content and using it in a variety of different ways to create money. And we benefit from that in the FAST business. And sometimes we're the victim of it in the VOD business, Dan, in the AVOD business, where they come at us with looking for bigger amounts, and we just don't pay for it.

但這是獲取高質量內容並以各種不同方式使用它來賺錢的一個很好的例子。我們從 FAST 業務中受益。有時我們是 VOD 業務的受害者，Dan，在 AVOD 業務中，他們向我們尋求更大的金額，而我們只是不付錢。

But I feel a little bit protected there because of the size of our library and the fact that with 65,000 assets, a guy who runs content for us, Phil Oppenheim, is pretty talented, can curate that very large library and keep things feeling fresh and looking good and keeping it topical like we do as I think we just did some stuff on the King, used to say the Queen, but now the King, King Charles. And other things that are timely, but also given the size of our library, allow us to generate some real money.

但我覺得那裡受到了一點保護，因為我們圖書館的規模很大，而且擁有 65,000 項資源，為我們管理內容的菲爾·奧本海姆 (Phil Oppenheim) 非常有才華，他可以管理這個非常大的圖書館，讓一切都感覺新鮮和新鮮。看起來不錯，並保持話題性，就像我們所做的那樣，因為我認為我們只是在國王上做了一些事情，過去常說女王，但現在是國王，查爾斯國王。以及其他及時的事情，而且考慮到我們圖書館的規模，讓我們能夠賺到一些真正的錢。

So that kind of cuts both ways. We're a little protected by the size of our library. We're a little disappointed with some of the asks that some of the studios have had. I think it's going to be interesting to see what Disney does now that they're really pulling stuff down off of Disney+. And if they're going to start making that available in AVOD and FAST, that would be good stuff to get our arms around. So we'd certainly try to figure out how we could participate in that.

所以這是雙向的。我們的圖書館規模有點保護我們。我們對一些工作室提出的一些要求感到有點失望。我認為看看迪士尼現在所做的事情會很有趣，因為他們真的從迪士尼+上撤下了東西。如果他們打算開始在 AVOD 和 FAST 中提供該功能，那將是值得我們關注的好東西。因此，我們當然會嘗試找出如何參與其中。

[Water] has really started at all, as I think everybody knows by taking their library and saying, we're going to make money, which of course, is a very smart idea in a business. And I see Disney following pretty closely. So there's a lot of cross stuff that's going on there.

[水] 已經真正開始了，我想每個人都知道，通過帶著他們的圖書館說，我們要賺錢，這當然是一個非常聰明的商業想法。我認為迪士尼緊隨其後。所以那裡發生了很多交叉的事情。

Nothing like being applauded, Bill, for making $50 million in streaming, and losing $1 billion in legacy. But that's a conversation for another time.

比爾，在流媒體上賺了 5000 萬美元，卻在遺產上損失了 10 億美元，沒有什麼比這更值得稱讚的了。但這是另一次談話了。

And our next question will come from the line of Mike Grondahl with Northland Securities.

我們的下一個問題將來自 Northland Securities 的 Mike Grondahl。

This is Michael Pochucha on for Mike Grondahl. Maybe first, just on the new licensing deal announced this afternoon. Is there anything to follow up there that's different from other deals and structure or any user base, geographies, et cetera?

我是邁克·格隆達爾 (Mike Grondahl) 的邁克爾·波丘查 (Michael Pochucha)。也許首先是今天下午宣布的新許可協議。是否有什麼與其他交易和結構或任何用戶群、地理位置等不同的地方需要跟進？

So yes, that's -- I'm glad you asked that question. I'm actually pretty excited about the relationship with TaTaTu. For those of you who don't know who TaTaTu is, they're a very fast-growing, highly valued, well-respected social media, AVOD/social media company out of Europe, which is rapidly expanding around the world.

所以是的，那就是——我很高興你問了這個問題。事實上，我對與 TaTaTu 的關係感到非常興奮。對於那些不知道 TaTaTu 是誰的人來說，他們是一家發展非常快、價值很高、備受尊敬的歐洲社交媒體、AVOD/社交媒體公司，正在全球範圍內迅速擴張。

They needed content and they came to us and we made a deal for them to rent partial -- some limited use in our library for money over time. But I think the more important thing is we really think highly of their service, and I hope that we're going to be able to -- I'm thinking we're going to be able to incorporate what they do into what we do. And the reason that's exciting to me is if you look at the way Disney and others are charging more and providing less, this TaTaTu approaches rewards people for engaging with content. It gives them a way to earn coins and use less coins to obtain items at a discount and some things for free.

他們需要內容，他們來找我們，我們與他們達成協議，租用部分內容——隨著時間的推移，他們可以在我們的圖書館中有限地使用一些內容。但我認為更重要的是我們確實高度評價他們的服務，我希望我們能夠——我認為我們能夠將他們所做的事情融入到我們所做的事情中。讓我興奮的原因是，如果你看看迪士尼和其他公司收取更多費用而提供更少的方式，就會發現這種 TaTaTu 方法獎勵人們參與內容。它為他們提供了一種賺取金幣的方式，並使用更少的金幣來獲得折扣商品和免費的東西。

It's really the flip of charging more and giving less. It's charging less and actually rewarding people for being loyal viewers of your network. And I'm thinking we will end up trying very hard to be the first and maybe only AVOD that actually is able to use their service in this country. And that's really what I'm hoping for in that relationship. And hopefully, we'll get back to you on that in the next few days.

這實際上是多收費、少給予的翻轉。它收費更少，而且實際上獎勵那些成為您網絡的忠實觀眾的人。我想我們最終會非常努力地成為第一個，也許是唯一一個真正能夠在這個國家使用他們的服務的 AVOD。這正是我在這段關係中所希望的。希望我們能在接下來的幾天內回复您。

But it's kind of a normal licensing deal other than that -- other than the fact that it's really will follow them all around the world, and they'll be a way that we can expand internationally without having to invest in the kind of money that we would otherwise have to invest if we were doing it on our own. So it gives us a gives us sort of a network to ride around the world, which we're excited about.

但這是一種正常的許可協議，除此之外——除了它確實會在世界各地跟隨它們這一事實之外，它們將是我們可以在國際上擴張的一種方式，而無需投資那些資金如果我們自己做的話，我們就必須投資。因此，它為我們提供了一個可以環遊世界的網絡，對此我們感到很興奮。

Got it. That's helpful. And then maybe just on the internal ad rep sales team general thoughts there around capacity. Is that kind of sweet spot to grow this year?

知道了。這很有幫助。然後也許只是內部廣告代表銷售團隊對容量的總體看法。這是今年增長的最佳點嗎？

When you say capacity, I mean the ability to continue to handle more of these AVODs or something different?

當您說容量時，我指的是繼續處理更多此類 AVOD 或其他其他內容的能力？

Yes, just kind of sales team capacity there.

是的，只是銷售團隊的能力。

Yes. Look, the sales team -- the interesting thing about selling ads is there's not really that many places you sell them when you get right down to it. There are a handful of really big agencies that really make a difference. And our people call on various agencies. So if they have more to sell, it's not like they call on a different party. They call on the same party, but they have more to sell. So their ability to sell is only limited really by what they have to sell, not by their time.

是的。看，銷售團隊 - 銷售廣告的有趣之處在於，當您認真對待它時，實際上並沒有那麼多地方可以銷售廣告。有一些真正發揮作用的大型機構。我們的人民呼籲各個機構。因此，如果他們有更多的東西要賣，他們就不會去拜訪不同的一方。他們拜訪同一方，但他們有更多的東西可以賣。因此，他們的銷售能力實際上僅受他們所銷售的產品的限制，而不是受他們的時間的限制。

So we could add many, many more AVODs to our world, represent their ads and go to the same buyers and just sell larger amounts of advertising, which, of course, is our goal. And that's really what's happened if you look at our business over the last couple of years, we've added more and more ad revenue in part because we've had more and more ads to sell, and we've had that both because our owned and operated networks were growing. We were adding the FAST networks and we had additional inventory from our ad rep partners.

因此，我們可以在我們的世界中添加更多的 AVOD，代表他們的廣告並向相同的買家提供服務，然後銷售更多的廣告，這當然是我們的目標。如果你看看過去幾年我們的業務，這確實是發生的事情，我們增加了越來越多的廣告收入，部分原因是我們有越來越多的廣告可供銷售，而且我們之所以這樣做，是因為我們的擁有和運營的網絡正在增長。我們正在添加 FAST 網絡，並且我們從廣告代表合作夥伴那裡獲得了額外的庫存。

And the combination of those 3 things leads to greater revenue and greater profitability in the AVOD business. So I don't think we have much of a capacity issue at all. It feels to me like it'd be quite easy for this group of people to sell a lot more. They're really good at what they do. And they're led by Darren Olive and he reports to Philippe Guelton, who is the Chief Revenue Officer. And those are extraordinary executives who really do a wonderful job. So I think there's plenty more to come.

這三件事的結合可以為 AVOD 業務帶來更大的收入和更高的盈利能力。所以我認為我們根本不存在太大的容量問題。我覺得這群人很容易賣得更多。他們真的很擅長他們所做的事情。他們由 Darren Olive 領導，他向首席營收官 Philippe Guelton 匯報。這些都是非凡的高管，他們的工作確實非常出色。所以我認為還有更多的事情要做。

Well, I've got 3 more minutes. So do we have another question?

好吧，我還有 3 分鐘時間。那麼我們還有另一個問題嗎？

No more questions. Thank you for all of your questions. This concludes today's conference call. Thank you for participating. You may now disconnect. Everyone, have a wonderful day.

別再問問題了。感謝您提出的所有問題。今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。祝大家度過美好的一天。

Thank you.

謝謝。