What are the important characteristics that companies making acquisitions are looking for, especially when seeking out firms with disruptive business models? A disruptive company is one that creates a new market and seeks out different challenges.
To learn more, Digital Journal caught up with David Štýbr, CEO of Livento Group (OTC Pink: NUGN). Livento Group is a company that specializes in acquiring and developing companies with disruptive business models.
Digital Journal: Can you provide a brief background on Livento Group?
David Štýbr: Livento Group is an organization specializing in the identification and acquisition of companies and projects in high-value growth sectors. We are currently in the process of two IPOs, are continuously developing our own AI & machine learning portfolio system, and have started our own movie production company, BOXO Productions. We recently went public through a reverse merger with NuGene International, Inc., ticker symbol NUGN, which has increased our access to capital markets, created more funding options, and more opportunity for expansion. Our ultimate goal is to be listed on major global exchanges so large investors across the world can participate in our projects. We have already begun the process of uplisting and hope to be traded on a main exchange by mid-2023.
DJ: Why did the company decide to launch BOXO Productions earlier this year? What does the subsidiary do?
Štýbr: During 2021, we were presented with the opportunity to create a Hollywood production company with a long-established team of directors, actors and legal counsel in the film and television industry. Given their combined history of success over the last 18 years creating and packaging blockbuster movies (such as Ironman and The Irishmen) and our presentation to them of our vision for the future, we determined that the endeavor would be an extremely lucrative move.
The revenue consistency established by the producers over an extend period of time gave this project a very high probability of success with little to no risk. Industry leaders, Ara Keshishian, Martin Baran and Petr Jakl have a proven track record as an effective team and are known to work with legendary actors and Oscar winners. Together our aim is to produce high-value content to target audiences, while minimizing investor risk. We have already accumulated a roster of movie projects for this year and are in the process of launching our NUG token, which will be secured against movie profits. This is a huge move, because we are presenting a cryptocurrency model that will be one of the most secure investments in the sector. We have already outlined a three-year plan to triple its production each year and are well into the process of reaching that goal.
DJ: Can you discuss your first movie project and office opening in Prague?
Štýbr: We currently have three movies in production, with two already announced. They are in different stages of production, and all include top actors and directors. Our current list of actors includes legends and multiple Oscar winners such as Robert de Niro, Michael Caine and John Malkovich. We expect our Hollywood movies to produce $50 to $100 million USD in box office and home sales each. Additionally, we have already opened an office in Prague and plan to open another office in New York in the near future to expand operations.
DJ: What are the latest trends you are seeing in the entertainment industry? How does BOXO fit into this changing landscape?
Štýbr: The current market has shifted significantly to home sales and movies on demand. You can see the shift in A-list actors signing deals with Netflix, Prime Video and Disney+, because this has become the new norm resulting from the pandemic. The revenues from home sales far exceed traditional box office sales in the last five years, because the price of watching a newly-released movie from the comfort of your home is roughly double-to-triple the price of going to a physical theater.
We are seeing increased numbers of consumers choosing this option over traditional movie nights at the theater. According to analysts, this particular market is experiencing double the growth and is expected to increase exponentially in the short-term. The most recent Theatrical and Home Entertainment Market Environment (THEME) report by the Motion Picture Association states that the global film and television market increased to $328.2 billion in 2020, with home subscriptions going beyond the milestone of one billion. The global THEME, excluding pay-TV, grew an astounding 24% in 2021.
BOXO is delivering this content on demand to direct distributers. The distributor is pre-selling the movie to platforms, which secures BOXO’s investment. We have also noticed a significant and noteworthy trend emerge from the pandemic. Consumers are becoming significantly more interested in international films and television shows as opposed to local productions. BOXO intends to capitalize on this trend by making premium content from around the world more accessible to every home.
DJ: As the CEO of a company focused on disruptive business models, what guidance do you have for entrepreneurs and business leaders as they navigate today’s dynamic business environment?
Štýbr: I would say that today’s world full of information coming at us every second. One needs to focus on important trends and filter out the peripheral information to be effective. Becoming distracted in this age of information overload can only be mitigated by focus and speed of execution. That is what it takes to win. As Henry Ford said: “Vision without execution is just hallucination.” I believe this axiom is especially relevant in our times. Everyone sees new products, companies, visions, successes and failures in almost real-time and in order to be successful, one needs to focus on short-, mid- and long-term targets and form effective execution plans towards achieving those goals on time.
Great visions need to be deconstructed into measurable targets and executed with precision and speed, one after another. You hear about black swans in the market or in life. They are not so rare… everyone who is trying to build a business can tell you that!
