This Children's Media Company Says It Believes In Balancing Short-Term And Long-Term Success

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How is the success of a business measured? The answer to that question will vary depending on whether the key performance indicators are predicated on short- or long-term success. Short-term success can often be measured by looking at a business’ financials; however, that approach could easily overlook a company’s long-term prospects for success.

One possible indicator of an organization’s growth can be seen through the lens of its  acquisitions. While not always obvious or strong out of the gate, acquisitions can sometimes give a company a competitive edge by adding to its pool of technologies, capabilities, and more. For instance, when Verizon Communications Inc. VZ bought Vodafone Group Plc’s VOD 45% stake in Verizon Wireless in 2014, Verizon reported increasingly good performance in the years that followed. Some believe that the company’s increase in success can, in no small measure, be attributed to the savvy acquisition it made.

Grom Social Enterprises Inc. GROM aims to serve the entertainment and digital social needs of today’s kids and their families through content that is designed to deliver  immediate benefits. Grom, however, is also keeping its sights on future products, services, content and platforms that demonstrate the potential to evolve into significant additional revenue opportunities. 

Short-Term Success?

In 2016, Grom-acquired animation house Top Draw Animation, an award-winning operation focusing primarily on two-dimensional (2D) animated content production. Top Draw has been an industry player since 1999 and produces over 250 animated half-hour episodes each year. 

Some of the global entertainment brands that rely on Top Draw include boldface brands such as Walt Disney Co. DIS, Nickelodeon (owned by Paramount, formerly ViacomCBS) PARAA PARA PARAP, and Warner Bros. Entertainment Inc.’s T Cartoon Network. The company maintained a competitive edge throughout the pandemic by being nimble and pivoting to ensure its technology and staff kept the engine running through a well-supported remote work system, high functioning operational procedures and an extraordinary organizational culture anchored in loyalty and excellent team work ethic. 

Recently, Top Draw announced that it has inked a production agreement with an international programming supplier, a deal that will see Top Draw generate an additional $950,000 in revenue. The announcement followed several other lucrative, high profile assignments the studio has secured over the past several months.

Among Grom’s assets include Curiosity Ink Media’s Santa.com, a robust online digital hub designed to bring maximum holiday joy to family and friends. The platform, which soft-launched in late 2021, delivers a wide range of holiday-themed content and will be significantly bolstered this year with the introduction of ecommerce, for which, Grom has its eyes set squarely on new revenue streams and creating long-term, sustainable enterprise value.

Grom’s Curiosity Ink Media has a broad catalog of Intellectual Property (IP) development that the company says is designed to accrue ongoing value through ownership, distribution, partnerships, and new and emerging market opportunities. Grom points to Curiosity’s Baldwin’s Big Adventure as a model for the company’s development franchise properties in the Kids and Family entertainment arena. The vision is to debut Baldwin as a book, grow consumer awareness, upgrade the property to a series and cultivate a hit in the very lucrative preschool market. Marketers place a high value on toddlers, as successful entertainment franchise properties will often generate strong revenue streams in areas like consumer products, on-pack branding, marketing, global licensing and – when a major success – live touring.

And it’s not just about Baldwin. Last year, Curiosity unveiled plans to kick off a new IP franchise, Thunderous, about an Indigenous teenager’s journey to understanding how her family’s rich heritage provides the clues she needs to survive. Thunderous debuts as a graphic novel in late April. The creativity doesn’t stop there. Another property in active development is The Legion of Forgettable Supervillains, a series about a group of failed superheroes who learn the only way to survive is to pivot. In each of these properties, Curiosity has teamed up with publishing power house, Dynamite Entertainment to bring these franchises to readers everywhere. 

Long-Term Success?

Grom believes its media and content acquisitions will yield sustainable long-term success. The purchase of Top Draw in 2016 and welcoming of Curiosity Ink Media in 2021 provide two examples of the company’s investment and growth strategy. Curiosity, in particular, has several original IP franchises that Grom believes will lead to new revenue opportunities and generate shareholder value.

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.

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