Hollywood Stock Review

Following and Finding Hollywood's Top Performing Stocks.

Roland Perry

Platinum Studios (PDOS), Completes WOWIO Acquisition.

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Hollywood Stock Review Online, Monday 7/07/2008.

Chicago 71...90F. Cloudy.
Los Angeles 65...82F. Fair. (200)
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Table Of Contents:

1. Platinum Studios (PDOS) $0.12, Completes WOWIO Acquisition.
2. Harvard Group takes fresh Look at Orranic Alliance (ORGC) $1.00
3. Disclaimer.

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Hollywood Stock Review. http://hollywoodstockreview.ning.com/

1. Platinum Studios (PDOS) $0.12, Completes WOWIO Acquisition.

http://www.knobias.com/individual/public/quote.htm?aff=SAMPLE&ticker=pdos

8K out today on Platinum completing the previously announced WOWIO acquisition.

http://tinyurl.com/PDOS-8K

WOWIO has an absolute ingenious business model in our opinion and we are excited that Platinum Studios (PDOS) has made the acquisition. The deal was for stock and an earn out. Appropriate lock-ups were set forth.

What WOWIO is doing -- is digitizing books from publishers (creators) and then embedding ads in the books -- and then sharing the revenues from those ads with the creator. The books are available for downloading -- for free.

To use purely hypothetical math, let's say you wrote a book about the stock-market and shorting Fannie Mae. WOWIO goes to Fidelity Investments and offers to place an ad in the book, $1 for each book downloaded. Then lets assume the author was interviewed on CNBC and suddenly 200,000 people download the book. It's free remember. It could be 2 million (if CNBC had that many viewers).

WOWIO cuts $0.50 to the creator, who makes $100,000 and then pockets $100,000. So simple. So ingenius. So Internet. So "why didn't we think of that." And so much "better than pay-per-download."

AND WHAT REALLY excites us is we can imagine in the future -- where they can carry interactive ads. Say on page four as an example, a video interview with Peter Lynch. And on page 12 is another interactive ad from Fidelity, where you get a discount on stock commissions, by clicking on a form and filling out an account application !

In fact, we think we'll write a few books.

The possibilities are endless. And in the comic-book field, this may seal Platinum's position as the "must-see" firm, for comic creators.

Compare this to the bricks and mortar world, to get the big picture. What if you wanted to publish a magazine and offer it out for free, knowing that the majority of revenues would come from the advertisers, not the cover price of the magazine.

In a practical sense, the problems are the printing costs and distribution costs. How is the retailer going to be compensated for carrying a free magazine ? And then billing the advertisers would be a logistical nightmare.

Here are a few tesimonials from people who used WOWIO to distribute their books, which we found on the Internet:

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"A sense of propriety keeps most people from talking about cash. Since mine is stunted, I’ll talk dollars. I started out on WOWIO in November last year. Since then, we have cleared about $10K on 15,000 free downloads. The best performer over time has been Bill Willingham’s PANTHEON script book. The best performer this quarter was SideChicks #1 which compiles my webcomic of the same name which runs on Graphic Smash.com. That material is what the Zuda books will look like when they ever hit print."

"WOWIO far out-performs sites like Drive Thru Comics which is a pay-per-download site. I think that WOWIO has proven that giving away ad-supported books works better as a business model than the pay per download sites."

Bill Williams: SideChicks- http://www.graphicsmash.com/comics/sidechicks.php

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"Actually, many people such as Chris Crosby have openly talked about the money they’ve made in forum posts. I have no problem disclosing numbers when asked. I’ve been on the site since April 2007, and my company has made almost $28,000 since then, most of which goes straight to the creators I publish. Crosby and a few others have made far more than that."

"I’m hoping that the new global Wowio means even better numbers for everyone."

Steve Horton

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"I’ve posted WOWIO revenue numbers publicly before for my companies (Blatant Comics/Keenspot), so I have no problem with giving an update on that. Since last August we’ve made $93,624.50 from 186,736 WOWIO downloads."

Chris Crosby

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Acquisition Press Release:

Platinum Studios Announces It Is in Negotiations to Acquire WOWIO, LLC
Monday June 30, 6:00 am ET

LOS ANGELES--(BUSINESS WIRE)--Platinum Studios, Inc. (OTCBB:PDOS - News), an entertainment company that controls an international library of more than 5,600 comic book characters which it adapts, produces and licenses for all forms of media, today announced that it is in negotiations to acquire WOWIO, LLC, a leading online source for downloading digital books and comics. This acquisition would continue the expansion of Platinum Studios’ global digital media distribution strategy.

Commenting on the attractiveness of WOWIO to Platinum Studios, Brian Altounian, Platinum’s President and COO, said, “WOWIO’s commitment to its motto, ‘free books + free minds,’ has driven the WOWIO team to create a national digital publishing distribution network, both in the comics and traditional publishing world, that brings together creators, publishers and sponsors in a way that allows authors and publishers to be paid, while providing readers access to free books.

http://biz.yahoo.com/bw/080630/20080630005541.html?.v=1

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