This children’s media company says it believes in balancing short-term and long-term success

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How do you measure the success of a business? The answer to this question will vary depending on whether the KPIs are based on short-term or long-term success. Short-term success can often be measured by looking at a company’s finances; however, this approach could easily overlook a company’s prospects for long-term success.

A possible indicator of an organization’s growth can be seen through the prism of its acquisitions. Although not always obvious or solid from the start, acquisitions can sometimes give a company a competitive edge by adding to its pool of technologies, capabilities, and more. For example, when Verizon Communications Inc. (NYSE: VZ) purchased Vodafone Group Plc (NASDAQ: VOD) From a 45% stake in Verizon Wireless in 2014, Verizon performed increasingly well in the years that followed. Some believe that the increase in the company’s success can, in large measure, be attributed to the savvy acquisition it made.

Grom Social Enterprises Inc. (NASDAQ: GROM) aims to meet the digital social and entertainment needs of today’s children and their families with content designed to deliver immediate benefits. Grom, however, is also keeping its eye on future products, services, content and platforms that demonstrate the potential to evolve into significant incremental revenue opportunities.

Short-term success?

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

Some of the global entertainment brands that rely on Top Draw include bold brands such as Walt Disney Co. (NYSE: DIS), Nickelodeon (owned by Paramount, formerly ViacomCBS) (NASDAQ: PARAA) (NASDAQ: PARA) (NASDAQ: PARAP), and Warner Bros Entertainment Inc. (NYSE:T) cartoon network. The company maintained a competitive edge throughout the pandemic by being nimble and pivotal to ensure its technology and people kept the engine running through a well-supported remote work system, strong operating procedures and an extraordinary organizational culture rooted in loyalty and an excellent teamwork ethic. .

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

Grom’s strengths 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 launched in late 2021, offers a wide range of holiday-themed content and will be significantly boosted this year with the introduction of e-commerce, for which Grom has its sights set on new revenue streams. and creating long-term, sustainable business value.

Grom’s Curiosity Ink Media has a broad catalog of intellectual property (IP) development which the company believes is designed to drive continued value through new and emerging ownership, distribution, partnerships and market opportunities. . Grom points to Curiosity Baldwin’s Great Adventure as a model for the company’s development franchise properties in children’s and family entertainment. The vision is to debut Baudouin as a book, raise consumer awareness, improve serial ownership, and cultivate success in the highly lucrative preschool market. Marketers place a high value on toddlers, as successful entertainment franchises often generate strong revenue streams in areas such as consumer products, on-pack branding, marketing, global licensing and , in case of major success, live tours.

And it’s not just Baudouin. Last year, Curiosity unveiled plans to launch a new IP franchise, Thunderousabout an Indigenous teenager’s journey to understand how her family’s rich heritage provides her with the clues she needs to survive. Thunderous debuts as a graphic novel in late April. The creativity doesn’t stop there. Another property under active development is The Legion of Forgotten Villains, a series about a group of failed superheroes who learn that the only way to survive is to pivot. In each of these properties, Curiosity has partnered with publishing house Dynamite Entertainment to bring these franchises to readers around the world.

Long term success?

Grom believes its media and content acquisitions will produce long-term, sustainable success. The purchase of Top Draw in 2016 and the welcoming of Curiosity Ink Media in 2021 are 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 drive shareholder value.

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Cathy W. Howerton