Profile: Metro Global Media Inc (MGMA.PK)
12 Feb 2019
Metro Global Media Inc. (Metro Global), incorporated in November 1987 under the name South Pointe Enterprises, is engaged in the production and distribution of erotic pre-recorded videocassettes, magazines, CD-ROMs, digital versatile discs (DVD) and other products. The Company operates through its wholly owned subsidiaries and operating divisions: Metro West Studios, Inc., (Metro Studios), Metro, Inc. - West Coast Division (Metro West), Metro International Distributors (Metro International), Amazing Media Group, Inc. (Amazing Media), AmazingDirect.com, Inc., Metro, Inc. - East Coast Division (Metro East) and Airborne for Men, LTD. (Airborne). In addition, Capital Video Corporation (CVC), which is wholly owned by the principal shareholder of Metro Global, operates 41 video and magazine retail stores either directly or through management service contracts with related parties. The locations are primarily in the Northeast and accounted for approximately 40% of the Company's net sales for the fiscal year ended May 26, 2001.
The Company produces and distributes erotic motion picture entertainment in the form of feature films, primarily on videocassettes and DVDs, and, additionally, publishes and distributes a variety of adult magazines and markets and distributes erotic entertainment through direct mail order, e-commerce and over the Internet. In September 1999, Metro Global discontinued the operations of Fanzine International, Inc. (Fanzine) and the Company's publishing segment. On September 29, 1999, the Company sold Fanzine back to its former shareholders and a corporation controlled by them.
Metro Global, through its subsidiary, Rocket Media Group LLC, was a 50% partner in Maxstone Media Group, LLC. (Maxstone), a producer and distributor of newsstand magazines. During the end of fiscal 2000 and the beginning of fiscal 2001, the Company phased out the Maxstone operation.
Metro West Studios, Inc.
Through Metro West Studios, Inc., the Company produces and distributes erotic motion picture entertainment, commonly referred to as adult entertainment. This includes the production and financing of feature films (full length motion pictures produced on film), feature videos (full-length motion pictures produced on videotape) and video compilations, distributed primarily on videocassettes and DVDs. In addition, adult entertainment includes the distribution of pay television and cable/satellite programming, and the ownership and administration of film copyrights. Metro Global produces films and videos either independently or under arrangements with other producers, and is generally the principal source of financing for these motion pictures. Additionally, the Company purchases outright or licenses for distribution completed films and videos produced by others. Acquired distribution rights may be limited to specified territories, specified media and/or particular periods of time. The Company owns or has distribution rights to a library of approximately 4,000 titles, primarily available on videocassette, and includes the Cal Vista line, the Amazing Collection and 20 volumes of Taboo, an adult video series. Many of the Company's original motion picture programs have been re-edited and licensed to cable television operators. During fiscal 2001, Metro Global released four new feature films, 107 feature videos and 233 video compilations for a total of 344 new releases.
In July 1999, the Company entered into a seven-year licensing and production deal with New Frontier Media, Inc. (New Frontier), an adult satellite network company. New Frontier operates TeN: The Erotic Network and the Extasy Network, which consists of three 24-hour, direct-to-home satellite channels and the Pleasure channels. The licensing arrangement allows New Frontier to utilize certain rights on Metro Global's adult film and video library for all formats of electronic delivery.
Metro Inc. - West Coast Division (Metro West)
Metro West, the Company's West Coast division, located in Chatsworth, California, duplicates, manufactures, warehouses and distributes exclusively all of Metro Studio's productions on VHS and DVD formats. The Company creates and designs all artwork for promotional items and packaging and contracts for printing services. Metro Global released 140 DVD titles during fiscal 2001.
Metro International, Inc. (Metro International)
The Company's wholly owned subsidiary, Metro International, operates an international sales office in Flensburg, Germany, to handle the sales of video rights in Europe, South America and Australia. In addition to the sale of video rights, this office sells Metro Global's videos and DVDs in Europe. Metro International generated approximately 3% of the Company's consolidated revenue from continuing operations during the fiscal year ended May 26, 2001.
Amazon Media Group, Inc. (Amazing Media)
The Company, through its Amazing Media subsidiary, publishes and distributes a variety of adult magazines under various trade names, which it distributes through wholesalers located throughout the United States and internationally. Amazing Media capitalizes on Metro Global's extensive library by reproducing stills, frames or other duplicable media and transfers the content onto a printed publication, thereby maximizing the return on product costs incurred in producing films and videos. Amazing Media currently publishes 24 magazines, which are distributed on a bi-monthly or quarterly basis.
AmazingDirect.com, Inc., the Company's e-commerce and mail order business, allows customers to directly purchase from Metro Global's approximate 10,000 items inventory, including many produced by the Company. AmazingSex.com, the Company's subscription-based content viewing business, allows members to view full-screen, full-motion video clips of behind-the-scenes footage and scenes from upcoming releases, as well as the extensive content of the Company's video and still photo library.
Metro Inc. - East Coast Division (Metro East)
Metro East, located in Cranston, Rhode Island, is the distributor of adult products in the Northeast, servicing over 500 retail outlets throughout the Northeast and Mid-Atlantic regions. Metro East's warehouse holds an inventory of over 100,000 items that are delivered throughout the Northeast via Company-owned trucks. Metro East is the exclusive distributor of all Metro Global's products, and has distribution agreements with other video producers, such as Vivid Video, Wicked Pictures, VCA Pictures, Private Video, Adam and Eve and Hustler Video. Additionally, Metro represents national novelty and adult toy manufactures such as Doc Johnson Enterprises, California Exotic Novelties, Wet International and Topco, which represents the Hustler, Penthouse and Spice adult toy lines.
Metro East also distributes adult newspapers and magazines from all the major publishers such as LFP (Hustler Group), Playboy, Penthouse, Score Group and the Company's own publishing division, Amazing Media Group, Inc. Metro East also is in the business of manufacturing and distributing Video Viewing Centers to retail locations where a user can review videos and DVDs before purchase for a fee.
Airborne for Men, LTD. (Airborne)
Airborne engages in the sale of franchise and licensing rights to operate upscale adult-orientated retail stores. Each franchise/licensed operation carries all of the products distributed by the Company.
Metro Global Media Inc
1060 Park Ave
CRANSTON RI 02910-3225