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In the midst of the pandemic last August, Clubhouse Media Group, Inc (OTCMKTS: CMGR) opened its first content house for shooting series and providing a space for influencers to collaborate. In the year since then, the company has expanded to a first-in-class, publicly traded business with a unique three-pronged strategy for driving revenue.
Clubhouse Media Group’s Story
In August 2020, Clubhouse Media Group (CMG) opened Clubhouse BH, a content house where influencers could collaborate on projects. “Collaboration is always key for influencers,” CMG President and Co-Founder Chris Young said in an interview with Stock Day Podcast. “It gets them to cross-pollinate and increase their following.”
Since then, the company has scaled rapidly, adding six more content houses. Today, these are still the core of CMG’s business. When brands like Boohoo (OTCMKTS:BHHOF) or Fashion Nova come to CMG looking to market with the company’s influencers, CMG can create the marketing content and distribute it through its influencers, all from these studios.
In addition to marketing and collaboration opportunities, the physical spaces act as a place influencers can come to get financial advice, insights on best practices for growing their brand, and other management services.
Through these talent management contracts, CMG gets free marketing from the influencers it signs — a deal that has netted the company an aggregate social media reach of more than 400 million followers.
A Focus on Rapid Expansion and Diverse Revenue Streams
The fast-paced, high-growth company has already gone beyond its seven content houses to add additional revenue streams to its business. Leveraging those spaces, for example, CMG has started filming a miniseries that will be distributed to stream services and developing other digital content that it licenses and distributes.
In addition to influencer management and its own content production, CMG has begun investing in software and social media businesses that align with its own strategy. This private equity division of the company is looking at joint venture and acquisition opportunities like Magiclytics, an influencer-based marketing and revenue prediction platform that CMG acquired in February.
It also seeks out social media accounts like The Tinder Blog, an Instagram-based meme account with 4.2 million followers and a net income of more than $1 million per year, which CMG executed a Letter of Intent to acquire in March.
With a network of content creation houses, a growing list of big-name influencers signed to its agency, and a rapidly expanding slate of synergistic software and social media companies in its portfolio, Clubhouse Media Group is building itself to become an influencer-based marketing and media empire unlike anything that’s come before it.
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