Traders and investors in the stock market are often on the lookout for sudden spikes in stock prices, especially when the reasons behind them are shrouded in mystery. One such case that has grabbed the attention of the investment community is the astounding surge of over 150% in Chicken Soup for the Soul Entertainment (NASDAQ: CSSE) stock, which occurred just two months ago.
In a press release dated February 5, 2024, Chicken Soup for the Soul Entertainment announced a groundbreaking joint venture with Swirl Films to relaunch the Ad-supported Video on Demand (AVOD) service FrightPIX as a Free Ad-supported Streaming Television (FAST) channel, a YouTube channel, and across other connected platforms. FrightPIX, touted as a haven for fans of creature features, zombies, thrillers, and creepy crimes, offers a handpicked selection of programs guaranteed to send shivers down viewers’ spines.
The deal entails Chicken Soup for the Soul Entertainment providing content from its Screen Media Ventures division, including elusive horror films, while Swirl Films will contribute its expertise in the independent film space. Swirl Films will also produce exclusive, original content for FrightPIX and oversee the channel’s management. This strategic move follows Chicken Soup for the Soul Entertainment’s recent Fuel TV joint venture, reflecting the company’s commitment to leveraging partnerships to drive additional revenues for its existing properties in 2024.
Elana Sofko, Chief Strategy Officer of Chicken Soup for the Soul Entertainment, expressed enthusiasm about the collaboration, emphasizing the popularity of creepy content among streaming audiences and the potential of the FrightPIX brand to captivate advertisers. Eric Tomosunas, CEO of Swirl Films / FrightPIX LLC, echoed this sentiment, highlighting the opportunity for his company to expand its content offerings and establish its own platform with FrightPIX.
The market’s bullish response to this announcement reflects investors’ confidence in Chicken Soup for the Soul Entertainment’s strategic vision and its ability to capitalize on the lucrative streaming market. As one of the largest Advertising-supported Video On Demand (AVOD) companies in the US, Chicken Soup for the Soul Entertainment operates three flagship AVOD streaming services: Redbox, Crackle, and Chicken Soup for the Soul. Additionally, the company operates Redbox Free Live TV, a Free Ad-supported Streaming Television service (FAST), a Transaction Video On Demand (TVOD) service, and a network of kiosks for DVD and Blu-ray rentals across the US.
While the precise catalyst behind CSSE’s remarkable surge may have initially confounded market observers, the announcement of the FrightPIX joint venture sheds light on the company’s strategic initiatives to expand its content offerings and capitalize on the growing demand for streaming entertainment. As Chicken Soup for the Soul Entertainment continues to innovate and forge strategic partnerships in the streaming space, investors will undoubtedly keep a close eye on its trajectory in the market.
