Color Star Technology Stock

Color Star Technology Co., Ltd. operates as an entertainment technology company with a global network that focuses on the application of technology and artificial intelligence in the entertainment industry.

The company primarily provides services via its wholly-owned subsidiaries, Color Metaverse Pte. Ltd. (Color Metaverse) and CACM Group NY, Inc. (CACM).

The ColorWorld Metaverse platform (Color World) is operated by Color Star DMCC. The company has signed contracts with well-known international artists and more than 50 celebrity teachers have been retained to launch online lectures. In January 2022, Color World was transformed into the current version, a metaverse with 'artificial intelligence + celebrity entertainment' as its core features. Since transforming into a metaverse platform, Color World has been inviting many global superstar celebrities to join the platform to expand on the celebrity content by creating more celebrity masterclasses, online virtual performances, celebrity merchandise, games and so on. The company keeps adding new modules to Color World to enrich the metaverse community. In the future, it plans to add more virtual locations, as well as digital products.

The company provides online entertainment performances and online innovative education through its wholly-owned subsidiaries, such as Color Metaverse and CACM.

Online Business

Online Education Academy

The curriculum development created by the company includes music, sports, animation, painting and calligraphy, film and television, life skills, etc., covering plenty of aspects of entertainment, sports, and culture. At present, it has signed contracts with well-known international artists and more than 50 celebrity teachers have been launched. The Color World platform not only has celebrity lectures, but also celebrity concert videos, celebrity peripheral products, and artist interactive communication. The platform focuses on the interactive participation of members and fans, making the platform more entertaining. Fans can interact with their idols, and they can also upload their own works for celebrity tutors and audiences across the network to watch comments. The celebrity live streaming section, which was launched on October 15, 2020, allows more celebrities to communicate and interact with the company's users through the Internet.

The Color World platform generates revenue primarily through paid fees priced at $9.90 per user per view of star teachers' video classes. There had been over 300,000 registered users as of June 30, 2023.

The company is well connected with artists from Asia to the U.S., and has built strategic partnerships with globally renowned record companies and entertainment agencies, such as Universal Music Group and Sony Music, which enable it to group a number of artists into its Color World platform and secure the rights to the exclusive streaming of online lessons taught by the star teachers. The company has entered into educational licensing and performance agreements with approximately over 50 global artists and professionals in industry for their services as instructors on the Color World platform, and are seeking out and contracting more star teachers in a variety of fields, such as music, film, sports, animation, television, presentations, dance, and art to provide its prospective student subscribers with a large repertoire of first-hand exposure to and lessons from professionals in their desired fields.

Online Concert

The company established its own music festival brand 'Color International Music Festival'. On September 9, 2020, the company broadcasted the Color World Online Concert with ten Eastern and ten Western top artists/celebrities, including Grammy-winning jazz guitarist Larry Carlton, R&B singer-songwriter Ashanti, and 'Pop Music Queen' Na Ying from mainland China to global audiences via the company's official platform 'Color World' and attracted over half a million viewers from mainland China and all over the world to watch online, reaching over 10 million hits on global social media networks. In 2021, the company held an online live concert featuring exclusive performance by Luo Dayou, the 'Godfather of Asian Music'. The performance has been well received by global audiences and highly recognized by the artist himself. On April 23, 2021, the company also launched an exclusive electronic music concert of the Top 100 DJ, Steve Aoki. This was the company's first attempt to provide online electronic music performances globally during the pandemic, and it has received favorable reviews from global music lovers and electronic music audiences.

Offline Business

Music Festival

The company may collaborate with multiple well-established music festival brands to co-organize music festivals with different genres over the next five years in different cities across Asia and beyond.

Artist Concerts and Tours

Live music events have been a staple of the company since its conception, and it also possesses its own ultra-modern concert stage that is capable of large motions in 3 dimensions and has advanced lighting and sound systems. The company may oversee the organization and production of music concerts and concert tours in cities all over the world for internationally well-known artists across different musical genres and with substantial amounts of fans. The company will claim full ownership of related copyrights and licenses of these concerts and tour projects.

The World Boxing Association (WBA) Boxing Matches

In the summer of 2023, the company announced a partnership with the WBA, which will allow it to organize WBA-approved boxing competitions. The first match took place in Dubai on the 26th of August 2023, where 6 prolific fighters competed for the WBA gold belt. In addition to the match tickets, the event was broadcasted on international and local television, and live streamed on various online platforms, such as Sina Sports and Tencent QQ Live. According to broadcasters, the competition garnered over 4 million viewers in total.

Strategy

The key element of the company's strategy includes capturing market share with an experienced management team and all-star instructor lineup.

Sales and Marketing

Marketing Channels

The company markets its course offerings and enhance brand awareness through various online and mobile channels. The company places advertisements and conducts marketing on mainstream social media platforms. At the same time, regarding its online education services, the company also generates sales leads from word-of-mouth referrals by its students and parents of students.

A unique approach for the online concert promotions was adopted by the company where ticket prices were initially set very low with additional opportunities for purchasers to take part in the distribution of ticket sales in order to receive referral rewards. This indirect ticket sales model, and a large amount of resulting passive income, promises more diversified marketing strategies for online music.

Intellectual Property

As of June 30, 2023, the company had one copyright and one domain name: www.colorstarinternational.com.

Research and Development

During the year ended June 30, 2023, the company spent approximately $0.1 million on the development of augmented reality functions in its out Color World App and maintaining its online education academy App, Color World internally.

Acquisitions

On August 11, 2022, Color Star Technology Ohio Inc. (Color Star Ohio) was incorporated in the state of Ohio and is 100% owned by the company.

On January 23, 2023, Color Star DMCC (DMCC) was incorporated in the United Arab Emirates and is 100% owned by the company. DMCC was established to carry out the music industry business in Color Sky after the Disposition.

On August 9, 2023, Model Queen Limited (Model Queen) was incorporated in Hong Kong Special Administrative Region and is 100% owned by the company.

On September 14, 2023, Hainan Yuhai Entertainment Co. Ltd. (Color Star Hainan) was incorporated in the Hainan Province of the People's Republic of China (PRC) and is 100% owned by Model Queen. Color Star Hainan was established to carry out the entertainment industry business in PRC.

Dispositions

On February 3, 2023, the company disposed Color Sky Entertainment Limited (Color Sky).

On December 16, 2022, the company's subsidiary, Modern Pleasure International Limited, was dissolved.

History

The company was founded in 2002. It was formerly known as Huitao Technology Co., Ltd. and changed its name to Color Star Technology Co., Ltd. in 2020.