1.
Webflix uses sometimes intellectual property of third parties in
creating some content, merchandising products and marketing
service which solely depends on studios, content providers and
other rights holders licensing rights, including distribution rights.
2. Legacy regulatory frameworks of different countries impact Webflix
services and may make operating in certain jurisdictions more
expensive or restrictive as to the content offering and may even
restrict the extent of ownership rights we can have both in our
service and in our content.
3. Introducing new or adjusting existing features, adjusting pricing or
service offerings, or changing the mix of content, acquiring BIRD'S
EYE VIEW OF CONTENT PROVIDER in new targeted segment or
market is crucial for the future dynamic changes as well as to
attract and retain existing members and new members.
4. Seasonality changes depicts membership growth.
5. Piracy, in particular, threatens to damage our business, as its
fundamental proposition to consumers is so compelling and difficult
to compete against: virtually all content for free.
6. Broadcasters and cable network operators, as well as internet based
e-commerce and new entrants such as Companies may have long
operating histories, large customer bases, strong brand recognition,
exclusive rights to certain content, large content libraries, and
significant financial, marketing and other resources which may be a
devastating threat.
7. Covid-19 pandemic and its numerous evolving factors by
government, business and individuals’ actions may effect our
members and consumer demand ability to pay for our services;
disrupt or restrict our employees’ ability to work and travel; disrupt
or increase costs associated with our development, production,
post- production, marketing and distribution of original
programming.
8. Difficulty of integrating solutions, operations, and personnel;
inheriting liabilities and exposure to litigation; failure to realize
anticipated benefits and expected synergies; and diversion of
management’s time and attention, among other acquisition-related
risks makes our M&A strategy unsuccesfull
9. Webflix relies on internal systems and those of third parties to
process payment which are subjected to certain rules, regulations,
and industry standards, including additional authentication
requirements for certain payment methods, and require payment of
interchange and other fees.
10. Litigation matters such as copyright and other claims related
to our content, patent infringement claims, tax litigation,
employment related litigation, as well as consumer and securities
class actions have negatively affected the operations and services
of our company.
11. Any significant disruption in or unauthorized access to our
computer systems or those of third parties that we utilize in our
operations, including those relating to cybersecurity or arising from
cyber-attacks, could result in a loss or degradation of service,
unauthorized disclosure of data, including member and corporate
information, or theft of intellectual property, including digital
content assets, which could adversely impact our business.
