NEW YORK, NY - Dolphin (NASDAQ:DLPN), an established player in entertainment marketing and content production, has announced a partnership with Loti AI, a company specializing in artificial intelligence-driven likeness protection. The collaboration aims to safeguard Dolphin's clients, including brands, celebrities, and content creators, from unauthorized use of their intellectual property and likeness online.
The alliance provides Dolphin's clients access to Loti's proprietary AI tools that scan the internet for misappropriated content, offering a 95% effective takedown rate within 17 hours. This move marks Dolphin's strategic foray into the AI sector, with the potential to innovate across entertainment and marketing.
Loti's technology operates by scanning over 450 million images and video frames daily across various platforms, including social media, the public internet, and adult sites. It uses advanced AI to detect unauthorized likeness and initiate automated takedowns.
Bill O'Dowd, CEO of Dolphin, expressed excitement about the partnership's potential to expand service offerings and open new revenue streams. "Our partnership with Loti not only provides immense value to our clients in protecting their brands and IP but also opens up new revenue streams for Dolphin," O'Dowd stated.
Dolphin plans to collaborate with Loti on developing new AI-powered solutions to address the growing concerns over deepfakes and unlicensed content distribution. Charlie Dougiello, Executive Committee Chief Innovation Officer at Dolphin, emphasized the importance of comprehensive reputation management in the digital age.
Luke Arrigoni, Co-Founder of Loti, highlighted the effectiveness of their technology in combating the proliferation of unauthorized content, stating, "Our technology is changing that. Despite the surge in unauthorized content and likeness abuse fueled by GenAI, we're proving there's a way to fight back."
In addition to the partnership, Loti has also become a client of Dolphin, benefiting from Dolphin's executive team and agency partners' industry connections and expertise.
This partnership is based on a press release statement and reflects Dolphin's commitment to leveraging AI for enhancing brand safety and content protection for its clients.
In other recent news, Dolphin Entertainment (NASDAQ:DLPN) has been busy with several substantial developments. The Florida-based company reported a record-breaking second-quarter revenue of $11.4 million, a 4% increase year-over-year, which contributed to a first-half revenue of $26.6 million. Despite an adjusted operating loss of $100,000 for the quarter, Dolphin Entertainment managed a positive adjusted operating income of $900,000 for the first half of the year.
As part of its strategic approach, Dolphin Entertainment announced a 1-for-2 reverse stock split, reducing the company's outstanding common stock from approximately 22.2 million to about 11.1 million shares. In addition, the company has amended its preferred stock terms, increasing the number of votes per share of common stock the Series C is convertible into from five to ten votes per share.
Dolphin Entertainment also welcomed Hilarie Bass, a distinguished corporate advisor, to its Board of Directors. Bass brings over three decades of legal expertise and a strong track record in leadership roles across various organizations.
Maxim (NASDAQ:MXIM) Group adjusted the price target for Dolphin Entertainment from $6.00 to $4.00, while maintaining a Buy rating on the stock. The company is also considering expansion into the sports industry and live events, which, according to Maxim Group, could be potential catalysts for future growth.
InvestingPro Insights
Dolphin Entertainment's recent partnership with Loti AI marks a strategic move into the AI sector, potentially opening new revenue streams. However, InvestingPro data reveals some financial challenges for the company. Despite a revenue growth of 16.54% in the last twelve months as of Q2 2024, Dolphin reported an operating income of -$3.25 million USD for the same period.
InvestingPro Tips highlight that Dolphin operates with a significant debt burden and is not currently profitable. This context adds importance to the company's efforts to diversify its offerings and explore new revenue opportunities through partnerships like the one with Loti AI.
The company's stock performance has been volatile, with InvestingPro data showing a 27.46% price decline over the past three months. This volatility underscores the potential impact of strategic moves like the Loti AI partnership on investor sentiment.
Interestingly, despite these challenges, Dolphin maintains impressive gross profit margins, as noted in the InvestingPro Tips. This strength could provide a foundation for future growth if the company can successfully leverage its new AI-driven offerings.
For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for Dolphin Entertainment, providing deeper insights into the company's financial health and market position.
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