Johan Liedgren.

What Honkworm does, he says, is to concentrate all their time, energy and creativeness into producing really good content. Dan Pepper (COO) further explains their studio setup by adding, "We do generate our creative inhouse but we also have contract writers and creatives that are submitting ideas and concepts that we either will take into production or develop with them. At that point, we have what I would call a 'virtual studio' kind of model where we can match the concept to individuals and production entities that best fit the production design." Liedgren likes to call this particular process "using e-lancers" and he seems very comfortable in maintaining and expanding this network of outside storyteller, artist and director relationships. They both point out that Honkworm retains ownership in all of their programs. "So our focus," Pepper concludes, "is to generate Honkworm titles that we essentially build as an asset and we can then license and syndicate those properties at will."

One example of a Honkworm alliance which significantly bolsters their production capacity is the four year content development, production and distribution agreement they signed with Camp Chaos Entertainment in October of last year. Honkworm secured a first right of refusal in the acquisition of all Camp Chaos' programs and is additionally guaranteed non-exclusive distribution rights for all their current and future content. Based in Philadelphia and continuing to maintain one of the first web sites to produce regular online Flash cartoons, Camp Chaos' side of this deal includes a renewable production retainer, as well as the confidence gained by working hand-in-hand with a reputable industry leader in online creative programming and distribution. The relationship had its beginnings with Camp Chaos providing animation services for Honkworm's Siliconites series. This and other projects fostered a lot of mutual admiration and finally, the recognition of the mutual benefits possible by bringing Camp Chaos into a more defined arrangement with the Honkworm group.

Honkworm International's revenues to date have been from syndication, co-productions and sponsorships of their creative content. Just recently, their coffers were supplemented by the infusion of new capital investment from American Greetings which should give them the ability to go forward with more partnership, acquisition and/or alliance agreements.

From the sponsorship angle, Honkworm has made history, of sorts, by mutating the traditional idea of product placement into a successful online campaign for Budweiser, wrapped around their hugely popular Fishbar series. Honkworm offered to write and design within the show's content subliminal, branded Budweiser material -- which would be in addition to the usual "brought to you by" front and end tags utilized in typical sponsorship deals. Budweiser was intrigued but then the question was: what kind of distribution venue would be acceptable to this idea? The necessary triangle was complete when Excite came into the picture as the "broadcaster," if you will, and the portal ended up actually brokering the final deal which included featuring the series on its main page. Liedgren says Budweiser was, of course, "really happy because now not only did they get to be associated with the Honkworm stuff but they're up there on Excite which has millions of eyeballs every day looking at the Budweiser/Honkworm content." This business scenario is now undoubtedly being used as a model by many other groups struggling for successful corporate branding and "advertainment." Liedgren doesn't particularly like that phrase and would rather describe Honkworm's approach as "entertainment that also works as advertisement." He is extremely mindful of being "very, very, very sensitive to the viewers" and understands the dangers of turning them off if the advertising component is too strong or inappropriate relative to the creative content. "The viewer and Honkworm obviously have to be the guys saying, 'Stop right here' ... and I know from experience that you say no to the brand, you never say no to your viewers, right? You should say no to the brand because if the viewers keep coming, the brands will be back asking to be part of it again, anyway."