How the movie and TV studio behind 'Sound of Freedom' is selling investors on its unorthodox business model

Angel Studios CEO Neal Harmon (center left) rang the bell at the New York Stock Exchange on Thursday.Angel StudiosAngel Studios, the company behind the surprise blockbuster "Sound of Freedom," just went public.While the studio is known for its faith-based programming, its green-lighting model sets it apart.Angel's leadership team shared the pitch they're giving investors.Angel Studios just went public and is selling investors on a business model that gives its streaming subscribers creative control.The Utah-based studio is known for its faith-themed and "values-driven" movies and TV shows, like making the 2023's sleeper box-office hit "Sound of Freedom" and its involvement in the "The Chosen" series based on the life of Jesus Christ.Angel's name isn't only about religion. It's also a nod to its unconventional green-lighting process. Angel's streaming subscribers — with plans starting at $12 a month — double as "angel investors" who can vote on what future films get made."Our problem isn't with what's being made," Angel CEO Neal Harmon said of Hollywood. "It's with what's not being made."Harmon founded the company alongside three of his eight siblings — Jeffrey, Jordan, and Daniel — and a cousin. Neal, Jeffrey, and Jordan spoke with Business Insider about what sets their studio apart, hours after Angel's stock debuted on Thursday.Angel went public through a merger with a special purpose acquisition company (SPAC) called Southport Acquisition Corporation. Its stock, which trades under the ticker ANGX, has been volatile since its debut, swinging between $10.35 and $20.39.The company generated $135 million in the first half of 2025, with a net loss of $53.3 million in that span.The brothers, who repeatedly called themselves "Idaho farm boys" during the interview, are proud to be Hollywood outsiders. They believe they've found a lucrative niche in what they're making and how they're making it.Let there be green lightsAngel's mission statement is to "amplify light" — a deliberately ambiguous motto that "means different things to different people," said Jeffrey, Angel's content chief.Many of the 1.5 million members in the so-called Angel Guild want their faith represented, while others yearn for wholesome, family-friendly shows, Jeffrey said. Angel Guild members can vote on what projects get made, and can even give direct feedback to the production company.By making movies that its fans have already endorsed, Angel Studios' films tend to generate strong audience scores on sites like Rotten Tomatoes — and robust ticket sales.Angel Studios earned an average of $34.7 million per movie released from 2023 to 2025, which is higher than any other independent studio, according to media analyst Evan Shapiro.Industry analysts say this fan-centered approach has shown promise so far and could have staying power.Angel "specializes in mobilizing underserved audiences" with its inexpensive, faith-centered content, said Brandon Katz of entertainment data provider Greenlight Analytics."It's a very specific audience hungry for programming that appeals to their particular tastes and values," Katz said.KPMG media analyst Frank Albarella said that "today's audiences are rejecting one-size-fits-all content creation in favor of platforms that turn viewers into creative collaborators."Pay models and 'growing pains'Angel is also pitching a distinct pay model for creators.Netflix upended the entertainment business over a decade ago with a cost-plus model that paid filmmakers as if their movie was a modest hit. While this reduces risks, it also caps creatives' upside."It overpays for failures and it underpays for success," said Jordan, who's Angel's president. Angel's model shares half of the profits from a title with its creator.Angel has had some business "growing pains," Jordan said. Two production companies that partnered with Angel have since terminated their arrangements, leading to legal fights.Dallas Jenkins, creator of "The Chosen," accused Angel of contract violations. Arbitrators ruled in Jenkins' favor, officially severing his business relationship with the company. Angel has appealed the decision. Slingshot, which made the "David" animated movie based on the biblical character, terminated its deal. Angel responded with a lawsuit, which is ongoing."Lawsuits in the entertainment industry — it's like pigeons in New York City," Jordan said. "It's just the reality of this space."The Harmon brothers first learned that when launching VidAngel, which removed profanity and sexual content from movies. Disney sued in response, and the subsequent ruling pushed VidAngel into bankruptcy. A few years later, the Harmons rebounded by starting Angel.In the years since, Angel has turned heads in Hollywood through its unique relationship with its streaming subscribers.Jeffrey said that being a publicly traded company is an extension of that mission, describing it as "the ultimate grassroots."Read the original article on Business Insider

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