Cinedigm completes acquisition of digital media rights
Deal adds 10 new channels and 7,500 movies and TV series to Cinedigm’s booming streaming business
LOS ANGELES, Calif./ACCESSWIRE/March 29, 2022/ Cinedigm Corp. (“Cinedigm” or the “Company”), a leading streaming and entertainment technology company serving passionate fans, today announced that the Company has completed the acquisition of Digital Media Rights (DMR), a diversified specialty streaming, advertising and content distribution company with considerable expertise in building audiences for global content in North America. The acquisition closed on March 28, 2022 with a purchase price of $16.4 million, payable in installments. The Company made the first $8 million cash payment at closing, which was funded from available cash. Cinedigm will make additional payments totaling $8.4 million in cash or stock, at the company’s discretion. Cinedigm will pay annual installments of $3.0 million, $3.0 million and $2.4 million at 12, 24 and 36 months from the closing date, respectively. Cinedigm expects the acquisition to generate approximately $10 million in additional revenue and $3 million in additional adjusted EBITDA over the next 12 months.
The acquisition of DMR expands Cinedigm to over 30 streaming channel services, 46,000 movies and TV episodes and 40 million monthly viewers, while adding approximately 18.5 million social subscribers and over 4 billion views. With the addition of DMR’s exclusive owned-and-operated channels – specializing in genres ranging from anime and pan-Asian programming to action, horror, arthouse, romance, children’s series, K- pop and more – the company will now operate 15 fully-owned streaming services, which represent more than 50% of Cinedigm’s channel portfolio. Given DMR’s strong programming and close demographic alignment with Cinedigm’s existing subscription services, the company plans to leverage its substantial content library to bolster both Cinedigm and DMR’s existing channels soon. now. The combined library will also serve as the cornerstone of the company’s future streaming service.
Founded more than a decade ago by media industry veterans Michael Hong and David Chu, New York-based DMR focuses on four key streaming-based businesses. First, the company is one of the world’s leading distributors of feature films and TV series for the streaming ecosystem, with over 7,500 titles in distribution. Secondly, DMR operates 10 streaming channels focused on passionate audiences. Six of these exclusive streaming services are available as ad-supported free streaming TV channels (FAST) and video-on-demand apps. Third, through its DMR Social unit, DMR curates social video channels for its streaming brands and brings deep expertise in content curation to help drive new distribution, revenue and marketing opportunities. Finally, DMR operates an ad network and marketplace generating over 100 million connected TV impressions per month against premium long-form movies and TV shows across all of their owned and operated channels as well as select partner channels with an average ad completion rate of over 95%.
“We are delighted to have completed the acquisition of DMR,” said Chris McGurk, President and CEO of Cinedigm. “We have been very deliberate in structuring an agreement that not only works to the benefit of DMR and Cinedigm but also that of our shareholders, especially given the current conditions in the financial markets. It also underscores Cinedigm’s strong debt-free balance sheet. We expect this acquisition to be immediately accretive and deliver multiple synergies across Cinedigm’s business. »
“Digital Media Rights is the perfect complement to Cinedigm,” said Erick Opeka, President of Networks and Chief Strategy Officer. “Together, we will now have the largest portfolio of streaming channels and a sizeable library rivaling the biggest players in the industry. We are also onboarding a team that has extensive experience in building brands and communities that fans love it. We can’t wait to build the next big streaming company, starting today.
“We are very pleased to enter into the agreement with Cinedigm,” said Mr. Chu, co-founder and CEO of DMR. “As our teams are incredibly aligned, I believe we’ll be able to get started by tapping into our collective resources and areas of expertise to grow our streaming services to make them truly standout in the market. With our combined catalog premium movies and TV shows and our strong fan engagement on social media, we look forward to attracting new audiences to our services.
Mr. Hong, Co-Founder and President of DMR, added, “We have had an incredible journey since the inception of this company, during which we have seen the streaming video ecosystem evolve, as our industry has transformed and the way we consume content has been disrupted. , to say the least. Cinedigm’s clear understanding of this evolution and transformation, as well as our shared vision, is a big part of what makes this deal so logical and appealing to all parties.
For more than 20 years, Cinedigm (NASDAQ: CIDM) has led the digital transformation of the entertainment industry. Today, Cinedigm entertains consumers around the world by providing premium feature films and TV series, passionate streaming channels and technology services to the world’s leading media, retail and platform companies. As a leader in the streaming ecosystem, Cinedigm continues its legacy as an innovator through its adoption of next-generation technologies, such as artificial intelligence and machine learning, through its highly scalable proprietary system. Match point® technology platform. For more information, visit cinedigm.com.
DMR (aka Digital Media Rights) is a privately held digital media and entertainment company founded ten years ago by industry veterans Michael Hong and David Chu. Pioneers in digital entertainment, DMR is transforming the industry while specializing in OTT channels and digital distribution.
As a publisher and developer, DMR owns and operates seven OTT channels that have become flagship destinations for their respective genres: AsianCrush (Pan-Asian), Midnight Pulp (Horror/Thriller/Action), Cinehouse (General Entertainment), RetroCrush (classic anime), Cocoro (kids/family) and KMTV (K-Pop) and Cinehouse Selects (arthouse). These are available as video-on-demand (AVOD and/or SVOD) apps on smart TVs, mobile and connected TV devices; on Xbox One and Xbox Series X|S consoles; on the Web; and/or as free-to-air, ad-supported (FAST) linear television channels on LG Channels, Peacock, Plex, Redbox, The Roku Channel, Samsung TV Plus, STIRR and VIZIO SmartCast. Its DMR Social division organizes several social video channels for most of the above brands, as well as C-Crush (Chinese TV shows and movies), Cinehouse Romance (romance), K-Crush (Korean pop culture) and QTTV ( LGBTQ+).
DMR is also one of the world’s largest content aggregators and distributors with a catalog containing over 7,500 premium titles from major television networks, studios, producers and sales agents. The company has distribution deals with Amazon Instant Video, Amazon Prime, Hulu, Netflix, Cable VOD, iTunes, Google Play, FandangoNow, Tubi, PlutoTV, Crackle, Hoopla, Kanopy, Vudu, to name a few- one. The DMR Advertising Marketplace offers video and display advertising through direct and programmatic sales channels (connected TV, desktop and mobile) while connecting brands and media buying agencies with premium publishers. For more information visit digitalmedarights.com
Safe Harbor Statement
Investors and readers are cautioned that certain statements contained herein, as well as certain statements in periodic press releases and certain oral statements by Cinedigm officials during presentations about Cinedigm, as well as documents filed by Cinedigm with the Securities and Exchange Commission, including Cinedigm’s registration statements, Quarterly Reports on Form 10-Q and Annual Report on Form 10-K are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the ” Law “). Forward-looking statements include statements that are predictive in nature, that depend on or refer to future events or conditions, that include words such as “expects”, “anticipates”, “intends”, ” expects”, “could”, “could”, “believes”, “seeks”, “estimates” or similar expressions. In addition, any statements regarding future financial performance (including future revenues, profits, or growth rates), current business strategies or prospects, and possible future actions, which may be provided by Cinedigm’s management, are also forward-looking statements as defined by law. . Forward-looking statements are based on current expectations and projections about future events and are subject to various risks, uncertainties and assumptions about Cinedigm, its technology, economic and market factors and the industries in which Cinedigm operates, among others. These statements are not guarantees of future performance and Cinedigm assumes no specific obligation or intention to update these statements after the date of this release.
DKC Public Relations
High level investor relations
Don Ciaramella/Matt Biscuiti
The Lippin Group for DMR
[email protected] / [email protected]
THE SOURCE: Cinedigm Corp.
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