Cinedigm Narrows Q4 Loss 80%25 Jun, 2014 By: Erik Gruenwedel
Cinedigm Corp. June 25 reported a fourth-quarter (ended March 31) net loss of $3.3 million, which was 80% less than the net loss of $16.5 million during the previous-year period.
Los Angeles-based distributor of non-theatrical releases on disc and digital saw revenue increase 61% to more than $31.6 million from $19.6 million last year. More than $10 million of the revenue increase was due to Cinedigm’s acquisition of Gaiam Vivendi Entertainment last year.
The company is in the process of rolling out branded over-the-top video platforms, including most recently a partnership with The Dove Foundation. The Dove Movie Channel will target families and kids seeking faith-based and family friendly content approved by Dove. The service is expected to launch in early 2015.
Notable films bowing in August on the channel include Heaven Is For Real, which is nearing $90 million at the box office, and God's Not Dead, which has generated $60 million at the box office, according to CEO Chris McGurk.
Another OTT channel, to be called ConTV in a partnership with Wizard World Comic Con, is targeted for launch in the fall.
“The shift to digital is happening much more rapidly than anyone anticipated,” McGurk told analysts. “If we successfully implement our strategy with these brands, the Cinedigm Digital Channel essentially will become direct to consumer narrowcast versions of Hulu or Netflix or Amazon.”
He said the company’s first OTT digital channel, Docurama has had more than 165,000 downloads of the app on Roku.
"We look forward to building the OTT business over the next year while we also continue to aggressively manage our physical and digital distribution business and refill our sales pipeline during this time of industry change,” McGurk said.