Cinedigm Reports Improved Q1 Disc Sales12 Aug, 2015 By: Erik Gruenwedel
Distributor's OTT video launches have generated more than 1.2 million app installations
Cinedigm Corp. may be focusing on over-the-top video distribution, but its packaged-media and digital business saw positive trends in the first-quarter ended June 30.
Cinedigm said content and entertainment revenue increased 27% compared with the prior-year quarter, reflecting increased sales of digitally distributed (EST and VOD) content and significantly fewer packaged-media product returns.
Pending feature-film releases include indie drama Final Girl (Aug. 14) with Wes Bentley and Abigail Breslin; documentary A Brave Heart: The Lizzie Velasquez Story (Sept. 25); and drama Meadowland (Oct. 16), starring Olivia Wilde and Elizabeth Moss.
"We are pleased that net retail sales of physical products and digital sales performed well for us during our seasonally slowest quarter," CFO Jeffrey Edell said in a statement. "As we prepare for our peak holiday quarter, our focus is on generating new business, maintaining sell-in and managing returns.”
Meanwhile, Cinedigm plans to have four OTT video services operating by the end of the year, including currently running comic book convention-themed CONtv and Docurama. Faith-based Dove Channel remains on track to launch in September with more than 700 titles.
CONtv original programs include “Last Man Standing,” “Flight of the Living Dead,” “My Morphin Life,” “Mythica 1 and 2,” “Riftworld” and “Comic Book America,” in addition to panels and other recorded content from Wizard World Con in Chicago starting Aug. 20.
The Dove Channel will feature a library of content including “VeggieTales,” “Fraggle Rock,” “Highway to Heaven,” “The Adventures of Black Beauty,” “Swiss Family Robinson” and “Where the Red Fern Grows.”
Cinedigm said it has more than 1.2 million app downloads across all OTT channels, including 430,000 for CONtv and 630,000 apps for Docurama. The company expects to convert 30% to 40% of the app installed base into paying subscribers.
Finally, Cinedigm said it lost nearly $11 million on revenue of $22.8 million.