RLJ Entertainment SVOD Services Turn a Profit15 Aug, 2016 By: Erik Gruenwedel
Acorn TV subs increase 120% to reach 320,000
RLJ Entertainment Aug. 15 reported its subscription streaming services generated $1.1 million in operating income in the second quarter, ended June 30. That compares with an operating loss of $400,000 during the previous-year period.
RLJ Entertainment, which formed in 2012 with the merger of Image Entertainment and Acorn Media Group, distributes content in multiple formats including broadcast television, theatrical and non-theatrical, DVD, Blu-ray Disc, digital download and streaming.
Streaming services include British-centric Acorn TV and Urban Movie Channel. Retail partners include Amazon, Netflix, Walmart, Target, Costco and Barnes & Noble. Digital partners include iTunes, BET, Showtime, PBS, DirecTV and Hulu.
“We continue to prioritize our strategic initiative to expand distribution opportunities for our proprietary SVOD channels and focus on acquiring specially curated feature films and British series to enhance our viewer's experience,” CEO Miguel Penella said in a statement.
Meanwhile, RLJ reported a quarterly net loss of $174,000 compared to a loss of $546,000 during the same period in 2015. Revenue declined 20% to $15.7 million from $19.9 million. The decrease was driven by a decline in retail revenue due to a reduced release slate.
"We are keenly focused on increasing our proprietary SVOD subscriber base and improving gross margins. While there was a decline in the company's overall total revenue (driven by fewer releases and exiting our direct-to-consumer business), our gross margin increased to 29.4% compared to 16.9% during the same period last year,” said CFO Nazir Rostom.