Rentrak Posts Q4 loss10 Jun, 2011 By: Erik Gruenwedel
Studio disc rental revenue-sharing revenue falls 14%
Rentrak reported a fourth-quarter (ended March 31) loss of $789,000 compared to income of $197,000 during the previous-year period.
The Portland, Ore.-based media measurement company continued to generate the bulk of its $24.7 million quarterly revenue ($15.7 million, or 63.5%) from disc revenue-sharing agreements it facilitates between the studios and independent video stores.
Rev-share revenue was down 14% from $18.1 million during the same period last year. For the fiscal year, rev-share revenue declined 12% to $63 million, compared with $71.3 million in the previous year.
Rentrak cited the usual suspects (low box office and reduced release slate) for the drop in home entertainment revenue.
The company’s priority media measurement business (AMI), which includes tracking cable TV, box office and video-on-demand usage, generated $9 million in revenue, up 30% from revenue of $6.9 million last year. For the fiscal year, AMI revenue topped $34.1 million, up 72% from revenue of $19.8 million in the previous fiscal year.
It should be noted that AMI revenue in the quarter included $3.2 million ($11.6 million for the fiscal year) from its recent acquisitions of EDI, Cine Chiffres and Media Salvation.
CEO Bill Livek put a positive spin on the loss, saying Rentrak’s strategic move toward digital entertainment tracking remained solid.
“Although our fourth-quarter results did not meet my expectations, we are making substantial progress against our plan,” Livek said. “From the big screen to the small screen, as consumer viewing habits and technology continue to evolve, Rentrak is deploying its unique census-like measurement platform to help the industry recognize increased value.”
Total revenue for the fiscal year increased 6.5% to $97.1 million from $91.1 million last year. Rentrak during the year launched its “StationView Essentials,” which tracks digital video recorder, or DVR, usage in the home.