Acorn TV Ups Subscribers 125%14 Nov, 2016 By: Erik Gruenwedel
RLJ Entertainment Nov. 14 said its Acorn TV subscription streaming video service ended the fiscal quarter (ended Sept. 30) with 375,000 subscribers, which was up 125% from the previous-year period.
Launched in 2011, Acorn TV showcases British TV series and movies, much of it licensed from the BBC Worldwide, ZDF, DRG, All3Media and Content Media Corp., among others.
Through Acorn Media Enterprises, its U.K. development arm, RLJE owns all rights to “Foyle's War” and is developing new programs. RLJE owns 64% of Agatha Christie Limited, which manages the intellectual property and publishing rights to sleuth brands “Miss Marple” and “Hercule Poirot.”
Revenue from the direct-to-consumer segment, which includes Urban Movie Channel, increased from $4.1 million to $4.7 million when compared with the prior quarter. Operating income was $1.7 million, compared with an $800,000 loss a year ago, and a $600,000 improvement when compared to the prior quarter of 2016.
"We remain focused on developing RLJ Entertainment into a premium digital network company serving distinct audiences,” CEO Miguel Penella said in a statement.
Indeed, the distributor upped its liquidity last month when it entered into a strategic relationship with AMC Networks, which included a $65 million loan and warrants for AMC to acquire 50.1% of RLJ Entertainment’s common stock.
“With the announcement of our recent strategic relationship with AMC Networks, we expect to further enhance our brand and accelerate the acquisition of content to advance our position in the OTT space,” Penella said.
Meanwhile, RLJE, which was formed through the merger of Image Entertainment and Acorn Media Group to distribute physical and digital media, reported a quarterly net loss of $3.9 million on revenue of $18.3 million. That compared with a loss of $7.1 million on revenue of $25.9 million a year ago.