Gaiam Q1 Revenue Up 11%

6 May, 2010 By: Angelique Flores

Fitness and wellness media company Gaiam posted consecutive quarterly growth, with a boost from home video.

Net revenue for the first quarter (ended March 31) increased 11.2% to $62.2 million, compared with $55.9 million in the same quarter last year. Selling and operating expenses decreased to $29.8 million from $33.9 million during the same quarter last year. Operating loss for the quarter was $0.6 million, versus a $6.2 million operating loss during the same quarter of last year.

Gaiam touted that it is now ranked No. 4 in the nontheatrical DVD segment, with 10% market share, according to Nielsen VideoScan. Last year Gaiam ranked No. 6 and had a 5% market share.

This boost comes in large part as a result of Gaiaim’s distribution of Discovery content, said Lynn Powers, the company’s president and CEO.

Gaiam began distributing Discovery content in 2009 on DVD and Blu-ray Disc, including its properties Animal Planet, TLC, Discovery Channel, HD Theater, The Science Channel, ID: Investigation Discovery and the Military Channel.

Powers also points to its increase of store-within-stores at brick-and-mortar retail as another reason for growth in the DVD category. As shelf space shrinks, Gaiam has adopted the store-within-store concepts for all of its fitness products, which has boosted DVD sales, she said.

The company will further its footprint in the digital marketplace with the launch of GaiamTV.com as the flagship for its digital library during third quarter this year, said chairman Jirka Rysavy.