RLJ Entertainment Heralds SVOD Subscriber Growth17 Jan, 2017 By: Erik Gruenwedel
RLJ Entertainment Jan. 17 said subscriber bases for over-the-top video platforms Acorn TV and Urban Movie Channel more than doubled in 2016.
The media company, which formed in 2012 following the merger of Acorn Media Group and Image Entertainment, said subs for both channels more than doubled in 2016 from 2015.
Acorn TV, which specializes in British movies and TV shows, saw its sub base top 430,000 from 195,000 subscribers. UMC subs quadrupled to more than 20,000 from about 5,000 subscribers.
“We believe the rapid growth in subscribers confirms our strategy to bring high quality niche content to passionate audiences,” CEO Miguel Penella said in a statement.
The sub growth comes at an opportune time for RLJE, which distributes content via broadcast television (including satellite and cable), theatrical and non-theatrical, DVD, Blu-ray Disc, digital download and streaming.
The company in October inked a $65 million loan agreement with AMC Networks, effectively transferring majority ownership should the media company, which is home to “The Walking Dead,” pull the trigger on warrants.
RLJE’s SVOD services generated $1.1 million in operating income in the most-recent fiscal quarter, compared with an operating loss of $400,000 during the previous-year period.
In June, citing concerns from Nasdaq, the company approved a 1-for-3 reverse stock split of its common stock. Baltimore, Md.-based RLJE had received a delisting warning from the stock board after its shares closed below $1 for 30 consecutive business days. The split reduced the number of common shares from about 14.1 million to 4.7 million.