February 15, 2022
Cinedigm’s ongoing transition to digital distributor across both ad-supported and subscription-based platforms is resonating on the bottom line.
The home entertainment distributor reported a third-quarter (ended Dec. 31, 2021) net loss of $404,000, which marked a 95% improvement from a net loss of $9.6 million in the previous-year period. Revenue increased 40% to $14 million, from $9.9 million.
Through nine months of the fiscal year, Cinedigm reported net income of almost $4.6 million on revenue of $39.2 million. That compares with a net loss of $56.1 million on revenue of $23 million a year ago.
“We had our strongest results ever in streaming this quarter, registering triple-digit growth for the fourth quarter in row,” CEO Chris McGurk said in a statement.
Cinedigm’s film and television library grew to approximately 40,000 titles owned or under management at the end of the quarter. Of that total, about 35,000, or 90%, of the titles are streaming assets. This represents an increase of more than 14,000 titles, or 69%, over the prior-year quarter, and was driven by M&A activity of film, television and streaming channel catalogs, as well as ongoing content acquisitions, and efforts to support the company’s streaming and distribution businesses.
Streaming minutes in the quarter rose to 1.33 billion, up 47% from the prior year quarter. Cumulative minutes streamed in the first nine months of the year were 3.92 billion, up more than 112% over the 184 billion minutes streamed in the prior year first nine months.
Monthly ad-supported streaming channel viewers in the quarter were approximately 33 million, up 44%, versus 22.6 million in the prior year quarter. Total subscribers to the company’s subscription video streaming services increased to approximately 954,000, a jump of 466% from the prior year quarter.
“In the quarter, we delivered more than 104% revenue growth in our streaming networks business, more than double the 50% annual growth guidance we provided earlier in the fiscal year,” added chief strategy officer Erick Opeka. “Our current content library of 35,000 streaming assets is one of the largest libraries in the world as compared to other key streaming service providers like Amazon Prime Video, Netflix and Tubi.”