Slasher movie Terrifier 2
Cinedigm Posts Q3 Profit, Revenue and Subscriber Increases
February 14, 2023
Home entertainment distributor/streaming technology company Cinedigm Feb. 14 announced a fiscal home run. The Los Angeles-based company reported third-quarter (ended Dec. 31, 2022) net income of nearly $5 million on revenue of almost $28 million. That compared with a loss of $404,000 on revenue of $14 million during the previous-year period.
“Our strong momentum continued in the fiscal third quarter with our business firing on all cylinders as we close in on our goal of sustainable profitability and positive cash flow,” CEO Chris McGurk said in a statement.
Cinedigm posted record revenue in its streaming business with advertising-supported and subscription streaming revenue growth of 79% and 38%, respectively, over the prior-year quarter and growth of 258% and 189%, respectively, on a two-year basis.
The company’s SVOD platforms, which include Screambox, Dove Channel, CONtv and Docurama, in addition to 30 separate free ad-supported streaming platforms, ended the quarter with more than 1.22 million paid subscribers from 953,000 subscribers during the previous-year period.
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The company’s distribution business saw a 72% jump in revenue led by the box office sleeper Terrifier 2 ($14.7 million in global ticket sales) across theatrical, TVOD and streaming. Cinedigm expects the horror genre to over-index in the coming months, with continued strong incremental revenue from the Terrifier sequel, and the recent release of The Outwaters.
Total streaming revenue increased 63% to $8.9 million from $5.46 million in the previous-year period, driven by a 79% increase in ad-supported revenue and a 38% increase in subscription revenue.
Content and entertainment revenue shot up 72% to $20.7 million, driven by user growth, movie performances, increasing market demand for Cinedigm’s extensive Connected TV ad inventory, and the impact of new streaming channels versus the prior year.
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Erick Opeka, chief strategy officer and president, said the September launch of streaming platform Cineverse, included the relaunch of Screambox, Fandor and Dove Channel, enabled the company to scale and generate record subscriber growth in the quarter.
“Our omni-channel approach to advertising across web, mobile, AVOD, FAST, audio and social media drove heavy demand from advertisers during the quarter,” Opeka said.
Streaming minutes in the quarter rose to approximately 2.14 billion, up 60% from 1.34 billion during the prior-year quarter. The ad-supported streaming audience, including web, mobile, social and connected TVs, increased to about 82.9 million average monthly viewers, up 151% from 54.9 million average monthly viewers in the same quarter of the previous year.