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Cinedigm Ups Q1 Streaming Footprint, Revenue and Loss

Cinedigm reported a first-quarter (ended June 30) net loss of $6 million on revenue of $13.5 million. That compared with a net loss of $5 million and $15 million of revenue in the previous-year period.

The home entertainment/streaming video distributor said the reduction in Cinedigm’s legacy digital cinema equipment sales, in addition to a non-operating charge of $1.3 million for the company’s investment in A Metaverse Company, contributed to the increased fiscal loss and reduced revenue.

Total streaming revenue increased 98% to $8.1 million from $4 million, driven by an increase of 131% in ad-supported revenue and a 43% increase in subscription revenue over the prior year quarter. Content and entertainment revenue of $12.2 million grew by 38% from $8.8 million — driven by organic user growth, increasing market demand for Cinedigm’s connected television ad inventory, and the launch of new streaming channels versus the prior year.

“Our results and growth show that our strategy to scale our streaming business has paid off with substantial revenue growth and other key metrics,” Erick Opeka, chief strategy officer and president of Cinedigm Networks, said in a statement.

Opeka said he expects the trend to continue as the company invests further in ad-supported video and podcasts — initiatives made possible by the distributor’s Matchpoint technology platform — which he claims affords Cinedigm the ability to execute faster, at lower cost with higher margins, and with greater insight than its competitors.

“Matchpoint provides us a complete technology stack that fully meets the needs of a rapidly growing OTT business, providing us with an unparalleled competitive advantage that allows us to adeptly operate the largest FAST channel portfolio and streaming library in the business,” Opeka said.

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