Cinedigm Ups Q2 Streaming Revenue 78%, SVOD Subs Top 1 Million
November 14, 2022
Cinedigm Nov. 14 reported second-quarter (ended Sept. 30) revenue of $14 million, which is up almost 39% from revenue of $10.1 million in the prior-year period. The net loss ballooned to $5.8 million, compared with net loss of $300,000 in the prior year quarter. This was driven by the reduction in the company’s legacy digital cinema equipment sales (projectors) and a non-operating charge of $600,000 for the company’s investment in A Metaverse Company (f/k/a Starrise Media Holdings Ltd.), as well as the previously mentioned increased direct and SG&A costs immediately following first-quarter acquisition activity.
The quarter’s revenue does not include theatrical revenue from Terrifier 2, the slasher movie sequel distributed by Cinedign business unit Bloody Disgusting. The movie has proven to be a box office hit with high margins.
The Los Angeles-based home entertainment distributor said streaming revenue reached $8 million, which is 78% higher than streaming revenue of $4.5 million during the previous-year period. Total subscribers topped 1 million, up 48% from 716,216 subs a year ago. Streaming minutes viewed in the quarter were 2.17 billion, up 78% over the prior year quarter at 1.21 billion minutes a year ago.
The company’s increased focus on ad-supported streaming video saw streaming revenue more than double versus last year, thanks to management’s pivot into the AVOD and FAST businesses years ago.
“While other major streaming companies are just now scrambling to put their advertising strategies in place, we have now had 10 consecutive quarters of record ad revenue growth,” CEO Chris McGurk said in a statement.
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Content and entertainment revenue surpassed $11.4 million, up 67% from $6.8 million last year, driven by organic user growth, increasing market demand for Cinedigm’s connected-TV ad inventory, and the impact of new streaming channels versus the prior year.
As previously mentioned, Cinedigm launched the branded Cineverse platform in the quarter, showcasing a portfolio of free, ad-supported linear channels and more than 12,000 titles, alongside enhanced content discovery and social networking capabilities, among other features.
“It is the key driver toward our goal of becoming the ‘Spotify’ of independent streaming video,” McGurk said, adding that Terrifier 2 is going to provide a significant upside to Cinedigm’s fiscal Q3 financial results.