February 22, 2021
Strategic investments in over-the-top video continue to positively impact Cinedigm’s fiscal bottom line. Streaming channel revenue increased 85% in the third quarter (ended Dec. 31, 2020) versus the prior year quarter. Ad-supported streaming channel revenue increased 79% sequentially over the second quarter and 150% over the prior-year quarter. Digital content licensing and sales increased 34% year-over-year, driven by third-party partners such as Amazon. Combined OTT video streaming and digital revenue increased 58% versus prior year quarter and 36% sequentially over the prior quarter.
Total streaming minutes in the quarter were 907 million, a new company record, up 391% versus the prior-year quarter. Total monthly ad-supported streaming channel viewers rose to 22.6 million, up 303% over the prior-year quarter.
“As demonstrated by the fantastic organic growth results we have achieved this year, our platform and technology give Cinedigm a clear competitive advantage in launching, operating and scaling streaming services profitably and efficiently,” Erick Opeka, chief strategy officer and president of Cinedigm Networks, said in a statement. “Tens of millions of consumers around the globe are shifting their entertainment spend from cable to streaming. Amidst this perfect storm, we have a clear opportunity to leverage our unique platform and market position to build and acquire a compelling portfolio of enthusiast services catering to tens of millions of passionate fans. It is the perfect strategy at the ideal moment in history.”
That said, Cinedigm reported a net loss of $9.7 million on revenue of almost $10 million. That compared with a net loss of $2 million on revenue of $11.5 million in the previous-year period. This decrease was primarily due to the expected decline in Cinedigm’s cinema equipment business and the negative impact of the pandemic on theatrical revenue. and temporary DVD warehousing and distribution center shutdowns due to the virus.
CEO Chris McGurk said Cinedigm is laser-focused on building a portfolio of targeted enthusiast channels through acquisition, including most-recently The Film Detective, Fandor, Screambox, and separately Matchpoint streaming technology.
“We have significantly reduced our debt and have substantial cash reserves, which gives us the firepower to continue to rapidly execute this strategy in the face of limited competition because of our expansive global distribution footprint and huge library of digital content,” McGurk said.
Indeed, total debt was reduced by $25.7 million, or 51%, versus Dec. 31, 2019; compared with March 31, 2020, total debt was reduced by $23.7 million or 48.3%.