Cinedigm Ups Quarterly Net Loss as Revenue Falls Due to COVID-19

Home entertainment/OTT video distributor Cinedigm Aug. 14 reported a first-quarter (ended June 30) net loss of $19.9 million on revenue of more than $6 million. That compared with a net loss of $5.1 million and $9.8 million in revenue during the previous-year period.

Los Angeles-based Cinedigm attributed the increased loss to the expected decline in its Cinema Equipment business and the negative impact of COVID-19 on theatrical revenue. This was partially offset by growth in OTT/streaming revenue. Overall OTT/streaming revenue, including digital content licensing, increased 22% with sales billings up 30%. OTT AVOD Channel revenue increased 28% versus last year and 48% versus the prior three-month fiscal period.

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“Due to COVID-19, advertisers ‘pressed pause’ industry-wide in late March through mid-May and we were impacted like everyone else,” CFO Gary Loffredo said in a statement. “Despite this, we generated strong streaming results in the quarter … and our ad-fill rates are now exceeding pre-COVID-19 levels with CPMs also back to 90% of pre-COVID-19 rates.”

Erick Opeka, president of digital networks, said the consumer shift toward on-demand video entertainment continues at a “dramatic and accelerating” pace.

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“We took advantage of this with the launch or signing of six new streaming channels during the quarter, which will be available on a number of key streaming platforms, including Roku, Xumo, Peacock and Plex, among many others,” Opeka said. “Our streaming device platform reach has now expanded to over 800 million global devices and will only continue to grow.”

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