Home entertainment distributor Cinedigm Aug. 14 announced a first-quarter (ended June 30) net loss of $3.4 million, down 35% from a net loss of $5.2 million during the previous-year period. Revenue declined 14% to $13.1 million from $15.2 million during the previous-year period.
The revenue decrease was partially offset by a 9% increase in content and entertainment revenue, which includes sales of packaged media such as DVD and Blu-ray Disc.
Cinedigm Entertainment Group closed a multi-year, multi-title distribution agreement with Nelvana, a Canadian animation company and global producer of children’s content. The agreement includes DVD and transactional VOD content rights to more than 3,000 television episodes featuring worldwide brands such as Franklin, Babar and Beyblade.
Indeed, DVD/Blu-ray Disc billings increased 65% in the quarter from the previous-year period, while digital billings increased 30%. Total over-the top video revenue (which includes Docurama, Dove Channel and CONtv) reached $2.2 million on 91,000 subscribers – the latter up 7% from last year.
“Despite the first fiscal quarter being a seasonally slow period for our business, our results clearly illustrate the progress we are making in the transformation of our business,” CFO Jeffrey Edell said in a statement.
CEO Chris McGurk said the company made three industry presentations at the Beijing Film Festival, in addition to announcing six new entertainment partnerships.
Cinedigm is majority owned by Bison Capital, a Chinese owned and Hong Kong-based investment company focusing on media and entertainment, healthcare and financial service industries.
“We made significant progress in our streaming OTT segment, where we generate sales through four revenue streams: subscription fees, advertising, servicing retainers and content distribution fees,” said McGurk. “We are encouraged by our progress as we continue to lead the way in this huge, fast-growing, high margin segment with a differentiated OTT business model.”