HONG KONG — Media investor Spackman Entertainment Group is to buy Novus Media, a Korean film investor and ancillary distributor.
Spackman, which is listed in Singapore and is connected to Toronto-based Spackman Equities, said that it had signed a memorandum to acquire 51% or more of Novus. But it did not disclose the value of the transaction.
Since 2009, Novus was an investor, presenter, and/or ancillary distributor for a total of 54 films (35 Korean and 19 foreign) including “Secretly Greatly,” which was one of the biggest box office hits of 2013, and ”Friend 2: The Great Legacy.”
Novus’ wholly-owned subsidiary, Novus Entertainment Co. is currently producing three theatrical films for release in 2015: “Life Risking Love,” “Chong Hee – The Emperor’s Love,” and “Korean Gangster.”
Spackman says that the reason for the acquisition is the development of the South Korean ancillary market, where digital and online revenues are replacing DVD. It says that in 2013, the Korean ancillary market totalled KRW268 billion (US$256 million), more than three times the KRW88.8 billion (US$85 million) size of the market in 2009.
“With the recent growth of the ancillary market, the post-theatrical revenues have become a significant portion of the overall revenues of a film. A potential deal with Novus is an example of the Group exploring ways to financially capitalize on this fast growing segment of the industry,” said Richard Lee, head of business development, Spackman Entertainment Group.
The company already owns two Korean production companies Opus Pictures, one of the producers of Bong Joon-ho’s “Snowpiercer,” and Zip Cinema, which last year produced “Cold Eyes,” the highly-polished remake of Hong Kong thriller “Eye In The Sky.”