Citing strong reactions to its plans for launching three digital networks, Cinedigm topper Chris McGurk is promising a robust expansion of its streaming services.
McGurk made the assertion Wednesday as part of Cinedigm’s earnings report for its fourth quarter ended March 31.
“The digital entertainment revolution that Cinedigm has helped facilitate is officially here in full force and I’m pleased that our efforts over the last 3 years have positioned us so well for this moment,” he said. “Our over 50,000 film and TV episode library, robust distribution infrastructure, deep, long-standing relationships with every digital platform and strengthened capital base have enabled us to aggressively launch our digital networks business.”
Cinedigm launched Docurama in May and has set ConTV in a partnership with Wizard World Comic Con for a launch in the fall. It announced The Dove Movie Channel last week, targeted to families and kids seeking faith and family-friendly content with an expected launch in early 2015.
During the conference call with analysts, McGurk and chief operating officer Adam Mizel said that Cinedigm can achieve high growth on an investment of $2 million per network with between 200,000 and 1 million subscribers. “Content will be king and strong brands will dominate,” McGurk said.
The CEO said several more digital channels are in the pipeline but did not offer more specifics. “We look forward to building the OTT business over the next year while we also continue to aggressively manage our physical and digital distribution business and refill our sales pipeline during this time of industry change,” he said.
For the fourth quarter ended March 31, Cinedigm reported a loss of $3.4 million, or 5 cents a share, compared with a loss of $16.6 million in the year-ago period. Revenues increased 61% to $31.7 million.
