January 9, 2017
Cinedigm Updates Progress in Operations, Financings and Real Estate Expense Reductions Deployment Debt Reduced by $53 Million in Last 12 Months
LOS ANGELES--(BUSINESS WIRE)-- Cinedigm Corp. (NASDAQ: CIDM) today announced significant progress in operations, financing and real estate expense reductions.
We are now a leader in the rapidly growing digital streaming channel business, where we already have three successful channels and a fourth on its way. Also, we continue to grow as an important provider of independent content and digital services to key players in the third party SVOD business, soon to be a $20 billion market, said Chris McGurk, Cinedigms Chairman and CEO. Our recent operational results, combined with our progress on key financings, real estate transactions, reduction of debt and more than $10 million in annual operating cost savings, position the Company for more success.
OPERATIONS:
Cinedigms three digital streaming channels have increased gross subscriber additions more than 88% since October, 2016, with November being the best month ever for Cinedigms OTT subscriber additions. Combined, the channels provide more than 5,500 hours of content to viewers across 3.2 million app downloads. In addition, following the successful launch in November, 2016 of Dove NOW, a 24/7 preprogrammed viewing option, Dove Channel launched on the Apple TV platform, making the service available to millions of additional users.
Cinedigm also continues to explore additional partnership opportunities for channels and content with leading global company LeEco, both domestically and overseas, after adding two more streaming channels to LeEcos North American product line launch. In addition to the two streaming channels currently available on LeEcos mobile phones and TVs -- Dove Channel and ConTV -- Docurama, Cinedigms already successful documentary OTT channel, and a yet-to-be named channel currently in development, will launch on LeEcos platforms in early 2017.
Cinedigms OTT channels are also available to Amazon Prime members as part of Amazons Streaming Partners Program. Launched a year ago, this program has delivered significant additional channel subscribers to Cinedigm with no incremental costs. Cinedigms channels are also available across a wide and growing variety of connected devices including most Android and iOS mobile phones and tablets, Roku streaming media players, Samsung Smart TVs, Apple TV and the Web.
Given the progress of the existing OTT offerings across a wide variety of platforms, we expect meaningful financial impacts from these partnerships in the next 12 months, continued McGurk.
In the entertainment distribution business, Cinedigm also continues to see strong progress, where recent competitive developments have solidified the Companys position as the leading independent studio in North America. In digital distribution, Cinedigm continues to expand relationships with key accounts such as Hulu and Netflix, closing significant new licensing deals with both companies. In addition, our recent film releases, particularly in the Western/Action genre, have been performing strongly in television VOD and DVD sales.
FINANCING:
In a continuing initiative to strengthen and simplify its balance sheet, the Company recently consummated an accretive exchange agreement with an institutional holder of $3,429,000 of the Companys Convertible Notes. This transaction exchanged the holders debt into 450,000 shares of its Class A Common Stock and warrants to purchase 200,000 shares of stock exercisable six months after issuance, with a 5-year term, an exercise price of $1.60 per share and customary anti-dilution provisions. This transaction saves the Company nearly $190,000 per year in interest expense.
In December, 2016, the Company also completed an accretive exchange agreement with another institutional holder, where the holder agreed to terminate its outstanding warrants to purchase 1,773,412 shares of Common Stock at an exercise price of $12.36 per share in exchange for minimal consideration.
In Digital Cinema, the outstanding balance of the Societe Generale Phase 1 term loan facility was fully prepaid in November, 2016. The total payoff amount was $9,081,110. This loan related to the 3,724 Digital Cinema projection systems that were installed in theaters as part of the Phase 1 Deployment. This move continues the aggressive reduction of non-recourse debt related to the Digital Cinema business. In calendar year 2016, Cinedigms Digital Cinema-related debt was reduced by over $53,000,000.
The Company continues to make progress on the convertible and mezzanine debt exchange that began with the aforementioned retirement of $3,429,000 in Convertible Notes. The Company believes this exchange will reduce interest costs, and, combined with our efforts to further enhance liquidity, such as our significant cost reduction initiative, provide more flexibility in ongoing negotiations for a new revolving asset based loan.
REAL ESTATE:
As part of the initiative to finalize more than $10 million in annual operating cost savings, most of that already achieved last calendar year, Cinedigm entered into an agreement to terminate its lease for its corporate space in Century City California and entered into a lease for office space in Sherman Oaks, California. This change will provide Cinedigm with savings of over $700,000 on an annualized basis. The new space is also better situated to support Cinedigms expanding streaming digital channel and content services businesses.
ABOUT CINEDIGM
Cinedigm is a leading independent content distributor in the United States, with direct relationships with thousands of physical retail storefronts and digital platforms, including Wal-Mart, Target, iTunes, Netflix, and Amazon, as well as the national Video on Demand platform on cable
Most recent headlines
05/01/2027
Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be ...
01/06/2026
January 6 2026, 05:30 (PST) Dolby Sets the New Standard for Premium Entertainment at CES 2026
Throughout the week, Dolby brings to life the latest innovatio...
02/05/2026
Dalet, a leading technology and service provider for media-rich organizations, t...
01/05/2026
January 5 2026, 18:30 (PST) NBCUniversal's Peacock to Be First Streamer to ...
01/04/2026
January 4 2026, 18:00 (PST) DOLBY AND DOUYIN EMPOWER THE NEXT GENERATON OF CREATORS WITH DOLBY VISION
Douyin Users Can Now Create And Share Videos With Stun...
05/03/2026
Clear-Com has provided Gen-IC virtual intercom, its cloud-based voice communications system for SaxaVord Spaceport, the first fully licensed vertical launch s...
05/03/2026
The Hollywood Professional Association (HPA) concluded the 2026 HPA Tech Retreat, convening more than 800 industry leaders, technologists, creatives and executi...
05/03/2026
LynTec, a leading manufacturer of electrical power control solutions for professional audio, video, and lighting systems, today announced that its new Dual DMX ...
05/03/2026
Snicket Labs is pleased to announce a new distribution partnership with ES Broadcast for its award winning solutions, Match and Enrich.
Under the agreement, ES...
05/03/2026
LiveU today announced the first large-scale deployment of its AI-driven LiveU IQ (LIQ ) technology at a global, multi-venue sporting event, setting a new benchm...
04/03/2026
Lega Basket Serie A (LBA), the governing body for Italy's premier basketball...
04/03/2026
Wrexham AFC co-chairmen Rob Mac and Ryan Reynolds will host a first-of-its-kind ...
04/03/2026
The countdown is underway and with just 100 days to go until the world's greatest sporting event begins on Thurs., June 11, FOX Sports, America's Englis...
04/03/2026
No matter where they are in the world, service members and veterans can stream N...
04/03/2026
Telemundo officially releases Somos M s, the anthem for the network's cove...
04/03/2026
The Hollywood Professional Association (HPA) concluded the 2026 HPA Tech Retreat, convening more than 800 industry leaders, technologists, creatives, and execut...
04/03/2026
Smith Entertainment Group transformed how local sports are consumed by creating ...
04/03/2026
The production method, which spans a distance of 36.2 miles, was designed and im...
04/03/2026
Haivision, a global provider of mission-critical, real-time video networking and...
04/03/2026
When Hugues Meyrath came out of retirement to take the helm as CEO of Quantum, i...
04/03/2026
Last week's launch of Banana Ball Championship League has spurred a significant upgrade of production facilities
The Savannah Bananas, arguably the hottest...
04/03/2026
sldkfjsdlfkjsldkfjsldkjfslkdjfslkdjfsl
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus...
04/03/2026
For many fans, a song's backstory can be just as compelling as the final pro...
04/03/2026
In 2006, Spotify was founded on the belief that technology could bring artists a...
04/03/2026
Spotify is back on the ground for the Houston Livestock Show and Rodeo, and we&#...
04/03/2026
Spotify had an energizing week in Sydney, Australia, filled with powerful conver...
04/03/2026
Earlier this year, we launched Directed By, a documentary-style series that pull...
04/03/2026
100 Days to Go: SBS Unveils World Class Team for The Greatest Show on Earth -The...
04/03/2026
KT and Rohde & Schwarz to showcase AI-enhanced radio transmission performance In a joint 6G AI proof-of-concept demonstration, the CMX500 one-box tester from ...
04/03/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
04/03/2026
Luxembourg, 3 March 2026 - SES S.A. has today published its 2025 Annual Report, following the announcement of the company's full year financial results for ...
04/03/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
04/03/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
04/03/2026
Luxembourg, March 3, 2026 - SES, a leading space solutions company, along with I...
04/03/2026
04 Mar 2026
VEON Partners with GSMA Innovation Fund to Accelerate Digital Innov...
04/03/2026
04 Mar 2026
VEON's Beeline Uzbekistan and Rakuten Symphony Partner for Open...
04/03/2026
Wednesday 4 March 2026
Sky Sports unveils plans for 2026 Formula 1 coverage
Sky Sports is preparing for one of the most highly anticipated F1 seasons in recen...
04/03/2026
Back to All News
Bloodhounds' Season 2 Gears Up for April 3 Premiere with ...
04/03/2026
Back to All News
Netflix Ads Suite Expands Capabilities
Business
04 March 2026
GlobalUnited States
Link copied to clipboard
After launching the Netflix Ad...
04/03/2026
Scripps Research welcomes healthcare innovator Joe Kiani to the Board of Directors Kiani brings decades of experience in patient safety and public service.
Mar...
04/03/2026
Nanoparticle vaccine approach takes on a new target: Hepatitis C virus Scripps Research scientists reengineer critical proteins on the surface of HCV, paving th...
03/03/2026
Beyond Sports, a Sony group company, and LIV Golf, the world's golf league, ...
03/03/2026
Ilitch Sports + Entertainment announces the launch of Detroit SportsNet (DSN), a year-round broadcast home for two of Detroit's franchises. With flexible op...
03/03/2026
Advanced Systems Group, LLC (ASG), a technology and services provider for media ...
03/03/2026
The PGA of America, NBC Sports and USA Sports extend their media rights agreemen...
03/03/2026
AI device ecosystem company HONOR enters into a strategic technical collaboratio...
03/03/2026
Cleveland's Telos Alliance, pioneers in broadcast technology for 30 years, l...
03/03/2026
The MD 9235 microphone head for wireless handhelds has been a firm favorite with many engineers and artists for its ability to cut through high on-stage levels ...
03/03/2026
Haivision Systems Inc. (Haivision), a global provider of mission-critical, real-...
January 9, 2017
