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
06/10/2025
France T l visions, France's leading broadcaster, has received the 2025 EBU ...
04/09/2025
Monumental Sports & Entertainment (MSE), in collaboration with Dalet, has been a...
30/08/2025
WASHINGTON The Federal Communications Commission has adopted its FY 2025 Regulatory Fees Order that establishes the regulatory fee rates for the broadcast stati...
29/08/2025
Australian Red Cross and SBS launch training to help workplaces in the fight aga...
29/08/2025
The National Film and Video Foundation (NFVF), an agency of the Department of Sp...
29/08/2025
L3Harris Technologies has concentrated decades of expertise across the entire enterprise to develop affordable and reliable best-of-breed solutions to rapidly c...
29/08/2025
BURBANK, Calif. The CW Network and the Pac-12 Conference have announced a new media rights deal that will extend their broadcast partnership beginning with the ...
29/08/2025
NEW YORK Gracenote has released a new analysis of its global video dataset showing that the number of FAST channels grew nearly 14% from Q1 2025 and 76% since 2...
29/08/2025
SAN JOSE, Calif. Harmonic has announced a series of improvements to its live sports streaming solution that the company said will improve fan engagement, protec...
29/08/2025
NEW YORK and LOS ANGELES Fox Corp. and YouTube TV last night announced a renewal of the full portfolio of Fox networks, including Fox News Channel, Fox Business...
29/08/2025
Budapest, Hungary, August 2025 - The integration of Microsoft Teams Rooms (MTR) with Lightware's Taurus universal matrix switchers delivers a new level of f...
29/08/2025
Frequency, the engine behind many of the world's best-known streaming television channels, today announced it will launch Studio Live, a next-generation uni...
29/08/2025
In an era when AI and cyber resilience are essential, Scality will mark the 10th anniversary of Scality Day on October 16, 2025 in Paris. This flagship global e...
29/08/2025
Disguise's In-House Creative and Technical Teams Pre-Visualised, Programmed and Delivered Content for the Experience, All Powered by EX 3+
Technology solu...
29/08/2025
Disguise will be demonstrating the latest workflows for TV, film and live events on a number of partner booths at the show
Disguise, the industry-leading tech...
29/08/2025
STOCKHOLM, Sweden Accedo will showcase Accedo Compose, its AI agent-powered modular orchestration layer that assists streaming providers in transitioning client...
29/08/2025
LOS ANGELES Cineverse has announced that it is working with Xperi to bring four of its streaming channels to automobiles for the first time as part of the DTS A...
29/08/2025
DALLAS & ATLANTA Gray Media has announced an agreement with the sports streaming service Victory+ to simulcast 17 Dallas Stars NHL games in 15 television market...
29/08/2025
NEW YORK AND CULVER CITY Comcast NBCUniversal and Amazon have announced new and extended distribution agreements that will expand the content available on their...
29/08/2025
FOOTHILL RANCH, Calif. RED Digital Cinema will feature its Cine-Broadcast Module supporting live broadcast workflows during IBC2025, Sept. 12-15, at the RAI Ams...
29/08/2025
29 Aug 2025
Kyivstar Rings Opening Bell at Nasdaq Marking Landmark Listing and ...
29/08/2025
More than half of all NFL games live on Sky for the first timeFriday 29 August 2025
Sky Sports has announced a new three-year deal with the NFL, extending its ...
29/08/2025
Back to All News
RIV4LRIES: The Trailer of the New Series With Samuele Carrino ...
29/08/2025
Get ready for an inspiring and emotional insight into the world of competitive Irish dancing with My Story: Tomi Champion of the World airing on RT 2 this monda...
29/08/2025
RT has today announced that David McCullagh is to be the new presenter of RT Radio 1's flagship Today programme, which airs every weekday at 10am, replaci...
28/08/2025
By Kristin Feeley, Director, Documentary Film & Artist Programs
If you want to tell untold stories, if you want to give voice to the voiceless, you've got ...
28/08/2025
Directed by Steven Bognar and Julia Reichert, Sundance Institute-supported Amer...
28/08/2025
Corridos have been a cornerstone of M sica Mexicana for generations, telling stories rooted in everyday life. Now, a new chapter is taking shape: motivational c...
28/08/2025
Los corridos han sido un pilar de la M sica Mexicana durante generaciones, contando historias enraizadas en la vida cotidiana. Ahora, un nuevo cap tulo est tom...
28/08/2025
Earlier this month, we promised our Verano Forever party would bring the heat, a...
28/08/2025
L3Harris will provide the Polish F-16V fleet with the Viper Shield electronic warfare system as part of an upgrade program....
28/08/2025
Bilbao, August 26, 2025 - AgileTV, an international television and video technol...
28/08/2025
Ken Wilkinson is an Emmy Awards nominated New York audio engineer who specialises in production sound mixing for film, commercial, episodic and documentary work...
28/08/2025
NEW YORK FuboTV today announced that it will launch Fubo Sports, a skinny bundle that focuses on sports with a subscription price of $56 monthly....
28/08/2025
NEVADA City, Calif. At IBC2025, Sept. 12-15 at the RAI Amsterdam, Telestream will debut its new Global Ingest strategy, introducing a next-generation ingest arc...
28/08/2025
Dr. Rhoda Bernard Releases Groundbreaking Debut Book on Accessible Arts Educatio...
28/08/2025
TAG Video Systems, the leader in software-based IP end-to-end workflow monitoring, deep probing, and real-time visualization, has named Oliver Gappa as Sales Di...
28/08/2025
AI-based voice enhancement will be among a series of innovations making their IBC 2025 debut on the DHD stand B46 in Hall 8 at the RAI Amsterdam Convention Cent...
28/08/2025
Telef nica Servicios Audiovisuales (TSA), the leading system integrator and service provider in the media sector in Spain, with the support of Appear, the globa...
28/08/2025
To fully immerse sailing fans in the world's biggest offshore yacht race, production company, Optical Media turned to LiveU's On-site Production solutio...
28/08/2025
Working with Calrec on its most recent overhaul, radio and television broadcaster, WNED has migrated to a fully IP infrastructure with multiple Type R consoles,...
28/08/2025
Cleeng, the Subscriber Retention Management (SRM ) inventor, has unveiled Cleeng Pro, the first-ever direct-to-consumer (D2C) subscription management platform t...
28/08/2025
Zixi, the industry leader in live broadcast-quality video over IP, today announced that French media distribution platform OKAST has selected Zixi to enable rel...
28/08/2025
Solution offers a streamlined, speaker-free architecture to optimize integration with premium external loudspeakers and advanced loudness metering
Nixer Pro Au...
28/08/2025
Cinegy, the premier provider of software-defined television technology, has announced a strategic partnership with Vision One Touch Film Production Services L.L...
28/08/2025
Telestream, a global leader in media workflow technologies, will debut its new Global Ingest strategy at IBC2025, introducing a next-generation ingest architect...
28/08/2025
Tier 1 operator selects Broadpeak to power high-performance, unified CDN solution across Norway, Sweden and Finland
Broadpeak, a leader in streaming and moneti...
28/08/2025
Leading video software provider, Synamedia, today announced that 24 Frames Digital, one of India's leading live event streaming service providers, has chose...
28/08/2025
Meet VisualOn at IBC2025: See What's Next in AI-Powered Video Streaming Join VisualOn at IBC2025 and discover how our AI-driven Optimizer and advanced media...
January 9, 2017
