Cinedigm Corp. (NASDAQ: CIDM) and Shout! Factory have agreed to expand their strategic partnership with a minority investment by Cinedigm and the announcement of plans to jointly re-launch Shout's existing AVOD over-the-top digital channel, Shout! Factory TV, focused on classic television and movies in a SVOD and freemium AVOD model. The announcement was made today by Cinedigm Chairman and CEO Chris McGurk, Cinedigm Entertainment Group President Bill Sondheim, and Shout! Factory's founders Richard Foos (CEO), Bob Emmer (COO) and Garson Foos (President). As part of the strategic partnership, the Companies will also extend Cinedigm's existing home entertainment distribution contract covering Shout! Factory's extensive library of content, including classic and contemporary television series, new horror and family films, animation and classic films.
"Shout! Factory has been our long-time partner and we are thrilled to make an investment in this innovative and forward looking multimedia entertainment company," said McGurk. "This new relationship benefits all aspects of Cinedigm's business and adds Shout! Factory's classic pop culture-themed OTT channels to our digital network roster that now includes CONtv, DOCURAMA and the upcoming DOVE CHANNEL."
"Cinedigm is the perfect investor and strategic partner for Shout! Factory. This opportunity brings together two popular entertainment brands that complement each other in many ways," commented Shout! Factory's founders. "As we continue to build on the success that we've enjoyed, we want to acquire exciting and high potential new films and series with significant revenue streams that we along with Cinedigm can fully exploit. This is a dynamic opportunity for us to cultivate our OTT digital channels by utilizing Cinedigm's expertise. This positions us well to further expand our physical and digital businesses."
"Shout Factory has been an integral part of the growth and success of Cinedigm's entertainment distribution business over the last 3 years, spanning all our active distribution platforms," added Bill Sondheim, President of Cinedigm Entertainment Group. "This deal further solidifies our strategic partnership and mutual commitment as both companies continue to lead in emerging consumer trends providing compelling branded content on digital network channels."
John Rudolph and Allen D. Lenard served as financial advisors to Shout! Factory for this transaction.
About Shout! Factory
Shout! Factory, LLC is a diversified multi-platform media company devoted to producing, uncovering, preserving and revitalizing the very best of pop culture. Founders Richard Foos, Bob Emmer and Garson Foos have spent their entire careers sharing their music, television and film favorites with discerning consumers the world over. Shout! Factory's entertainment offerings serve up feature films, classic and contemporary TV series, animation, live music and comedy specials. Shout's audio division boasts GRAMMY®-nominated box sets, Broadway cast albums, new releases from storied artists, lovingly assembled album reissues and indispensable "best of" compilations. In addition, Shout! Factory maintains a vast digital distribution network which delivers video and audio content to all the leading digital service providers in North America. Shout! Factory also owns and operates Timeless Media Group, Biograph Records, Majordomo Records, HighTone Records and Video Time Machine. These riches are the result of a creative acquisition mandate that has established the company as a hotbed of cultural preservation and commercial reinvention. Shout! Factory is based in Santa Monica, California. For more on Shout! Factory, visit shoutfactory.com.
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 television. The company's library of films and TV episodes encompasses award-winning documentaries from Docurama Films®, next-gen Indies from Flatiron Film Company®, acclaimed independent films and festival picks through partnerships with the Sundance Institute and Tribeca Films and a wide range of content from brand name suppliers, including National Geographic, Discovery, Scholastic, NFL, Shout Factory, Hallmark, Jim Henson and more.
Additionally, given Cinedigm's infrastructure, technology, content and distribution expertise, the Company has rapidly become a leader in the quickly evolving over-the-top digital network business. Cinedigm's first channel, DOCURAMA, launched in May 2014, and is currently available on iOS, Roku, Xbox and Samsung, with additional platforms currently being rolled out. Cinedigm launched CONtv, a Comic Con branded channel in partnership with WIZARD WORLD, on March 3, 2015. The Company's third OTT channel, DOVE CHANNEL, will be a digital streaming subscription service targeted to families and kids seeking high quality and family friendly content approved by Dove Foundation. Adding to Cinedigm's diversified portfolio of digital networks, in early 2015 the Company announced an OTT partnership with TV4 Entertainment and the planned launch of the BRIGHT edu-tainment OTT channel.
Cinedigm™ and Cinedigm Digital Cinema Corp™ are trademarks of Cinedigm Corp. http://www.cinedigm.com
