Cinedigm boosts content portfolio with Digital Media Rights acquisition

LA-based VOD operator Cinedigm has announced the acquisition of Digital Media Rights (DMR).

DMR is described by Cinedigm as “a diversified specialty streaming, advertising, and content distribution company with significant expertise in building audiences for global content in North America.” The company focuses on streaming via film distribution and it operates over 10 FAST and social video channels.

The acquisition will see Cinedigm increase its library to more than 46,000 hours of film and television content, along with an estimated 40+ million monthly viewers, 18.5 million social subscribers, 4 billion views, and 13 billion minutes viewed annually.

Terms of the deal have not been disclosed, but Deadline estimates it to be worth US$20-25 million.

Cinedigm said that it will look to expand DMR’s advertising network, while also leveraging the company’s social media division to grow the size of its audience.

Chris McGurk, Chairman and CEO at Cinedigm, said: “DMR’s top-notch management team, high-quality channels and film & TV library perfectly complement our own strengths and our mission of serving enthusiast audiences. When you consider the other key additive components from this deal, including the global reach of DMR’s expansive social media efforts, we are well-positioned to not only reach a rapidly growing new audience in the short-term but also to expand the scale of a larger Cinedigm umbrella channel strategy in the long run. We expect this acquisition to be immediately accretive, and the leverage of Cinedigm’s technological efficiencies and expansive portfolio of assets will spur significant additional growth.”

David Chu, Co-Founder and CEO of DMR, said: “The strong synergy between Cinedigm and DMR is readily apparent, and by working together, we can continue to deliver and further scale our top-notch, curated streaming channels to our audiences in a way that builds a true sense of community.

“The team at DMR is proud to have built an impressive lineup of channels and offer content that can meet the rising demands of audiences around the world, including fans of incredibly popular Korean dramas, Japanese anime, and Chinese TV, as well as arthouse, romance and horror movies. It’s why we’re thrilled to align with this key industry player and are looking forward to a future with even more expansion opportunities.”