Media Companies Sign Distribution Deals

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Image Entertainment Inc. and Lions Gate Entertainment Corp. have signed separate distribution deals to make their entertainment content available on nontraditional platforms.

Chatsworth’s Image, which has attempted to expand revenue streams beyond standard DVD offerings, on Wednesday said it signed an agreement with Sherman Oaks’ Avail-TVN to provide video-on-demand programming to U.S. cable, satellite and telecommunications companies and in hotels across Canada.

Avail-TVN is considered to have the largest VOD distribution footprint in North America. “Through Avail-TVN, we’re able to greatly extend our reach in the video-on-demand market,” Steve Saltman, Image’s senior vice president, worldwide television, said in a statement.

Lions Gate, which has headquarters in Vancouver, British Columbia and its main operations in Santa Monica, said late Tuesday it reached a five-year agreement to distribute its DVDs through Coinstar Inc’s Redbox automated kiosks.

The deal with Rebox of Bellevue, Wash., which rents DVDs at grocery stores and other retail outlets, should generate around $200 million to $300 million in revenue for Lions Gate over the term of the deal, the company said.

“We believe that the Redbox model will ultimately expand the business by increasing the number of impulse rentals and by putting packaged media rentals in places where none existed previously,” Chief Operating Officer Steve Beeks said in a statement. The arrangement also “lowers the impact of low-priced previously-viewed DVDs being sold into the market, which we saw as a growing issue.”

Terms of both deals were not disclosed.

Lions Gate shares closed down 7 cents, or 1 percent, to $6.24 on Nasdaq. Image closed down 1 cent, or 1 percent, to 91 cents on Nasdaq.

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