Netflix deal with Cinedigm to bring in new titles

Brittany A. Roston - Jun 24, 2013
Netflix deal with Cinedigm to bring in new titles

Netflix penned a deal with DreamWorks last week to bring 300 hours of content to the video subscription website, a fair number, but perhaps not enough to assuage some user complaints about inadequate streaming options. That will shift in the coming months thanks to a new partnership between the company and Cinedigm, which will bring in new titles of both the movie and TV show variety.

The exact amount that Netflix is paying for the new titles wasn’t specified, with it reportedly being somewhere in the 8-figure range. The deal spans for several years, and specifically is for Cinedigm Digital Cinema Corporation content. This follows a recent deal with Universal Studio involving access for Target and Wal-Mart stores.

This move will benefit both Netflix and Cinedigm, the first of which has been accused by some users of shifting its focus into areas that leave its subscribers without new content. Cinedigm, on the other hand, has been pushing to become more deeply entrenched in the market. The company’s CEO, Chris McGurk, said during a conference call that the company looks “forward to rapidly expanding [its] home entertainment business…”

Meanwhile, Adam Mizel, Cinedigm’s CFO, also spoke on a conference call, talking of the newly penned deal with Netflix. He says the company picked out content that is aimed specifically for Netflix’s user demographic, and has continued to deliver those types of videos. In addition to providing content, Cinedigm will also ramp up the library of content it has this year, it was revealed.

Netflix has dabbled in original series creation for awhile now, and Cinedigm plans to do the same, though it will focus on business aspects first. In addition, the company is also looking to boost its movie output this year from 2012’s 5 films up to a solid 15 to 18 films, as well as acquiring the distribution rights for various independent content offerings.

SOURCE: BizJournals

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