Cinedigm Corp. (NASDAQ:CIDM) Q2 2023 Earnings Call Transcript

So the amount of content that we have acquired and what we bring is already bigger than any other streaming services. But we — but to make it Google or Spotify level of utility, we are going to be adding hundreds of thousands of titles over the next several years. So in the long-term, that doesn’t — our strategy is in parallel. We still think all of these enthusiast verticals, are great businesses, have different distinct use cases and business models that are generating a ton of revenue by themselves and then Cineverse is sort of a different play where we leverage the content we have, but it doesn’t — not at the expense of the other platforms. So we think for the foreseeable future, those two business approaches can coexist. In fact, we are going to, in the coming quarters, start to really kind of focus and simplify branding and other things, so that our whole ecosystem really reinforces Cineverse beyond just being 30 discrete channels, if that makes sense.

Brian Kinstlinger: Yeah. Okay. And on the — a little bit more on the micro level, speaking of enthusiasts, there’s Elvis enthusiasts, there’s Real Madrid enthusiasts. We haven’t heard much about those channels. I am curious, because there was a lot of promise for them and there are enthusiast proud. Can you speak to, A, any stats on the Elvis channel, how it’s played out? And then on Real Madrid, we haven’t heard much about the technology there on the improvements you are making to better monetize it? That would be helpful.

Chris McGurk: Sure. So, on the linear business we don’t break out any of the individual channels at the dollar level. But what I can say on both of those channels is we have seen significant strides in revenue growth on both of them since they launched for — in particular, for Real Madrid, with all of the interest around World Cup and the channels programming sort of pivoting to general soccer news, information, more information about the business in general, looking at the highlights and things like that. The channel is actually done — I know we have always had a longstanding issue with monetizing during games, because you don’t — there’s no cuts like in American Football where there’s a cut every 10 minutes. We have been working on the tech.

We can control it and roll it out on our own apps. We are still waiting for other partners to facilitate that to have it work on there. But that doesn’t mean we are not advertising on the channel. We are advertising 90% of the other time that is on the channel and that monetization has been effective and growing substantially. So we think both of those channels have a lot of prospects. On the Elvis front, I think, we had a big wave with the initial launch of the movie and now it’s really about us sustaining that wave with new programming and content, which we are working on right now.

Brian Kinstlinger: Great. And you talked about advertising discussion around the market, not just connected TV but elsewhere. How are you seeing CPMs, is there some pressure, is there not really, because there’s a shift to FAST and advertising-supported television, sorry, on television streaming and our fill rates just as strong right now?