EX-99.2 3 ea155462ex99-2_cinedigm.htm INVESTOR PRESENTATION FEBRUARY 2022

Exhibit 99.2

 

A P R E M I E R S T R E A M I N G T E C H N O L O G Y & E N T E R T A I N M E N T C O M P A N Y C O R P O R A T E P R E S E N T A T I O N F E B R U A R Y 1 4 , 2 0 2 2

 

 

F O R W A R D L OO K I N G STATEMENTS Investors are cautioned that certain statements contained in this document, as well as some statements in press releases and some oral statements of Cinedigm officials during presentations about Cinedigm, along with Cinedigm's filings with the Securities and Exchange Commission, including Cinedigm's current reports on Form 8 - K, quarterly reports on Form 10 - Q and annual report on Form 10 - K, are "forward - looking'' statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act‘’). Forward - looking statements include statements that are predictive in nature, which depend upon or refer to future events or conditions, which include words such as "expects," "anticipates,'' "intends,'' "plans,'' "could," "might," "believes,'' "seeks," "estimates'' or similar expressions. In addition, any statements concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future actions, which may be provided by Cinedigm's management, are also forward - looking statements as defined by the Act. Forward - looking statements are based on current expectations and projections about future events and are subject to various risks, uncertainties and assumptions about Cinedigm, its technology, economic and market factors and the industries in which Cinedigm does business, among other things. These statements are not guarantees of future performance and Cinedigm undertakes no specific obligation or intention to update these statements after the date of this presentation. 2

 

 

D e l i ve r i ng hi g h - q u a li t y , c u r a t ed c on t en t t h r ou g h f r e e a d - su p p o r t ed television (FAST) and dedicated ad - supported (AVOD) and subscription vid e o o n de m a nd ( S V OD ) c h ann e l s Leveraging proprietary tech and highly - scalable distribution platform, M a t c hpo i n t ® , t o l a un c h, di s t r i bu t e a nd m onet i z e c on t ent C on t r ol l i ng a l i b r a r y of ~40 , 000 + f i l m & T V asse t s Continuing legacy as an innovator in the digital transformation of the entertainment industry for more than two decades A PREMIER STREAMING TECHNOLOGY & ENTERTAINMENT COMPANY S U P E R - S E R V I N G G L O B A L E N T H U S I A S T F A N B A S E S 3

 

 

W I T H D E E P I N D U S T R Y K N O W L E D G E A N D R E L A T I O N S H I P S C H R I S M C GU R K 25 + Y E ARS O F EX P E RI E N C E CH A I RMA N & C H I EF EXECU TI V E O FF I C ER F o un d e r & C E O , O v e r t u r e Films C E O , A n c h o r B ay Entertainment V i c e Ch a i r & C OO , M G M P r es i d e n t & C OO , U n i v e r s al P r es i d e n t , D i s n ey M o ti o n Pictures E R IC K O P E K A 25 + Y E ARS O F EX P E RI E N C E CH I E F ST RA T EG Y O FF I C ER & PRE S I D EN T , C IN E D IG M NETWORKS S V P & C o - F o un de r , New V i deo D i g it al N C O , U S A r my V i c e Ch a i r Entertainment M e rc h a nt’ s Ass oc i a t i o n M embe r , P ro d u c e r s Guil d a n d T V A c ademy Y OL AN D A M A CIAS 25 + Y E ARS O F EX P E RI E N C E CH I E F C O N T EN T O FF I C ER EV P, V i ve n di E nt e r t a in me n t V P , DIR E C T V Sp a ni sh l a n g u ag e a n d in t e r n a t i o n a l se r v i c es H o n or e e & B o a r d M embe r , C5LA T O N Y HUIDOR 25 + Y E ARS O F EX P E RI E N C E CH I E F T E CH N O L OG Y & P R O D U CT O FF I C ER V P , U ni ve r sal Mu s i c G ro u p D i r ec t or , W a l t D i s n ey I nt e r n e t G ro u p JO HN CANNING 25 + Y E ARS O F EX P E RI E N C E CH I E F F I NAN C I AL OFFICER C F O , F i r e f l y S ys t em s I n c . G ro u p V P o f F in a n c e fo r D i s c o ve r y Ch a nn el F in a n c e l ea de r s hi p r o l e s a t Cl ea r Ch a nn e l O ut d o o r a n d T h e W a l t D i s n e y C o mp a n y GA R Y L O FFR E D O 20 + Y E ARS O F EX P E RI E N C E C H I EF O P ER AT I NG O FF I C E R , G E NERAL C O UN S EL & P RE SI D E NT , CINEDIGM F o un d in g e x ec uti v e o f Cinedigm V P , G e n e r a l C o un se l , C ab l ev i s o n Cin emas EXPERIENCED MANAGEMENT TEAM 4

 

 

5 CINEDIGM AT A PIVOTAL MOMENT T W O - Y E A R V I E W – L A S T T W E L V E M O N T H S ( L T M ) Cinedigm has completed its planned multi - year transformation of phasing out its legacy cinema equipment and base distribution (DVD/Blu - ray) business segments ( F Y 1 9 2 ) C o n te n t & E n te r ta i n me n t 49% 51% S t r e a m i ng & D i g i t al +78 % v s . L TM 12 / 2 0 Base D i s t r i b u t i o n 27% 71 % 29% 73% 79% 21% Content & Entertainment Segment includes Base Distribution fees and Streaming and Digital (FAST, AVOD & SVOD) 1. F i s c a l Y e ar 2019 e n d e d M a r c h 31, 2019 K E Y M E T R I C S ( A S O F D E C E M B ER 31 , 2021 ) R e v e n u e s ( L a s t t w e l v e mon t h s ) $47M M on t hly S t r ea m i ng V i e w e rs ~33M Cash $20M D e b t $0M S E G M E N T R E V E N U E B Y ( L T M 12 / 21 ) Cinema Equipment Business C o n te nt & E n te r t ai nm e nt +30 % v s . L TM 12 / 2 0 C i n e ma E q u i p m e nt Business

 

 

6 REVENUE MIX SHIFTING TOWARD HIGH - GROWTH STREAMING & DIGITAL 1. Year to date increase of 133% represents the first nine - month period of fiscal year 2022 2. Content & Entertainment Segment includes Base Distribution fees and Streaming and Digital (FAST, AVOD & SVOD) 3. Dollar figure includes non - recurring cinema equipment system sales of ~$9.0M for the period G R O W T H D R I V E N B Y C O R E B U S I N E S S I N C L U D I N G F A S T , A V O D & S V O D K E Y M ETR I C S ( L a st t w e l v e mon t h s a s of D e c e m b e r 31, 2021) LTM 12/31/21 vs LTM 12/31/20 (calendar year comparison) YOY $ CHANGE YOY % CHANGE COMMENTS S t r e a m i n g & D i g ita l +$12.0M +78% o r g anic and ac q ui r e d g r o w t h s t r e a m ing g r o w t h o f F A S T , A V O D and S V O D t o 133 % Y T D 1 B a se D i st r i b u ti on - $3.9M - 35% l e g a c y / D V D b u s ine s s T o ta l C o n t en t & E n t e r tai n me n t 1 +$8.1M +30% C i ne m a E q u ip me n t 2 +$8.5M +205% s u ns ett ing l e g acy s e gm e nt r e p o r t ing o n e - t i m e , non - r ec u r ring r e v e nue o f cine m a e q ui pm e nt s a le s C ON S OL I D A T E D R E V ENUE +$16.6M +54%

 

 

WHAT SETS US APART Diverse p o r t f ol i o o f fan - centric content C on t en t offe r i ng complements general entertainment subscription services ; doe s n o t c o m p e t e d i r e c t l y wi t h N e t f l i x, Disney+ Proprietary t e ch – on l y i n depen d ent t h a t h a s t his capability P r o ven a nd experienced m an a g e m en t t e a m 7

 

 

INVESTMENT HIGHLIGHTS P O S I T I O N E D F O R H I G H G R O W T H D R I V E N B Y E N T H U S I A S T C O N T E N T A N D T E C H N O L O G I C A L I N N O V A T I O N Delivering high - quality, curated c on te nt t hro u g h fr ee a d - su p p or te d te l e v i s i o n ( F A S T) a n d d e d i c a t e d a d - supported (AVOD) and subscription v i d e o o n d em a n d ( S V O D ) c ha nn e l s Co n tent D r i v i ng g ro w t h t h r o u g h p ro p r i et a r y Ma t c h p o i nt c on te nt d i s t r i b u t i o n p l at f o r m t h a t e n a b l e s s cal a b i li t y a n d s u p p l y - c ha i n a u t o m a t i o n t o pa r t n e r s w h il e r e duc i n g o p er at i n g costs T ech nolo g y D e li v e r i ng s us t ai n e d g ro w th by e x e c u t i ng k e y i n i t i a t i v e s i nc lu d i ng p u r s u i ng acc r et i v e M & A s t r a t e g y Ro l l - up S t r a t e g y P o s i t i o n e d t o d r i v e E B I T D A a n d KP I s t h r o u g h ach i e v ab l e g ro w t h t a r g et s F i nan c i a l Pe r for m a n c e & Metrics 8

 

 

9 WELL - POSITIONED IN LARGE, GROWING STREAMING MARKET 1 M A R K E T S I Z E 2 0 2 2 1. Source: PwC, Mirae Asset Securities; includes management estimates of enthusiast market of 5%. 2. Cinedigm’s LTM Revenues for the period ending December 31, 2021 were $47 million. P R O J E C T E D M A R K E T G R O W T H 2020 - 2025 $47M 2 U . S . E N TH U S IA S T MARKET $3B+ TOTAL GLOBAL MARKET ~ $60B+ 13.4 % CAGR

 

 

10 U.S. DIGITAL ADVERTISING SPEND INCREASING TO ~$70B K E Y A V O D G R O W T H D R I V E R S A V O D i s t he f a s te s t g ro wi ng s e g m e n t s wi t hin U . S. di g i ta l a d v e r t i s i ng s p e nd I n d us t r y s ee i ng p i vo t a l s hif t i n ad b u d g et s f r o m b r o a d c a s t TV t o streaming 37% 37% 37% 39% 41% 43% 45% 63% 63% 63% 61% 59% 57% 55% 0 10 20 30 40 50 60 70 80 2 0 1 9 2 0 2 0 2 0 2 3 E 2 0 2 4 E 2 0 2 5 E T O T A L S P E N D ( I N B I L L I O N S ) 2 0 2 1 E A V O D 2 0 2 2 E O t he r D i g i t al 1 201 9 – 2 0 2 5 E C A G RS A V O D: 25 % O t h e r Di g i ta l V id e o : 18 % T o t a l Di g i t a l V i d e o : 21 % 1. Source: IAB, Canaccord Genuity Estimates C o rd c u tt i n g t r e n d M e g a t r e n d o f s t r e a m i n g c o n t e n t

 

 

11 4.0 5.0 6.3 6.9 6.9 8.8 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 Q 4 2 0 2 0 Q 2 2 0 2 1 CAPITALIZING ON EVOLVING CONSUMER HABITS C o n t i nu e d “ c o r d - c u t t i n g ” r e s u l t i n g i n r i se i n S V O D & A V O D m i g r a t i o n Preference towards third - party channels a n d c on t e n t p l a t f o rms Rapid rise in consumption of free ad - s u pp o r t e d c on t e n t I n c r e a s i n g d em a n d f o r un d e r s e r v e d content Rise in consumption of smart TV out of t h e b ox f un c t i o n a li t y Note: ages 18+; includes subscription - based (SVOD) and ad - supported (AVOD) services Source: TiVo, “Video Trends Report Q2 2021,” Aug 17, 2021 GLOBAL CONSUMER HABITS CONTINUE TO TREND AWAY FROM TRADITIONAL MEDIA CHANNELS Average Number of Subscription Video - on - Demand ( S V OD ) Se r vices U sed b y In t e r net U ser s in N o r t h A m e r i c a , 201 6 - Q 2 202 1

 

 

DIVERSE PORTFOLIO OF FAN - CENTRIC CONTENT Cinedigm’s streaming advantage broadens c o n s u m e r r ea c h a nd d r i v e s r e v e n u e N a r r owc a s t S t r ea m i ng Chann e l s t hat g e n e r at e r e c urr i ng r e v e n u e s t r ea m s 12

 

 

36 , 8 4 6 35,24 7 35 , 0 5 3 20,80 9 13,09 7 11,79 6 11,73 1 11,01 4 9 , 0 8 4 6,79 9 5,94 9 4,40 3 4, 3 00 2,95 0 Source: Data according to Ampere Analytics, December 2021 13 AMONG THE LARGEST STREAMING LIBRARIES IN THE MARKET C I N E D I G M ’ S C U R R E N T S T R E A M I N G C O N T E N T L I B R A R Y A T ~ 3 5 K T I T L E S O T T L i b r a r y S i z e I n c l u d e s T V S e r i e s a n d M o v i e s a c r o ss F A S T , A V O D a n d S V OD

 

 

FOCUSED ON ENTHUSIAST AUDIENCES GLOBALLY T A R G E T I N G S O U G H T - A F T E R V E R T I C A L S W I T H L O Y A L F A N - B A S E P r e st i g e f il m a n d T V ( F a n d or) Hor r o r ( S c r e a m b ox a n d B l oo d y D i sg u s t i n g) F a m i l y e n t e r t a i n me n t ( D o v e C h a nn e l ) Iconic entertainers (The Bob Ross Channel) 14

 

 

P R O P R I E T A R Y D I S T R I B U T I O N PLATFORM: MATCHPOINT ® Tech - stack automates film and TV distribution at massive scale A pp li c a t i on f r a m e w ork Analytics C o n t e n t d e li v e r y C o n t e n t A gg r e g a t i on 15

 

 

CONTENT OFFERING COMPLEMENTS GENERAL ENTERTAINMENT Es t a b li s h i n g k e y st r a t e g i c a d v a n t a g e s b y st r u c t u r i n g d e a l s w i t h : Connected streaming TV including Samsung, LG, Roku and Vizio Large original equipment managers (OEMs), cable companies and technology platforms including Sinclair Broadcast Group, Samsung, Comcast Xfinity, Roku, Amazon, Tubi, Vewd and Vizio Licensed film and TV content to key players in streaming ecosystem w i t h A m a z o n , A pp l e , N e t f li x , Y o u T u b e T V a n d G o og l e SUBSCRIPTION SERVICES D O E S N O T C O M P E T E D I R E C T L Y W I T H N E T F L I X , D I S N E Y + 16

 

 

D E V E L O P I N G CHANNEL UMBRELLA HUB W I T H G L O B A L R E A C H T O D R I V E E N G A G E M E N T Enthusiast umbrella super - serving a u d i e n c e s a c r o ss mu l t i p l e p o i n t s o f m o n e t i z a t i o n ( F A S T , A V O D a n d S V O D ) G l o b a l r e a c h – C i n e d i g m ’s ne wl y f o rme d e n g i n ee r in g a n d R& D hu b i n I n d i a t o d e v e l o p n e w s t r e a m i n g t e c hn o l o g i e s a n d s e r v i c e s f or b oo m i n g I n d i a n a n d S o u t h A s i a n m a r k e t s 17

 

 

PURSUING ACCRETIVE M&A STRATEGY B U I L D I N G C O M P E T I T I V E A D V A N T A G E C O M P L E T E D & I N T E G R A T E D S I X A C C R E T I V E A C Q U I S I T I O N S F R O M D E C E M B E R 2 0 2 0 T O S E P T E M B E R 2 0 2 1 W I T H O N G O I N G A C T I V E M & A P I P E L I N E F il m s A ro und The W o r l d Executing on roll - up strategy by completing several content - related acquisitions enabling monetization Setting the stage for significant annual revenue growth Focused on acquiring high quality content and streaming channels Active pipeline with key industry players O p p o r t un i t y f o r ne w t e c hn o l o g y a n d o t h e r r e v e nu e channels: NFTs, ecommerce, podcasts and merchandise P rop r i e t a r y t e c h p l a t f orm ( M a t c h p o i n t ) a llo w s f or o n - b o a r d i n g s ev e r a l a c q u i s i t io n s c o n c u r r e n t l y Acquisition of FoundationTV allows for expansion i n t o S o u t h A s i a n m a r k e t s 18

 

 

L A T E S T A C C R E T I V E A C Q U I S I T I O N O F D I G I T A L M E D I A R I G H T S ( D M R ) 1 I M M E D I A T E L Y P R O V I D E S I N C R E A S E D S C A L E A N D G R O W T H Highly accretive acquisition significantly increases Cinedigm’s library, channel portfolio, ad business and social footprint Adds 10 new channels, 7,500 titles and an estimated 7.5 million monthly viewers New positioning in ad business with more than 100 million connected TV impressions a month Increases social footprint with 18.5 million social subscribers E N T H U S I A S T R O L L - U P S T R A T E G Y 1. DMR acquisition agreement announced on January 6, 2022, which is expected to close in the near future D I G I T A L M E D I A R I G H T S A s ian F ilm s & T V C la s s ic A n im e T h r ill e r / C u l t H it s K - P o p F il m s & T V S ho w s Kids/Family 19

 

 

20 PLAN ON TRACK B U I L D I N G M O M E N T U M A C R O S S K E Y M E T R I C S 1 Growing viewership and subscription numbers increased significantly to ~33 million monthly viewers reaching ~1.1 billion unique consumer devices ~ 3 3 M T o t a l s t r e a m i ng viewers 1. YOY comparisons are between the nine - month periods ending December 31, 2020 and December 31, 2021 44 % Y O Y 954K T o t a l S V OD subscribers 466 % Y O Y 3 . 9 B Cumulative m i nu t e s s t r e am ed 112 % Y O Y AVOD REVENUE 171 % Y O Y

 

 

21 POSITIONED TO DRIVE EBITDA D r i v i n g g r o ss m a r g i n a n d E B I T D A b y leveraging proprietary Matchpoint platform E x p e c t e d p os i t i v e c a sh f lo w f r om l e g a c y c i n em a e q u i p me n t b u s i n e ss f o r F Y 22 C a sh p l u s c a p a c i t y un d e r r e v o l v e r p ro v i d e s li q u i d i t y t o p u r s u e a cc r e t i v e c o n t e n t r e l a t e d a c q u i s i t io n s Positioned to generate positive EBITDA and d e li v e r s u s t a i n e d g r o wt h T H R O U G H A C H I E V A B L E G R O W T H T A R G E T S 1. A s o f D e c e m b e r 31, 2021 $20 Million 1 C A S H D E B T $0 Million 1

 

 

22 LONG RANGE GROWTH TARGETS 2 T O 4 Y E A R S B O T H O R G A N I C A N D M & A G R O W T H Revenue 1 1. R e p re s e n t s d i g i t a l , s t ream i n g a n d p r o d u c t i o n re v e nu e 2. Monthly viewers who have engaged with a Cinedigm property 3. Aggregate monthly minutes consumed by Cinedigm streaming service users 4. Film and TV series episodes under management $150M M o n t hly V i e w e r s 2 40M Engagement C o n n e c te d TV m i n u te s 3 1B 75K C on t ent Library 4

 

 

23 C O N T E N T F ocu s ing on E nth us i as t au d i e nce – Fan - c e nt r ic c o n te nt t hat is c o mp l e m e n t a r y t o g e n e r al e n te r t ain m e nt s u b s c r i p t i o n s e rv ic e s Well - positioned in evolving consumer streaming landscape G r o wing vi e w e rshi p and s u b s c r i b e r n u mb e r s i g ni f ican t l y : ~ 3 3 m illi o n m o n t hly vi e w e r s and ~ 1 . 1 billion unique streaming consumer devices globally R O L L - U P S T R A T E G Y Executing accretive roll - up strategy by completing several content - related acquisitions enabling FAST, A V O D & S V O D r e v e n u e g r o w t h P a r t n e rshi p s / C o n te nt p r o vid e r s l e v e r a g ing p la t f o rm t o s c a l e c a b le cha n nels t r an s i t ioning t o O T T A b s o rb , in te g r a t e and s cale T E C H N O L O G Y D r a m a t ic a l ly e x p an d e d s t r e a m ing cont e nt b u s ine s s a c r o s s M a t ch p o int p la t f o rm Launching and scaling channel portfolio – building an U mb r e lla (chann e l h u b ) Establishing key strategic advantages through partnership deals Licensing film and TV content to key players in the s t r e a m ing e c o sy s te m F I N A N C I A L P E R F O R M A N C E / M E T R I C S Driving gross margin and EBITDA by leveraging proprietary M a t ch p o int p la t f o rm Growing KPIs – monthly viewers, subscribers, connected TV minutes, content library, cumulative minutes streamed, d r i vin g s i g nific an t r e v en u e g r o wth Cl e an b alance s h ee t I N S U MM A R Y - I N V E S T M E N T H I G H L I G H T S P O S I T I O N E D F O R H I G H G R O W T H D R I V E N B Y E N T H U S I A S T C O N T E N T A N D T E C H N O L O G I C A L I N N O V A T I O N

 

 

A P R E M I E R S T R E A M I N G T E C H N O L O G Y & E N T E R T A I N M E N T C O M P A N Y