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Related Party Transactions
12 Months Ended
Dec. 31, 2019
Related Party Transactions  
Related Party Transactions

Note 3. Related Party Transactions

The Company has various agreements with MVS, a Mexican media and television conglomerate, which has directors and stockholders in common with the Company as follows:

·

MVS provides Cinelatino with satellite and support services including origination, uplinking and satellite delivery of two feeds of Cinelatino’s channel (for U.S. and Latin America), master control and monitoring, dubbing, subtitling and close captioning, and other support services. Expenses incurred under this agreement are included in cost of revenues in the accompanying Consolidated Statements of Operations. Total expenses incurred were $2.6 million and $2.4 million for the years ended December 31, 2019 and 2018, respectively. Amounts due to MVS pursuant to the agreements noted above amounted to $0.7 million at December 31, 2019 and 2018.

·

Dish Mexico (d/b/a Comercializadora de Frecuencias Satelitales, S. de R.L. de C.V.), an MVS affiliate that transmits television programming services throughout Mexico, including Cinelatino. Total revenues recognized were $1.9 million and $1.8 million for the years ended December 31, 2019 and 2018, respectively. Amounts due from Dish Mexico amounted to $0.3 million at December 31, 2019 and 2018.

·

MVS has the non-exclusive right to duplicate, distribute and exhibit Cinelatino’s service via cable, satellite or by any other means in Mexico. Cinelatino receives revenues net of MVS’s distribution fee, which is equal to 13.5% of all license fees collected from third party distributors managed but not owned by MVS. Total revenues recognized were $1.0 million and $1.1 million for the years ended December 31, 2019 and 2018, respectively. Amounts due from MVS pursuant to the agreements noted above amounted to $0.7 million at December 31, 2019 and 2018.

The Company entered into an amended and restated consulting agreement with James M. McNamara on August 13, 2019, a member of the Company’s board of directors, to provide the development, production and maintenance of programming, affiliate relations, identification and negotiation of carriage opportunities, and the development, identification and negotiation of new business initiatives including sponsorship, new channels, direct‑to‑consumer programs and other interactive initiatives. Total expenses incurred under these agreements are included in selling, general and administrative expenses and amounted to $0.4 million and $0.5 million for the years ended December 31, 2019 and 2018, respectively. No amounts were due to this related party at December 31, 2019 and 2018.

The Company is party to an output agreement with Pantelion Films, LLC (“Pantelion”), a joint venture made up of several organizations, including Panamax Films, LLC (an entity owned by James M. McNamara) and Lions Gate Films, Inc. (“Lionsgate”), for the licensing of movie titles. Expenses incurred under this agreement are included in cost of revenues in the accompanying consolidated statements of operations and amounted to $0.4 million and $0.0 million for years ended December 31, 2019 and 2018, respectively. At December 31, 2019 and 2018, $1.4 million and $0.5 million, respectively, is included in programming rights in the accompanying consolidated balance sheets related to these agreements.