Related Party Transactions

12 Months Ended

Dec. 31, 2020

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:

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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 closed 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 for each of the years ended December 31, 2020 and 2019. Amounts due to MVS pursuant to the agreements noted above amounted to $0.6 million and $0.7 million as of December 31, 2020 and 2019, respectively.

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Dish Mexico (d/b/a Comercializadora de Frecuencias Satelitales, S. de R.L. de C.V.), an MVS affiliate that operates a subscription satellite television service throughout Mexico and distributes Cinelatino as part of its service. Total revenues recognized were $1.1 million and $1.9 million for the years ended December 31, 2020 and 2019, respectively. Amounts due from Dish Mexico amounted to $0.3 million as of December 31, 2020 and 2019.

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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 $0.9 million and $1.0 million for the years ended December 31, 2020 and 2019, respectively. Amounts due from MVS pursuant to the agreements noted above amounted to $0.4 million and $0.7 million as of December 31, 2020 and 2019, respectively.

The Company entered into an amended and restated consulting agreement with James M. McNamara, a member of the Company’s board of directors, on August 13, 2019, 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 in the accompanying Consolidated Statements of Operations and amounted to $0.5 million and $0.4 million for the years ended December 31, 2020 and 2019, respectively. No amounts were due to this related party as of December 31, 2020 and 2019.

For the year ended December 31, 2020, the Company received $3.3 million from Searchlight Capital Partners LLC (“Searchlight”), two principals of which are directors of the Company, as reimbursement of expenses incurred in connection with the pursuit of a strategic transaction during the year. The reimbursement was recorded in gain from insurance proceeds and other, net in the accompanying Consolidated Statements of Operations.