Cinedigm Corp. (NASDAQ:CIDM) Q2 2019 Earnings Conference Call - Final Transcript
Nov 14, 2018 • 04:30 pm ET
Good day, ladies and gentlemen, and welcome to the Cinedigm Corporation's Fiscal 2019 Second Quarter Earnings Call. At this time, all participants are in a listen-only mode. (Operator Instructions) Later, we will conduct a question-and-answer session and instructions will follow at that time. As a reminder, today's conference is being recorded.
I'd now like to introduce your host for today's conference, Ms. Jill Calcaterra, EVP. Ma'am, please go ahead.
Good afternoon, and thank you for joining us today for our second quarter fiscal 2019 earnings conference call. Participating in today's call are Cinedigm's Chairman and CEO, Chris McGurk; CFO, Jeffrey Edell; and our General Counsel and Head of our Cinema Equipment Business, Gary Loffredo.
(Forward-Looking Cautionary Statements)
In addition, certain financial information presented in this call represents non-GAAP financial measures.
And now, I'd like to turn the call over to Chris McGurk.
Thanks, Jill, and thanks, everyone, for joining us on the call today. Overall, our results for the second quarter were in line with our expectations. We added new partnerships with both domestic and Chinese content providers and platforms to distribute content, expanded our ad-supported and subscription OTT footprint with key new partners and continued our business development efforts for the flow of content and OTT channels, both into and out of China.
Over the last several quarters, we have been focused on expanding our OTT footprint in three key areas: OEM integrations, scaled ad-supported platforms and scaled third-party subscription platforms. Importantly, both OEM and scaled ad-supported platforms provide immediate reach, engagement and revenues. And third-party subscription platforms allow us to expand our OTT subscription and viewership base with minimal to no marketing expenditures.
In the OEM area, we closed two significant deals. The first is with XUMO, a fast-growing advertising and technology company that delivers VOD and live OTT channels direct-to-consumers through smart TV integrations. Through strategic partnerships with LG Electronics, VIZIO and Panasonic, XUMO has developed technology that enables Cinedigm's channels to be consumed with advertising via a simple one-click access. No app installs or registration is required. That model has generated engagement 8 times higher than average depending on the specific device used and enables our ad-supported businesses growth to track right alongside smart TV shipments from XUMO's huge OEM partners. The initial results of our OTT channels on XUMO have been very promising and are currently exceeding XUMO's and our own internal forecast for both engagement and watch time.
The second major OEM deal that I am very happy to announce on this call is with Samsung, one of the largest manufacturers of smart TVs globally. We're officially launched on select Samsung smart TVs as of today, bringing Dove Channel and CONtv to Samsung's TV plus video service. We think this is an important deal for our linear and AVOD OTT strategy. We expect other channels to launch on this platform in 2019. In the coming quarters, look for additional channel launches as we expand our OTT footprint with other smart TV OEMs, telcos and cable