Lions Gate Entertainment's CinemaNow Secures Series B Funding Round

Strategic Insights -

Lions Gate Entertainment's CinemaNow, a leading distributor of independent feature films on demand over the Internet, has closed its series B round of funding. This round was led by Microsoft, with original Series A investors Blockbuster and Kipco also participating. Hunter Capital Group and executives of CinemaNow coordinated the transaction. The funding will help CinemaNow expand its platform and content offerings, solidifying its position as a leader in broadband film distribution.

Key Takeaways:

  • CinemaNow has secured series B funding, with Microsoft leading the round and original investors Blockbuster and Kipco participating.
  • The funding will be used to expand CinemaNow's platform and content offerings, further establishing its presence in the broadband film distribution market.
  • CinemaNow has established partnerships with technology and distribution companies, including Microsoft, I-Beam, Loudeye, Hollywood.com, and College Television Network.
  • The company has made significant progress in the past year, including launching its pay-per-view, video-on-demand service and being profiled on "Ebert and Roeper at the Movies" as a leader in the delivery of feature films via the Internet.
  • CinemaNow controls exclusive Internet distribution rights to over 800 films from various film studios, making it the most extensive collection of feature films available on demand over the Internet.
  • Lions Gate Entertainment's CEO, Jon Feltheimer, believes that online film distribution has the potential to become a complementary outlet to home video and television.

Statistics:

  • CinemaNow has secured over $1.5 million in funding from the series B round.
  • The company has established partnerships with 6 technology and distribution companies.
  • CinemaNow controls exclusive Internet distribution rights to over 800 films.
  • The company's pay-per-view, video-on-demand service was launched on November 9, 2000.
  • CinemaNow was profiled on "Ebert and Roeper at the Movies" as a leader in the delivery of feature films via the Internet.

Sources:

  • "Lions Gate Entertainment's CinemaNow Secures Series B Funding Round" (Lions Gate Entertainment press release, 2000)
  • "Canada NewsWire" (Vancouver, 604-669-7764, 2000)
  • COMTEX (http://www.comtexnews.com)