Los Angeles, CA, May 14, 2013 Cinedigm, the global leader in digital content distribution, and Universal Studios Home Entertainment, the premier home entertainment company, have entered into a multi-year agreement whereby Universal will provide comprehensive supply-chain services across North America for Cinedigm’s growing DVD and Blu-ray library of independent films, documentaries, TV programs and other content, the two companies announced today. Cinedigm’s existing sales force will continue selling directly to customers. The arrangement encompasses Cinedigm’s library of over 5,000 titles which includes award-winning documentaries from Docurama Films, next-gen indies from Flatiron Film Company and acclaimed independent films and festival picks through partnerships with the Sundance Institute and Tribeca Film. Cinedigm also distributes many award-winning and Oscar-nominated films including “THE INVISIBLE WAR,” “HELL AND BACK AGAIN,” “GASLAND,” “WASTE LAND,” and “PARADISE LOST 3: PURGATORY.” Bob Fiorella, Chief Strategy Officer of Cinedigm, negotiated the agreement on Cinedigm’s behalf.
The kiosk company already buys Warner Bros discs on the open market instead of accepting the studio’s insistence that it wait 56 days for new releases. And Paul Davis, CEO of Redbox parent Coinstar, says he’s “comfortable that we could deal with” a similar situation if Universal or Fox also try to change their current arrangement to hold new releases for 28 days before selling discs directly to Redbox. The kiosk company says it offsets the higher price it pays retailers for Warner Bros’ new DVD and Blu-ray releases by carrying fewer of the studio’s titles. “We’re not buying every single movie” from Warner Bros, he told analysts at the Pacific Crest Emerging Technology Summit. ”We’re pretty selective.” The company expects to “learn a lot more as we go through the quarter” about how many discs to buy to satisfy consumers and still make a profit. Although Redbox is prepared to do the same thing with Universal and Fox, Davis says “I don’t believe that’s where we’ll end up.”