Cineverse Corp. · NASDAQ:CNVS
Cineverse — Cinedigm — 24th Annual Needham Growth Conference (January 2022)
26 slides from Cineverse's conference presentation, Jan 11, 2022
Slide 1: A Leading Independent Streaming Entertainment Company
A Leading Independent Streaming Entertainment Company 24th Annual Needham Growth Conference January 10, 2021 Erick Opeka Chief Strategy Officer and President, Cinedigm Networks Investor Presentation
Slide 2: Forward looking statements
Forward looking statements Investors are cautioned that certain statements contained in this document, as well as some statements in press releases and some oral statements of Cinedigm officials during presentations about Cinedigm, along with Cinedigm's filings with the Securities and Exchange Commi
Slide 3: A Leading Independent Streaming Entertainment Company
A Leading Independent Streaming E ntertainment C ompany Super - serving Global E nthusiast F an B ases 3 • Delivering high - quality, curated content through subscription video on demand (SVOD) and dedicated ad - supported (AVOD) and free ad - supported television (FAST) channels • Controlling a lib
Slide 4: Poised for considerable growth driven by technological innovation
Poised for considerable growth driven by technological innovation 4 Innovative Fan - Centric Expected revenue growth High - Growth Streaming & digital business World - class proprietary streaming platform Focusing on Enthusiast audience
Slide 5: Cinedigm at a pivotal moment – Two-year view
Cinedigm at a pivotal moment – Two - year view 5 Content & Entertainment Segment includes Base Distribution fees and Streaming and Digital (SVOD, AVOD & FAST) 1 Includes addition of ~40 million monthly viewers from the DMR acquisition agreement announced on January 6, 2022, which is ex pec ted to cl
Slide 6: Investment highlights
6 Investment highlights Diverse portfolio focused on large Total Addressable Market ( TAM) Leveraging enthusiast c ontent portfolio Well positioned in a changing landscape Delivering sustained growth Executing key initiatives Driving growth through technological innovation A rapidly growing streamin
Slide 7: Diverse portfolio of fan-centric content
Diverse portfolio of fan - centric content 7 • Cinedigm’s streaming advantage broadens consumer reach and drives revenue • Narrowcast Streaming Channels that generate recurring revenue streams
Slide 8: Focused on enthusiast audiences globally
• Indie film ( Fandor ) • Horror ( Screambox and Bloody Disgusting) • Family entertainment (Dove Channel) • Iconic entertainers (The Bob Ross Channel and The Elvis Presley Channel) 8 Focused on enthusiast audiences globally Targeting sought - after verticals with loyal fan - base
Slide 9: Positioned in large, growing streaming market
Positioned in large, growing streaming market 1 9 Market Size 2021 $30M U.S. Enthusiast Market $3B+ Total Global Market ~ $60B Market Growth 2020 - 2025 13.4% CAGR 1. Source: PwC, Mirae Asset Securities; includes management estimates of enthusiast market of 5%.
Slide 10: U.S. digital advertising spend increasing to ~$70B
U.S. digital advertising spend increasing to ~$70B 10 • AVOD is the fastest growing segments within U.S. digital advertising spend • Industry seeing pivotal shift in ad budgets from broadcast TV to streaming 37% 37% 37% 39% 41% 43% 45% 63% 63% 63% 61% 59% 57% 55% 0 10 20 30 40 50 60 70 80 2019 2020
Slide 11: Investment highlights
11 Investment highlights Diverse portfolio focused on large TAM Leveraging Enthusiast Content Portfolio Well positioned in a changing landscape Delivering sustained growth Executing key initiatives Driving growth through technological innovation A rapidly growing streaming business that is:
Slide 12: Capitalizing on evolving consumer habits
Capitalizing on evolving consumer habits 12 Continued “cord - cutting” resulting in rise in SVOD & AVOD migration Preference towards third - party channels and content platforms Rapid rise in consumption of free ad - supported content Increasing demand for underserved content Trend in youth (kids) m
Slide 13: Unique competitive position
Unique competitive position 13 Multi - channel, enthusiast portfolio is complementary to general entertainment subscription services • Not directly competing with big general entertainment subscription services such as Disney+ and Netflix . O ffers complementary channels, serving - super enthusiast
Slide 14: Proprietary distribution platform: Matchpoint
Proprietary distribution platform: Matchpoint TM • Our competitive advantage is our world class, proprietary streaming platform that enables us to deliver great streaming experiences at massive scale • SaaS - based distribution platform to automate film and TV distribution while creating and curatin
Slide 15: Investment highlights
15 Investment highlights Diverse portfolio focused on large TAM Leveraging Enthusiast Content Portfolio Well positioned in a changing landscape Delivering sustained growth Executing key initiatives Driving growth through technological innovation A rapidly growing streaming business that is:
Slide 16: Positioned to deliver sustained growth - Executing on key initiatives
Positioned to deliver sustained growth - Executing on key initiatives 16 • Growing viewership and subscription numbers significantly – 73 1 million monthly viewers and 900 million unique streaming consumer devices globally as of September 2021 • Executing roll - up strategy by completing several con
Slide 17: Pursuing accretive M&A strategy - Building competitive advantage
Pursuing accretive M&A strategy - Building competitive advantage 17 Completed & integrated five accretive acquisitions from December 2020 to September 2021 with ongoing active M&A pipeline • Focused on acquiring higher quality content and streaming channels • Active pipeline with key industry player
Slide 18: Latest accretive acquisition of Digital Media Rights (DMR)
18 • Adds 10 new channels and 7,500 titles with estimated 40+ million monthly viewers • New positioning in ad business with more than 100 million connected TV impressions a month • Increases social footprint with 18.5 million social subscribers Enthusiast Roll - Up Strategy Asian Films & TV Classic
Slide 19: Dramatically expanding streaming content business
Dramatically expanding streaming content business Building an Umbrella/Channel Hub to drive engagement 19 • Launching and scaling SVOD, AVOD, and FAST channel portfolio – building an Umbrella (channel hub)
Slide 20: Establishing key strategic advantages through partnership deals
Establishing key strategic advantages through partnership deals 20 • Connected streaming TV including Samsung, LG, Roku and Vizio • Large OEMs, cable companies and technology platforms including Sinclair Broadcast Group, Samsung, Comcast Xfinity, Roku, Amazon, Tubi, Vewd and Vizio • Licensed film an
Slide 21: Plan on track – Building momentum across key metrics
Plan on track – Building momentum across key metrics 1 21 1. YOY comparisons are between H1 FY21 (September 30, 2020) and H1 FY22 (September 30, 2021) 2. Total monthly viewers expected to increase to ~73 million following the close of the acquisition of DMR announced on January 6, 2022, which is exp
Slide 22: Positioned to drive EBITDA through achievable growth targets
Positioned to drive EBITDA through achievable growth targets 22 • Strong balance sheet with no debt • Residuals from legacy cinema equipment business will drive ~$11 million of cash flow in F’22 ($5 million Q1, $3 million Q2, and $3 million in later periods) • Cash plus capacity under revolver provi
Slide 23: Long range growth targets
Long range growth targets – 3 to 5 years Both Organic and M&A Growth 23 $150M 40M Revenue 1 Monthly Viewers 2 Engagement Connected TV minutes 3 1. Represents digital, streaming and production revenue 2. Monthly viewers who have engaged with a Cinedigm property 3. Aggregate monthly minutes consumed b
Slide 24: In Summary
24 A Leading Independent Streaming E ntertainment C ompany Super - serving Global E nthusiast F an B ases Diverse portfolio focused on large TAM Leveraging Enthusiast Content Portfolio Well positioned in a changing landscape Delivering sustained growth Executing key initiatives Driving growth throug
Slide 25: Appendix
A Leading Independent Streaming Entertainment Company Appendix
Slide 26: Experienced management team
Experienced management team 26 With deep industry knowledge and relationships Chris McGurk Chairman & CEO ▪ Founder & CEO, Overture Films ▪ CEO, Anchor Bay Entertainment ▪ Vice Chair & COO, MGM ▪ President & COO, Universal ▪ President, Disney Motion Pictures Erick Opeka Chief Strategy Officer & Pres
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