Cineverse Corp. · NASDAQ:CNVS
Cineverse — Cinedigm — Investor Presentation (December 2022)
44 slides from Cineverse's investor presentation, Dec 13, 2022
Slide 1: Cinedigm Investor Presentation December 7, 2022
I N V E S T O R P R E S E N T A T I O N C i n e d i g m I n v e s t o r P r e s e n t a t i o n D e c e m b e r 7 , 2 0 2 2
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: Table Of Contents
Table Of Contents Investment Thesis The Streaming Opportunity Cinedigm Overview Cinedigm’s Competitive Advantage Case Studies Appendices 3
Slide 4: Investment Thesis
Investment Thesis Cinedigm (NASDAQ:CIDM) provides a compelling investment in high - growth streaming market without the downsides of the legacy studios or emerging streamers that have limited prospects for profitability in the near or mid term. Our differentiated approach is compelling due to: • Our
Slide 5: The Streaming Opportunity
THE STREAMING OPPORTUNITY ome ECINEDICM
Slide 6: Overall Streaming Growth Continues Unabated
Overall Streaming Growth Continues Unabated +34% CTV HHs vs . J a n 2019 0 . 0 2 . 0 4 . 0 6 . 0 8 . 0 10 . 0 12 . 0 90.0 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0 . 0 +84% T o t a l H o u r s v s . Jan 2019 Users and consumption growth still at all - time highs post - pandemic C T V H O U S E H O L
Slide 7: Ad Spending is Shifting From Cable to Streaming
Ad Spending is Shifting From Cable to Streaming K e y a d s u p p o r t e d g r o w t h d r i v e r s Ad - supported is the fastest growing segment within U.S. digital advertising spend Industry is seeing pivotal shift in ad bu d get s f r om b r oadcast TV to streaming 37% 37% 37% 39% 41% 43% 45% 6
Slide 8: Ad-Supported Streaming Growth Outpacing Subscriptions
64 . 5 M 60.1M 71.5M 69.1M 77.5M Subscription Ad - S u pp o r t ed +21% +29% 2022 8 2021 2020 77.7M 2020 2021 2022 Driven by rise of fast linear adoption, as well as consumer desire for cost - effective streaming Subscriber and Ad - Supported HH Growth 2020 - 2022 Ad - Supported Streaming Growth Out
Slide 9: Smart TVs Are the Fastest-Growing Streaming Device Segment
9 Smart TVs Are the Fastest - Growing Streaming Device Segment All CTV D e v i c e s Streaming Boxes/Sticks Sma r t T V s G a m ing C o n s o l e s +14% +48% - 20% Driven by vastly improved streaming operating systems and technology +21% Number of CTV Devices Adopted by Segment, 2020 - 2022 Source:
Slide 10: Consumers Seek Greater Streaming Choices
10 5.0 6.3 6.9 6.9 8.8 9.9 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 Q 2 2 0 2 2 Consumers Seek Greater Streaming Choices Number of services in use per household has risen more than 98% over last five years Free, ad - supported services now compromise 32% of all services used Heavily driven by rapid g
Slide 11: Major Streamers Are Slashing Libraries & Raising Prices
Major Streamers Are Slashing Libraries & Raising Prices Despite consumer preferences for more options at cheaper prices - 56% - 86% - 29% 36% 25% 66% 70% 50% 30% 10% - 1 0% - 3 0% - 5 0% - 7 0% - 9 0% Lib rar y S ize P r ice I ncre ase Major streamers have practiced “shrinkflation” by slashing strea
Slide 12: The Opportunity Summary
The Opportunity Summary Despite uncertainty about major streaming business models, new service adoption, user growth, engagement, and monetization, growth continues to show no signs of abatement at the macro level Ad spend continues to make its transition from cable television to streaming, driving
Slide 13: Cinedigm Overview
CINEDIGM OVERVIEW finevien
Slide 14: Cinedigm Snapshot
Cinedigm Snapshot T h e w o r l d ’ s l a r g e s t s t r e a m i n g c h a n n e l p o r t f o l i o a n d l i b r a r y , p o w e r e d b y o u r a d v a n c e d , p r o p r i e t a r y t e c h p l a t f o r m The world’s largest portfolio of owned and operated streaming channels, featuring 32 ent
Slide 15: Cinedigm: A Timeline
Launched Phase II Digital Cinema theater conversions Began conversion of more than 11,000 cinema chains from 35mm to digital Founded as AccessIT with a focus on digital cinema conversion Acquired New Video Group, a digital content aggregator with 25K+ titles Launched the first of the company’s 25 F
Slide 16: Diverse Portfolio of Enthusiast Streaming Channels
Diverse Portfolio of Enthusiast Streaming Channels Widely deployed under all streaming business model s – F AS T , A V O D , S V OD Diversified portfolio not dependent on any one channel for success 16
Slide 17: Cinedigm Business Model: Three Key Revenue Streams
Cinedigm Business Model: Three Key Revenue Streams D i v e r s i f i e d r e v e n u e a p p r o a c h r e a c h e s w i d e b a s e o f c o n s u m e r s STREAMING SUBSCRIPTIONS 19% Users pay a monthly fee either directly to Cinedigm within our apps, or through third party bundling on partners like
Slide 18: Cinedigm Has Achieved Scale
18 Cinedigm Has Achieved Scale W i t h c o n s i d e r a b l e m o m e n t u m a c r o s s k e y m e t r i c s Growing viewership and subscription numbers increased significantly to ~82 million monthly viewers 2 reaching ~1.1 billion unique consumer devices ~ 82 M Total streaming viewers 2 1. YOY co
Slide 19: Well-Positioned in Large, Growing Streaming Market
19 Well - Positioned in Large, Growing Streaming Market 1 M A R K E T S I Z E 2 0 2 2 1. Source: PwC, Mirae Asset Securities; includes management estimates of enthusiast market of 5%. 2. Cinedigm’s Revenues for Fiscal Year 2022 period ended March 31, 2022. P R O J E C T E D M A R K E T G R O W T H 2
Slide 20: Introducing Cineverse
I n t r o d u c i n g Cineverse W i t h g l o b a l r e a c h t o d r i v e e n g a g e m e n t New enthusiast streaming service that will showcase the best of Cinedigm’s films, series, channel brands, technology and social reach Super - serving audiences across multiple points of monetizatio n ( F
Slide 21: The Competitive Landscape
La r ge Lib r ary S m all Lib r ary High Price Plu t o AM C+ Netf lix Cineverse Tubi Apple TV+ The Competitive Landscape F o c u s e d o n p r o v i d i n g v a s t c o n s u m e r c h o i c e a t a g r e a t v a l u e Free /Low Price Hu lu Disney+ Paramount+ Amaz on HBOMax Peacock R o ku C r ackle
Slide 22: Annual KPI Results
22 Annual KPI Results $6M $10M $29M 2 0 2 0 2 0 2 1 2 0 2 2 Streaming & Digital Segment Revenues 121K 679K 984K 2 0 2 0 2 0 2 1 2 0 2 2 T otal S V O D Subscribers 23K 31K 43K 2 0 2 0 2 0 2 1 2 0 2 2 Film & TV As s e ts 14 22 32 2 0 2 0 2 0 2 1 Channels 2 0 2 2 8M 23M 87M 2 0 2 0 2 0 2 1 2 0 2 2 Mont
Slide 23: The Four Pillars to Our Strategy
The Four Pillars to Our Strategy For The Next 12 Months L A U N C H A N D S C A L E A D I R E C T A D BUSINESS L A U N C H C I N E V E R S E & S C A L E D T C A V O D & S V O D B U S I N E SS E S E X P A N D O U R ANCILLARY REVENUE BUSINESSES F I N D S T R A T E G I C C O N T E N T P A R T N E R S T
Slide 24: Four Key High ROI Initiatives
CINEVERSE – A new streaming service that will showcase the best of Cinedigm’s films, series, channel brands, technology and social reach Four Key High ROI Initiatives P r o j e c t e d t o g e n e r a t e o v e r $ 5 0 m i l l i o n 1 i n a g g r e g a t e a n n u a l r e v e n u e s a t a s t e a d
Slide 25: Long Range Growth Targets
25 Long Range Growth Targets 2 t o 3 y e a r s b o t h o r g a n i c a n d M & A g r o w t h Revenue 1 1. Represents digital, streaming and production revenue 2. Monthly viewers who have engaged with a Cinedigm property 3. Aggregate monthly minutes consumed by Cinedigm streaming service users 4. Fil
Slide 26: Cinedigm Competitive Advantage
CINEDIGM COMPETITVE ADVANTAGE
Slide 27: Competitive Advantage: Streaming's Largest Library
27 Competitive Advantage: Streaming’s Largest Library C i n e d i g m ’ s c u r r e n t s t r e a m i n g c o n t e n t l i b r a r y a t ~ 5 0 k t i t l e s OTT Library Size Includes TV Series and Movies ac r o s s F AS T , A V O D an d S V OD 50,464 6,846 3 5,247 3 0,809 2 3,097 1 1,796 1 1,731 1
Slide 28: Competitive Advantage: Proprietary Streaming Technology
Competitive Advantage: Proprietary Streaming Technology A sc al e platf orm t o laun c h and manage best - in - class streaming applications and channels on any device Deep content analytics providing performance, financial and other key insights An AI - centric content operating system, managing di
Slide 29: CHR I S M C GU RK 25+ YE AR S O F E
CHR I S M C GU RK 25+ YE AR S O F E XPE R I E N CE CHAIRMAN & CHIEF EXECUT I V E O FFICER F ou nde r & CEO, Overtu re Films CE O , A n c h or Bay Entertainment Vice Chair & COO, MGM President & COO, Universal President, Disney Motion Pictures ERIC K O P EKA 25+ YE AR S O F E XPE R I E N CE CHIEF S T
Slide 30: Competitive Advantage: M&A
Competitive Advantage: M&A C O M P L E T E D S E V E N A C C R E T I V E A C Q U I S I T I O N S S I N C E 2 0 2 0 Focused on achieving greater audience and revenue scale and increasing technological moat vs. competitors Set the stage for significant annual revenue growth – targeting at least 50% an
Slide 31: Production and Distribution
P R O D U C T I O N Original productions, films and series Ability to monetize across all platforms internally and sell internationally Ability to use productions to create subscription growth outside of physical sales, and AVOD revenue. SVOD, PVOD, VOD, TVOD, AVOD, DVD, Blu - ray, 4K Ultra HD Taste
Slide 32: Bloody Disgusting
Bloody Disgusting T h e # 1 e n t e r t a i n m e n t d e s t i n a t i o n f o r h o r r o r 20 + MILLION Annual Website Audience 2 + MILLION Monthly Podcast Downloads 20 + MILLION Bloody Disgusting TV Viewers 1 . 6 + MILLION Social Footp r int 2 . 5 + MILLION Monthly In - App Pageviews 1 0 + T H O
Slide 33: Content, Organic Growth Levers, Proprietary Technology
33 C O N T E N T Extensive portfolio of 32 streaming services available under every business model One of the largest streaming libraries in the world, with more than 50,000 titles under license 360 - degree approach to monetizing content enables the company to outperform rivals O R G A N I C G R O
Slide 34: Investment Thesis
34 Investment Thesis Cinedigm (NASDAQ:CIDM) provides a compelling investment in high - growth streaming market without the downsides of the legacy studios or emerging streamers that have limited prospects for profitability in the near or mid term. Our differentiated approach is compelling due to: •
Slide 35: Appendix
APPENDIX “CINEDIGM
Slide 36: Financial Results FY23 Q2
Financial Results FY23 Q2 | a6 | CINEDIGM
Slide 37: Condensed Consolidated Balance Sheets
C i n e d i g m C o r p . Condensed Consolidated Balance Sheets (Unaudited) (In thousands, except for share and per share data) 37 S e ptemb e r 30, 2022 March 31, 2022 ASSETS C urren t assets Cash an d cas h e quiv a l e nts $ 9,676 $ 13,062 Accounts receivable, net of allowance of $2,726 and $2,92
Slide 38: Condensed Consolidated Statements of Operations
C i n e d i g m C o r p . Condensed Consolidated S t a t e m e n t s o f Operations (Unaudited) (In thousands, except for share and per share data) 38 Three Months Ended September 30, Six M o nt h s En ded September 30, 2022 2021 2022 2021 Revenues $ 14,006 $ 10,103 $ 27,596 $ 25,118 C o sts an d ex
Slide 39: Condensed Consolidated Statements of Cash Flows
C i n e d i g m C o r p . Condensed Consolidated S t a t e m e n t s o f Cash Flows (Unaudited) 39 Six Months Ended S e ptemb e r 30, 2022 2021 Cash flows from operating activities: N e t (loss) inc o me $ (11,642) $ 4,999 Adjustments to reconcile net (loss) income to net cash (used in) provided by
Slide 40: Adjusted EBITDA
Cinedigm Corp. A d j u s t e d E B I T D A We present Adjusted EBITDA because we believe that Adjusted EBITDA is a useful supplement to net income (loss) from continuing operations as an indicator of operating performance. We also believe that Adjusted EBITDA is a financial measure that is useful bo
Slide 41: M&A Case Study: Digital Media Rights
M & A C a s e S t u d y : D i g i t a l M e d i a R i g h t s I m m e d i a t e l y p r o v i d e d C i n e d i g m i n c r e a s e d s c a l e a n d g r o w t h Accretive acquisition significantly increased Cinedigm’s library, channel portfolio, ad business and social footprint Added 10 new channel
Slide 42: FAST Channel Case Study: Bob Ross & American Public Media
Fast Channel Case Study: B o b R o s s & A m e r i c a n P u b l i c M e d i a H e l p i n g t h e w o r l d f i n d i t ’ s h a p p y p l a c e A s a n earl y par tne r of T witch, Cinedigm identified the cross - generational appeal of r en o wned TV painte r Bo b Ros s a s a F AST channel opportun
Slide 43: Content Case Study: Terrifier
C o n t e n t C a s e S t u d y : Terrifier 2 L e v e r a g i n g e n t h u s i a s t m e d i a a n d v e r t i c a l e x p e r t s t o d r i v e r e p e a t a b l e r e v e n u e g r o w t h The leadership at Bloody Disgusting recognized Terrifier, a next - generation slasher horror film, as a diam
Slide 44: A Premier Streaming Technology & Entertainment Company
A P R E M I E R S T R E A M I N G T E C H N O L O G Y & E N T E R T A I N M E N T C O M P A N Y