Why Cinedigm (CIDM) Is Buying Screambox

By Amit Chowdhry ● February 15, 2021
  • Cinedigm Corp. (NASDAQ:CIDM) recently announced that it acquired Screambox, which is a popular enthusiast streaming service targeting the highly lucrative horror genre

Cinedigm Corp. (NASDAQ:CIDM) recently announced that it acquired Screambox, which is a popular enthusiast streaming service targeting the highly lucrative horror genre. Known as a horror streaming alternative to Netflix, Screambox launched in 2015 and it is widely available across the web, mobile devices, Connected TV, and an Amazon Prime Channel.

With over $1.1 billion in box office revenue in 2019 and an estimated $2.3 billion in global revenues, the horror genre is considered one of the most popular and profitable genres in the entertainment industry today.

And with a solid track record of distributing thousands of premium horror titles in all media across multiple international territories, Cinedigm will utilize its substantial horror and thriller content library, app technology, and Matchpoint distribution platform to rapidly expand Screambox’s content offering. Screambox will relaunch the service’s apps and dramatically expand distribution to Cinedigm’s 900-plus million global connected device footprint. And Cinedigm also plans to expand the distribution of Screambox to its base of third-party subscription channel partners such as Roku, Comcast, SlingTV, Dish Network, and more.

Cinedigm anticipates the service could reach seven-figure subscriber levels within the first 36 months after the acquisition is completed, with a focus on rapid global expansion and distribution. And Cinedigm will continue to offer Screambox on a subscription basis alongside Bloody Disgusting TV, an ad-based horror service operated in partnership with Bloody Disgusting, the largest horror website with more than 20 million monthly visitors.

Plus Cinedigm will also bundle subscription offers with its fandom subscription service CONtv for one price. And Cinedigm plans to heavily draw from a pool of more than 4,000 relevant film titles in its library, including thousands of newly obtained classic, cult, and foreign horror titles from streaming service The Film Detective, which Cinedigm acquired in December 2020.

Cinedigm is planning to more than double the available content on Screambox over the next 90 days. And Larry Baird, long-time Screambox Chief Operating Officer, will remain on board to oversee the transition and ensure success in meeting the immediate goals for rapid growth over the next quarter.

The acquisition of Screambox comes on the heels of Cinedigm’s recent acquisition of Fandor, which is a leading global independent film subscription streaming service with the largest collection of independent films, documentaries, and international features in the market. And in addition to the acquisition of The Film Detective, a leading content distributor and streaming channel focused on classic film and television programming.

KEY QUOTES:

“The acquisition of Screambox is another huge streaming opportunity for Cinedigm. Having just acquired Fandor, which the Wall Street Journal called ‘the Netflix of independent film,’ we see that same kind of potential for Screambox in the huge, underserved horror category where millions of enthusiasts around the world are looking for a widely-distributed streaming channel with a huge volume of premium horror content. Dan March, Screambox Founder, and his team did a fantastic job in laying the groundwork for all that, and we intend to deliver on his vision.”

— Chris McGurk, Cinedigm Chairman

“Despite more than 145,000 horror films listed in The Internet Movie Database, less than 5% of the genre is currently available for fans to enjoy in a subscription environment. We plan to immediately expand that opportunity by building on top of the great foundation Screambox provides into a massive, global library of the world’s best classic, contemporary and foreign horror content – that will create a seven-figure subscriber opportunity in success.”

— Erick Opeka, Chief Strategy Officer of Cinedigm

“Thanks to all of our loyal fans who have supported Screambox over the years. All horror fans should be excited because the Cinedigm team is committed to delivering the best horror experience we always envisioned.”

— Dan March, Screambox Founder