Cinedigm Corp. (NASDAQ:CIDM) Q2 2023 Earnings Call Transcript

So I think that’s — that kind of a model and approach, that 360-degree approach that we talk about, how we can turn things into, turn properties into hits like we did with Terrifier also works for us to be able to monetize for ourselves and for other people, leveraging all these different assets. So that’s the immediate impact on podcasting. The — on the longer term vision is, if we are generating new IP, normally, when you develop movies and shows, you have a team of development people, burning cash, trying to create ideas, pitching ideas, sometimes banging their head against the wall. With us, we go from concept into production in a matter of weeks and months and if the shows a hit, we have the opportunity to turn that into movies and shows with a proven track record in the marketplace and a built-in fan base.

So we think there’s an opportunity long-term to not only produce these things ourselves, but potentially work with much bigger partners upstream as we prove the value in creating and generating IP.

Brian Kinstlinger: Thanks so much for answering all my questions.

Chris McGurk: Thanks, Brian.

Operator: The next question comes from Terry Hackett from Hackett Management. Terry, please go ahead. Your line is open.

Terry Hackett: Good morning, gentlemen. I kind of like to stay on the macro scale here with a couple of thoughts and questions. First of all, management is to be congratulated. I don’t think the market appreciates how important your pivot was a few years ago to aggregating the channels and the genres. It was a great move and I think you have effectuated it very well. Nor do I think they understand how the wind down of the system sales has distorted the revenue side of things. So I was wondering when are we done with having to compare system sales to revenue and we can just basically deal with NewCo and what it is doing so well. And the second thing is that you have talked about the $7.5 million in cost savings over the last two quarters, and if you look at that and divided by the number of shares, and if you look at your great revenue gains that you have had and will have, it just seems to me the crossover point on positive cash flow and income has got to be in the very near horizon.

And so good job and I just kind of get a macro feel of what you just did . Thanks, Chris.

Chris McGurk: Yeah. Thank you, Terry. Those are all really good points. And I agree that our investors need to continue to wake up to some of the points that you have made. And I think what you are going to see over the next couple of quarters should get everybody’s attention. And yes, I think, it was a smart move that we launched this enthusiast business years ago, because we view it as sort of perfectly complementary to what was going on at a macro level in streaming with Netflix and Disney and everything else. So we are not really competing with those services. And I think the second thing that we did that was very smart, as we talked about is led by Erick and Tony Huidor, we made a pivot into the ad-supported business and the FAST business back in 2017 when everyone was just still focused on subscription and that obviously is paying huge, huge dividends.