Image acquires Criterion

so i wonder what this means. Will it help Criterion and allow them to
get access to more films and to get them out faster? Or does it mean
that Criteiron will "sell out" and start doing more
ARMAGEDDON-types...?

I'm hoping for the best.

-goro-

http://videostoremag.com/news/html/b...rticle_ID=7843

Image Entertainment Monday announced it has bought Home Vision
Entertainment, a Chicago-based specialty supplier of independent and
foreign films. In connection with the $8 million cash deal, Image also
negotiated exclusive distribution rights to the prestigious Criterion
Collection for the next five years.

Image, a Chatsworth, Calif.-based producer and distributor of home
entertainment, has a domestic catalog of more than 2,800 exclusive DVDs
and 175 CDs.

Also on Monday, Image lowered its first-quarter 2006 revenue guidance
to between $18 million and $19 million for the quarter ending June 30.
Previously the company had announced revenue guidance of between $19
million and $21 million. Image also said it is not adjusting previously
announced annual revenue guidance of between $110 million and $120
million. An investor conference call will be held Aug. 11.

With the acquisition of all of the outstanding capital stock of Public
Media Inc., Image becomes the new owner of Home Vision, with a library
of more than 130 active titles, including The Day of the Dolphin, the
1973 film with George C. Scott, and the BBC productions of C.S.
Lewis' classic The Chronicles of Narnia.

Image also becomes the sole retail source of titles from Criterion, the
industry's major source of high-end special-edition DVDs. Criterion
has about 280 active DVD titles in its library, mostly acclaimed
classic and contemporary films, and releases three to four new titles a
month.

Previously, Image shared distribution of Criterion titles with Home
Vision, each servicing its own retail lists.

Image COO David Borshell noted that this is Image's first acquisition
of an independent video company and the company's first acquisition
since the 1999 purchase of online retailer DVD Planet.

"This is extremely important to Image in our strategy to grow the
company," Borshell said. "We are a public company, and people are
always asking us how we can continue to grow revenue. Our
infrastructure is really in a great position to add revenue like this,
from external sources - and with very little expense."

Image maintains a 76,000-square-foot distribution facility in Las Vegas
and a sales force of 10 national sales representatives, not including
support staff. Image plans to close Home Vision's Chicago
headquarters and warehouse, laying off 40 of 45 employees and
consolidating all of the company's operations into its own facilities
in Chatsworth and Las Vegas.

Home Vision president and CEO Adrianne Furniss will stay on as a
consultant for three years.

Borshell said that in calendar-year 2004, Home Vision generated net
revenue of about $29 million from its exclusive titles as well as its
co-distributed Criterion DVDs.

Now that the entire Criterion Collection is under Image's auspices,
Borshell said, the company's marketing muscle can really kick in.

"With cohesive marketing, we certainly believe we can increase the
revenue base," he said. "In the past, because we only dealt with
part of Criterion, their product didn't even flow through our
marketing department because we only handled a subset. Now, all of a
sudden because we are exclusive, our entire marketing department gets
to step in and help build the brand."

Criterion Collection CEO Jonathan Turell said he looks forward "to
increased marketing and sales efforts with respect to our programming
as a result of our new exclusive distribution agreement. Over the
years, Image has been a very vocal supporter of ours, and they have a
tremendous understanding of the Criterion Collection's importance in
the DVD market."

Borshell promises more acquisitions in the future. "We certainly
believe this is a nice stepping stone for us in letting other companies
know that Image is looking to grow its business," he said. "And
while we have openly talked about wanting to do acquisitions, it's
always nice to get the first one under your belt."

"The stage has been set to keep this growth engine running," Image
president and CEO Martin Greenwald said. "Now that the transaction
has been concluded, we plan to intensify efforts to identify and pursue
further opportunities. Our strategy is clear: to continue acquiring
exclusive content for a broad range of current and future distribution
channels."

Goro

On 2 Aug 2005 16:38:25 -0700, Goro wrote:

[snip]

Your subject line is misleading, they don't appear to have bought Criterion
itself just its distributor leaving Image as the sole distributor of
Criterion DVDs.

Ian Galbraith

Ian Galbraith <> wrote:

> Your subject line is misleading, they don't appear to have bought Criterion
> itself just its distributor leaving Image as the sole distributor of
> Criterion DVDs.

Not quite. Home Vision wasn't just a distributor of Criterion DVDs Home Vision
was a co-owner of Criterion (the other partner being Janus Films). By buying
HVE, Image has become half-owner of Criterion.

-- jayembee

jayembee