2:36pm PT by Carolyn Giardina
CinemaCon: Digital Cinema Distribution Coalition to Acquire Deluxe/EchoStar
LAS VEGAS -- Digital Cinema Distribution Coalition has signed a letter of intent to acquire the Deluxe/EchoStar satellite network, adding nearly 1,000 theater sites to DCDC's 17,000 committed screens across 1,200 theaters in North America. The value of the deal was not disclosed.
The Deluxe/EchoStar joint venture -- DCDC's primary service provider -- was formed in 2010 between Deluxe Digital Cinema, a subsidiary of Deluxe Entertainment Services Group, and satellite operations/transmission operator EchoStar Satellite Services, a subsidiary of EchoStar.
DCDC CEO Randy Blotky said the deal will be funded with revenue from the service plus additional funding recently provided by the coalition partners, which are AMC Theatres, Cinemark Theatres, Regal Entertainment, Warner Bros. and Universal Pictures.
“The agreement provides an opportunity for DCDC to accelerate the growth of its network in a rational and efficacious manner," he said.
DCDC began the first phase of rolling out its satellite network last October.
The Walt Disney Company, Sony Pictures, 20th Century Fox, Paramount Pictures, Lionsgate and Open Road have since signed on as content provider customers, with Southern Theatres and National Amusements joining as exhibitor customers.