Cinedigm Sells Hollywood Software to Investors Group
Part of a shift to content aggregation and distribution
As part of its ongoing reinvention, Cinedigm Corp. announced Tuesday it is selling Hollywood Software, its digital theatrical distribution and exhibition software division.
The sale is being made to a group of private investors led by David Gajda, who was one of the company’s original founders, in an all-cash transaction. Cinedigm did not disclose how much it would receive from the sale.
When it was acquired in 2003, what is now Cinedigm was called AcessIT, and its main function was to convert movie theaters from analog projection to digital, which required a whole suite of new software. The system software is currently used to manage over 12,000 screens worldwide and by 30 distribution companies including 20th Century Fox, Lionsgate and Universal Pictures to track movie sales activity.
Now, however, the digital conversion of theaters is largely completed.
At the same time Cinedigm, under CEO Chris McGurk, has been reshaped into a company that aggregates, creates and distributes content to theaters and over digital platforms. It now has a library of over 52,000 movies and TV episodes drawn from suppliers including the NFL, National Geographic, Discovery, Hallmark and Jim Henson.
“Given Cinedigm’s headlong pivot into entertainment distribution,” said McGurk in a statement, “having a software company — one that often serves our competitors — no longer made sense."
“Our clients need to be at the heart of everything we do,” said Gajda in a statement. “I want this business to be client centric, known globally for its innovation and and cost effective solutions.”
Hollywood Software’s products include the Digital Cinema Theatre Management System, Distributor 3.0, and the Exhibitor Management System, which provides what the company describes as “a virtual staff of bookers and accountants working around the clock.”