Cineverse Corp (CNVS) 2023 Q3 法說會逐字稿

Good day, ladies and gentlemen. Today, we are hosting a conference call to discuss Cinedigm's Fiscal 2023 Third Quarter Results. My name is Bethany, and I will be your conference operator. (Operator Instructions) Please note that this call is being recorded.

女士們先生們，美好的一天。今天，我們將召開電話會議，討論 Cinedigm 2023 財年第三季度業績。我的名字是 Bethany，我將成為您的會議運營商。 （操作員說明）請注意，此通話正在錄音中。

Your host for today is Gary Loffredo, COO and General Counsel. Please go ahead.

今天的主持人是首席運營官兼總法律顧問 Gary Loffredo。請繼續。

Good afternoon, everyone, and welcome to Cinedigm's fiscal 2023 third quarter results conference call.

大家下午好，歡迎來到賽點公司 2023 財年第三季度業績電話會議。

Before we begin, I would like to point out that certain statements made on today's call contain forward-looking statements. These statements are based on management's current expectations and are subject to risks, uncertainties and assumptions. The company's periodic reports that are filed with the SEC, describe potential risks and uncertainties that can cause the company's business and financial results to differ materially from these forward-looking statements. All of the information discussed on this call is as of today, February 14, and Cinedigm undertakes no duty to update it.

在我們開始之前，我想指出，在今天的電話會議上發表的某些聲明包含前瞻性聲明。這些陳述基於管理層當前的預期，並受風險、不確定性和假設的影響。公司向美國證券交易委員會提交的定期報告描述了可能導致公司的業務和財務結果與這些前瞻性陳述存在重大差異的潛在風險和不確定性。本次電話會議討論的所有信息均截至今天，即 2 月 14 日，賽點公司不承擔更新信息的義務。

In addition, certain financial information presented in this call represents non-GAAP financial measures, and we encourage you to read our disclosures and the reconciliation tables to applicable GAAP measures in our earnings release carefully as you consider these metrics.

此外，本次電話會議中提供的某些財務信息代表非 GAAP 財務指標，我們鼓勵您在考慮這些指標時仔細閱讀我們的披露和我們收益發布中適用的 GAAP 指標的調節表。

I'm Gary Loffredo, Chief Operating Officer and General Counsel of Cinedigm. With me today are Chris McGurk, Chairman and Chief Executive Officer; John Canning, Chief Financial Officer; Yolanda Macias, Chief Content Officer; Eric Opeka, Chief Strategy Officer and President of Cinedigm Networks; Tony Huidor, Chief Technology and Product Officer; and Mark Lindsey, Executive Vice President, Finance and Accounting, all of whom will be available for questions following the prepared remarks.

我是 Cinedigm 的首席運營官兼總法律顧問 Gary Loffredo。今天和我在一起的是董事長兼首席執行官 Chris McGurk；約翰·坎寧，首席財務官； Yolanda Macias，首席內容官； Cinedigm Networks 首席戰略官兼總裁 Eric Opeka； Tony Huidor，首席技術和產品官；以及負責財務和會計的執行副總裁 Mark Lindsey，他們都將在準備好的發言後回答問題。

I will now turn the call over to Chris McGurk to begin.

我現在將電話轉給 Chris McGurk 開始。

Thanks, Gary, and welcome, everyone, and thanks for joining us on the call today.

謝謝加里，歡迎大家，感謝您今天加入我們的電話會議。

Obviously, we had a great quarter as our financial results exceeded our internal expectations and those of the analysts that follow us by an extremely wide margin on both the top and bottom lines, with total revenues up 98%, net income up 1,139% to $4.9 million and EPS of $0.03 per share. And all of our key operating metrics grew dramatically once again this quarter across all of our business lines.

顯然，我們有一個很棒的季度，因為我們的財務業績超出了我們的內部預期以及跟隨我們的分析師的預期，無論是在頂線還是底線，總收入增長了 98%，淨收入增長了 1,139%，達到 4.9 美元萬美元，每股收益 0.03 美元。本季度，我們所有業務線的所有關鍵運營指標再次大幅增長。

Rather than dwell on great performance, where the numbers clearly speak for themselves, I'd first like to start out by stating how proud I am of the Cinedigm team, which continues to deliver outstanding record results across all sectors of our business quarter after quarter and to also thank our investors for standing with us in a challenging equity market. While so many other companies in the streaming and entertainment business are struggling to figure out the best path forward as they try to reconcile years of record-breaking spending on content and marketing and an overreliance on the paid subscription model, Cinedigm continues to demonstrate how a streaming content company can develop and execute a business plan that works successfully in real time today because of sound and reasonable business principles like diversification, portfolio management and a sensible content and marketing spending practice.

與其糾纏於出色的表現，數字清楚地說明了一切，我首先想表達我對賽點團隊的自豪，他們繼續在我們業務的所有部門一個季度又一個季度地創造出色的記錄結果還要感謝我們的投資者在充滿挑戰的股市中與我們站在一起。雖然流媒體和娛樂業務中的許多其他公司都在努力尋找最佳前進道路，因為他們試圖調和多年來破紀錄的內容和營銷支出以及對付費訂閱模式的過度依賴，但 Cinedigm 繼續展示如何流媒體內容公司可以製定和執行一項在今天實時成功運作的商業計劃，這要歸功於多元化、投資組合管理以及明智的內容和營銷支出實踐等健全合理的商業原則。

Part of our success is, of course, by virtue of our company not trying to be everything to everybody. We've become experts in our sector of the streaming business. That is serving passionate fans across popular and specific enthusiast genres better than anybody else. One example of this success is in our approach to horror, a category that continues driving some of the most exciting success stories, not only for our company but in all of Hollywood. Cinedigm is in a truly unique position in the streaming industry, having built upon our strong momentum to wrap a profitable third quarter with triple-digit growth in net income and adjusted EBITDA as we continue towards our goal of sustained long-term annual profitability and positive cash flow.

當然，我們成功的部分原因是我們公司沒有試圖成為所有人的一切。我們已經成為流媒體業務領域的專家。這比其他任何人都更好地為流行和特定發燒友類型的熱情粉絲提供服務。這種成功的一個例子是我們對恐怖的處理方式，這一類別繼續推動一些最激動人心的成功故事，不僅對我們公司而且對整個好萊塢都是如此。 Cinedigm 在流媒體行業處於真正獨特的地位，憑藉我們強勁的勢頭，第三季度實現盈利，淨收入和調整後的 EBITDA 實現三位數增長，同時我們繼續實現持續的長期年度盈利和積極的目標現金周轉。

All units of our company contributed to our successful quarter, which speaks to the value of our differentiated revenue streams across content licensing, our portfolio of channels, which are made up of a strategic mix of third-party and owned and operated networks and they span SVOD, AVOD and FAST, our library of 60,000 films and TV episodes, our resurgent theatrical release business and our proprietary state-of-the-art Matchpoint technology. Diversification and a portfolio strategy is a business 101 concept drilled into MBA's heads, their first day in class. Cinedigm is implementing that strategy to great success, all of it within the streaming content business, the fastest-growing segment in the entertainment industry, while many of our one channel, one line of revenue, heavy spending, nondiversified streaming competitors are struggling.

我們公司的所有部門都為我們成功的季度做出了貢獻，這說明了我們跨內容許可的差異化收入流的價值，我們的渠道組合由第三方以及自有和運營網絡的戰略組合組成，它們跨越SVOD、AVOD 和 FAST，我們擁有 60,000 部電影和電視劇集的資料庫，我們復甦的影院發行業務以及我們專有的最先進的 Matchpoint 技術。多元化和投資組合戰略是進入 MBA 頭腦的商業 101 概念，這是他們上課的第一天。 Cinedigm 正在實施這一戰略並取得巨大成功，所有這些都在流媒體內容業務中，這是娛樂行業中增長最快的部分，而我們的許多單一渠道、單一收入、高支出、單一的流媒體競爭對手都在苦苦掙扎。

As I mentioned, our total revenue was up 98%, including our 11th straight quarter of record advertising revenue growth, up 79% over the prior year quarter and up 258% on a 2-year basis. We were on the free ad-supported streaming television or fast train before many in the industry. And with new senior sales executives added to our Cinedigm Ad Solutions team, we remain very bullish on this part of our business. We also grew our subscription streaming revenue 38% versus last year's third quarter and nearly tripled revenue from 2 years ago. We now have 1.22 million subscribers across our portfolio of streaming brands, up 28% from third quarter last year. Screambox, which we acquired 2 years ago this month has become the fastest-growing horror streaming service in the business with subscriptions increasing 900% over that time.

正如我所提到的，我們的總收入增長了 98%，其中包括我們連續第 11 個季度創紀錄的廣告收入增長，比去年同期增長 79%，比 2 年增長 258%。在業內許多人之前，我們就在免費廣告支持的流媒體電視或快車上。隨著新的高級銷售主管加入我們的 Cinedigm Ad Solutions 團隊，我們仍然非常看好這部分業務。與去年第三季度相比，我們的訂閱流媒體收入也增長了 38%，比 2 年前增長了近兩倍。我們的流媒體品牌組合現在擁有 122 萬訂戶，比去年第三季度增長 28%。我們在 2 年前的這個月收購的 Screambox 已成為業內增長最快的恐怖流媒體服務，訂閱量在此期間增長了 900%。

In fact, in the 2 weeks following our exclusive streaming release of instant cult classic Slasher film Terrifier 2, Screambox subscribers grew 144%. And what can I say about Terrifier 2? It was a late 2022 theatrical box office phenomenon. It performed incredibly well on transactional VOD and streaming, and consumer product versions of the title are flying off the shelves. The fact of the matter is that the smart and talented Bloody Disgusting team, which operates Screambox and curates our horror vertical work closely with our content team to identify a breakout film and a breakout career in the incredible (inaudible), that was very much worth investing in. In turn, we not only trusted their expertise, but we also leaned in to support the release with a cost-effective viral marketing strategy, and boy, that it pay off.

事實上，在我們以流媒體形式獨家發布即時熱門經典 Slasher 電影 Terrifier 2 後的 2 週內，Screambox 訂閱者增長了 144%。關於 Terrifier 2 我能說些什麼？這是 2022 年底的影院票房現象。它在交易型 VOD 和流媒體上的表現令人難以置信，而且該標題的消費產品版本正在迅速下架。事實是，聰明且才華橫溢的 Bloody Disgusting 團隊運營著 Screambox 並策劃了我們的恐怖垂直領域，與我們的內容團隊密切合作，以確定一部突破性的電影和令人難以置信的（聽不清）的突破性職業，這非常值得投資。反過來，我們不僅信任他們的專業知識，而且我們還傾向於通過具有成本效益的病毒式營銷策略來支持發布，男孩，它得到了回報。

We have much more to come on the horror side with last week's limited theatrical release and upcoming Screambox exclusive of the critically acclaimed sound footage film, the Outwaters, which (inaudible) and others said rightfully feels like this generation Blair Witch project. Also, we have the recently announced acquisition of Hollywood, Dreams & Nightmares: The Robert Englund story and many other films and series in the horizon. And we are also mirroring this strategy with other genres for which we have a proven expertise, including family, anime and Asian films.

上週的有限影院上映和即將上映的 Screambox 獨家上映的廣受好評的有聲電影 Outwaters（聽不清）和其他人說這感覺就像這一代的 Blair Witch 項目，我們還有更多恐怖方面的事情要做。此外，我們最近宣布收購好萊塢、夢想與噩夢：羅伯特·英格蘭德的故事以及地平線上的許多其他電影和系列。我們還將這一策略與我們擁有成熟專業知識的其他類型相提並論，包括家庭、動漫和亞洲電影。

John will cover our financial results in more detail, and Erick will delve into our rapidly increasing operating metrics and the continued early success of the important business initiatives that are key parts of our plan to continue our high growth while achieving sustainable profitability on an annual ongoing basis, starting with next fiscal year. These include Cineverse, which we believe will become the Spotify of independent streaming video content, our proprietary Matchpoint technology platform, our growing advertising unit and our expanding podcast business. I also want to point out that as our business is scaled and players in the industry have taken notice of our operating and technological capabilities, the scope of our discussions with potential strategic partners for operating partnerships, investments and M&A has rapidly expanded. Look for more announcements in that regard in the coming months. And in addition, our balance sheet remains in a very, very strong position right now. And we currently see no need to raise additional capital at this point.

John 將更詳細地介紹我們的財務業績，而 Erick 將深入研究我們快速增長的運營指標以及重要業務計劃的持續早期成功，這些計劃是我們計劃的關鍵部分，以繼續我們的高增長，同時在年度持續中實現可持續盈利基礎，從下一個財政年度開始。其中包括 Cineverse，我們相信它將成為獨立流媒體視頻內容的 Spotify、我們專有的 Matchpoint 技術平台、我們不斷增長的廣告部門和我們不斷擴大的播客業務。我還想指出，隨著我們業務規模的擴大以及業內人士對我們運營和技術能力的關注，我們與潛在戰略合作夥伴就運營合作、投資和併購的討論範圍迅速擴大。在接下來的幾個月中尋找這方面的更多公告。此外，我們的資產負債表目前仍處於非常非常強勁的位置。我們目前認為此時沒有必要籌集額外資金。

With that, let me turn it over to John for a more detailed review of our financial results.

有了這個，讓我把它交給約翰，讓他更詳細地審查我們的財務業績。

Thank you, Chris, and good afternoon, everybody.

謝謝克里斯，大家下午好。

I'll touch on a few third quarter highlights, then I'll update you on our outlook for the year. While we've previously laid out our aggressive year-over-year revenue growth and sustainable profitability expectations annually, we continue to stand by our intention to achieve those objectives and are making great progress on all fronts.

我將介紹一些第三季度的亮點，然後我將向您介紹我們今年的展望。雖然我們之前每年都制定了積極的同比收入增長和可持續盈利預期，但我們將繼續堅持實現這些目標的意圖，並在各個方面取得長足進步。

Our key third quarter financial results for the quarter ended December 31, 2022, include: consolidated revenue of $27.9 million compared to $14.1 million in the prior year quarter, an increase of 98%. Total streaming revenue increased 63% to $8.9 million, driven by another increase in record ad-supported revenue of 79% and a 38% increase in subscription revenue over the prior year quarter. Erick will get into the drivers to these increases in his comments.

我們截至 2022 年 12 月 31 日的季度的主要第三季度財務業績包括：綜合收入為 2790 萬美元，而去年同期為 1410 萬美元，增長 98%。流媒體總收入增長 63% 至 890 萬美元，這得益於創紀錄的廣告支持收入再次增長 79% 以及訂閱收入較上年同期增長 38%。埃里克將在他的評論中探討這些增長的驅動因素。

Overall, content and entertainment revenue grew by 72% over the prior year quarter. This was driven by organic user growth, new film performance, as Chris mentioned, increasing market demand for Cinedigm's extensive connected television ad inventory and the launch of new streaming channels versus the prior year. Similar to last quarter, in Q3, Cinedigm once again delivered total revenue and all component revenues, which exceed our own internal growth plans for the quarter.

總體而言，內容和娛樂收入比去年同期增長了 72%。這是由有機用戶增長、新電影表現推動的，正如克里斯提到的那樣，市場對 Cinedigm 廣泛的聯網電視廣告庫存的需求增加，以及與上一年相比推出新的流媒體頻道。與上一季度類似，賽點在第三季度再次實現了總收入和所有組件收入，超過了我們自己的本季度內部增長計劃。

Our adjusted EBITDA was $5.1 million in the current year quarter compared to adjusted EBITDA of $1.3 million in the prior year quarter, driven by the phenomenal success of Terrifier 2 across multiple revenue streams, as Chris mentioned, our streaming content growth and further decreases in the scale of our digital cinema business as it nears its end of life. Net income was $4.9 million or $0.03 per share compared to a net loss of $0.5 million or $0.00 per share in the prior year quarter. This was also driven by the success of Terrifier 2 and our streaming expansion as well as the recognition of other income under the Cares Act and variable consideration attributable to the digital cinema business winding down.

我們調整後的 EBITDA 在本年度季度為 510 萬美元，而去年同期調整後的 EBITDA 為 130 萬美元，這得益於 Terrifier 2 在多個收入流中取得的巨大成功，正如 Chris 提到的，我們的流媒體內容增長和進一步減少我們的數字電影業務在其生命週期即將結束時的規模。淨收入為 490 萬美元或每股 0.03 美元，而去年同期為淨虧損 50 萬美元或每股 0.00 美元。這也是由於 Terrifier 2 的成功和我們的流媒體擴張以及根據《關愛法案》確認的其他收入和數字電影業務結束導致的可變對價。

Our balance sheet remains very strong, as Chris said, with just under $9 million in cash, and our only debt is a small revolving working capital facility we just took last fall to provide additional dry powder for key content acquisitions like the aforementioned Terrifier 2. As previously mentioned, we expect to generate substantial full year total revenue growth for the company this fiscal year versus last. So far this year, total year-to-date revenue has increased by 42% over the same period last year despite a shrinking contribution from Digital Cinema. Looking closer in Digital Cinema results are excluded from year-to-date revenue in both periods. Our revenue growth is 60%, which exceeds our long-term growth goals of our streaming business alone.

正如克里斯所說，我們的資產負債表仍然非常強勁，現金不到 900 萬美元，我們唯一的債務是我們去年秋天剛剛獲得的一項小型循環營運資金貸款，用於為上述 Terrifier 2 等關鍵內容收購提供額外的干火藥。如前所述，我們預計本財年公司全年總收入將比上一財年大幅增長。今年到目前為止，儘管數字電影的貢獻有所減少，但年初至今的總收入比去年同期增長了 42%。在兩個時期的年初至今收入中均不包括數字影院的仔細觀察結果。我們的收入增長率為 60%，這超出了我們單獨流媒體業務的長期增長目標。

Our M&A-driven synergistic expectations, top line and bottom line and streamlining initiatives are already starting to produce benefits. As both Chris and I have stated previously, we've made significant progress toward our goal of achieving $7.5 million in annual cost savings through operating cost improvements, outsourcing and application of our Matchpoint technology as we finalize the integration of the 7 acquisitions we made in the past 2 years. We remain confident that we will achieve our goal in the coming months.

我們的併購驅動的協同預期、頂線和底線以及精簡計劃已經開始產生效益。正如 Chris 和我之前所說的那樣，隨著我們最終完成 7 項收購的整合，我們在通過運營成本改進、外包和應用 Matchpoint 技術實現每年節省 750 萬美元成本的目標方面取得了重大進展過去 2 年。我們仍然有信心在未來幾個月內實現我們的目標。

With that, I'll hand off to Erick.

有了這個，我會交給埃里克。

Thanks, John, and thanks to everyone for joining the call today. First, I'm going to discuss our top line streaming business results. And then after that, I'm going to discuss Cineverse mission and strategy in detail.

謝謝約翰，感謝大家今天加入電話會議。首先，我將討論我們的頂級流媒體業務結果。然後，我將詳細討論 Cineverse 的使命和戰略。

So first, total streaming minutes in the quarter rose to approximately 2.14 billion, up 60% over the prior year quarter. This was heavily driven by the continued expansion of our streaming services on to new connected TV platforms like Samsung, LG and others, and the expansion of our overall subscriber base and user base as well as the impact from popular originals and acquired premium library titles. This consumption serve drove a substantial increase over the prior year quarter. Total subscribers of the company's subscription video streaming service has increased to approximately 1.22 million, representing an increase of 28% over the prior year quarter. This was driven by considerable growth in subscribers at the 3 flagship owned and operating streaming services, Screambox, Fandor as well as the Dove Channel.

首先，本季度的總流媒體分鐘數上升至約 21.4 億分鐘，比去年同期增長 60%。這在很大程度上是由於我們的流媒體服務不斷擴展到三星、LG 等新的聯網電視平台、我們的整體訂戶基礎和用戶基礎的擴大以及流行原創和收購的優質圖書館標題的影響。這種消費服務推動了去年同期的大幅增長。公司訂閱視頻流媒體服務的總用戶增加到約 122 萬，比去年同期增長 28%。這是由 3 家旗艦擁有和運營的流媒體服務 Screambox、Fandor 以及 Dove Channel 的訂戶大幅增長推動的。

Additionally, our podcast business continues to flourish with nearly 74 million cumulative downloads to date across 28 shows. We've become a major player in the new and emerging scripted podcast category with our show the Mayfair Watchers Society picked up by Apple as a top podcast for 2022, and we had 5 shows on Spotify's top 50 fiction charts. We continue to scale this business with the forthcoming international language launches of key shows, our partnership with the George A. Romero Foundation on a new Living Dead property and much more to come.

此外，我們的播客業務繼續蓬勃發展，迄今為止 28 個節目的累計下載量接近 7400 萬次。我們已經成為新興腳本播客類別的主要參與者，我們的節目 Mayfair Watchers Society 被 Apple 選為 2022 年頂級播客，我們有 5 個節目進入 Spotify 的前 50 名小說排行榜。我們通過即將推出的重要節目的國際語言發布、我們與喬治 A. 羅梅羅基金會 (George A. Romero Foundation) 在新的活死人財產上的合作夥伴關係以及更多即將到來的活動，繼續擴大這項業務。

We also made considerable progress on the technology side, having relaunched Fandor and Screambox on to version 2 of Matchpoint, our proprietary streaming platform. We also announced our partnership with (inaudible) during the quarter, and I'm happy to announce the product is now officially live, bringing thousands of high-quality Hollywood recent theatrical releases and premium catalog titles to Cineverse. In addition to utilizing Matchpoint as a means to expand our own distribution footprint, we continue to work on making MatchPoint available to select partners on a licensed basis. We see tremendous interest in demand in this area from other content owners and channel operators who are struggling with the challenges of effectively competing in this highly complex business. We will have more to share on this in the months ahead.

我們在技術方面也取得了相當大的進步，將 Fandor 和 Screambox 重新發佈到我們專有的流媒體平台 Matchpoint 的第 2 版。我們還在本季度宣布了與（聽不清）的合作夥伴關係，我很高興地宣布該產品現已正式上線，為 Cineverse 帶來了數千部好萊塢近期上映的高質量影片和優質目錄影片。除了利用 Matchpoint 作為擴大我們自己的分銷足蹟的一種方式之外，我們還繼續致力於使 MatchPoint 在獲得許可的基礎上可供選擇的合作夥伴使用。我們看到其他內容所有者和渠道運營商對該領域的需求非常感興趣，他們正在努力應對在這一高度複雜的業務中有效競爭的挑戰。在接下來的幾個月裡，我們將就此分享更多內容。

And finally, we added multiple key hires in the quarter to bolster our Cinedigm Advertising Solutions unit. I'm happy to report we're already seeing considerable benefits and lift in our programmatic and direct businesses.

最後，我們在本季度增加了多名關鍵員工，以加強我們的 Cinedigm 廣告解決方案部門。我很高興地向大家報告，我們的程序化和直接業務已經看到了可觀的收益和提升。

Now let me take some time to talk about the company's strategy and mission around Cineverse. Cineverse was born out of a simple idea to enable the discovery of the amazing diaspora of film and TV shows from around the world. With the top 10 streaming services accounting for just 3% of the movies and shows ever made, the vast majority of movies and TV shows are simply inaccessible to most people. Since I mentioned those statistics last quarter, things have become decisively worse at the major streamers. Major television shows are being removed without warning, heightened anticipated movies already completed are being shelved. Ultimately, millions of consumers are becoming increasingly frustrated as movies and shows vanish with no notice. Meanwhile, the big streamers are increasingly trying to squeeze more profits by imposing usage restrictions and rapidly raising monthly subscription prices. And with more cost cuts to come, this trend is only going to get worse. So do we want to entrust the world's collective film and television history in the blood, sweat and tears of filmmakers to this environment and these gatekeepers? How will consumers ensure access to content they care about when day after day, these shows become more inaccessible? What happens when the major streaming platforms decide that the transactional business is no longer in their strategic interest as we saw which happened with the music industry. vast swaths of our collective cinematic heritage will be inaccessible for viewing.

現在讓我花點時間談談公司圍繞 Cineverse 的戰略和使命。 Cineverse 的誕生源於一個簡單的想法，旨在發現世界各地令人驚嘆的電影和電視節目。由於前 10 大流媒體服務僅佔有史以來製作的電影和節目的 3%，絕大多數電影和電視節目對大多數人來說根本無法訪問。自從我上個季度提到這些統計數據以來，主要流媒體的情況明顯變得更糟。主要電視節目在沒有警告的情況下被刪除，已經完成的備受期待的電影被擱置。最終，隨著電影和節目在沒有通知的情況下消失，數百萬消費者變得越來越沮喪。與此同時，大型流媒體越來越多地試圖通過施加使用限制和迅速提高每月訂閱價格來榨取更多利潤。隨著更多成本削減的到來，這種趨勢只會變得更糟。那麼我們是否要把電影人的血汗淚中的世界集體影視史，託付給這個環境，託付給這些守門人呢？當日復一日，這些節目變得越來越難以訪問時，消費者將如何確保能夠訪問他們關心的內容？當主要的流媒體平台決定交易業務不再符合他們的戰略利益時會發生什麼，正如我們在音樂行業看到的那樣。我們的大量集體電影遺產將無法觀看。

We feel there's clearly room in the world to provide an alternative ecosystem where movies and television series of all types and made by filmmakers from around the world are easily available, protected and celebrated, an ecosystem where films, shows and their creators are not treated as commodities and where people are looked at as unique audiences and communities, not just eyeballs. We're not looking to assert the major streamers. Instead, we aspire to make Cineverse a valuable part of the mix that sits alongside them as an important archive and discovery platform for film and television content. Spotify provides an interesting parallel with nonmajor label music now driving 25% of music consumption on that service and rising rapidly. This is because Spotify is very, very good at helping each listener discover the perfect music or playlists for them, and that is what we're going to do with film and TV on Cineverse as well.

我們認為世界上顯然有提供替代生態系統的空間，在這個生態系統中，由世界各地的電影製作人製作的所有類型的電影和電視劇都可以輕鬆獲得、受到保護和慶祝，在這個生態系統中，電影、節目及其創作者不會被視為商品以及人們被視為獨特的受眾和社區，而不僅僅是眼球的地方。我們不打算斷言主要的流媒體。相反，我們渴望讓 Cineverse 成為重要的電影和電視內容存檔和發現平台，成為與他們並肩作戰的重要組成部分。 Spotify 提供了一個有趣的類比，非主要唱片公司音樂現在推動了該服務上 25% 的音樂消費，並且還在迅速增長。這是因為 Spotify 非常非常擅長幫助每個聽眾為他們發現完美的音樂或播放列表，這也是我們在 Cineverse 上對電影和電視所做的事情。

We have a big mission in front of us, but we're excited about the challenge. And we're confident that we possess the technology to achieve this goal through our end-to-end Matchpoint distribution platform. Through the extensive use of AI and machine learning, Matchpoint has been designed to operate at significant scale, a scale that few others in the video streaming industry can compete with. Matchpoint allows us to easily ingest and deliver tens of thousand movies of titles and television shows very efficiently and at extremely low cost. To put this in perspective, in January 2023, just last month, we delivered over 9,000 titles, comprising 50,000 assets into the streaming ecosystem with our automation platform. So in context, we delivered about 2.3x the total number of movies on Netflix or 7.2x the number of movies on Hulu in 1 month. This is a level of operational scale and efficiency simply unheard of in the streaming industry and provides us a massive technological moat as we look to add hundreds of thousands of titles in the coming years.

我們面前有一個偉大的使命，但我們對挑戰感到興奮。我們相信我們擁有通過端到端 Matchpoint 分發平台實現這一目標的技術。通過廣泛使用 AI 和機器學習，Matchpoint 旨在實現大規模運營，視頻流行業中幾乎沒有其他公司可以與之競爭。 Matchpoint 使我們能夠以極低的成本非常高效地攝取和交付數以萬計的電影和電視節目。從這個角度來看，在 2023 年 1 月，也就是上個月，我們通過我們的自動化平台向流媒體生態系統交付了 9,000 多部作品，其中包括 50,000 項資產。因此，在上下文中，我們在 1 個月內交付了 Netflix 上電影總數的 2.3 倍或 Hulu 上電影數量的 7.2 倍。這是流媒體行業聞所未聞的運營規模和效率水平，並為我們提供了巨大的技術護城河，因為我們希望在未來幾年增加數十萬種遊戲。

Despite Cineverse being in its infancy, you can see those advantages already bearing fruit. First, we have dramatically expanded our content library, now totaling close to 60,000 movies and shows, bucking the industry trends, we're focused on rapidly making all these sales available to consumers and are adding thousands of titles per month to Cineverse and its sister streaming services and plan to add 4K and uncut versions of films for subscribers in the coming months. Speaking on the sister streaming services for a minute, we continue to focus on several key content verticals where we super-serve audiences. If Cineverse is the sun, these are the Jupiter sized audience that we believe could each become major businesses in and of themselves, the same way anime streaming service Crunchyroll is a $1 billion business for Sony.

儘管 Cineverse 還處於起步階段，但您可以看到這些優勢已經取得成果。首先，我們極大地擴展了我們的內容庫，現在總共有近 60,000 部電影和節目，與行業趨勢相反，我們專注於快速向消費者提供所有這些銷售，並且每月向 Cineverse 及其姊妹節目添加數千部影片流媒體服務，併計劃在未來幾個月內為訂閱者添加 4K 和未剪輯版本的電影。在姐妹流媒體服務上談一談，我們繼續關注我們為觀眾提供超級服務的幾個關鍵垂直內容。如果 Cineverse 是太陽，那麼這些觀眾就是木星大小的觀眾，我們相信他們每個人都可以成為主要業務，就像動漫流媒體服務 Crunchyroll 對索尼來說是一項價值 10 億美元的業務一樣。

Our horror service Screambox has become one of those pillars for us, thanks to original programming like Terrifier 2, fan-favorite documentary, Pennywise: The Story Of IT, the psychedelic festival favorite, All Jacked Up And Full Of Worms, the Belgian/French survival horror movie Deep Fear among dozens of others. In addition, with the Outwaters, Living With Chucky, RoboDoc, The Robert Englund Story and so much more on the way, we're very excited about the future in horror, not just in theaters, on transactional and through Screambox, but across Bloody Disgusting's editorial content, our podcast network, consumer products and beyond. This philosophy of curation and our 360-degree approach to serving enthusiast fan bases is being brought to our other channel brands and verticals, including Indie film with Fandor, family with the Dove Channel, Anime with RetroCrush and Asian content with Asian Crush.

我們的恐怖服務 Screambox 已成為我們的支柱之一，這要歸功於像 Terrifier 2 這樣的原創節目，粉絲最喜歡的紀錄片，Pennywise：IT 的故事，迷幻節日的最愛，All Jacked Up And Full Of Worms，比利時/法國生存恐怖電影《深度恐懼》等數十部。此外，隨著 Outwaters、Living With Chucky、RoboDoc、The Robert Englund Story 等等，我們對恐怖片的未來感到非常興奮，不僅在影院、交易和通過 Screambox，而且在 Bloody Disgusting 的社論內容、我們的播客網絡、消費品等等。這種策劃理念和我們為發燒友粉絲群提供 360 度服務的方法正在被引入我們的其他頻道品牌和垂直領域，包括 Fandor 的獨立電影、Dove Channel 的家庭、RetroCrush 的動漫和 Asian Crush 的亞洲內容。

We also see an opportunity to establish ourselves and super-serve other key verticals, such as the African-American vertical, LGBTQ and others. We're focused on pursuing and establishing partnerships with key brands in each of these areas. So to sum it up, our strategy of both superserving enthusiast fan bases, while also building the leading destination for the world's content are extremely compatible and we believe not only to be great businesses, but an important mission that we can all be proud to be part of.

我們還看到了一個機會，可以建立自己的地位並為其他關鍵垂直領域提供超級服務，例如非裔美國人垂直領域、LGBTQ 等。我們專注於在這些領域中的每一個領域尋求並與主要品牌建立合作夥伴關係。所以總而言之，我們的戰略是超級服務愛好者粉絲群，同時也為世界內容建立領先的目的地，我們相信這不僅是偉大的企業，而且是一項我們都可以為之自豪的重要使命部分。

With that, let me turn things over to the operator to take your questions.

有了這個，讓我把事情交給接線員來回答你的問題。

(Operator Instructions) Our first question comes from the line of Dan Kurnos with Benchmark.

（操作員說明）我們的第一個問題來自 Dan Kurnos 與 Benchmark 的合作。

Great. Thanks. Obviously, congratulations guys on a terrifyingly good quarter. I have one first just on that maybe for Chris and/or Erick, whoever both do you want to take this? Obviously, this film was a tremendous success, and I'm sure you guys are working on Terrifier 3 and whatever comes next. But you have all of the buzz. You've got some new films in the pipe. How do you go beyond that to sort of capitalize on the momentum there? Is it self-convened in the horror channel? Can you take simple learnings? Can you cross-pollinate? Just help us think through how you take what happens and kind of parlay that into sort of broader-based success across your other genres?

偉大的。謝謝。顯然，祝賀你們取得了一個非常好的季度。我有一個關於 Chris 和/或 Erick 的第一個，無論你想接受誰？顯然，這部電影取得了巨大的成功，我相信你們正在製作驚悚 3 以及接下來的任何作品。但是你擁有所有的嗡嗡聲。你有一些新電影正在籌備中。你如何超越這一點來利用那裡的勢頭？難道是在恐怖頻道中自召？你能接受簡單的學習嗎？你能異花授粉嗎？只是幫助我們思考一下您如何利用發生的事情並將其轉化為跨其他類型的更廣泛的成功？

Well, just first, this is Chris. Thanks, Dan, for the question. Just in the horror genre itself, the floodgates have opened in terms of the creative community now coming to us, having seen how we took a little $250,000 movie and turned it into a top 10 theatrical and a blowout title in physical DVD and in TVOD and of course, on Screambox. So we've got a wealth of opportunities that we're looking at in terms of new content to continue to blow out that business going forward. And there are also some acquisition opportunities in the space as well that we're considering to sort of round out our ore business, build it up and scale and serve all our audiences not just like a Terrifier Slasher audience, but maybe more adult-oriented I mean, older skewing content in that space was called elevated horror. So we're doing that in the horror space. And we learned a lot through the release of Terrifier in terms of how we could identify properties that had great potential and then market them in an incredibly cost-effective way virally. And we think we have that very same capabilities in the family vertical that we have great capabilities and experience in and the same thing with Asian content in Anime. And we're evaluating content acquisition opportunities and also some M&A in those areas as well to build up our bulk, build up our content and be able to take advantage of the machines that we built in each one of those arenas. So we're very confident that we can keep the momentum going in horror, and we're very, very confident that we're going to find a Terrifier in the family business, the Anime business and the Asian business. So with an ultimate goal of increasing our subscribers and viewers on our channels because that's where the sustainable profits come from our acquisition opportunities, content acquisition opportunities in those verticals.

好吧，首先，這是克里斯。謝謝，丹，提出這個問題。就恐怖類型本身而言，創意社區的閘門已經打開，現在來到我們這裡，看到我們如何拍攝一部價值 250,000 美元的小電影並將其變成前 10 名的戲劇和實體 DVD 和 TVOD 的井噴標題和當然，在 Screambox 上。因此，我們在新內容方面擁有大量機會，可以繼續推動該業務向前發展。在這個領域也有一些收購機會，我們正在考慮完善我們的礦石業務，建立它並擴大規模並為我們所有的觀眾提供服務，而不僅僅是像 Terrifier Slasher 的觀眾，但可能更面向成人我的意思是，那個空間中較舊的傾斜內容被稱為高架恐怖。所以我們在恐怖領域這樣做。我們通過 Terrifier 的發布學到了很多東西，比如我們如何識別具有巨大潛力的屬性，然後以極具成本效益的方式進行病毒式營銷。我們認為我們在家庭垂直領域擁有與我們在亞洲動漫內容方面擁有的強大能力和經驗完全相同的能力。我們正在評估內容收購機會以及這些領域的一些併購，以擴大我們的規模，建立我們的內容，並能夠利用我們在每個領域建造的機器。所以我們非常有信心我們可以保持恐怖的勢頭，我們非常、非常有信心我們會在家族企業、動漫業務和亞洲業務中找到一個恐怖分子。因此，我們的最終目標是增加我們頻道的訂閱者和觀眾，因為這是可持續利潤來自我們的收購機會、這些垂直領域的內容收購機會的地方。

Got it. That's helpful. And then just kind of thinking, I know this is really difficult, right, to kind of tease out Terrifier 2 from the quarter, especially since you certainly deserve the credit in screen VOD. I'm just wondering how you're thinking about sort of ex Terrifier the fundamental momentum. If we can get some more color on that. Obviously, you gave some sort of qualifications around Matchpoint and some of the other things that are going on, but if you were to look sort of under the hood at sort of the other segments or genres, how would we be able to sort of point to the improvements that we're continuing to see from the momentum you've built there? And beyond what you just said, Chris, are we looking to kind of round out sort of the family as we get closer to a much broader Cineverse launch?

知道了。這很有幫助。然後只是想一想，我知道這真的很難，對吧，從本季度開始梳理 Terrifier 2，特別是因為你在屏幕 VOD 中確實值得稱讚。我只是想知道你是如何看待 ex Terrifier 的基本動力的。如果我們能得到更多的顏色。很明顯，你對 Matchpoint 和其他一些正在發生的事情給出了某種限定，但如果你要看一些其他細分市場或類型的內幕，我們將如何能夠指出從您在那裡建立的勢頭我們繼續看到的改進？除了你剛才所說的，克里斯，隨著我們越來越接近更廣泛的 Cineverse 發布，我們是否希望對家庭進行某種圓滿？

Yes. I think first, I'll make the point that even if we took Terrifier 2 out of our results for the quarter, we still would have had a record quarter in streaming and in our content distribution business. So this quarter was about much more than Terrifier. I think another thing that I think is important that you recognize, we released Terrifier on October 6, I believe, around that time. We've got a huge increase of subscribers to Screambox. And now it's middle of February, and we've held all those subscribers, which we think is great news because again, those are replicable profits each month, year in and year out, hopefully, going forward. So I think you just look for our activity in the genres that I spoke about going forward. Right now, we're evaluating a family film for theatrical release that we think could break out in theatrical. And we've got a couple of ideas in Asian and Anime arena, so I think you look for our content acquisition opportunity in those other arenas as a sign that things are moving forward and then, obviously, the results following that. But I want to stress, we don't need a Terrifier every quarter to continue to show great growth and hit our goal of sustainable profitability.

是的。我想首先，我要指出的是，即使我們將 Terrifier 2 從本季度的業績中剔除，我們在流媒體和內容分發業務方面的季度業績仍將創紀錄。所以這個季度不僅僅是 Terrifier。我認為另一件我認為很重要的事情是你認識到的，我們在 10 月 6 日發布了 Terrifier，我相信，大約在那個時候。我們的 Screambox 訂閱者數量大幅增加。現在是 2 月中旬，我們已經保留了所有這些訂戶，我們認為這是個好消息，因為這些都是每個月、年復一年、希望未來的可複制利潤。所以我認為你只是在我談到的未來類型中尋找我們的活動。現在，我們正在評估一部我們認為可以在院線上映的家庭電影。我們在亞洲和動漫領域有一些想法，所以我認為你會在其他領域尋找我們的內容獲取機會，以此作為事情向前發展的標誌，然後，很明顯，隨之而來的結果。但我想強調的是，我們不需要每個季度都有一個 Terrifier 來繼續顯示出巨大的增長並實現我們可持續盈利的目標。

Got it. That's really helpful. And maybe, Erick, you called out bolstering the ad department. Obviously, the market is trying to find its general footing right now. We've heard mixed bag in CTV, the publishers have called it sort of stabilized weakness, but your results have been pretty strong and pretty consistent, and you've not generally, I mean, yes, there are market pressures, but you've been seemingly a little bit more immune or less prone to some of those. So I'm just curious if you could expound a little bit upon sort of your ad force expansion and where you're targeting and how you're sort of thinking about direct versus programmatic expansion this year?

知道了。這真的很有幫助。也許，埃里克，你呼籲支持廣告部門。顯然，市場現在正試圖找到它的總體立足點。我們在 CTV 聽到了好壞參半的消息，出版商稱其為穩定的弱點，但你們的結果非常強勁且非常一致，而且你們通常沒有，我的意思是，是的，存在市場壓力，但你們我們似乎對其中一些免疫力更強或更不容易。所以我很好奇你是否可以詳細說明一下你的廣告力量擴張和你的目標位置，以及你今年是如何考慮直接擴張和程序化擴張的？

Sure. So just speaking generally on the broader ad market, I think if we kind of look at it and take the tenor and tone of conversations that I've been involved with and my team has been involved with, I think people probably overreacted at the end of this quarter broadly in the market. Everyone kind of hit pause in December. We didn't really see much impact of that. But the big players well above us who are $1 billion entities, small amounts of downward pressure impacted them greatly. We're a much smaller and nimble player. We can grow by gaining market share by launching new channels, and those will have a very material impact on growth. So we're just at the beginning of our growth journey, where the broader marketplace, while it has some impact on the existing business, we're bucking that trend. Early this year so far. I think just to give one anecdotal data point for this month, we're probably double-digit outpacing the market in growth. So I'm not concerned about our ability to maintain high growth rates, just given all the levers we have to pull that probably are not available to our much larger peers.

當然。所以一般來說，就更廣泛的廣告市場而言，我認為如果我們稍微看一下，看看我和我的團隊參與過的談話的基調和基調，我認為人們最後可能反應過度了本季度廣泛應用於市場。每個人都在 12 月暫停。我們並沒有真正看到這有多大影響。但遠在我們之上的大公司是 10 億美元的實體，少量的下行壓力對他們影響很大。我們是一個更小、更靈活的玩家。我們可以通過推出新渠道獲得市場份額來實現增長，這將對增長產生非常實質性的影響。所以我們才剛剛開始我們的增長之旅，更廣闊的市場，雖然它對現有業務有一些影響，但我們正在逆勢而行。今年年初至今。我認為只要給出本月的一個軼事數據點，我們的增長速度可能會超過市場兩位數。因此，我並不擔心我們保持高增長率的能力，只是考慮到我們必須使用的所有槓桿，而這些槓桿可能是我們規模大得多的同行所不具備的。

Our next question comes from the line of Brian Kinstlinger with Alliance Global Partners.

我們的下一個問題來自 Brian Kinstlinger 與 Alliance Global Partners 的合作。

And great results, especially with Terrifier 2. I wanted to see if you could break down at all content and entertainment. Sometimes we get to see distribution versus OTT streaming and digital. And then while certainly one hit is not what you need, you made it clear to drive quarterly results. Can you help us understand the contribution from ticket sales, which aren't as recurring as other pieces of Terrifier 2 so that we can go forward, think about the business?

結果很好，尤其是 Terrifier 2。我想看看你是否能在所有內容和娛樂中崩潰。有時我們會看到分發與 OTT 流媒體和數字。然後，雖然一擊肯定不是您所需要的，但您明確表示要推動季度業績。你能幫助我們了解門票銷售的貢獻嗎？門票銷售不像 Terrifier 2 的其他部分那樣經常出現，這樣我們就可以繼續前進，想想業務？

This is Chris. Can you hear me?

這是克里斯。你能聽到我嗎？

Yes...

是的...

No. We had a policy that for any specific title, we're not going to reveal elements of the revenue and profits that we got. I mean we have participants and everything, and it's just not a standard practice to do that. But generally for an independent film in general in the industry, you'll get about 40% of the box office in rentals, which is a little bit lower than the bigger wide release film. So you can just use that as a guide going forward.

不。我們的政策是，對於任何特定的標題，我們都不會透露我們獲得的收入和利潤的要素。我的意思是我們有參與者和一切，但這不是標準做法。但一般來說，對於業內的一部獨立電影來說，你將獲得大約 40% 的票房租金，這比更大的寬發行電影要低一點。所以你可以把它作為前進的指南。

Okay. And how about some quarters you guys have given physical distribution versus OTT streaming and digital. Can you share any details about the breakdown of that? I think you had a chance to go through the entire Q? I know it just...

好的。你們在某些方面給出了物理分發與 OTT 流媒體和數字分發的對比情況。你能分享一下關於它的細分的任何細節嗎？我想你有機會經歷整個問題？我只知道...

Yes. I think you'll find that in the Q, correct, John?

是的。我想你會在 Q 中找到它，對吧，約翰？

Yes, that's all in there.

是的，裡面全是這些。

Okay. And then can you talk about, you've been clear the Outwaters is going to be headed to streaming. What are the factors that indicate whether you take a movie to wide release versus keeping it as a limited release, is it certain performance in those specific theaters? Just maybe kind of wondering if Outwaters had the chance to go to a more wide release?

好的。然後你能不能談談，你已經很清楚 Outwaters 將轉向流媒體。決定一部電影是廣泛發行還是限量發行的因素有哪些，它在那些特定影院的表現是否確定？也許只是想知道 Outwaters 是否有機會進行更廣泛的發布？

Well, the Outwaters went on, I think, like 110 screens, it did really well this weekend. But we just announced today that we're going exclusive on Screambox, I believe, this Friday. it'll stay in theaters, but we're not planning on expanding it. And there are a lot of reasons for that. But I think first and foremost, with Terrifier, we really kind of had a franchise. We didn't know quite how it was going to perform theatrically, but there had been a Terrifier 1, which had become a real cult film and had a big following online and everything. So that's why we took it out originally, I think, on 550 screens. Again, that was a movie that cost $250,000, and we spent probably less than $100,000 in (inaudible) marketing. And then with the Outwaters, that's a film that was produced for $15,000 in a sound footage fill. And it didn't have sort of the built-in audience that we knew we had for Terrifier. So we thought what we would do is take it out on a lesser number of screens probably not expand because you've got big titles like Antman and others coming into the market and take it quickly to Screambox after we created a great deal of awareness and buzz online and on Twitter and TikTok and everything based on the fact that it's really kind of an extraordinary breakthrough experimental film, and that's exactly what's happened. And we also looked at the impact that Terrifier had on Screambox subscribers. And we think that will be our main goal here with the Outwaters. So that was kind of our thinking through the whole thing. So you'll see (inaudible) going forward. You'll see a mix of release patterns going forward based on factors like that.

好吧，我認為 Outwaters 繼續放映了 110 個屏幕，這個週末表現非常好。但我們今天剛剛宣布，我相信本週五我們將在 Screambox 上獨占。它會留在影院，但我們不打算擴展它。這有很多原因。但我認為最重要的是，有了 Terrifier，我們真的擁有了特許經營權。我們不太清楚它在影院的表現如何，但有一部驚悚片 1，它已經成為一部真正的邪典電影，在網上和其他方面都有大量追隨者。所以這就是為什麼我們最初在 550 個屏幕上把它拿出來的原因。同樣，那是一部花費 250,000 美元的電影，而我們在（聽不清）營銷上的花費可能不到 100,000 美元。然後是 Outwaters，這是一部製作成本為 15,000 美元的有聲鏡頭電影。而且它沒有我們知道我們為 Terrifier 擁有的那種內置觀眾。所以我們認為我們要做的是在較少數量的屏幕上推出它可能不會擴展，因為你有像 Antman 和其他進入市場的大標題，並在我們創造了大量的意識和之後迅速將它帶到 Screambox在網上、推特和 TikTok 上引起轟動，一切都基於這樣一個事實，即它確實是一部非凡的突破性實驗電影，而這正是發生的事情。我們還研究了 Terrifier 對 Screambox 訂閱者的影響。我們認為這將是我們與 Outwaters 的主要目標。所以這就是我們對整個事情的思考。所以你會看到（聽不清）前進。您會看到基於此類因素的混合發布模式。

And it brings me another question as you speak of Terrifier 2 and the impact on subscriptions. Think it's important, and I'm not sure if it held maybe you can talk about the churn or lack thereof of those that have come to Screambox, become subscribers probably to see the movie again. How would have the stick rate been? Has there been churn? Have they stayed with the subscription? Maybe talk about that.

當你談到 Terrifier 2 和對訂閱的影響時，它給我帶來了另一個問題。認為這很重要，我不確定它是否成立，也許你可以談談那些來到 Screambox 的人的流失或流失，成為訂閱者可能會再次觀看這部電影。堅持率會怎樣？有沒有流失？他們是否繼續訂閱？也許談談那個。

Yes, as I said, again, there's been minimal churn. And if Erick wants to expand on that, but they stuck. And we've got a great lineup, we think, beyond the Outwaters, as Erick described, new titles to continue to refresh the channel. So we feel really good about the stickability of the subscribers have come on board, and we hope to continue to grow our subscriber base going forward. Erick, is there anything you want to comment on that?

是的，正如我所說的那樣，流失率極低。如果 Erick 想對此進行擴展，但他們堅持了下來。我們有一個很棒的陣容，我們認為，正如埃里克所描述的那樣，除了 Outwaters 之外，新的標題將繼續刷新頻道。因此，我們對訂閱者的粘性感到非常滿意，我們希望繼續擴大我們的訂閱者基礎。埃里克，你對此有什麼要評論的嗎？

Yes, in any type of service where there's a high in demand piece of content, you're always going to have people that sign up to watch the program and will cancel. That's the nature of the industry. But what we really look at are the rates that we find acceptable of that kind of practice. And Terrifier, just because of the high volume of original movies we had very closely following Terrifier's release, we had very, very strong retention rates that exceeded our expectations. And the net result was a very, very 6-digit growth in subscribers on a service that when we acquired it. had low 5 figures of subscribers. So that is a pretty impressive result that has really set Screambox and the horror group as really being sort of our first breakout hit vertical. And I think it's provided a very strong template. We obviously will adjust this going forward to optimize it, but we were very pleased with how many subscribers stuck around.

是的，在任何類型的內容需求量很大的服務中，總會有人註冊觀看該節目並取消。這就是這個行業的本質。但我們真正關注的是我們認為可以接受這種做法的比率。而 Terrifier，僅僅因為我們在 Terrifier 發布後非常密切地關注了大量原創電影，我們的保留率非常非常高，超出了我們的預期。最終結果是，當我們收購一項服務時，該服務的訂戶數量實現了非常、非常 6 位數的增長。擁有低 5 位數的訂戶。所以這是一個非常令人印象深刻的結果，真正讓 Screambox 和恐怖組織成為我們第一個垂直突破。我認為它提供了一個非常強大的模板。我們顯然會在未來進行調整以優化它，但我們對有多少訂戶留下來感到非常滿意。

Got it. Lastly, I'd be remiss in not commenting on cinema equipment, although it's not core. And I know we've been talking about it for a while winding down. It provided quite a lift in the December quarter. How do we think about that? And is there any visibility into the next few quarters on that business?

知道了。最後，我不評論電影設備是失職的，雖然它不是核心。我知道我們已經討論了一段時間了。它在 12 月季度提供了相當大的提升。我們如何看待這一點？該業務接下來幾個季度是否有任何可見性？

We'll be done with it at the end of the fiscal year, as we've said before. There shouldn't be any appreciable contribution after that point. But beyond that, I don't think it really impacted our comparability year-over-year because I think we did significantly more last year in the digital cinema business than this year. So I think that's all I want to say about it at this point. But we're going to be very happy when we unhinge the last of that business next quarter. And then we'll finally be a streaming content and technology pure play, which has been just going through the roof now for 3 years, as you know.

正如我們之前所說，我們將在財政年度結束時完成它。在那之後不應該有任何明顯的貢獻。但除此之外，我認為這並沒有真正影響我們的同比可比性，因為我認為我們去年在數字電影業務上的表現比今年要多得多。所以我想這就是我現在想說的。但是，當我們在下個季度擺脫最後一項業務時，我們會非常高興。然後我們最終將成為純流媒體內容和技術遊戲，如您所知，這已經持續了 3 年。

Our next question comes from the line of Terry Hackett with Hackett Management.

我們的下一個問題來自哈克特管理公司的特里哈克特。

Gentlemen, good afternoon, and it is a good afternoon. Gary, Chris, Erick, Tony, great job. Just a comment that I don't know if everybody understands what a great comeback story this is from 4 years ago, some very, very difficult days for you guys to say, "Hey, we've got to pivot and we're going to pivot and become an aggregator" and then to effectuate on that has been a great, great story and along the way, cleaning up that balance sheet. So well done is all I'm going to say and keep it going.

先生們，下午好，這是一個美好的下午。加里、克里斯、埃里克、托尼，幹得好。只是一個評論，我不知道每個人是否理解這是 4 年前的一個多麼偉大的複出故事，在一些非常非常困難的日子裡，你們要說，“嘿，我們必須轉向，我們要轉向並成為一個聚合器”，然後實現這一點，這是一個非常非常棒的故事，並在此過程中清理了資產負債表。幹得好就是我要說的，並繼續下去。

Thank you very much, Terry, and thanks for hanging in there with us over the last few years. And I think we all feel that as good as it's been for the last 3 years and what a great comeback that's been and how we built the business that's working now. The best is yet to come.

非常感謝你，特里，也感謝你在過去幾年裡一直和我們在一起。而且我認為我們都覺得這和過去 3 年一樣好，這是多麼偉大的回歸，以及我們如何建立現在運作良好的業務。最好的還在後頭。

Thank you. Since there are no further questions, I would like to turn the conference back over to Chris McGurk for closing remarks.

謝謝。由於沒有其他問題，我想將會議轉回給 Chris McGurk 作閉幕詞。

Thanks, operator. Thank you, everyone, for joining us today and for your interest in Cinedigm. Please follow up with Julie Milstead with questions you may have. You can reach her at investorrelations@cinedigm.com. We look forward to speaking with you again when we report our fourth quarter results for the fiscal year 2023 in June.

謝謝，運營商。感謝大家今天加入我們以及對賽點的關注。請跟進 Julie Milstead 並提出您可能有的問題。您可以通過 investorrelations@cinedigm.com 聯繫她。我們期待在 6 月份報告 2023 財年第四季度業績時再次與您交談。

This now concludes our conference call. You may now disconnect.

現在我們的電話會議結束了。您現在可以斷開連接。