14
Dec
Banking on the vaults - film libraries are increasing in value in the digital era
A few years ago, banks wouldn’t dream of lending against the libraries of indie film companies. Some are still skeptical, but others are starting to appreciate the long-term value of older content thanks to the digital distribution deals inked during the past two years with rising platforms such as Netflix and Hulu. (…)
At this point Miramax is only a library, with no firm plans as yet to return to production. Since investors purchased the company for $663 million a year ago, it has closed $332 million in new agreements, half of which have been digital licensing pacts. According to its initial offering agreement, Miramax is expecting more than $400 million in cash flow from new digital deals over the next decade — a larger number than its estimates for traditional home entertainment.
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fredericguarino posted this
