EchoStar & CinemaNow Deal
Internet movie download service CinemaNow said it raised $20 million in financing from new investors, including direct broadcast satellite TV provider EchoStar, to expand its future business.
The service also received funding from Index Holdings, which has investments in the mobile communications industry.
“The strong financial backing from established leaders in the technology, entertainment and investment communities will allow us to accelerate our leadership position in digital distribution,” said Curt Marvis, CinemaNow CEO. “By establishing strong commercial agreements as part of the financing with EchoStar and Index, leaders in satellite and mobile services respectively, CinemaNow will remain on the cutting edge of new and innovative models defining the next generation of home entertainment.”
Marvis said EchoStar’s investment will give CinemaNow access to 12 million DISH Network subscribers. The satellite service is planning to launch new set-top boxes with built-in Internet connections that could allow downloading or streaming CinemaNow programming directly to TV sets.
“CinemaNow is leading the way in digital distribution, and we see a bright future ahead for their business,” stated Mark Jackson, EchoStar Technologies president. “We are also looking forward to working with CinemaNow directly on ways to deliver their robust content offering to EchoStar’s more than 12 million subscribers.”
Other investors in the company include: Transcosmos, which partnered with the company prior to the launch of CinemaNow Japan last year; Cisco Systems, which previously invested in CinemaNow to further initiatives in the consumer electronics and digital home industries; movie studio Lionsgate; and Menlo Ventures, a Silicon Valley venture capital firm.
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