Cinedigm reached a deal to acquire ComicBlitz, a startup billed as a “Netflix of digital comic books,” launching the content-distribution company into a new line of business.
Financial terms of the deal weren’t disclosed. Cinedigm said it expects the acquisition of ComicBlitz to close before the end of the year. According to Cinedigm, ComicBlitz could generate over $5 million in incremental revenue within 18-24 months after closing, assuming it can execute on plans for new platform and licensing agreements.
ComicBlitz provide access to some 10,000 digital comic books, representing more than 175,000 pages of content from a network of 30 publishers including IDW, Valiant Comics, Dynamite Entertainment, Zenescope and Lion Forge. The service is priced at $7.99 per month for unlimited access and is available in 133 countries.
Launched in 2015, the ComicBlitz service offers titles including “Transformers,” “Star Trek,” “Judge Dredd,” “Bloodshot,” “Bob’s Burgers,” “Army of Darkness,” “Vampirella,” “Green Hornet,” “KISS,” “The Shadow,” “The Spirit” and “30 Days of Night.”
Cinedigm said ComicBlitz’s content will be distributed globally as a licensed offering for mobile carriers and other media companies. The digital comics also will be integrated with Cinedigm’s own portfolio of over-the-top video services, including fandom lifestyle network CONtv, according to the company.
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Under the deal, ComicBlitz founder and CEO Jordan Plosky will join the Cinedigm Digital Networks team, headed by president Erick Opeka.
“This acquisition will provide additional content rocket fuel to further accelerate our digital revenue growth,” Chris McGurk, Cinedigm chairman and CEO, said in a statement. “Targeted at the key and growing fandom demographic, we are confident that this accretive deal will generate a strong [internal rate of return] while it propels our business forward by dramatically expanding and strengthening our content and channel offerings across the fast-growing worldwide OTT ecosystem.”
Plosky commented, “Cinedigm gives ComicBlitz unprecedented support and an incredible opportunity to reach a large and enthusiastic audience, which is invaluable and extremely rare for a digital comic book company to receive.”
Cinedigm last year sold a majority stake in the company to Bison Capital, a Hong Kong-based investment firm, and subsequently inked deals with several Chinese entertainment companies as well as with state-run broadcaster Central China Television.
In addition to its film and TV distribution business, Cindedigm operates a network of OTT services including CONtv, geared around pop-culture and fandom; the faith-and-family Dove Channel and DoveKids; and esports channel Wham Network. Its forthcoming services include Hallypop, a K-pop and Asian music network, and Bambu, a service stocked with Chinese shows and movies. Cindedigm has recently inked distribution agreements for its OTT networks with partners including Roku, Xumo, Samsung, Tubi, Vizio and Comcast.