The Sherman Oaks media company said it has more than 142,000 paid subscribers. It uses its user base on free streaming services to grow its paid subscriber base. The company reaches more than 15.2 million ad-supported users a month, up 238 percent year-over-year.
“This rapid growth illustrates the success of our ‘freemium’ model,” Erick Opeka, president of Cinedigm Networks, said in a statement. “Users can discover and enjoy our free networks across hundreds of millions of devices. … At this level, we estimate a stream of over $4 million per year in high-margin subscriber revenues in addition to our digital advertising and licensing revenues.”
Shares of Cindigm (CIDM) closed Monday down 2 cents, or 3.5 percent, to 56 cents on the Nasdaq.