RNS Number : 1436C
DCD Media PLC
28 August 2008
Embargoed: 0700hrs, 28 August 2008
DCD Media plc
("DCD" or the "Group")
Distribution Division Announces Transformational Deal
DCD Media, the independent TV production and distribution group, announces that it has
entered into an agreement with a leading private
equity firm, whereby a fund (the "Fund") has been created with the purpose of investing in the
exploitation rights of programmes being
handled by DCD Rights - the newly branded TV distribution arm of DCD Media.
The establishment of the Fund is likely to facilitate a significant increase in the sales
and profitability of DCD Rights - as much as
£60 million of additional sales are envisaged over the probable four-year life of the Fund,
from which DCD Rights will earn its typical
commission rates on distribution.
Funding will be available both to DCD's internally produced content and to third party
programme makers, whose content will then be
distributed by DCD Rights under the terms of the agreement. There are two further benefits to
the Group:
Firstly, that it will enable DCD's internal production companies to produce more content
and avoid giving away certain rights in return
for 'gap' funding. As broadcasters often do not fully fund productions, producers frequently
require a further source of finance, such as
this scheme provides, in order to ensure their projects are profitable. Programmes that would
not have otherwise achieved sufficient funding
to move into production may now be able to do so.
Secondly, it will attract third-party programme makers to distribute content through DCD
Rights.
The scheme is risk-free to DCD Media.
Chief Executive of DCD, Chris Hunt, said,
"This is truly a win-win situation for DCD and provides our distribution division, DCD
Rights, with a huge boost. Because the Fund is
seeking to utilise its full capacity and reinvest on a rolling basis, it will have an
incremental benefit from the outset and throughout its
life. Underfunded programmes may now be profitably produced and DCD Rights will be handling
distribution for a significantly expanded slate
of programmes."
For further information please contact,
Chris Hunt, Chief Executive
DCD Media Plc
Tel. 020 7297 8000
Ben Simons or Eleanor Williamson
M:Communications
Tel. 020 7153 1540
Tom Price or Jeremy Ellis
Evolution Securities
Tel. 020 7071 4300
This information is provided by RNS
The company news service from the London Stock Exchange
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