28 Aug 2008 07:00
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