Cinram International Income Fund announced that it has acquired Los Angeles-based 1K Studios. Financial terms of the agreement were not disclosed.
For more information visit: www.cinram.com
Unedited press release follows:
CINRAM INTERNATIONAL ACQUIRES 1K STUDIOS
Move Positions Hollywood’s Leading Media Manufacturer and Logistics Provider for Growth in Emerging Technology and Digital Content Delivery
TORONTO, Jan. 31 – Cinram International Income Fund (“Cinram” or the “Fund”) (TSX: CRW.UN), today announced the acquisition of Los Angeles-based digital media company 1K Studios. The move is part of a broad initiative to advance Cinram, a provider of media delivery services around the world, further into digital platforms.
1K specializes in building enhanced consumer experiences for movies, TV shows, music, books and games. The company has been a key service provider to many of the world’s top media & technology companies including Paramount Home Entertainment, Apple, HBO, and Warner Bros Home Entertainment. 1K provides creative and technical services to these companies to help them release their content in different venues including digital downloads, mobile and tablet apps, advanced Blu-ray discs, stereoscopic 3D and social media.
These services will be integrated with Cinram’s existing media production and logistics business, creating an end-to-end supply chain with significant competitive advantages for its customers. The new expertise will play an important role in Cinram’s effort to identify and evaluate additional opportunities to add to the company’s client offering.
“In the ever-evolving digital landscape, we must adapt our business model to meet our partners’ needs,” said Steve Brown, Chief Executive Officer for Cinram International, Inc. “No matter how the delivery methods change, consumers continue to demand exciting experiences. 1K Studios is proven in delivering innovative, creative and valuable digital content. I’m convinced that with our combined resources and know-how we’ll offer clients a superior service.”
“Cinram has a long history of re-inventing itself as media has advanced over the decades. We’re excited by the challenge of helping to bring about another transformation” said Matt Kennedy, co-founder of 1K Studios. “We’re very enthusiastic about the prospects of our ideas, and emerging businesses being fostered inside Cinram’s global business infrastructure.”
The deal will consolidate a network of client relationships that includes all of the major U.S. and European movie and TV studios, record companies, and game distributors, as well as numerous publishers and technology companies.
1K Studios management and team of specialized designers, programmers, information architects, animators and content producers will continue to operate from their existing Los Angeles studio.
Cinram International Inc., an indirect, wholly-owned subsidiary of the Fund, is one of the world’s largest providers of pre-recorded multimedia products and related logistics services. With facilities in North America and Europe, Cinram International Inc. manufactures and distributes pre-recorded DVDs, audio CDs, and CD-ROMs for motion picture studios, music labels, publishers and computer software companies around the world. Cinram now also provides distribution and logistics services to the telecommunications industry in North America through its wireless subsidiaries. The Fund’s units are listed on the Toronto Stock Exchange under the symbol CRW.UN. For more information, visit our website at www.cinram.com.
1K|Studios is a digital media firm based in Los Angeles and founded in 1998. The company specializes in building enhanced consumer experiences for movies, TV shows, music, books and games. 1K was recently involved in the launch of Apple’s iTunes Extras and LP enhanced digital download format, helping several studios and record companies design, program and deliver movies and music using the new formats. Their work is featured in various forms on hundreds of top-selling Blu-ray releases, including three top honor award winners at Variety Magazine’s Home Media Awards this fall: Paramount’s Star Trek, HBO’s True Blood series and Warner Brothers’ Wizard of Oz Collector’s Edition. The company is also currently developing several iPad applications to be announced in the coming months.