Blog Post

CinemaNow Raises $11 Million; Plans Moving Into Europe, Asia

(sub. req.) Online movie service CinemaNow, based in Los Angeles, has received $11 million in a fourth round of venture funding. According to this Variety story, this investment, the largest ever for the company. The funding was led by Menlo Ventures. Cisco Systems and Lions Gate Entertainment, the former majority owner, also particpated in the round…the funding moves LionsGate into a minority position…

Missed this related story last week: CinemaNow Looks To Move Online Service Into Europe, Asia: It currently has 15,000 subscribers and 30,000 people who rent individual movies online each month in the U.S., and the company plans to groom a new set of customers in Japan, Korea, the U.K. and Scandinavia.

CinemaNow hopes it can generate 30% of its revenue from international customers in three years. CEO Curt Marvis said he expects revenue this year to total less than $10 million, triple last year’s revenue.

CinemaNow distributes movie content in Japan for half a dozen independent distributors and is working on similar agreements for Europe.