DHX Media Poised to Tap Exploding Demand for Premium Video Content

By Paddon, David | The Canadian Press, September 28, 2017 | Go to article overview

DHX Media Poised to Tap Exploding Demand for Premium Video Content


Paddon, David, The Canadian Press


DHX poised to tap exploding content budgets

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TORONTO - DHX Media Ltd. (TSX:DHX.B) says it's well-positioned to take advantage of exploding budgets as industry giants like Netflix, Disney and others look for family-friendly premium content for their video-on-demand services.

Executive chairman Michael Donovan told analysts Thursday that the price per-episode for some programming has jumped recently after being virtually unchanged for about 20 years.

"I have been in this business for 37 years and it has never been this positive," Donovan said.

He and Josh Scherba, the company's executive vice president for content and distribution, said they see opportunity from a Netflix commitment to spend $500 million over five years in original productions in Canada but awaited details.

"I will be catching up with our friends at Netflix later," Scherba said.

Donovan said the new subscription video services are able to "monetize" content to a much higher degree than other forms of video and they are in a race to win market share with new and re-used content that Halifax-based DHX Media can provide.

"Core to our strategy has been to leverage our production advantage -- our studios et cetera and our finance advantages with respect to production -- into developing the old brands . . . into new content."

For example, DHX Media recently acquired rights to the Peanuts comics characters through a US$345-million deal that closed June 30, the last day of the company's 2018 fiscal second quarter. …

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DHX Media Poised to Tap Exploding Demand for Premium Video Content
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