SeaChange International, the leading provider of software applications, services and solutions for Video-On-Demand (VOD), Digital Advertising, and Content Acquisition, Monetization and Management, today announced that its subsidiary, On Demand Group, sold its 33% shareholding in FilmFlex, the UK VOD movie service. The percentage of the business was sold to fellow shareholders, Sony Pictures Television International, and Walt Disney Television International (a division of The Walt Disney Company Ltd).
FilmFlex is an independent company which launched its services in January 2005 with its own independent management team and operations owned equally by the three shareholders: On Demand Group, Sony Pictures Television International and Walt Disney Television International. It is the exclusive movie on demand service for Virgin Media’s TV VOD service in the UK. FilmFlex has quickly grown to become the largest VOD movie service outside of North America. Under Sony Pictures Television International and Walt Disney Television International, the FilmFlex management team will continue to run and build the venture and On Demand Group will continue to provide some outsourced technical and creative production services.
“We have been delighted with the successful development of the FilmFlex service which has delivered a healthy return on our initial investment,” said Tony Kelly, CEO of ODG. “Our strategy now is to focus on wider VOD services including television and music as well as movies, with subscription video on demand services, (SVOD), in ventures where ODG has a higher percentage share. The money received from our share of FilmFlex will support our new developments plans and enable us to grow our business even faster.”
Kelly continued, “This is a very exciting time for ODG. There is a window for the growth of VOD and SVOD services, where in Europe almost every cable company, telco and mobile operator has either developed or is planning to develop VOD services. We therefore have to be nimble and entrepreneurial in order to capitalise on this opportunity.”
Earlier in 2007, ODG announced a 50/50 joint venture with Tele München Gruppe in Germany to develop VOD services in Germany, Austria and Switzerland. In October, ODG announced the launch of a full range of branded services including a CineExpress movie service and additional VOD branded services for TV, music, kids and leisure programming.
“This transaction demonstrates ODG’s ability to identify an opportunity, develop a business solution to meet the need, and to successfully execute on an agreed plan. I am confident that ODG can replicate the process throughout Europe,” Bill Styslinger, CEO of SeaChange, ODG’s parent company commented.
