Former AMC Entertainment Inc. CEO Peter Brown is joining the board of Cinedigm Digital Cinema Corp., a company that works with exhibitors, distributors and studios to provide digital programming to movie theaters.
Cinedigm, based in Morristown, N.J., on Thursday announced that Brown had been nominated to the board and that his Kansas City-based private investment firm, Grassmere Partners LLC, would buy $500,000 of the company’s stock (Nasdaq: CIDM).
Shareholders still must approve his selection at the company’s annual meeting on Sept. 14.
“His reputation and relationships within the movie and entertainment industry are exceptional,” Adam Mizel and Gary Loffredo, the company’s interim co-CEOs, said in a release. “Peter has a strong belief in the content opportunities created by digital cinema, and his input will accelerate our already strong momentum as a company.”
Brown served as AMC’s chairman, president and CEO for 10 years before retiring last year.
Cinedigm, which uses digital technology to bring advertising, concerts, sporting events and independent movies to theaters, had $72.2 million in revenue for the fiscal year that ended on March 31.
The movie theater industry is increasing its use of digital technology.
AMC has said it plans to bulk up its inventory of theaters capable of showing digital 3D movies, adding 550 to 650 3D screens during its current fiscal year, which started in April. It currently has 475 3D-equipped screens. The 3D movies have brought higher sales of tickets, which generally are sold at a premium over regular movie tickets. |
