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AMC backs RLJ originals

US on-demand operator RLJ Entertainment (RLJE) is set to increase its investment in content over the next five years with the support of cablenet AMC Networks.

BBC’s version of Agatha Christie’s The Witness for the Prosecution

RLJE, which runs SVoD services Acorn TV and UMC (Urban Movie Channel), has said it plans to tap into continued consumer interest in viewing on-demand following the investment.

AMC has increased the loan it had given RLJE from US$13m to US$23m to allow the firm to invest more in the two streaming services, which focus on English-language mystery and drama and urban content respectively.

RLJE will use the additional resources to “intensify” its investments in original and exclusive Acorn TV and UMC programming, as well as spend more on marketing to increase brand awareness and subscription numbers.

The company, which is a majority shareholder in Agatha Christie Ltd, has been advancing its investment in original content over the last few years, in particular through Acorn TV, which has struck coproduction relationships with the likes of Sky, RTÉ, DRG, All3Media and the BBC – in the latter case on projects including its recent adaptation of Christie’s The Witness for the Prosecution.

RLJE is also aiming to broaden the digital channels’ domestic and international distribution, said CEO Miguel Penella.

AMC has also altered the amount of interest RLJE pays on its loans, while RLJE chairman Robert L Johnson has converted 100% of preferred stock into common stock to eliminate dividend payments. The company said it expects to save US$5m annually as a result of the changes.

“AMC Networks has proven a stellar partner and collaborator in RLJ Entertainment’s drive to more firmly establish Acorn TV and UMC as must-have destinations and impactful brands, and we thank AMC Networks president and CEO Josh Sapan and AMC Networks for their increased support,” said Johnson.

“I believe in RLJE’s ability and opportunity to accelerate digital channel market penetration and steepen our overall growth trajectory, and I am demonstrating my support by participating through pure common equity.”

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