SPT sells Crackle stake into Chicken Soup JV

Sony Pictures Television (SPT) has sold a majority stake in its Crackle on-demand business to up-and-coming US firm Chicken Soup for the Soul Entertainment (CSSE), which will fold it into a joint venture.

Mike Hopkins

The two companies are jointly launching Crackle Plus, an AVoD service that will fuse Crackle as well as series and movies from the SPT library with CSSE’s six owned-and-operated AVoD networks – Popcornflix, Truli, Popcornflix Kids, Popcornflix Comedy, Frightpix and Espanolflix – and SVoD platform Pivotshare.

Ownership of Crackle’s original content library will be retained by SPT but will be made available for licensing to the JV. Financial terms of the deal were not disclosed but CSSE will own the majority interest in the venture.

The companies say the JV will have a combined audience of nearly 10 million active users a month and more than 38,500 hours of programming.

Mike Hopkins, SPT’s chair, said: “Crackle is a valuable asset and we feel confident it will thrive and grow in this new environment with CSSE.

“The CSSE team have the enthusiasm and strong business acumen to ensure Crackle Plus is poised to maximise the growing opportunities in the AVOD marketplace.”

William J Rouhana Jr, chairman and CEO of CSSE, added: “Creating a new platform that brings together CSSE’s VoD assets with SPT’s Crackle brand and AVoD assets establishes a compelling offering for viewers and advertisers.

“Consistent with our business plan, we plan to build Crackle Plus aggressively and profitably through organic growth and, potentially, acquisitions.”

Crackle was launched as an ad-supported streamer in 2007, but Sony said last year it was looking to sell a stake in it to another partner to help it better compete with tech rivals.