The coronavirus pandemic is providing business opportunities in the sector of audiovisual content on demand, which are in full growth due to the confinement of the population. The Nazca Capital investment fund, accompanied by Seaya Ventures, just took control of the independent film platform The movie, born in Barcelona in 2008.
Both funds, originally from Madrid, announced yesterday that they had just acquired the shares of the French Metropolitan Filmexport and the Spanish Vertigo Films, two audiovisual content distributors that to date had control of the platform. The founders Jaume Ripoll, Juan Carlos Tous and José Antonio de Luna maintain the direction of the business, as well as their minority stakes, as do other small investors such as the producer El Deseo (Almodóvar), Wanda Vision or Avalon.
The independent cinema platform, now in the hands of funds, plans to go from 7 million to 15 million in revenue
The price of the transaction is confidential. Nazca has acquired more than 51% of the shares and Seaya a smaller percentage. “The growth of the business is being brutal and we think it will continue to rise in the next few years,” says Carlos Carbó, partner at Nazca. This year, Filmin expects to go from € 7 million to € 15 million in turnover and stay in profits.
The objective of this fund private equity, which already has a presence in the audiovisual sector (a year ago it joined Cinelux, specialized in lighting for television and cinema), it is to carry out the internationalization of the platform and divest within 4 or 5 years.
The strategy is to allocate resources to marketing, content and equipment, which now has 38 people. Looking ahead to next year, Nazca plans to promote the platform to consolidate its presence in Spain and strengthen it in Portugal, a country that “now only represents 5% of revenues and which can reach 15%,” says Carbó. Furthermore, the fund plans to invest resources to start producing its own content over the next few months. “We have collaborated with some production companies and now we want to start leading projects ourselves”, comment Juan Carlos Tous and Jaume Ripoll.
The internationalization process outside the Peninsula will begin in 2022. “We are studying the formula and analyzing the most attractive countries. The intention is to enter a country in Europe or Latin America ”, says Carbó. The investment to land in a market is around 20 or 25 million euros, he calculates. In fact, Filmin tried to make the leap to central Europe three years ago with the failed integration of the Universciné (France, Belgium and Luxembourg) and Lekino (Switzerland) platforms.
The company also plans to grow through agreements with large producers such as those recently closed with Universal and Metro Goldwyn Mayer. Currently, its catalog amounts to 15,000 films. Tous assures that Filmin will continue to maintain its independent line. “We see ourselves as a complement to the large platforms rather than a competitor,” he says.