What's Happening?
Versant Digital, a company spun off from Comcast, is focusing on expanding its digital and platform-based revenue streams. Will McIntosh, the president of digital platforms and ventures, oversees assets like Fandango and Rotten Tomatoes. The company aims
to derive 50% of its revenue from non-linear sources within three to five years. McIntosh has a background in digital platforms, particularly in golf-related ventures, and has been instrumental in growing services like GolfNow. Versant's recent earnings report showed $826 million in revenue from non-linear sources, marking 19% of its total revenue. The company is also rebranding Indy Cinema Group to Fandango1, a move that would have been more complex before the spin-off.
Why It's Important?
The strategic shift by Versant Digital highlights the growing importance of digital and platform-based revenue in the media industry. As traditional cable networks face declining viewership, companies like Versant are pivoting to digital platforms to sustain growth. This move could influence other media companies to accelerate their digital transformation efforts. The focus on non-linear revenue streams, such as ad-supported streaming and VOD, reflects changing consumer preferences towards on-demand content. Versant's strategy could set a precedent for how media companies adapt to the evolving landscape, impacting stakeholders across the entertainment and digital media sectors.
What's Next?
Versant Digital plans to continue expanding its digital offerings and may pursue further acquisitions to enhance its portfolio. The company is actively looking at potential deals across various verticals, indicating a strategy of growth through both organic development and strategic acquisitions. Versant's presence at upcoming industry events like CinemaCon will likely focus on showcasing its new capabilities and partnerships, particularly in the cinema ticketing and point-of-sale systems space. The company's efforts to integrate its services, such as Fandango and Rotten Tomatoes, aim to create a seamless user experience and drive further engagement.
