ean Stage Authors and Composers, each with rights to the music of various artists. Competition The company competes with HBO/Cinemax, Showtime, and EPIX, as well as Netflix, Amazon, iTunes, and Hulu. Starz Distribution segment This segment includes the operations of the company’s Anchor Bay Entertainment, Starz Digital, and Starz Worldwide Distribution businesses. Sales and Distribution Anchor Bay Entertainment is the global home video sales arm of the company and distributes DVDs (standard definition and Blu-ray) under the ANCHOR BAY brand, in the U.S., Canada and other international territories to the extent the company has home entertainment rights to such content in international territories. Anchor Bay Entertainment acquires and licenses various titles from third parties, and also develops and produces certain of its content. Certain of the titles acquired by Anchor Bay Entertainment air on Starz Networks’ STARZ and ENCORE networks. Anchor Bay Entertainment also distributes Starz Networks’ original series and Weinstein’s titles. Each of these titles are sold to and distributed by regional and national retailers and other companies, including Amazon, Best Buy, Ingram Entertainment, Netflix, Redbox, Target and Wal-Mart. Consistent with the Hollywood studios, Anchor Bay Entertainment has a direct vendor relationship with the major North American retailers (Best Buy, Target, Wal-Mart, etc.). Starz Digital is the global digital and on-demand licensing arm of the company and distributes content on pay-per-view, video-on-demand, subscription video-on-demand, ad-supported video-on-demand, electronic sell-through and other digital formats for the company’s owned content, including Starz Networks’ original series, Weinstein’s titles and content licensed from third parties in the U.S. and internationally to the extent it has rights to such content in international territories. Certain of the titles acquired by Starz Digital air on Starz Networks’ STARZ and ENCORE networks. Starz Digital receives fees for its content from a range of partners ranging from traditional MVPDs to online and mobile distributors. Starz Worldwide Distribution is the global television licensing arm of the company and distributes movies, television series, documentaries, children’s programming and other video content. Starz Worldwide Distribution exploits the company’s owned content, including Starz Networks’ original series, and content for which it has licensed rights on free or pay television in the U.S. and internationally to the extent it has rights to such content in international territories. Starz Worldwide Distribution receives fees for its content primarily from various U.S. and international programming networks. Marketing The majority of Starz Distribution’s marketing is performed by Anchor Bay Entertainment, which markets and advertises each title prior to and during release generally through the use of a combination of television and other media related advertising and discounts, rebates and cooperative advertising with retailers depending on the specific genre, demographic appeal and the overall sales expectations for the title. Twentieth Century Fox Home Entertainment LLC (Fox) Agreement Anchor Bay Entertainment has outsourced all of its home video fulfillment services, including DVD manufacturing and distribution, to Fox. Anchor Bay Entertainment does not outsource its sales or marketing functions and maintains its own marketing team and sales force. The agreement with Fox provides supply chain efficiencies due to the combined volume of titles provided by Anchor Bay Entertainment and Fox (Fox also has fulfillment agreements with Lionsgate and MGM), while not compromising Anchor Bay Entertainment’s control on its products and retail relationships. Weinstein Agreement Anchor Bay Entertainment has a license agreement with Weinstein for the distribution, by Anchor Bay Entertainment and Starz Digital, of certain of Weinstein’s theatrical titles through April 2020. Anchor Bay Entertainment earns a fee for the distribution of such theatrical titles. Competition Starz Distribution competes to sel
starz - a (STRZA:NASDAQ GS)
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