At The Center Of The Cinema Space (CIDM)

Is Cinedigm CIDM a microcap play on digital cinema? That's what Research 2.0 believes, noting that most of the public companies associated with the cinema space – such as RealD RLD, IMAX IMAX, and Dolby DLB – now have market capitalizations above $1B. “Finding smaller scale investments within the digital/3D cinema opportunity has been a challenge,” Research 2.0 writes. The research firm said that it first discovered Cinedigm CIDM about a year and half ago “when we were completing our large overview report, ‘3D Computing from Digital Cinema to GPUs.'” Research 2.0 said that it was intrigued by the company's positioning. CIDM soon entered a CEO transition period, during which “we watched carefully to see who would emerge to take over the solid platform that the company had and prepare to exploit the major shift to digital cinema,” Research 2.0 writes. Over the next several years, Research 2.0 said that the cinema industry will invest billions of dollars to convert to digital technology. “There is a major opportunity around servicing this large and growing asset base with software, services, and content that only a handful of companies are in a position to address,” Research 2.0 adds. “Cinedigm, though small at just over $80m in revenues, sits right at the center of this space.”