Alliance Entertainment Announces Exclusive Home Entertainment Partnership with Global Film and TV Studio FIFTH SEASON

Rhea-AI Summary

Alliance Entertainment's DS division (NASDAQ: AENT) has partnered with FIFTH SEASON for exclusive home entertainment distribution in the US and Canada. The agreement includes overseeing sales and packaging localization for critically acclaimed TV series. Initial releases include Nine Perfect Strangers, Truth Be Told, and the Emmy® Award-Winning Severance Season 1, launching December 17, 2024. This partnership strengthens Alliance Entertainment's position in physical media distribution, with exclusive partnerships representing 23% of their $1.1 billion revenue in fiscal year 2024.

Positive

• Secured exclusive distribution rights for FIFTH SEASON content in US and Canada
• Partnership includes high-profile TV series with acclaimed actors
• Exclusive partnerships account for 23% of $1.1 billion revenue in FY2024
• Strategic timing of Severance release before Season 2 launch

Negative

• None.

Insights

Financial Analyst

This exclusive partnership with FIFTH SEASON represents a significant strategic win for Alliance Entertainment. The deal targets high-value TV content with established audience appeal, including Emmy-winning shows and productions featuring A-list talent. Most notably, exclusive partnerships generated $253 million (23%) of AENT's $1.1 billion revenue in FY2024, making this a material addition to their business model.

The timing is particularly strategic, with the Severance release scheduled for the important holiday shopping season and ahead of its second season launch. The partnership also diversifies AENT's content portfolio with premium streaming content being adapted for physical media, addressing the growing collector's market. Given FIFTH SEASON's strong content pipeline and AENT's established distribution infrastructure, this partnership could materially impact future revenue growth.

PLANTATION, Fla., Nov. 21, 2024 (GLOBE NEWSWIRE) -- DS, a division of Alliance Entertainment (NASDAQ: AENT) has announced a partnership with global film & TV studio FIFTH SEASON for the home entertainment releases in the US and Canada.

“We are excited to launch our new relationship with FIFTH SEASON,” said Ilia Beizerman, SVP of Operations and Strategic Partnerships. “This partnership expands our reach within the critically acclaimed TV content space to further connect with fans and engaged collectors.”

Under the agreement, DS will oversee sales and packaging localization for some of FIFTH SEASON’s most critically acclaimed TV series in North America, including Q1 2025 releases for Nine Perfect Strangers, with its top-tier ensemble cast, including Nicole Kidman, Melissa McCarthy, Michael Shannon, Regina Hall and Luke Evans, which aired on Hulu in the US and Amazon Prime Video internationally; and Truth Be Told, starring Oscar® Winner Octavia Spencer and Mekhi Phifer, which aired on Apple+ TV.

Jennifer Ebell, EVP, EMEA Sales and Acquisitions, FIFTH SEASON, said: "As we continue to evolve and remain nimble with our strategies, we’ve been looking to find the best partner to manage our home entertainment servicing across North America – and have found exactly that with Alliance Entertainment. They have an impressive track record in bringing best-in-television releases to audiences in an accessible way, and we know they are going to help us deliver even greater value for our clients.”

DS’s first release from FIFTH SEASON’s productions will be the Emmy® Award-Winning series Severance Season 1, starring Patricia Arquette and Adam Scott, and directed by Aoife McArdle and Ben Stiller. The Blu-ray and DVD editions will hit retail shelves and e-commerce sites on December 17, 2024, in time for the holiday rush and before the launch of season 2 next year.

This partnership further solidifies Alliance Entertainment's position as a dominant player in physical media distribution and is aligned with the company’s ongoing strategy to increase its portfolio of exclusive partnerships, which accounted for approximately 23% of the company’s $1.1 billion revenue in fiscal year 2024.

About FIFTH SEASON

FIFTH SEASON is a world-class creative powerhouse specializing in the development, production, financing, and distribution of premium films, series, and documentaries. As a major global independent studio, FIFTH SEASON has a full-service worldwide distribution infrastructure and a network of production hubs and partnerships in production businesses located across the US, Canada, UK, Europe, Australia, and Asia. FIFTH SEASON’s talent-centric approach has helped fuel a new wave of original storytelling for streamers, theatrical distributors, and networks around the world.

The studio’s original films include hit comedies 80 for Brady and the Book Club franchise, Michael Bay’s action-heist Ambulance, John Carney’s critical darling Flora & Son, and Maggie Gyllenhaal’s multiple Academy Award® nominee The Lost Daughter. The television division has developed and produced such star-driven series as 14 Emmy® nominee Severance, Tokyo Vice, Scenes from a Marriage, Life & Beth, Nine Perfect Strangers. FIFTH SEASON’s documentary slate includes Emmy nominees McCartney 3,2,1 and Being Mary Tyler Moore, as well as the Matt Damon- and Ben Affleck-produced feature Kiss the Future. In addition to the titles that we produce, the distribution arm of FIFTH SEASON handles a premium third-party library including series such as Killing Eve, The Morning Show, Pachinko, The Night Manager and Normal People.

FIFTH SEASON is based in Los Angeles, New York and London with offices around the world. Shareholders include CJ ENM, Toho and Endeavor.

About DS 

DS, a division of Alliance Entertainment, is the largest aggregator and downstream distributor of independent and major studio film labels in North America. We are a supplier to all major and independent retailers, in addition to handling digital sales, delivery, and SVOD/linear licensing for over 60 content providers. Our partners include Disney, Lionsgate, DECAL, Criterion, Mill Creek Entertainment, AMC Networks/RLJ Entertainment, Vertical, and Cineverse.

DS offers comprehensive in-house Post-Production Services, Consumer Marketing, Design Services and Turnkey Operations Management—everything it takes to set our partners up for success. For more information, visit www.ds.aent.com.  

About Alliance Entertainment

Alliance Entertainment (NASDAQ: AENT) is a premier distributor of music, movies, toys, collectibles, and consumer electronics. We offer over 325,000 unique in-stock SKU’s, including over 57,300 exclusive compact discs, vinyl LP records, DVDs, Blu-rays, and video games. Complementing our vast media catalog, we also stock a full array of related accessories, toys, and collectibles. With more than thirty-five years of distribution experience, Alliance Entertainment serves customers of every size, providing a robust suite of services to resellers and retailers worldwide. Our efficient processing and essential seller tools noticeably reduce the costs associated with administrating multiple vendor relationships, while helping omni-channel retailers expand their product selection and fulfillment goals. For more information, visit www.aent.com.

Forward Looking Statements

Certain statements included in this Press Release that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding estimates and forecasts of other financial and performance metrics and projections of market opportunity. These statements are based on various assumptions, whether identified in this Press Release, and on the current expectations of Alliance’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as and must not be relied on by an investor as, a guarantee, an assurance, a prediction, or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Alliance. These forward-looking statements are subject to a number of risks and uncertainties, including risks relating to the anticipated growth rates and market opportunities; changes in applicable laws or regulations; the ability of Alliance to execute its business model, including market acceptance of its systems and related services; Alliance’s reliance on a concentration of suppliers for its products and services; increases in Alliance’s costs, disruption of supply, or shortage of products and materials; Alliance’s dependence on a concentration of customers, and failure to add new customers or expand sales to Alliance’s existing customers; increased Alliance inventory and risk of obsolescence; Alliance’s significant amount of indebtedness; our ability to refinance our existing indebtedness; our ability to continue as a going concern absent access to sources of liquidity; risks and failure by Alliance to meet the covenant requirements of its revolving credit facility, including a fixed charge coverage ratio; risks that a breach of the revolving credit facility, including Alliance’s recent breach of the covenant requirements, could result in the lender declaring a default and that the full outstanding amount under the revolving credit facility could be immediately due in full, which would have severe adverse consequences for the Company; known or future litigation and regulatory enforcement risks, including the diversion of time and attention and the additional costs and demands on Alliance’s resources; Alliance’s business being adversely affected by increased inflation, higher interest rates and other adverse economic, business, and/or competitive factors; geopolitical risk and changes in applicable laws or regulations; risk that the COVID-19 pandemic, and local, state, and federal responses to addressing the pandemic may have an adverse effect on our business operations, as well as our financial condition and results of operations; substantial regulations, which are evolving, and unfavorable changes or failure by Alliance to comply with these regulations; product liability claims, which could harm Alliance’s financial condition and liquidity if Alliance is not able to successfully defend or insure against such claims; availability of additional capital to support business growth; and the inability of Alliance to develop and maintain effective internal controls.

For investor inquiries, please contact:

Dave Gentry
RedChip Companies, Inc.
1-407-644-4256
AENT@redchip.com

FAQ

When will Alliance Entertainment (AENT) release Severance Season 1 on Blu-ray and DVD?

Alliance Entertainment will release Severance Season 1 on Blu-ray and DVD on December 17, 2024.

What percentage of Alliance Entertainment's (AENT) revenue comes from exclusive partnerships?

Exclusive partnerships accounted for approximately 23% of Alliance Entertainment's $1.1 billion revenue in fiscal year 2024.

Which TV series will Alliance Entertainment (AENT) distribute under the FIFTH SEASON partnership?

Alliance Entertainment will distribute Nine Perfect Strangers, Truth Be Told, and Severance Season 1 in Q1 2025, with Severance releasing in December 2024.