Business case
Our client, a major French film distributor, managed and distributed a catalogue of more than one thousand films. They needed a fair market value of the catalogue for financing purposes (bank covenant definition).
A full understanding of the media industry is critical to perform catalogue valuations. As part of this engagement, we had the opportunity to review strategic issues currently shaping the market, like expanding business models (SVoD, AVoD, etc.) and changing distribution schemes in the film industry.
We estimated the fair market value of the client’s catalogue film by film, using the Discounted Cash Flows method based on estimated cyclical revenues coming from each distribution channel (theatrical release, TV, SVoD, VoD, etc.).