DMG Case Studies

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Richard G. Couch
Richard Couch
John L. Kirsten
John L. Kirsten
Deborah S. Kanner
Deborah Kanner
Michael J. Cronin
Michael J. Cronin
Matthew Couch
Matthew Couch
Sanford A. Knapp
Sanford A. Knapp
Gerard Keena
Gerard Keena
Luke Helm
Luke Helm

DMG Case Study — Moviebeam, Inc.

DMG Staff
 
Industry: Media; Technology
Business Description: A video on-demand service provider.
Business Problem:

After its spin-off from the Walt Disney Company, the burn rate of the business was too high for the funding remaining for operational efforts. Consumer capture rate and corresponding movie rentals were far below cash breakeven.

Diablo Management Group (DMG) was retained by Moviebeam, Inc in April 2006. The business had raised approximately $50 million in venture funding, but had burned through $40 million within nine months of its spin-off from the Walt Disney Company.

Richard Couch was retained as advisor to the business, the Board of Directors and the President. He assumed additional roles as Chairman of the Finance Committee and later as Chairman and CEO.

DMG Focus:
  1. Managing burn rate and reducing operating costs
  2. Build sale proposition for the company
  3. Settle with creditors
Results:
  • Changed the burn rate; made the business more operationally efficient
  • Launched campaign to acquire more assets in place
  • Business was sold to Movie Gallery / Hollywood Video
  • Settlements were reached with all creditors
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