Cineplex’s digital rentals business sold for ‘nominal proceeds’ [Video]

Cineplex Inc. says it has sold its digital rentals business to a subsidiary of CosmoBlue Media for “nominal proceeds.”

The Toronto-based theatre operator has not revealed the terms of the deal that quietly closed last month and handed the Swiss media company’s Canadian arm ownership of the Cineplex Store.

Cineplex spokesperson Michelle Saba says the company saw CosmoBlue as “a strategic buyer” for the store, which launched in 2008 as a way to sell DVDs and Blu-ray discs online.

Saba says now was a good time to sell the business, which has evolved to focus on streaming, because such digital offerings have grown.

The sale will not scuttle service. Cineplex Store customers will continue to be able to access their libraries and rent movies through the platform.

The Cineplex Store name will remain for an interim period before it fully transitions over to CosmoBlue later this year.

By Tara Deschamps

INsauga’s Editorial Standards and Policies