Shares in TV and film business Entertainment One (LON:ETO) shot up this morning after the firm announced a five-year agreement with LOVEFiLM that it believes will transform its digital revenues.
Entertainment One added that as a result of the agreement its trading performance for the year to 31 March 2012 is expected to be significantly ahead of market expectations.
By 9:03am the company’s shares were up more than eight percent at 191 pence each.
Entertainment One said the deal places it “at the forefront of digital rights monetisation in the UK market” and provides LOVEFiLM subscribers with exclusive access to the company’s UK titles via LOVEFiLM’s online service. Films available through the service include ‘The Twilight Saga: Eclipse’ and ‘RED’ as well as forthcoming releases such as Paul W. S. Anderson’s ‘The Three Muskateers in 3D’, ‘The Twilight Saga: Breaking Dawn Part 1’ and George Clooney’s ‘The Ides of March’.
“This is an excellent deal for eOne,” said Darren Throop, Entertainment One’s chief executive officer. “We expect it to increase our digital revenues significantly and we are delighted to be partnering with Europe's largest digital subscription service. It also highlights the attractiveness of the eOne library and we remain extremely excited about the potential for similar opportunities in our other key markets.”
Entertainment one specialises in the acquisition, production and distribution of film and television content. Its current rights library includes more than 20,000 film and television titles, 2,500 hours of television programming and 45,000 music tracks.