We also announced in August a new lease arrangement that allows us to launch up to three pay-per-view channels in Europe. We are currently working to secure distribution agreements with platforms throughout Europe and we have several significant deals in the pipeline.
Due to the strong performance of our VOD content, most our current VOD affiliates have shown strong interest in our pay-per-view channels. These new pay-per-view channel launches require additional investment and we believe our distribution of new channels will generate an exponential return on those investments over the long term.
We are encouraged with the slight increase in our sequential transactional TV segment revenue as compared to the results from the first quarter of fiscal 2011, and believe this could be a further indication of our success in stabilizing the domestic revenue. We believe there will continue to be opportunities to improve the domestic VOD and pay-per-view revenue as we grow our market share with existing customers.
In addition, we continued to expand our testing of pricing and packaging strategies aimed to improve the value of our content to consumers.Regarding the film production segment, although we have made good progress with our initiatives, the film production segment continues to be under pressure as a result of the continuing challenges within the film markets. These challenges were evidenced by the noncash billing, cost impairment charges, and increases in our recoupable costs of producer advance reserves during the quarter. We do continue to believe, however, there are opportunities to capitalize on this segment’s assets and relationships as we develop and refine our long-term strategy to this division. Looking ahead, the company is gaining traction with many of its strategic initiatives as well as making investments that we believe will generate long-term shareholder value. Now I’ll turn the call over to Grant, to discuss the financial results and related information in greater detail.