Film Distributor Cinedigm Soars on Plan to Develop NFTs

Film distributor Cinedigm says it plans to develop NFTs, given consumers' adoption of and commercial prospects for the tokens.
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Cinedigm  (CIDM) - Get Report shares rose on Thursday after the distributor of films and TV content said it planned to turn some of its inventory into non-fungible tokens.

Cinedigm is excited about the rise in consumer adoption and commercial prospects for #NFT,” the New York company’s chief executive, Chris McGurk, said in a tweet.

“Given our extensive film library, deep connection to fandom and collectibles, and $CIDM’s strong brand partnerships and technology capabilities, I have directed our product team to develop new NFT products to enhance the user experience of our loyal audiences.”

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But Cinedigm isn’t getting too carried away. “To be clear, these new #NFT initiatives are to support our core mission: creating great streaming channel and content experiences for our passionate user base,” McGurk said. 

The company's stock recently traded at $1.88, up 16%. They closed Wednesday trading up 7.3%.

NFTs are unique cryptographic tokens that exist on a blockchain and can't be duplicated. They're all the rage now in everything from art to sports.

A collage by Mike Winkelmann, the digital artist known as Beeple, earlier this month sold for $69 million.

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On Wednesday TheStreet.com founder Jim Cramer explained why he’s bidding for an NFT.

And on Tuesday shares of entertainment marketing company Dolphin Entertainment  (DLPN) - Get Report more than doubled after the company said it had formed a new division for NFTs.

The new division will be dedicated to designing, producing, releasing and promoting NFTs, for Dolphin itself as well as for its film, television, music, gaming and technology clients.

And on Monday, Twitter Chief Executive Jack Dorsey sold the tokenized version of his first tweet as an NFT for over $2.9 million in an auction.  (TWTR) - Get Report

Some analysts express skepticism about the value of NFTs because the digital images being purchased still exist for other people to view.

NFTs Aren't Just a Fad