Starz Invests in Streaming Service Fandor

SAN FRANCISCO: The subscription streaming service Fandor has completed a $7 million round of funding, with Starz as lead strategic investor.

Fandor is home to a library of some 7,000 foreign and independent films. The service operates in the U.S. and Canada. It also offers a 50-percent revenue share to rights holders.

Starz is joined by LionTree Capital Partners as an investor. The Fandor service is led by Larry Aidem as president and CEO and Chris Kelly as chairman.

Starz's CEO, Chris Albrecht, said: "At a moment in time when Starz is aggressively extending its brands—geographically and technologically—we are excited to invest in Fandor. It is a premium content company offering the world's largest selection of independent film titles with a state-of-the-art technology platform. With its top-tier management team led by Chris and Larry, with their reputation and experience, we expect Fandor to be a great investment for Starz.”

Aidem commented: "Chris Kelly and I are extraordinarily pleased and honored to have Starz as Fandor's lead strategic investor. Together with DNS and Aryeh Bourkoff's LionTree—two of the most respected voices in media and entertainment—the prospects for fully realizing our ambitious vision for the business are excellent. On a personal note, I'm delighted to reunite with Chris Albrecht and Aryeh Bourkoff, longtime colleagues and friends with whom I've previously enjoyed tremendous business success."

Founder and CEO of LionTree, Aryeh B. Bourkoff, remarked: “Today, everyone in the TMT industry is evaluating the impact of disruption and globalization, and with their own strengths and vulnerabilities at home and abroad, Chris and Larry's years of experience in both digital and traditional media are a distinct advantage. Fandor is well-positioned for success in the shifting media ecosystem and LionTree Capital is confident in the company's ability to make targeted moves that will create lasting value and impact."

Kelly added, "This strategic validation further readies Fandor for rapid expansion in the exploding market for great visual storytelling."