HOUSTON, Oct. 31, 2006 (PRIMEZONE) -- Further increasing the depth of its management team, TNR Entertainment Corp., the nation's largest owner and operator of self-service DVD rental kiosks in supermarkets and grocery stores under the name The New Release(tm), today announced that Jason K. Spivak has been joined the company as Executive Vice President, a newly-created position. He will join the small group responsible for overall strategy and management of the company and will also have specific responsibility for new technologies, licensing arrangements and studio relationships. The announcement was made today by Jeff Karbowiak, Chief Operating Officer of TNR Entertainment.
"Jason brings broad experience in home entertainment distribution and knowledge of the digital arena to TNR. These are assets and resources that, as the company embarks on an aggressive growth phase, will be of extraordinary value going forward," Karbowiak stated. TNR recently announced a major expansion of its DVD rental kiosks that would effectively triple the Company's installed base and create a national organization.
Spivak has spent the last decade in the home entertainment field, most recently as Vice President, Digital Distribution and Licensing for Sony Pictures Home Entertainment. At Sony, he managed the studio's digital distribution efforts, negotiating licensing agreements and managing relationships with established video retailers, internet video services, and wireless carriers. He also oversaw a groundbreaking program through which the studio's films were distributed for viewing on mobile phones in key European territories.
Prior to Sony, Spivak worked for MGM Home Entertainment for eight years, advancing to Vice President, Digital Distribution, overseeing the company's pay-per-view/video-on-demand group across cable, satellite and internet platforms. He also served as Executive Director of MGM Home Entertainment's Southern Europe region and, as Director of Strategic Planning. In this role, Spivak was instrumental in developing key distribution strategies, including the studio's decision to build domestic home entertainment infrastructure and its launch of the DVD format.
TNR's Chief Executive Officer Richard B. Cohen said, "Adding Jason to our team underscores our goal of leading the DVD rental kiosk industry, not only expanding market share but creating strategic partnerships that will establish TNR's leadership in technology and distribution."
"Having worked with Richard and Jeff, I recognize their vision of TNR as a huge opportunity to capitalize on the rapidly changing DVD market," Spivak said. "I look forward to contributing to an evolving company in an evolving market, strengthening alliances with studios and other licensing partners and exploring the benefits of new technologies."
Spivak joins TNR shortly after the addition of a Chief Marketing Officer, industry veteran Tony Sciolla, earlier this month. The two senior management additions follow the company's recently expanded partnership with The Kroger Co., which has agreed to install additional TNR automated DVD rental kiosks at 1,300 selected locations across the country. The new locations will make TNR a national company, with deployment of the added kiosks under the new Kroger agreement expected to be completed by the first quarter of 2007. TNR also recently completed a capital infusion of $45 million to support this major expansion into nationwide markets, which will more than double TNR's installed base and establish the Company in 25 new geographic markets.
Spivak has an MBA from The Wharton School and Bachelor of Arts degree from the University of California, Los Angeles.
Privately-held TNR, based in Houston, dominates the self-service DVD rental category in the grocery channel, having served nearly one million customers and rented more than five million DVDs since its inception in 2002. Led by TNR Entertainment's new management team of Cohen and Karbowiak, the Company has launched an aggressive expansion of its retail locations this year with the goal of quadrupling its kiosk network by 2007. TNR currently serves over 200,000 customers monthly across more than 600 locations in such grocery chains as A&P, Food Lion, H-E-B, Kroger/King Sooper, Publix, Roundy's/Pick 'N Save, Safeway/Randall's and Spartan/Family Fare.
The New Release automated DVD rental kiosks provide supermarket customers with a more convenient one-stop shopping experience. As the Company's kiosks are introduced in new markets, more consumers will be able to enjoy renting the latest DVD titles for $1-a-day and no late fees - a simple and affordable pricing structure that TNR was the first to successfully market. TNR's kiosks house up to 1,000 units each, representing more than 200 titles, including top new releases. The fully-automated kiosks operate on a wireless communications network and next-generation DVD kiosk operating system.
TNR Entertainment Corp. is backed by an institutional investor group including Celerity Partners, LP of Los Angeles; Chapton Partners, LP, a Houston family partnership; Laminar Direct Capital, L.P., a member of the D.E. Shaw group of companies; and MCG Capital Corporation (Nasdaq:MCGC), a leading specialized financial services company and financial advisor.