The Seed Advantage SEIS Fund 1 has announced that it has successfully funded Video Now (VN), a new TV and film publishing and distribution business. VN will use the funds to license entertainment rights on an exclusive basis from owners of film and television programmes, making them available through download and on DVD and Blu-ray disc. The company will especially target TV series for acquisition that can be packaged into popular box sets.

VN will also pursue opportunities to release specialist films in cinemas, including feature documentaries, re-releases and foreign language films. "There is a steadily growing cinema audience for such films and the publicity that accrues to a theatrically released movie can hugely benefit its sales potential on video," says the company.

On-line retailers such as Amazon continue to aggressively promote video while industry estimates indicate that as many as 6,000 other non-traditional shops (such as motorway service stations, garden centres and corner shops) are also selling DVDs.

Figures released by the British Video Association show that the value of the video entertainment market increased by 8.2% (to £993 million) in the first half of 2013, relative to the same period last year.

The investment from SEIS has given Richard Jones, the MD of Video Now, with over 25 years experience in the industry, the kick start he needed. Jones has already identified the 'back catalogue' movie titles that are available from major film studios as well as the classic TV series that will form the basis of the VN release schedule. He has already secured the video entertainment rights to over 500 titles. And is in discussion with a number of film distributors about securing more UK theatrical rights on key titles.

The introduction of the Seed Enterprise Investment Scheme in 2012 was part of the UK Government?s initiative to support small and start-up businesses. From an investors perspective, SEIS is an attractive proposition for many reasons, not least for the generous tax relief of up to 50%, but also as it provides investors with the chance to back British businesses and create new job opportunities.

The Seed Advantage SEIS Fund 1 has opened the doors to many start-up businesses from a range of different sectors. It includes Seed Mentors Limited that provides companies with a comprehensive mentoring programme using experienced business personnel from a wide range of backgrounds.

Story filed 17.11.13