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b. Respondent’s Expert
Richard L. Medress is the founder and president of Cineval,
LLC, an independent consulting practice that specializes in
theatrical and television film library valuations. Mr. Medress
has more than 15 years of experience in the entertainment
industry and has valued a number of major studio and independent
film libraries for owners, lenders, and potential investors.
Before establishing his own consulting business in 1995, Mr.
Medress was a vice president in the Entertainment Industries
Group and in the Corporate Finance Division at Chemical Bank (now
JP Morgan Chase). Mr. Medress is a member candidate of the
American Society of Appraisers.
Mr. Medress submitted an expert report appraising the 65 EBD
film titles, as of December 11, 1996, under two scenarios. Under
scenario 1, Mr. Medress assumed that SMHC owned the domestic home
video distribution rights to all 65 film titles, in perpetuity.
Under scenario 2, Mr. Medress adjusted his valuation for the
possibility that two of the film titles represent the same film,
and that the distribution rights to certain other film titles
expired shortly before or after December 11, 1996. Mr. Medress
relied on an income approach, forecasting income for VHS sales in
the rental market and in the sell-through market (i.e.,
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