More evidence Canadian players are being impacted as digital distribution upends the movie industry: Toronto-based Cinram International Income Fund has retained an investment banker to consider strategic alternatives, a move that often indicates the possible sale of a company.

Cinram, which makes pre-recorded DVDs, audio CDs for film studios, music labels and software companies, continues to struggle as the sale of packaged video game and DVDs drops while media content shifts to the internet and digital platforms like Netflix and iTunes.

News of investment banker Moelis & Co. coming on board to help Cinram review strategic alternatives comes a day after Entertainment One in its latest trading update to the London Stock Exchange said strong business from filmed  entertainment had helped offset lower sales in distribution of home entertainment product.

The Toronto-based producer in mid-September signaled it had retained JPMorgan and Credit Suisse to also find a possible path to a sale or other strategic alternatives after buyer interest emerged.

Cinram said there was no assurance that a “specific action or transaction” will follow its own review of strategic alternatives.

Cinram also said it will not talk publicly about a possible sales process “unless and until the board of trustees approves a transaction.”

Photo: Toasty Ken / Flickr Creative Commons