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Weak Release Slate Drops Anchor Bay Q4 Results

25 Feb, 2015 By: Erik Gruenwedel

Starz Distribution Feb. 25 reported that subsidiary Anchor Bay Entertainment generated fourth-quarter (ended Dec. 31, 2014) home video revenue of $39.5 million, which was down 28% ($15.3 million) from revenue of $54.8 million during the previous-year period.

Starz Distribution includes Anchor Bay Entertainment, Starz Digital and Starz Worldwide Distribution.

For the year, home video revenue declined 33% ($100 million) to $196.4 million. Home video cost of sales, which includes a distribution agreement with The Weinstein Co., declined 16% ($11.1 million) to $60 million.

The drop was primarily due to a lack of significant Weinstein releases in 2014 compared with 2013, when the company released at retail Oscar-winning movies Django Unchained (Best Supporting Actor Christoph Waltz and Best Original Screenplay by Quentin Tarantino) and Silver Linings Playbook — with Jennifer Lawrence winning a statue for Best Actress.

Indeed, Django Unchained sold $57.7 million in combined DVD and Blu-ray Disc units, while Silver Linings Playbook topped $26.4 million in disc sales, according to The-Numbers.com.

Starz also said that lower home video revenue from AMC Networks’ “The Walking Dead” contributed to the revenue miss.

Starz Distribution saw 2014 operating income before depreciation and amortization plunge 69% to $7.5 million from $24 million in 2013. Total revenue dropped 28% ($128 million) to $321.5 million.

Meanwhile, Anchor Bay extended through 2020 its distribution agreement with The Weinstein Co., while Starz’s distribution deal with Walt Disney Studios expires in December. Netflix assumes exclusive rights to Disney movies in 2017.

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