Lions Gate Spins Off Canadian Operations15 Apr, 2005 By: Erik Gruenwedel
In an effort to reduce distribution costs in Canada, Lions Gate Entertainment has spun off all delivery of its home entertainment, motion picture and TV product to Maple Pictures, headed by two former Lions Gate executives.
Brad Pelman, former EVP of sales and distribution, and Laurie May, SVP of business and legal affairs, founded Toronto-based Maple along with two private equity partners. Lions Gate will hold a minority stake in Maple Pictures.
In fiscal 2004, Lions Gate's global distribution costs jumped nearly 139 percent from costs in fiscal 2003.
In related news, CAO Greg Arvesen is leaving the company.