Lionsgate Ups Q1 Home Entertainment Revenue 16%4 Aug, 2016 By: Erik Gruenwedel
Lionsgate Aug. 4 reported home entertainment revenue increased 16% in the first quarter (ended June 30) to $150.3 million, compared with $129.5 million during the previous-year period. The studio attributed the increase in part to the release of four theatrical titles in the quarter compared to two theatrical releases in the prior-year period.
Titles included The Witch, The Choice, Dirty Grandpa and The Divergent Series: Allegiant. In the previous period, Lionsgate released Mortdecai and Last Knights.
On the company's fiscal call, Lionsgate executives said they’re considering creating a TV series (from 10 to 13 episodes) around the "Divergent" franchise — a move driven in part by the underperformance of Allegiant at the box office. The Allegiant box office cast a doubt on the planned fourth "Divergent" movie meant to conclude the franchise.
“The performance of the last segment of the theatrical didn’t really create a situation where we could commit the production resources necessary to really make the production we needed,” said Kevin Beggs, chairman of the TV group.
On the heels of Lionsgate’s $4.4 billion acquisition of Starz LLC, CEO Jon Feltheimer was asked if the company’s fledging subscription-streaming services combine efforts.
Starz in April launched an $8.99 over-the-top service, which is marketed and backend-supported by Amazon. Lionsgate has a joint $5.99 SVOD service (Tribeca Shortlist) with the Tribeca Film Festival, in addition to Comic-Con HQ, a joint service with Comic-Con International (which produces the San Diego Comic-Con every July).
“There’s pretty much no doubt that we will combine those efforts,” Feltheimer said, adding that he wouldn’t be surprised if other “very significant” third-parties included their product in the companies’ SVOD services.
“We think that’s one of the fantastic opportunities that we have in terms of monetization of product,” he said.