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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.

About the Author: Erik Gruenwedel

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