Lionsgate Home Entertainment Not Stuck in the ‘Mud’8 Nov, 2013 By: Erik Gruenwedel
Digital and packaged media continue to underscore home entertainment business in the absence of major theatrical releases
Lionsgate Nov. 8 said second-quarter (ended Sept. 30) home entertainment revenue from its managed brands and third-party content, including direct-to-DVD and specialty theatrical titles, increased 79% to $92.9 million compared to the previous-year period.
Principal drivers included indie hit, Mud, starring Matthew McConaughey and Reese Witherspoon, and “Duck Dynasty: Season 3,” currently the biggest-selling TV show on DVD.
Mud, which did $21.5 million at the box office, along with current sailboat survival thriller, All is Lost, starring Robert Redford, Lionsgate plans to market both films for end of the year theatrical honors, including the Oscars.
Overall home entertainment revenue from Lionsgate motion pictures and television content declined 25% to $210 million from $277.8 million for the prior year quarter. Notably, the drop was due to comparisons with the prior-year’s strong home entertainment release of The Hunger Games.
Total second-quarter Lionsgate revenue topped $498 million, down 29% from revenue of $707 million in the prior year quarter, reflecting the difficult year-over-year comparisons as well as timing of television deliveries.
The next three films in the Hunger Games franchise, including The Hunger Games: Catching Fire, The Hunger Games: Mockingjay I and The Hunger Games: Mockingjay II will be released worldwide on Nov. 22, Nov. 21, and Nov. 20, respectively.
Meanwhile, net income fell significantly to $505,000 from $75.5 million last year, due in part to a $36.2 million charge on early extinguishment of debt, refinancing of debt, and previously-mentioned difficult comps.
Separately, Lionsgate said it signed a multiyear licensing agreement for catalog Lionsgate and Summit Entertainment films and selected new releases for transactional video-on-demand and subscription video on demand with China’s Jiaflix Enterprises and its M1905.com streaming website venture partner.
"This agreement reflects our continuing commitment to monetizing our library and licensing our motion picture and television content to the large and growing Chinese marketplace,” said Jim Packer, president of worldwide television & digital distribution.