November 5, 2020
With scant theatrical distribution due to the pandemic, Lionsgate leaned on home entertainment library and premium VOD to sustain fiscal operations through the fiscal second quarter (ended Sept. 30).
Total home entertainment revenue from disc and digital topped $150 million, which was down 16% from revenue of $178.5 million in the previous-year period. Through six months of the fiscal year, home entertainment revenue was flat at $317.4 million.
Packaged media, third-party licensing and transactional digital distribution of movies and television library content revenue topped $166.7 million, as library revenue for the trailing 12 months grew to a record $738.5 million, 33% higher than the previous trailing 12-month period. Motion picture segment profit grew 63% to $83 million, from $51 million, on strong demand for library content and lower distribution and marketing costs due to the lack of theatrical commitments.
Top PVOD releases in 2020 include period horror drama Antebellum and faith-based I Still Believe.
Television production segment revenue declined to $197.2 million, compared with $274 million in the prior year quarter, and segment profit was $9.9 million, compared with $12.6 million in the prior year quarter, primarily due to the timing of production schedules and episodic deliveries.
Meanwhile, the Starz subsidiary reported its best domestic OTT subscriber growth quarter ever, as OTT subscribers in the U.S. increased to 9.2 million, up from 7.4 million in the prior sequential quarter. Lionsgate’s global OTT subscribers (including StarzPlay Arabia, a non-consolidated equity method investee, and Pantaya) increased by 2.3 million in the quarter to 13.7 million.
“Together with the resumption of film and television production and another great revenue performance from our library, it added up to a quarter that reflected strong financial results, acceleration of our key non-financial metrics, and affirmation of the business plan we created four years ago with the acquisition of Starz and our pivot to the streaming world,” CEO Jon Feltheimer said in a statement.