August 5, 2021
Despite a streaming focus, Lionsgate remains reliant on catalog home entertainment for the motion picture segment’s bottom line.
Home entertainment revenue decreased due to combined lower digital-media and packaged-media revenue as a result of fewer retail releases from the fiscal-2021 theatrical slate due to the global pandemic. Digital media revenue in the prior year’s quarter included significant revenue from the fiscal-2020 theatrical slate, which included I Still Believe and Knives Out.
With scant new releases, Lionsgate reported first-quarter home entertainment revenue of $173 million, which was down about 19% from revenue of $213.8 million in the previous-year period.
Sales of DVD and Blu-ray Disc movies dropped 14% to $34 million from $39.2 million in the previous-year period. Digital sales, which include transactional VOD and premium VOD, fell 12% to $112.2 million from $127.7 million.
Digital sales of television product plummeted almost 47% to $24.5 million, compared with $45.9 million a year earlier. Physical sales topped $2.3 million, compared to just $700,000 during the previous-year period.
As home entertainment took its fiscal licks, the segment continues to dominate theatrical. Box office revenue increased to $28.4 million, up from just $3 million a year ago, but the tally represented just 18% of home entertainment movie revenue.