August 5, 2022
Retail sales of movies and TV shows continue to have an outsized impact on Lionsgate’s studio business fiscal bottom line.
The Santa Monica, Calif.-based media company reported first-quarter fiscal year 2023 (ended June 30, 2022) home entertainment revenue of $186.5 million, which up nearly 8% from revenue of $173 million in the previous-year period.
Home entertainment revenue increased due to higher digital media revenue of $20 million, offset by lower packaged media revenue of $11.9 million driven by Lionsgate Original Releases. The increase in digital media revenue was due to an increase of $13.6 million from Lionsgate Original Releases due to higher revenue from direct-to-platform (i.e., SVOD) releases, and an increase of $6.4 million from Other Film due to higher revenue from our acquired library titles.
Sales of Lionsgate original movies, TV productions and licensed content represented 67% of the quarter’s studio business revenue ($278.8 million) — up from 59% in the previous-year period’s total of $291.2 million. Indeed, revenue from Lionsgate’s 17,000-title film and television library was $749 million for the trailing 12 months — and has exceeded the $700 million amount for several years.
Digital distribution of movies via transactional sales, VOD and premium VOD topped $154.3 million, with packaged media (DVD, Blu-ray Disc and 4K UHD Blu-ray) generating $22.1 million. That compared with packaged media revenue of $34 million and $112.2 million in digital revenue in Q1 FY 22.
Lionsgate’s top-selling packaged media release through six months of the year remains American Underdog: The Kurt Warner Story, while new release, The Unbearable Weight of Massive Talent, starring Nicolas Cage and Pedro Pascal, was released in retail channels on June 7.
Lionsgate saw $31.3 million in revenue from sales of digital TV productions, and another $900,000 in packaged media. In the previous-year quarter, TV productions added $24.5 million in digital transactions, with packaged media adding another $2.3 million.
Home entertainment revenue for TV productions increased $5.4 million, or 20.1% due to digital media revenue from “Heels Season 1” and “The First Lady Season 1” in the current quarter, which compared to digital media revenue in the prior year’s quarter for “Weeds Seasons 1 to 8” and “Welcome to Flatch Season 1”.
Theatrically, Lionsgate saw just $10.9 million in box office revenue in the quarter, which was down from $28.4 million in the previous-year period.