Adding to Lionsgate’s strong studio fiscal showing, home entertainment revenue surged almost 30% in the third quarter ended Dec. 31, 2019.
Sales of Lionsgate digital, DVD and Blu-ray Disc movies resonated during the winter holidays — notably Keanu Reeves’ lastest antihero franchise installment John Wick: Chapter 3 — Parabellum.
The title finished 2019 as the ninth best-selling combined DVD/Blu-ray Disc release with more than 2 million units sold.
Home entertainment revenue almost reached $191 million, which was up 27.5% from revenue of $150 million during the previous-year period. Through nine months of the fiscal year, revenue tops $509 million, up 10.1% from $462 million through the previous-year period.
Packaged-media revenue from movies increased 10.8% to $75.4 million, from $68 million a year ago. Digital revenue skyrocketed 41.3% to $115.5 million, from $81.7 million.
Home entertainment revenue from television content dropped 21% to $10.6 million, from $13.4 million. Through nine months, revenue is down 17% to $50 million, from $60 million in 2018.
Lionsgate reported the quarter included “significant” digital media revenue, and to a lesser extent, packaged-media revenue from Angel Has Fallen and Rambo: Last Blood, in addition to John Wick. Home entertainment revenue from other titles increased $8.1 million driven by current quarter home entertainment revenue from The Peanut Butter Falcon and Judy.
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CFO Jimmy Barge attributed the strong home entertainment quarter to “over-converting” Lionsgate’s box office action titles at retail. He said consumers are format agnostic when it comes to consuming Rambo, Angel Has Fallen and John Wick at the box office, packaged media and digital.
“What I would say is it’s not only a really strong strategy, it’s one that is fairly unique to us and we’re winning at it, and we’re going to continue to do that,” Barge said on the Feb. 6 fiscal call.