Lionsgate Q3 Home Entertainment Revenue Falls, Starz CEO Chris Albrecht Departs

Lionsgate Feb. 7 reported third-quarter (ended Dec. 31, 2018) home entertainment revenue from movies of $149.7 million, down 31% from revenue of $189 million during the previous-year period. Through nine months of the fiscal year, movie revenue fell 22% to $462 million compared to $588.6 million last year.

Sales of DVD and Blu-ray Disc movies fell 35% to $68 million from $104 million, while digital sales dipped about 4% to $81.7 million from $85 million.

Through nine months, packaged media movie revenue is down 33% to $209 million from $311.5 million last year. Digital sales are down less 9% at $253 million from $277.1 million.

Sales of TV shows on disc reached $2.5 million, compared to $4.1 million during the previous-year period. Digital sales reached $10.9 million, down 58% from $25.7 million last year.

Motion Picture segment revenue reached $362.6 million. Segment profit decreased 19.9% to $43.5 million, reflecting underperformance of certain titles in fiscal 2019 compared to the outperformance of Wonder in the prior year quarter.

Media Networks segment revenue increased to $366.8 million due to strong OTT (i.e. Starz) subscriber growth. Segment profit increased 9.6% to $134.1 million from the prior-year quarter. Overall domestic subscribers were sequentially consistent in the quarter at 25.1 million and up 1.1 million year over year.

Starz had a strong revenue and subscriber quarter, ending the quarter with 25.1 million overall domestic subscribers, which was consistent sequentially and up 1.1 million subscribers from the prior year quarter.  Starz achieved strong over-the-top (OTT) subscriber growth for the sequential quarter as well as year-over-year.

“We’re pleased to report a strong quarter with significant free cash flow and continued revenue and subscriber growth at Starz,” CEO Jon Feltheimer said in a statement.  “As we refill our feature film and television pipelines at a robust pace and take our integration of Lionsgate and Starz to the next level, all signs are pointing to strong growth in the year ahead.”

Feltheimer gave a shoutout to departing Starz CEO Chris Albrecht, who helped transition the pay-TV and OTT platform following Lionsgate’s $4.4 billion acquisition in December 2016.

“[Chris transformed] Starz from a legacy media network to a forward-looking streaming platform,” Feltheimer said on the fiscal call.  “He worked closely with me to position Starz for the next phase of its growth and he leaves behind a strong programming slate and a talented leadership team. I’m confident we will maintain our momentum without missing a beat.”

Lionsgate Posts 10% Drop in Q2 Home Entertainment Revenue

Lionsgate Nov. 8 reported second-quarter (ended Sept. 30) home entertainment revenue of $149.6 million from the sales of DVD/Blu-ray Disc and electronic sellthrough of movies, which is down 10% from revenue of $165.7 million during the previous-year period.

Home entertainment sales of television content topped $28.6 million, down about 5% from $29.9% last year.

Through the first six months, home entertainment sales of movies are down 22% to $312.3 million from $399.7 million last year. TV revenue declined 36% to $46.7 million from $72.5 million.

Top-selling titles include Wonder, which as sold $23.3 million in 1.5 million combined DVD/Blu-ray Disc units, and I Can Only Imagine, selling $20.3 million via 1.2 million discs, according to The-Numbers.com.

Motion picture segment quarterly revenue decreased 2% to $379 million. Segment profit increased 45% to $12.9 million, reflecting strong ancillary performance of previously-released theatrical titles.

TV production revenue fell 28% to $152.1 million from $211.2 million last year.

For the fiscal year, motion picture revenue dropped nearly 14% to $744.3 million from $858 million. TV revenue fell 8% to $431.5 million from $472.4 million.

 

‘Wonder’ Debuts at No. 1 on Home Video Charts

Lionsgate topped the national home video sales charts the week ended Feb. 17 with Wonder, the acclaimed drama about a child with Treacher Collins syndrome — a genetic disorder characterized by deformities of the ears, eyes, cheekbones and chin — trying to fit in.

The film debuted at No. 1 on the NPD VideoScan First Alert sales chart, which tracks combined DVD and Blu-ray Disc unit sales, and the dedicated Blu-ray Disc sales chart. Nominated for an Academy Award for Best Makeup and Hairstyling, the film earned more than $131 million in U.S. theaters (and $292 million worldwide) on a budget of $20 million.

Universal Pictures’ A Bad Moms Christmas slipped to No. 2 on both charts its second week in stores, after having bowed at No. 1 the prior week.

The Sony Pictures’ firefighter drama Only the Brave slipped to No. 3 on the overall chart and No. 6 on the Blu-ray Disc sales chart after debuting in second and third place, respectively, the previous week.

Rounding out the top five on the combined chart were Lionsgate’s Boo 2! A Madea Halloween at No. 4 and Warner’s horror hit It at No. 5, both unchanged from the prior week.

On the Blu-ray Disc sales chart, Warner’s animated Batman: Gotham by Gaslight finished the week at No. 3, down a notch from its debut the week before.

It and Warner’s Blade Runner 2049 finished the week at No. 4 and No. 5, switching places from the prior week.

Wonder generated 46% of its total unit sales from Blu-ray Disc.

The only other new release to make the top 20 on both charts was Sony Pictures’ Roman J. Israel, Esq., a legal drama starring  Denzel Washington as an autistic savant lawyer who loses his sheltered employment when his long-time boss suddenly dies. The film, with a box office take of just $12 million, debuted at No. 10 on the overall disc sales chart and No. 12 on the Blu-ray Disc sales chart.

Magnolia Pictures’ Blade of the Immortal debuted at No. 16 on the Blu-ray Disc sales chart.

Wonder also debuted at No. 1 on the Media Play News rental chart for the week ended Feb. 18, bumping A Bad Moms Christmas to No. 2.

Roman J. Israel, Esq. debuted at No. 3.

Rounding out the top five on the rental chart were Only the Brave at No. 4 and Warner’s Geostorm at No. 5.

Top 20 Sellers for Week Ended 02-17-18
Top 20 Rentals for Week Ended 02-18-18
Top 20 Selling Blu-ray Discs for Week Ended 02-17-18
Top 20 Blu-ray Market Share for Week Ended 02-17-18
Sales Report for Week Ended 02-17-18