Lionsgate+ Gains 200,000 New Subscribers, Revenue Increases by 5% to $416.5 Million in Q2,2023
In its Q2 2023 financial results, Lionsgate saw an upsurge in streaming services. Specifically, the company’s Lionsgate+ streaming platform gained 200,000 new subscribers in the United States, contributing to a total global increase of 480,000 OTT subscribers on a proforma basis.
This development is timely as Lionsgate separates its Starz entity, encompassing its pay TV and streaming operations. This move follows the studio’s acquisition of Starz in 2016 for $4.4 billion.
The surge in streaming during the second quarter positively impacted Lionsgate’s media network revenue, which rose by 5% to $416.5 million. This increase occurred despite a decrease in revenue from domestic linear channels.
The profit from media networks also saw a significant rise, reaching $66.6 million from $21 million in the same quarter of the previous year. This boost was attributed mainly to the improved performance of the Lionsgate+ segment, which benefited from faster revenue recognition tied to minimum guarantees from a bundling partner in Latin America.
Previously, Lionsgate had announced plans to withdraw Lionsgate+ from the UK and Latin American markets, aiming to exit the UK market by next March to concentrate on its domestic streaming business.
The company incurred $876 million in its second quarter related to its Media Networks. This included a $212 million restructuring charge due to its withdrawal from the UK and Latin American markets, the write-off of non-core series in the domestic market, and a $664 million non-cash charge for goodwill and trade name impairment.
Despite decreased TV production revenue due to Hollywood strikes, Lionsgate reported revenue increases in its studios and motion picture segments. The company achieved quarterly revenues of $1 billion but faced an operating loss of $817.5 million.
Lionsgate’s CEO Jon Feltheimer commented, “We had a strong financial quarter with another robust library performance and segment profit growth across our film, television, and Starz businesses.” He reaffirmed the company’s guidance for the entire year, acknowledging the negative impact of the strike.
Feltheimer also mentioned the impending closure of the eOne acquisition, which is expected to strengthen Lionsgate’s studio business independently. He noted that the reorganization and restructuring at Starz are part of efforts to prepare the service for success as a profitable, standalone company.
Ragul Thangavel
With over nine years of diverse professional experience, Ragul has made significant contributions across various domains, including Media Operations, OTT Technologies, Video Production, Ecommerce, and Social Media.
Holding an Engineering degree, Ragul's career took an unconventional turn when he discovered his passion for writing, leading him to begin his journey as a content writer.
His career has been exclusively dedicated to the growth and development of startups, where he has played a pivotal role. His unique blend of technical knowledge and creative prowess has enabled him to drive innovation and success in every venture he has been a part of.
