Lionsgate Streaming Numbers Increases Despite Overall Dip and Exit from International Markets
In the third financial quarter, Lionsgate highlighted a surge in revenue despite a drop in traditional linear channels. It also decided to withdraw the Lionsgate+ service from the international markets.
Amidst the gains, the company experienced a dip in its cumulative revenue streams, primarily due to the Hollywood writers’ and actors’ strikes last year.
The Studio business reported revenue of $691.6 million, a decrease of 23% from $894.2 million in the prior year quarter.
As part of the strategic move, Lionsgate disclosed its decision to split its companies into two. The plan is to separate its studio operations through a merger with a Special Purpose Acquisition Company (SPAC) spearheaded by Eagle Equity Partners. Lionsgate Studios is expected to be listed on NASDAQ this spring.
In North America, the Starz platform grew 700,000 new subscribers, bringing the total to 13.43 million.
Starz’s domestic US streaming subscriber count climbed to 12.63 million, an increase from the previous year’s 11.56 million. However, traditional linear subscriptions declined, dropping to 7.1 million from 8.02 million, resulting in a combined total of 19.73 million subscribers for Starz in the US.
Lionsgate+ has seen a decrease in subscribers due to strategic market exits in the international regions. Still, Starzplay Arabia, its Middle East joint venture, continues to expand and has achieved 3.19 million subscribers.
Starzplay Arabia, Lionsgate’s venture in the Middle East, continued its growth trajectory, reaching 3.19 million subscribers, indicating robust potential in emerging markets.
The cumulative subscriber base, encompassing linear and Over-The-Top (OTT) services, stood at 25.92 million by the end of the fiscal third quarter, reflecting the dynamic shifts within the industry.
Despite the strategic exit from certain international markets, Lionsgate+ maintained a presence with 1.1 million subscribers in those regions.
Financially, Lionsgate’s media networks reported a revenue of US$417.2 million for the quarter, an increase from the previous year’s US$380.3 million. Profits escalated to US$85.5 million from US$49.5 million, underscoring the company’s profitability in this domain.
However, when considering the wider scope of Lionsgate’s operations, including the studio business, total revenues slightly reduced to US$975.1 million from the billion-dollar mark, with adjusted OIBDA also experiencing a reduction.
Lionsgate CEO Jon Feltheimer expressed, “We’re pleased to report another strong financial quarter in which the performance of our diversified businesses gives us confidence that we can continue to deliver the growth our investors expect.”
He further highlighted, “The investments we made in the quarter to acquire eOne and expand our partnership with 3 Arts, along with our plan to launch Lionsgate Studios as an independent, publicly-traded pure-play content company, will continue to enhance the strength of our businesses moving forward.
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.
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