LIONSGATE Company

Lionsgate is a leading next generation content platform whose films, television series and digital product touch consumers all over the world.  The Company’s portfolio of businesses encompasses a film slate that generates nearly $2 billion annually at the global box office, one of the largest independent television businesses in the world, a 16,000-title film and television library, a premium pay television network reaching nearly 25 million subscribers, partnerships in the Pop, Epix and Celestial Tiger channels, a suite of OTT platforms and an expanding global distribution footprint.

Movies

Lionsgate’s feature film production and distribution operations include a diverse slate of tentpoles, star-driven event films and branded properties includes 15-20 wide releases each year from its Lionsgate and Summit Entertainment labels and another 25 or more films annually from the Company’s other six labels and partnerships.

Driven by world-class creative talent and relationships with many of the top intellectual property owners in the world, Lionsgate has released: three of the four biggest young adult franchises of the past decade, including The Hunger Games and Twilight Saga series; the highest-grossing documentary film of all time; the most successful long-running horror franchise; 19 films from the incredibly successful Tyler Perry brand; and prestige Academy Award-winning classics such as Crash, Monster’s Ball,Preciousand Summit Entertainment’s The Hurt Locker.

Complementing its Lionsgate and Summit mainstream commercial releases, the Company has assembled a portfolio of distribution labels with branded films targeted to specific audiences.  The Pantelion Films joint venture with Televisa offers Hispanic moviegoers in the U.S. the only full slate of Spanish-language films from a major Hollywood studio.  Its box office successes include the runaway hit Instructions Not Included, the highest-grossing Spanish-language film ever released in the U.S., and No Manches Frida.

The Company’s Codeblack Films label reaches urban audiences with films such as Kevin Hart: Let Me Explain, one of the highest-grossing concert films of all time.

Sister company Roadside Attractions has emerged as a leading specialty distributor responsible for hits such as the critically-acclaimed Manchester by the Sea, Love & Mercy, Winter’s Bone, Margin Call, Arbitrage and the Oscar-winning documentary film, The Cove.

Lionsgate UK, a springboard for the Company’s global operations, distributes a mix of Lionsgate and Summit wide releases, third-party acquisitions and its own in-house productions.  Having established itself as a premier film brand and a leader in the U.K. independent film community, it continues to diversify its operations into television as well.

In addition to its in-house production, Lionsgate has become a distributor of choice for leading content companies around the world including CBS Films, StudioCanal, Lakeshore Entertainment, Black Label Media and River Road Pictures. This line-up of third-party product provides a consistent source of branded, commercial wide releases for Lionsgate’s theatrical and home entertainment pipelines.

Lionsgate’s films reach a global audience through an international distribution infrastructure that includes Lionsgate UK, the IDC joint venture in Latin America, nearly 20 theatrical output agreements around the world and strong distribution partnerships with leading companies in China and India.

Combined with a financial model that has resulted in profitability for more than 70 percent of its releases, Lionsgate is well positioned to continue expanding its film brand around the world.

TV

Lionsgate is a leading supplier of premium content to cable, broadcast and digital platforms alike.  Its television business has grown from $8 million in revenue in 2000 to nearly $700 million in fiscal 2016, a compounded annual growth rate of more than 20%.  Complemented by Starz’s television production operations, the Company now supplies nearly 90 shows to more than 40 different U.S. networks.  The Company also distributes more than 2,000 hours of programming to a broad array of cable, satellite, telecommunications and OTT platforms worldwide.  

With its early focus on meeting demand for content from U.S. cable networks and recent emergence as the independent studio partner of choice for streaming services, Lionsgate has positioned itself as a leading supplier of platform-defining hits for many of the fastest-growing television networks and digital platforms in the world.

The Company’s roster of ground-breaking hits includes four-time Emmy winner Mad Men for AMC, the critically-acclaimed Weeds and Nurse Jackie for Showtime, the pioneering Orange is the New Black for Netflix, the scripted drama The Royals for E! Network, the Golden Globe-nominated dramedy Casual for Hulu and the breakout success Greenleaf for OWN.  With the Starz acquisition, the Company’s slate has expanded to include hit series such as Outlander, Black Sails and the second highest-rated premium pay television series of 2016, Power

Lionsgate is building a nonfiction business alongside its premium scripted programming, with its investment in leading reality producer Pilgrim Studios complemented by the continued organic growth of a slate of alternative programming.

The Company is also growing its presence in the game and talk show category. The Wendy Williams Show has been renewed through the 2020 season and, along with Fremantle’s FamilyFeud, is delivering near record ratings.

Lionsgate has recently become a leading source of content for its own portfolio of channels as well.  It produces Graves, one of the first original series for EPIX, and Nightcap for its POP joint venture with CBS along with original programming for its OTT services.

In a “Platinum Age of Television” in which audiences are consuming more content across more platforms than ever before, Lionsgate’s leadership as an independent content supplier, ability to deliver platform-defining shows to new buyers and willingness to innovate unique business models all position the Company to capitalize on opportunities throughout the global marketplace.

At Home

Lionsgate Positioned For Continued Leadership In Packaged Media, On Demand And Digital Home Entertainment

Lionsgate’s home entertainment business is continuing its strong momentum from 2012 when it finished among the top five major studios with 9.5% market share, driven by the home entertainment releases of The Hunger Games and The Twilight Saga: Breaking Dawn – Part 1

Lionsgate has rolled out one of the biggest home entertainment releases of calendar 2013, The Twilight Saga: Breaking Dawn – Part 2, and the Company’s home entertainment business is also generating significant contributions from a diverse portfolio of titles including Warm Bodies, Snitch, Tyler Perry’s Temptation, The Impossible and Texas Chainsaw 3D.  The home entertainment releases of Now You See Me and Red 2 are scheduled for fall 2013, followed by The Hunger Games: Catching Fire in the first calendar quarter of 2014.

Lionsgate’s home entertainment business continues to benefit from higher operating margins achieved through new distribution and replication agreements with Fox and Cinram, reflecting the strength of the combined Lionsgate and Summit slates, as well as increased digital revenues, which increased 46% to $276 million for the fiscal year ended March 31, 2013.

Lionsgate capitalizes on new technology, pioneering new business models and creating new windowing and pricing strategies to adapt to changing viewing habits.

The Company is reaping the benefits not only of the continued strong growth of VOD (it currently has the highest VOD-to-box office revenue conversion rate in the industry) but also the continued growth of electronic sell-through.  EST is expected to become a $1 billion business industrywide by the end of 2013, and Lionsgate’s digital home entertainment revenue has already become incremental margin rather than replacement margin.    

Lionsgate has been a leader in customizing windowing strategies to meet audience needs in distributing its films, following up the 2011 success of the day-and-date theatrical VOD release of Margin Call with an even bigger theatrical/VOD day-and-date hit in Arbitrage.  Both titles were part of the Company’s partnership with sister company Roadside Attractions in releasing prestige platform films that have long been an integral part of the Lionsgate brand.

Channels

Driven by its deep pipelines of content and 16,000-title film and television library, Lionsgate’s growing suite of channels encompasses the Starz flagship premium pay television network with nearly 25 million subscribers, the STARZENCORE network with over 31 million subscribers, and the Company’s partnerships in Pop, Epix, the Celestial Tiger Entertainment channels in Asia, BeFit and Defy Media. The Company also distributes content directly to consumers through its over-the-top platforms.

Sold through cable operators, satellite television providers, telecommunications companies and other online and digital platforms, Starz offers subscribers more than 5,000 premium television episodes and feature films every year including STARZ original series, first-run movies and other popular movie and television programming.  Its high-quality premium subscription video content is offered across 17 premium pay TV channels and associated on-demand and online services, including the STARZ app.

Pop, a joint venture of Lionsgate and CBS Corporation, is delivering year-over-year double-digit ratings growth and generating hit shows such as Schitt’s Creek. The partnership combines CBS’s programming, production and marketing expertise with Lionsgate’s film, television, digital content and library resources.  Pop continues to build a strong slate of original programming while expanding its distribution footprint that already reaches over 80 million households.

The EPIX channel, operated with partners Viacom and MGM, has become one of the fastest growing premium networks in the pay TV space.  Reaching over 50 million homes nationwide, Epix delivers the latest movie releases from Lionsgate, Paramount Pictures and MGM, classic film franchises, original series including the Lionsgate political comedy Graves, documentaries, and comedy & music events on TV, on-demand and online.

The Company also operates Celestial Tiger Entertainment (CTE) with partners Saban Capital Group and Astro’s Celestial Pictures. CTE, with 11 linear and digital channels spanning 43 pay TV platforms in 15 Asian territories, reaches nearly 40 million households. 

Defy Media, a multi-platform digital media company and leader in youth-targeted content creation and distribution, generates 700 million monthly views. With a social following of more than 100 million and uniquely integrated content development and studio production capabilities, Defy offers a portfolio of comedy, entertainment, gaming & lifestyle brands that resonate with next generation consumers.

Lionsgate also delivers content through its OTT channels, which feature branded, targeted content for affinity audiences.  The Company launched Tribeca Shortlist in fall 2015, a subscription video-on-demand (SVOD) service that encompasses a prestigious selection of Lionsgate and Tribeca titles as well as critically-acclaimed films drawn from around the world. The films are curated by Tribeca and A-list celebrities helping to drive the growth of the platform’s subscriber base.

The Company has also partnered with Comic-Con International: San Diego in launching the SVOD service, Comic-Con HQ, which began its global rollout in summer 2016. Designed to appeal to the diverse interests of Comic-Con’s fan base, Comic-Con HQ’s slate includes original scripted and unscripted series, recurring daily and weekly entertainment commentary and unique access to a growing library of live and archival programming.

In March 2016, Lionsgate partnered with global superstar Kevin Hart to prepare the launch of a new OTT comedy service, Laugh Out Loud. The channel will serve as the exclusive home for all content created by Hart outside his theatrical and live touring activities and will include original series starring the world-renowned actor and comedian. Laugh Out Loud will also showcase content curated by Hart along with shows featuring social media stars and up and coming comedians.

Lionsgate is also partnering with Univision Communications Inc. and Hemisphere Media Group to launch the first-ever Spanish-language SVOD movie service for the growing, digitally-savvy Hispanic audience in the U.S.  The platform will offer Spanish-language hits from Pantelion Films, Lionsgate’s joint venture with Televisa, Hollywood films from Lionsgate’s 16,000-title library dubbed into Spanish as well as titles from the Hemisphere and Univision libraries, giving the service an unmatchable portfolio of world-class product.

International

Lionsgate has emerged as a major creative force in the global marketplace.  In addition to self-distributing its feature films in the UK and through a joint venture in Latin America, the Company has established an infrastructure of theatrical output deals in nearly every major territory worldwide.  It licenses its 16,000-title film and television library and new television series through its global sales and distribution team headquartered in the UK, where it is also building a television business alongside its premier independent film brand.  The Company has already invested in the Primal Media and Kindle Entertainment production companies and is assembling its own television development and production slate in the UK as well.  Lionsgate also produces local-language films around the world in collaboration with its partners.

The studio also operates as a 3rd-party distributor for leading content companies around the world.  It distributes films internationally for CBS Films, StudioCanal, Lakeshore Entertainment, Black Label Media, Alcon Entertainment and River Road Pictures, and it has enhanced its worldwide licensing of television programming and library sales through distribution partnerships with New Regency, Miramax and Skydance.

The Company licenses its films, television programming and other content to an expanding array of traditional, subscription video-on-demand (SVOD) and digital platforms around the world.  Reflecting the continued emergence of new buyers, Lionsgate has established content alliances with over 100 SVOD platforms worldwide.

Lionsgate continues to grow its presence in China and India.  The Company has a multi-faceted slate financing, coproduction and distribution agreement with Hunan Broadcasting Intermediary and its TIK films subsidiary as well as a growing network of relationships with film distributors and digital platforms.  The Company is also partnered with Saban Capital Group and Astro’s Celestial Pictures in Hong Kong-based Celestial Tiger Entertainment, which operates 11 channels across 43 platforms in 15 Asian territories.  In India, Lionsgate partnered with Endemol to produce and release the Hindi-language film Brothers, a successful remake of its 2011 release Warrior, and is planning to remake the hit action comedy Red as well.

In April 2016, the Company formed the Globalgate consortium to identify premium intellectual property for local-language film production around the world. The partnership already includes top companies such as Televisa (Latin America), Gaumont (France), Nordisk (Scandinavia), Tobis (Germany), Lotte (Korea) and Kadokawa (Japan), TME (Turkey) and Belga (Belgium).