Lionsgate CEO Jon Feltheimer says avoiding 'crazy risks' will help movie studios weather stormy box office after Starz split

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January 4, 2024 3:18 p.m.

Lions Gate CEO Jon Feltheimer Express A optimistic see of THE movie business – has less THE path he East approach by her cost conscious executive team.

During A conference call with Wall Street analysts has discuss THE future divide of THE the company movie And TV operations Since Starz, Feltheimer said THE key East has avoid "mad risk" that can cause financial pain In A volatile walk. A analyst request how Lions Gate would be manage through A period of supported theatrical income decline, with ticket sales continue has gap GOOD behind pre-Covid levels.

"You can't talk about THE movie business as A box desk business, ALL RIGHT?" Feltheimer said, add that THE analyst "premise East A little little disabled" concerning theatrical go to the cinema, which East expected has slump In 2024 due has several factors. "I am not Really concerned about he. I am bullish on he," THE CEO said.

"Box desk East THE driver of THE business," THE executive recognized, "but while I can't talk For all workshops, I think if You request people generally how they think about THE business RIGHT NOW, I am hearing Really When people to start putting together all of THE income streams, I think It is A pretty positive business. »

THE wide exits put out by Lions Gate, of which stable understand John Wick, Hunger Games, Saw And other franchises, are manipulated "A little differently" that major workshops, Feltheimer note. "I as OUR profile. We probably take A little far Since THE super advantage, but THE path We pre-license OUR movies has, Frankly, A a lot bigger band of international buyers means We go In THE domestic release with A far lower gap Or deficit" has to recover. "In THE world were In RIGHT NOW, It is A great model."

On THE floor below wide outputs, A category including All Since direct broadcast rate, day and date Or small budget the titles, Feltheimer said Lions Gate has had A 94% financial success rate. THE individual rate of back on those movies East 30% has 40%, he estimated.

"It is A business that East get stronger And stronger, with 30 has 40 movies A year," he said, call he A "great foundation" And A "rocky substrate" For THE workshop.

With A considerable library of movies, including recent exits he can sell has third party banners more and more on THE hunting For allowed rate, Lions Gate can realize incremental income And not be as depending on the blow, Feltehimer maintain. In her ideal world, he conceded, THE library would be account For THE bulk of movement picture income (without THE volatility of production expenses Or release Hourly affecting results as a lot). As he gets together has separated Since Starz, THE studio will continue has avoid THE mega-budgets of major studios used to t...