Opinion on  Lions Gate Entertainment Corp (LGF)     Sector: Services  >  Industry: Motion Pictures
Lions Gate Entertainment Corp

Lions Gate Entertainment Corp. (Lionsgate), incorporated on April 28, 1997, is the studio with a presence in production and distributions of motion pictures, television programming, home entertainment, family entertainment, video-on-demand and digitally delivered content. The Company released approximately 18 to 20 motion pictures theatrically per year, which include films it develops and produces in-house, as well as films that it acquires from third parties. It also has produced approximately 69 hours of television programming on average for the last three years, primarily prime time television series for the cable and broadcast networks. As of March 31, 2009, Lionsgate distributed its library of approximately 8,000 motion picture titles and approximately 4,000 television episodes and programs directly to retailers, video rental stores, and pay and free television channels in the United States, Canada, the United Kingdom and Ireland, through various digital media platforms, and indirectly to other international markets through its subsidiaries and various third parties. The Company segments include Motion Pictures, Television Productions and Media Networks.

Lionsgate owns interests in Horror Entertainment, LLC (FEARnet), a multiplatform programming and content service provider; NextPoint, Inc. (Break.com), an online video entertainment service provider, Roadside Attractions, LLC (Roadside), an independent theatrical distribution company, Elevation Sales Limited (Elevation), a United Kingdom-based home entertainment distributor, and Studio 3 Partners LLC (EPIX), a joint venture entered into to create a television channel and subscription video-on-demand service.

Motion Pictures

Motion Pictures include Theatrical, Home Entertainment, Television and International and Mandate Pictures. Theatrical revenues are derived from the theatrical release of motion pictures in the United States and Canada, which are distributed to theatrical exhibitors on a picture by picture basis. Home Entertainment revenues consist of sale or rental of packaged media (digital versatile disc (DVD) and Blu-ray) and electronic media (electronic-sell through (EST)) of its own productions and acquired films, including theatrical releases and direct-to-video releases, to retail stores and through digital media platforms.

Television revenues are primarily derived from the licensing of Lionsgate’s productions and acquired films to the domestic cable, free and pay television markets. International revenues include revenues from the Company’s international subsidiaries from the licensing and sale of its productions, acquired films, its catalog product or libraries of acquired titles and revenue from Lionsgate's direct distribution to international markets on a territory-by-territory basis. The Company’s revenues are derived from the United States, Canada, United Kingdom, Australia and other foreign countries; none of the foreign countries individually comprised greater than 10% of total revenue.

Television Productions

Television Productions include the licensing and syndication to domestic and international markets of one-hour and half-hour drama series, television movies and mini-series and non-fiction programming. It also includes revenues from the sale of home entertainment product (packaged media and EST) consisting of television production movies or series.

Media Networks

Media Networks consists of TV Guide Network, the distributed general entertainment cable networks in the United States, including TV Guide Network On Demand, and TV Guide Online (www.tvguide.com), an online navigational tool and provider of television listings and video and other entertainment content. Media Networks includes distribution revenue from multi-system cable operators and digital broadcast satellite providers (distributors generally pay a per subscriber fee for the right to distribute programming) and advertising revenue from the sale of advertising on its television channel and related online media platforms.

The Company competes with Paramount Pictures Corporation, Sony Pictures Entertainment, Inc., Twentieth Century Fox Film Corp., Universal Pictures, Walt Disney Studios Motion Pictures, Warner Bros. Entertainment, Inc., DreamWorks Animation SKG, Inc. and Metro-Goldwyn-Mayer Studios Inc.