Lionsgate beat all expectations for its Q1 revenues, due in large part to growth in its subscriber base and revenues from its Starz streaming service. Global subscribers for Starz rose to 29.5 million at the end of the quarter. Lionsgate’s motion picture and television revenues declined in comparison to the same quarter in 2020, by 25% and 18% respectively.
The recent flurry of mergers and acquisitions among the top-tier Hollywood studios has industry watchers speculating that the few remaining mid-size studios such as Lionsgate will be the next targets for consolidation. Lionsgate has many traits that make it appealing, including its strength in streaming with Starz to its ownership of lucrative franchises such as John Wick and The Hunger Games. The post-pandemic return of exhibition should also strengthen its balance sheet and value. Lionsgate has already shown success in theatres this spring, with successful May 13th release of Spiral and optimism for the June 12th release of The Hitman’s Wife’s Bodyguard.