Lionsgate and Starz Finalize Split
By Movieguide® Contributor
Lionsgate Studios and Starz have continued with their planned split, recently submitting the required forms to disband into two separate companies.
The split is expected to be approved by the SEC, after which shareholders will meet to finalize the decision. Despite splitting into two separate companies, Lionsgate and Starz will continue to have an amicable relationship, with a multi-year theatrical release deal already signed.
This deal allows the Starz streaming service to have exclusive access to Lionsgate movies, with some hitting the platform only weeks after their theatrical release.
“Movies are a critical part of our premium offering, and we’re pleased to extend our agreement with an accelerated window,” said Alison Hoffman, the president of Starz Network. “Lionsgate’s movies perform incredibly well on our service, and we’re thrilled to offer subscribers their expanding slate of films.”
“This newly extended deal is an affirmation of the tremendous value of Lionsgate movies in the pay television ecosystem,” Lionsgate executive Jim Packer said. “It is a win/win for the studio and Starz, unlocking significant incremental value for our slate by delivering our movies to Starz closer to their initial theatrical release and giving them access to an expanded and growing roster of franchises and other major properties.”
The split between Lionsgate and Starz is quite similar to the siloing happening at other major studios.
Many companies are dividing into two companies to shield their assets from a downturn in the entertainment industry. Oftentimes, as is the case with Lionsgate/Starz, movie content will be placed into one business, while TV will be placed in another. This protects the studio from the declining TV business while allowing the TV assets to have more freedom in linking up with other TV offerings in the future.
READ MORE: WARNER BROS. DISCOVERY TO SPLIT TV AND MOVIE BUSINESS
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