Lionsgate is pulling its Lionsgate+ streaming service out of seven international territories and taking a charge for the move that contributed to a $1.75bn operating loss for the second quarter of 2022.
The streaming service, previously known as Starzplay International, will end its operations in France, Germany, Italy, Spain, Benelux, the Nordics and Japan by the end of Lionsgate’s fiscal year.
In an earnings call, Lionsgate CEO Jon Feltheimer said the move “leaves us with a streamlined international business positioned to compete in places where we can win, with a strong and scalable presence in the UK, Canada and Latin America.”
Lionsgate+ originals include thriller Gaslit, drama Señorita 89, sci-fi thriller El Refugio and crime drama Express.
Overall, Lionsgate reported second quarter revenue of $875.2m, an operating loss of $1.75bn and net loss per share of $7.95.
The company took a $218.9m restructuring charge in the quarter and a $1.48bn non-cash impairment charge.
Lionsgate’s media networks segment, which includes Lionsgate+, the Starz domestic service and Starzplay Arabia, ended the quarter with 37.8m subscribers worldwide. The tally of streaming subscribers increased 52% year-on-year to 27.3m. The total for Lionsgate+ was up 97% to 14.8m.
The segment reported revenue of $396.1m and profit of $21.0m.
Lionsgate’s studio business, taking in film and TV production, reported revenue of $654.9m and profit of $69.1m.
In the earnings call, Feltheimer touted recent and upcoming theatrical releases including Prey For the Devil, John Wick Chapter 4 and Expendables 4 and said Lionsgate will adopt a variety of windowing strategies, from direct-to-streaming to exclusive theatrical, for its slate. “At the end of the day when you add all of that up, the downstream revenue from a theatrical movie is significantly higher than it was before,” he said.
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