Business Overview and Segments
This company is in the media space, you may have seen their logo at the start of some films. They are one of the smallest major film and TV studios, yet has a track record of producing relatively big films and shows with much smaller budgets. They tend to make films in the mid-space, not blockbusters with huge budgets, but not as small as the independent studios. Don’t get me wrong though, they do have a knack of coming up with box office hits out-of-the-blue – Hunger Games, John Wick, Twilight, La La Land, Saw. This success is seen in it having 6-7% market share of the entire box office for five out of the last 6 years – this is only half the share of that of monsters like Warner Brothers, Universal, and Sony Pictures. It’s not just in film, they also go above and beyond in the TV space, especially when you consider their budgets – Mad Men, Weeds, Orange is the New Black, Nashville, Dear White People, Weeds, Doctor Who.
They have three main segments;
- Film.
- TV.
- Starz – a premium cable channel that is home to – Power, Outlander, and American Gods.
Patent – Lionsgate owns patents on all of its shows and films.
Brand – Starz has a following of dedicated fans who love their high-quality mid-budget range shows.
Key Facts and Figures
| Risk of Bankruptcy | Moderate |
| Last Year’s Growth | -11% (Low) |
| ROIC (Company Quality) | 5% (Low-Moderate) |
| Free Cash Flow Margin (Company Strength) | 8% (Moderate) |