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Lions Gate Entertainment Corp. Message Board

  • wanna_million wanna_million May 10, 2014 2:08 PM Flag

    Content Developments - LGF Thread

    This is from CBS CC. Because of ability to trach viewership beyond 7 days,there are incremental revenues from additional advertising opportunities.

    In addition to our success in C3, we are monetizing commercials beyond 3 days as well. Just as we've said would be the case, more and more deals are and will be done in C7. Plus we're beginning to benefit from dynamic ad insertion, which allows us to resell inventory at a later date.

    If there are advertisers who don't want to pay beyond 3 days or beyond 7 days, we have a solution. We will simply sell that inventory to other advertisers on the fourth day and beyond. Viewing beyond 3 days or 7 days adds millions of viewers and represents a 9-digit opportunity for us.

    The bottom line is that advances in measurement are catching up with how people are watching our content. And as a result, we're in the early stages of realizing a whole new source of incremental revenue.

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    • Nashville being renewed is good news for "Nashies" and the company.

    • RE:SVOD

      Laura A. Martin - Needham & Company, LLC, Research Division
      A couple of things. So on the local digital, I was really interested to hear your say that mobile is 50% of users. I was wondering is that also tracks by monetization, or what's the monetization on that mobile 50% of users? And then, Les, I'm really interested on the content side, given that I know you're doing 30 original series now. Given that some of those are for these SVOD players, I'm interested in your preselling international rights. Is the nature of the content changing in some way, either becoming longer or more serialized or more binge-y? How is content changing with these new platforms demanding from your original content guide?

      Leslie Moonves - Chief Executive Officer, President and Director
      Yes, Laura, we -- actually regarding the SVOD players, we're in discussion with them. We have a few projects in development. There is nothing directly there yet. But you are absolutely right, the SVOD players like the more serialized content, less [ph] more so. They've done extremely well with that. And obviously, House of Cards has been a significant hit for them. I think the international marketplace has changed every way we look at things. Because now the SVOD players are part of the conversation. So when our international guys go out with whatever series there is, SVOD becomes part of the original conversation. How does that fit with cable or over the air? And where does that deliver the most money for us? As I said, we have a few projects in development. We're looking forward to doing originals for Netflix and Amazon, and the idea that Microsoft and Yahoo! are now getting into that, we'd be happy to sell to them as well.

    • TV Production is now 12 month programming machines because of demand.

      Alexia S. Quadrani - JP Morgan Chase & Co, Research Division
      Okay. And just a follow-up, if I may. You and a couple of your peers made a big effort to sort of move programming to more of a year-round kind of model versus more the traditional fall to spring. I was wondering if you can give us some color for the advertisers who historically have not sort of been as focused in the year-round model or beginning to follow the strong program that you're putting on in the summer and you're seeing ad dollars actually follow that programming.

      Leslie Moonves - Chief Executive Officer, President and Director
      Yes. I mean, look, the ad dollars were not used to broadcast networks putting on summer programming. So the assumption was, it was going to be repeat theater or some crummy reality shows. I think we have changed that entire profile. Going in last year, Under the Dome was pretty much of a shocker for everybody, when they were anticipating a low number. And once again, as we said, because of our deal with Amazon and our huge international sale, we were in profit if that did a 0.1 rating. When it sort of went through the roof and did extraordinarily well, the advertisers were very happy to be on board. And obviously, we sort of set the pattern for this year. So when we came in with Under the Dome 2 and Extant, obviously, our advertising rates are significantly higher than they were a year ago. And advertisers now view us as a 12-month a year programming machine. And as I said, we have 90 hours of original programming. Four years ago, there would have been maybe 2.5 hours, and that would have been a country music special. And that would have been -- or the extent of our summer programming. Now there are series throughout the summer. And it's pretty exciting, not only for what it's bringing in revenue, but as it leads up into the fall.

    • Some more about C7 advertising:

      Leslie Moonves - Chief Executive Officer, President and Director
      Yes. I'm not going to come out with a prediction on the upfront. Suffice it to say, we're very encouraged by what we see out there. There's going to be winners and losers, as there are every year. We're looking forward to the upfront. Obviously, having the NFL on Thursday Night tightens the inventory a great deal for us, and obviously, sports is sold somewhat differently. But prime time football will be a very high number. In addition, we'll spread out more originals throughout the season, and that should go on. More and more of the viewing obviously is increasing to a C3 number. So post live viewing, we're seeing -- like on a show like Elementary, it's more than 4.5 million people are watching it after the live broadcast. And we have more than 6 or 7 shows that get more than 3 million viewers that's just on C3. When you start adding in C7, that number will go up significantly more as well. What's happened -- and frankly, advertisers adapted fairly quickly to the shift to C3. Advertisers -- what people don't understand is, they want -- they want the large audiences. They want every viewer counted, because it means their advertising are being watched by more people. As the world expands, and once again as I said, you're going to see more and more C7 deals. They're going to want those extra 4 days. And when that doesn't occur, once again, we can sell it in different ways. So we can't wait to get the selling season starting. We're only going to have 6 nights to sell plus football. So our numbers are going to go up significantly because of that. And when you look at what we're going to do with advertising in the summer, and more originals throughout the year, I expect our numbers to be up quite a bit.

 
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