Lionsgate (LGF.A) Debuts Shareholder Red Carpet Rewards Program
Lionsgate (LGF.A) recently announced that it is launching Shareholder Red Carpet Rewards program on Tiicker to increase retail shareholder engagement.
Tiicker is a platform for companies to discover and drive engagement amongst shareholders through perks and discounts and measure whether or not retail investors purchase and engage with their stocks.
This rewards program will offer limited-edition collectibles, featuring popular Lionsgate movies & television series, a 50% discount on a full-year subscription to the global streaming platform, STARZ, discounts on movie tickets in partnership with Atom Tickets and discounts on a broad range of Lionsgate events, experiences and merchandise.
It also includes giveaways and contests that allow shareholders to win free tickets to movie premieres or host hometown screenings.
What Can Attract Shareholders Further?
The rewards program on Tiicker is a great opportunity for Lionsgate to introduce its shareholders to its exciting portfolio of films and shows. The company has been focusing on launching a strong pipeline of content and making it available to retail investors at a discounted price. This will not only attract new investors and grow market cap but also increase its user base.
The company’s upcoming film slate includes new installments of major franchises like John Wick Chapter 4, The Hunger Games prequel, the Ballad of Songbirds and Snakes, Dirty Dancing, Now You See Me 3, Expendables 4, Saw and the John Wick spinoff Ballerina starring Ana de Armas.
Lionsgate has successfully acquired director Tim Story's horror parody The Blackening, a film that is expanded from a 2018 short film by the comedy troupe 3Peat and has gained huge traction till date.
Lions Gate Entertainment Corp. Price and Consensus
Lions Gate Entertainment Corp. price-consensus-chart | Lions Gate Entertainment Corp. Quote
The company has also significantly ramped up its spending on premium content for Starz in fiscal 2023. Its upcoming series, Dangerous Liaisons, to be released in November, is also expected to add to it.
Starz has also signed an agreement with Sony SONY that allows it to air Sony’s popular films like Venom and Spider-Man: No Way Home and many others on its platform.
A few months ago, Lionsgate informed its shareholders about its commitment to splitting its studio and media networks business. The company believes that this will help Starz to focus on what it does well and come up with even bigger things in the future.
What Lies Ahead for Lions Gate Entertainment?
Despite working on enhancing its content library, Lionsgate has been suffering from economic and industry headwinds as a result of which it is now exiting from seven territories including France, Germany, Italy, Spain, Benelux, Japan and the Nordics.
Revenues for second-quarter fiscal 2023 declined 1.4% year over year to $875.2 million whereas the operating loss was $1.75 billion.
The profitability has also been hurt due to the rising cost of production, and increasing investments in content, marketing and partnerships.
The shares of Lions Gate Entertainment, which has a Zacks Rank #4 (Sell), have declined 53.2% year to date compared with the Zacks Consumer Discretionary Sector, which declined 34.5% in the same time frame.
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The Starz content that is available on cable operators and satellite televisions, faces a significant threat from the ongoing cord-cutting. Along with this, competition from Netflix NFLX and Disney DIS does not bode well for the company.
Netflix is set to bring a cheaper ad-supported tier to attract new users and expects to add a million subscribers by the next quarter.
Disney is also expanding into international markets and is following the footsteps of Netflix as it is about to launch an ad-supported tier from Dec 8, 2022.
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