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Lionsgate Has At Least 29 Digital Delivery Deals In Place; Digital Revs Up

Lionsgate Entertainment Corp. is “actually in business with 29 entities that are either now or will be engaged in digital delivery of some sort,” Steven Beeks, president, told analysts during the company’s Nov. 10 earnings call. Already public: CinemaNow, Amazon and MovieLink. He expects two or three more to be announced in the next few weeks. ; he expects two or three of those. Meanwhile, other possible deals are in various stages of active discussion.
More from the transcript:
Revenues: “The revenues on our titles from all the retailers currently in the business are up quarter to quarter. On iTunes, for example, revenue on Weeds‘ downloads is up 35 percent from the prior quarter, and part of that is of course fueled somewhat by the second season is on there.” (The studio is using iTune sales as one gauge of how well Weeds might do on the backend.”
— Revenue from CinemaNow is up more than 100 percent. “A significant amount of that growth is coming from their download-to-burn capability. We are now providing them with select titles for download-to-burn on a day-on-date basis with the release of the film on DVD. I think that is going to spur their business on. The first film for which we allowed day-on-date delivery was An American Haunting, which we released two weeks ago.”
— Lionsgate is standing by earlier projections that digital delivery in its various forms will account for approximately 10-15 percent or more of the home entertainment market by 2010. Beeks: “Virtually all of this business will not only be accretive but will also result in overall growth in the home entertainment pie, and will also be at much higher margins, when you compare it to packaged media due to the lower cost of the supply chain.”