Aiming to fill a hole, Lionsgate’s genre-spanning 2024 slate of heist comedies, weepy coming-of-age tales, humorous video game adaptations and horror stories Most of them were the sort of films that big Hollywood companies either completely ceased producing or mostly assigned to streaming platforms.
In the nine weeks between early August and mid-October, that runs seven straight failures, each with meager single-digit debuts.
Senior analyst Matthew Harrigan of Benchmark Co. notes that “it was a pretty diverse slate and certainly wasn’t cannibalization of films.” It was more like nothing truly worked.
Lionsgate buys overseas rights to its theatrical films and usually keeps expenses under control, therefore helping to offset losses for failed films. In the case of “Megalopolis,” Coppola fronted the $120 million production expenses and additional charges. Therefore, even with the low box office performance of the picture, the studio will really profit as a distributor for hire. A rare big-budget tentpole for Lionsgate, the $100 million-budgeted “Borderlands” should cause a $30 million write-down. Generally speaking, however, none of the studio’s mistakes is sufficient to compel heads in the C-suite to roll.
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“Lionsgate minimizes risk on their releases really well. Still, you cannot hedge that kind of a run, Harrigan argues. “The aggregate loss from mid-budget movies can be as bad as a tentpole.”
Comparatively to the studio’s run last year with “John Wick: Chapter 4 ($440 million global), “Saw X ($111 million),” and “The Hunger Games prequel The Ballad of Songbirds and Snakes ($348 million),” the fall is stark. By then, motion picture group chief Joe Drake greenlit those movies as well as most of 2024’s schedule; Adam Fogelson succeeded him in January.
Industry analysts praise Lionsgate for serving underprivileged groups like Black viewers and faith-based populations. While horror satire “The Blackening” collected $18 million in 2022 and justified a sequel, low-budget Christian film “Unsung Hero” drove to $21 million in August.
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“They base their approach on filling up the voids. Strategically, it’s a wise thing to do, advises USC School of Cinematic Arts professor emeritus Jason Squire. “But this is the ancient struggle of the movie business: You just never know if audiences will show up.”
Wall Street has been dubious about Lionsgate’s ability to compete in a media industry controlled by internet behemoths and companies housed inside vast conglomerates. Selling at $7.84, shares are down more than thirty percent from last year. From the premium cable network Starz, Lionsgate Studios is splitting out to properly separate the two companies and open the path for possible M&A negotiations.
King of Pop biopic “Michael, Ana de Armas-led “John Wick,” another “Hunger Games,” prequel “Ballerina,” and “Now You See Me 3” might set off a comeback in fortunes in 2025 and beyond. With planned stage versions of “La La Land, “Dirty Dancing,” and “The Hunger Games,” Lionsgate is also looking to its large catalog to extend the life of films beyond of the screen.
Just ask Warner Bros., Universal or Apple, who ran costly misfires including “Joker: Folie à Deux,” “Furiosa: A Mad Max Saga,” “The Fall Guy,,” “Argylle,” and “Fly Me to the Moon.” Lionsgate is far from the only company that has struggled in 2024. With receipts down more than 11% from the same moment in 2023, the domestic box office is suffering overall.
“It’s not unique to Lionsgate to be in this difficult financial period,” notes Squire. “But they lack the “magic” big studios have in terms of moving money around and shielding from significant losses.”
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