John Malone on Whether Lionsgate Can Follow Netflix’s Direct-to-Consumer Model

Variety | 1/10/2017 | Staff
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Cable mogul John Malone has issued a bright outlook for Lionsgate after recently acquiring premium cabler Starz for approximately $4.4 billion.

“The real question for Lionsgate is how far up the food chain is it realistic to think Lionsgate can go,” Malone said on Tuesday during Lionsgate’s inaugural Investor Day. “Can you create a Netflix-like direct-to-consumer relationship branded on a global basis, is that within the scope of possibility? Because that’s a great model if you can get there.”

Malone - Netflix - CEO - Reed - Hastings

Malone praised Netflix CEO Reed Hastings before addressing how Lionsgate will deal with streaming platforms like Netflix and Amazon, noting that Netflix has recognized the benefit of Liongate and Starz being in a package as part of a broader service offering.

Richard & Mildred Loving led the struggle in the courts, while Hollywood helped change hearts and minds.

Mold - Success - Malone - Hastings - Distributors

“He really broke the mold with his success,” Malone said about Hastings. “He got to scale. The traditional distributors who were asleep at the switch, they should have been doing that, they didn’t do that, they didn’t protect their scale monopoly position. So now they face going-forward competition for the consumer with content.”

Malone was engaged in conversation with investor Gordon Crawford as part of Lionsgate’s briefings to Wall Street. The...
(Excerpt) Read more at: Variety
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