And Joe Drake, chair of of Lionsgate’s Motion Picture Group, predicted no great disruption at his film division as the studio explores its options for Starz, including a possible separation of the pay TV and streaming business and its studio operations. The goal appears to be creating two standalone companies so investors can value the Starz and studio assets separately.
While some potential suitors appear to see Starz as a streaming platform, others are looking at Lionsgate and its programming library as a possible indie studio acquisition as digital titans like Apple and Amazon muscle into Hollywood. Packer argued the rise of ad-supported streaming platforms has given Lionsgate even more doors to knock on as it looks to sell its content pipeline globally.
Drake added the studio continued to weigh the relative strengths of the multiplex or streaming platforms when it comes to launching movies commercially. “Because we still see so much value in the theatrical space, and because Jim and his team can sell to anybody in the world and to any strategy and we’re not beholden to our pipeline, we’re able to flex and do all kinds of things,” Drake argued.