The unscripted television industry has been facing a challenging period, with numerous companies shuttering and a stagnant number of projects being greenlit. Lionsgate, the production powerhouse behind hit shows like Discovery's "Naked and Afraid," is not immune to these market shifts. In a recent earnings call, CEO Jon Feltheimer acknowledged the "continuing market correction" impacting the company's unscripted business, and outlined the steps Lionsgate is taking to adapt and thrive in this evolving landscape.

Streamlining and Consolidating for Greater Efficiency

Lionsgate's response to the market correction has been multifaceted. The company has taken proactive measures to reduce costs and consolidate its smaller unscripted labels, a move aimed at creating greater efficiencies within its non-fiction division. This strategic consolidation is exemplified by the launch of Lionsgate Alternative Television at the start of the year, which brought together eOne's unscripted assets and Lionsgate's own non-fiction division.Under the Lionsgate Alternative Television umbrella, the company has assembled a formidable team of industry veterans. Craig Piligian, the founder of Pilgrim Media Group, has been tapped to lead the new division. Pilgrim Media Group, known for producing series like Discovery's "Dirty Jobs" and "Naked and Afraid," is now part of the Lionsgate Alternative Television portfolio, along with other esteemed production companies such as Renegade, Blackfin, and Daisybeck.By consolidating these unscripted assets, Lionsgate aims to streamline its operations, leverage synergies, and enhance its overall efficiency in the unscripted space. This strategic move not only allows the company to navigate the market correction more effectively but also positions it to capitalize on future growth opportunities in the non-fiction genre.

Adapting to Shifting Buyer Behaviors

The market correction has not only impacted Lionsgate's unscripted business but has also had ripple effects on the scripted landscape. Feltheimer acknowledged that buyers are "continuing to order fewer shows and disrupting longstanding business models," a trend that Lionsgate has had to adapt to.In response, the company has been "drawing upon our ability to create new business models" to navigate the changing dynamics of the industry. This adaptability is reflected in Lionsgate's diverse scripted slate, which includes a range of high-profile properties such as "Ghosts," "The Rookie," "Acapulco," "Mythic Quest," "Raising Kanan," and "BMF."Moreover, Lionsgate is actively exploring new opportunities, including the development of a Twilight TV adaptation, a John Wick TV series, and a show business comedy titled "The Studio" from Seth Rogen. By diversifying its scripted offerings and exploring innovative business models, Lionsgate is positioning itself to weather the market correction and capitalize on emerging trends in the industry.

Leveraging Library Assets and Maximizing Upside

Alongside its efforts to streamline operations and adapt to shifting buyer behaviors, Lionsgate is also focused on leveraging its extensive library of content to drive growth and maximize its upside potential. Feltheimer highlighted that the company has sold 40 scripted projects to various platforms since the start of the year, underscoring the value and versatility of its content library."It's a deep slate of high-profile properties that creates significant growth opportunities for the future while adding tremendous value to our library," Feltheimer noted, emphasizing the importance of Lionsgate's diverse portfolio of intellectual property.By strategically monetizing its library assets and exploring new business models, Lionsgate is positioning itself to navigate the market correction and emerge stronger. The company's ability to adapt and innovate in the face of industry challenges is a testament to its resilience and foresight.

Anticipating a "New Normal" in the Industry

Despite the current market correction, Feltheimer expressed optimism about the future, stating that the company expects "the pendulum to begin to swing back to a 'new normal' as our platform partners grow their profitability and fine-tune their content strategies."This forward-looking perspective suggests that Lionsgate is not only weathering the storm but also positioning itself to thrive in the evolving industry landscape. By anticipating and adapting to the changing dynamics, the company is poised to capitalize on the opportunities that will arise as the market stabilizes and platforms refine their content strategies.Lionsgate's multifaceted approach to navigating the unscripted and scripted television markets underscores the company's commitment to innovation, efficiency, and strategic foresight. As the industry continues to evolve, Lionsgate's ability to adapt and innovate will be crucial in maintaining its position as a leading player in the entertainment landscape.