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Lionsgate and Starz have the dogged determination to become one of the more monumental players in the media industry. In an apparent attempt to keep up with HBO and Netflix, the independent Hollywood studio behind The Hunger Games and the premium cable network recently shook hands on what is apparently one of the most major studio deals in the past ten years. The deal? Lionsgate dropped a hefty $4.4 billion USD to procure Starz, and from the surface, it’s looking like a pretty favorable venture for both.
Instead of scouring for distributors, Lionsgate will have a more straightforward outlet in Starz to obtain cash from its popular television shows (Orange is the New Black, Mad Men, etc.). On the other hand, Starz will have a stockpile of hit movies and shows from Lionsgate to relay in their network which will hopefully arouse viewers to sign up for a subscription.
According to Mashable, CEO of Lionsgate Jon Feltheimer said, “This acquisition unites Lionsgate and Starz in a global content power house that invests nearly $2 billion a year in new content with the increased scale to compete even more effectively and capitalize on growth opportunities in a fast changing marketplace.”
The will to be the best in the trade may have spurred the coalition, but one thing’s for sure: the world is hot for direct-to-consumer streaming platforms, and the thought of a burgeoning key player will only yield high quality flicks for us viewers.