Lionsgate formed a joint venture with mgm viacom and

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Lionsgate formed a joint venture with MGM, Viacom and Paramount Picture to create an online media platform to distribute their library of motion picture, television episodes and programs, called EPIX 19 , in order to distribute their product worldwide. Other than EPIX, the company formed a lot of joint ventures, for example Grupo Televisa and Tiger Gate. 20 To diversify their presence, they expand to other markets through alliance and acquisition. For instance, when they are expanding to UK and Ireland, they have an alliance with Netflix and acquired RedBus Distribution. 21 Also, they do to a lot acquisition such as Maple Picture, Mandate Picture and Artisan Entertainment 22 to build a diversified foundation. The company licensed the rights to television networks to make the motion picture available to in house customer. 2.3 Differentiator To differentiate Lionsgate, the company offer high concept comedies, produces low budget films and focus on the quality of film. Through the partnership with EPIX, the company offer product via the internet and to multiple devices for consumption “Anytime and Anywhere” by EPIX subscribers. 23 In order to protect their products, the company has a number of trademarks including “LIONSGATE FILM’ and “LIONSGATE TELEVISION”. 24 Because of the ease of duplicate on DVD and illegal download, the copyright protection is important that the company can enforce when they have to take legal action. Moreover, the company often develops films in targeted niche markets to make sure they can achieve a sustainable competitive advantage in the industry.
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Lions Gate Entertainment 2.4 Staging & Pacing At first, Lionsgate focused on capitalize the growing motion picture industry and produce independent films. Now, the company decided to expand internationally in order to maintain a competitive level in a fast paced industry. To survive in a fast paced industry, the company must keep acquiring other company as forming partnership. 2.5 Economic logic Lionsgate seek to lower their financial risk by negotiating co-production agreements which providing joint effort and cost sharing between Lionsgate and one or more third-party production companies. They also attempt to minimize production exposure by structuring agreements with talents that provide for them to participate in the financial success of the motion picture in exchange for reducing guaranteed amount to be paid. When they expand to international market, they use certain tax credit and tax incentive to mitigate their financial risk. Also, they spend less printing and advertising cost for a film than a major studio while adding quality of films. 25 SECTION 3: VALUE CHAIN AND VRINE 3.1 Value Chain Inputs: Inputs for the company Lionsgate Entertainment are ideas for film and television shows, scripts and storylines created by third parties, actors, directors, and other personnel required in the production and distribution of motion pictures and television programming.
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