Lionsgate Chief Discusses Changing Business Models in MIPCOM Keynote

CANNES: Jon Feltheimer, co-chairman and CEO of Lionsgate, discussed how the independent studio is embracing new business models in his MIPCOM keynote today, which was followed by a Q&A session with Anna Carugati, the group editorial director of World Screen.

"Everytime I think i have all the answers, it’s time to go back to the drawing board," said Feltheimer, the 2010 MIPCOM Personality of the Year. "The only constant in this business is change."

The content industry is changing every day, Feltheimer continued. What hasn’t changed is the demand for content, with TV viewership up worldwide. "What has changed is the way people consume content."

Feltheimer noted that there are "plenty of questions keeping us awake at night," including the needs of smaller niche audiences and the viability of economic models behind the plethora of platforms available to consume content. "We need to build new economic models that accommodate the new entertainment paradigm…. We have to take risks and be willing to make mistakes."

"We need to create new relationships," Feltheimer continued, "with people who install telephone lines and build mobile networks, with people like billionaire Mark Zuckerberg, 26 years old, who connects millions of people through bits and bytes. And, when we speak to them, we need to monetize these relationships… and the problem is we don’t know how."

A key topic of conversation was EPIX, the premium channel operated with Viacom and MGM. Its groundbreaking deal with Netflix, he said, capitalized on the studio’s "opportunity to layer our traditional partners with new partners to build new platforms, define new windows, establish more flexible pricing and ultimately create a win/win scenario for all. The EPIX/Netflix deal reflects the premium value of our content in a digital world where content companies will have numerous alternatives to get their product to the consumer and to monetize it," he noted.

He also discussed the recent partnership with Televisa for Pantelion Films, offering up movies for the 26 million Latino moviegoers in the U.S. "Consumers view content in large affinity groups or as part of large demographic niche audiences, and they now have multiple viewing choices under the same roof. Shows will be prized for the loyalty of their viewers and their ability to migrate to multiple platforms that generate extended revenue streams, not just their ability to reach tens of millions of eyeballs at a single sitting."

Feltheimer also talked about Tiger Gate Entertainment, the venture with Saban Capital Group to target Asia’s booming cable and satellite landscape.

He also noted that a show can still be economically successful even if it’s not delivering mass audiences. Hit cable shows, he noted, are averaging fewer than 5 million viewers but are still finding revenue opportunities on multiple platforms. "Analog dollars and digital pennies are adding up quickly," he said.

At the end of the day, it’s still about great content. "Don’t make a deal, make a show. The something for everyone approach usually leads to nothing for anyone." He continued, "If you make good content, you’ll find plenty of users, as long as you don’t limit yourself to old models." He added, "Let the creative process work its magic. Our job is to bring the storyteller and the audience together."