Lionsgate partners with Univision on a Spanish-language movie streaming service
Film studio Lionsgate is extending its reach into the video streaming market by teaming with Univision Communications to launch a Spanish-language subscription movie service.
The new offering, which is expected to launch early next year, is a recognition that Latinos are among the most prolific moviegoers in the U.S., and that there probably is an opening in the video streaming market for products that target such an increasingly important audience.
The new service will be designed as a digital showcase of Spanish-language comedies, dramas, family and horror films. The partners declined Monday to disclose the name of the planned offering, which has been in development for more than a year, or the price that the service will be offered to consumers.
But it will feature some of Lionsgate’s titles, either dubbed in Spanish or containing subtitles. The independent Santa Monica studio has produced such juggernauts as “The Hunger Games” film franchise and “Orange Is the New Black” for Netflix.
The service will include offerings from Pantelion Films, which is Lionsgate’s joint venture with Mexican entertainment behemoth Grupo Televisa. Pantelion Films has carved out a lucrative niche with Latino films, and its most recent release, “No Manches Frida,” has been one of the top draws in Los Angeles theaters since it opened.
Pantelion also has U.S. rights to some of the top-grossing films from Mexico during the last few years.
The venture brings closer together several longtime business partners at a time when the media industry is poised for more consolidation. Televisa owns a stake in Univision — the largest Spanish-language media company in the U.S. — and Televisa has become more heavily involved in Univision’s operations because the Mexico City conglomerate views the U.S. as key to its growth at a time when its home market is more mature.
Lionsgate, meanwhile, is in the midst of expanding its distribution channels. In June, it announced its planned $4.4-billion acquisition of the Starz premium movie channel.
Lionsgate, which is a part owner of the Epix movie service with Viacom’s Paramount Pictures and Metro-Goldwyn-Mayer, has been busy lining up other niche video-on-demand offerings with other partners.
For example, Lionsgate is preparing a streaming offering with comedian Kevin Hart called Laugh Out Loud, which is expected to launch in early 2017 to take advantage of Hart’s popularity.
Lionsgate also has the Tribeca Shortlist, launched with Tribeca Enterprises last fall, and Comic-Con HQ, which rolled out this summer.
Univision, which owns the largest Spanish-language TV network in the U.S., will lend its considerable marketing muscle to the new streaming service. The company will make a modest financial investment and contribute some classic films from its library to the effort, according to people familiar with the arrangement.
Financial terms were not disclosed.
“This new service has all the ingredients to be the leading premium movie channel for Hispanic audiences in the U.S. as well as a great addition to our growing portfolio of SVOD services,” Lionsgate Chief Executive Jon Feltheimer said in a statement Monday.
The corporate entity, Lions Gate Entertainment Corp., is in need of some good news; its stock has slid nearly 50% in the last year. Lions Gate shares closed Monday at $20.42, up 36 cents, or nearly 1.8%.
Univision, meanwhile, is planning a public offering, perhaps this year, to enable some of its private equity owners to begin to wind down their 2007 investment in the company.
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