Insight: eOne Theatrical Revenues Decline

eOne is diverting resources to television production and kids programming in order to stem the tide of falling film revenues.

Film Revenues Fall Further

Film output and revenue at eOne has been in decline since the acquisition of Summit Entertainment by Lionsgate. While most of the media attention is absorbed with eOne’s television expansion plans, it is important to note that 80% of eOne’s annual revenue is derived from film. Any transition into television production, distribution, and syndication will take years to generate the necessary revenue to supplement such large losses in film revenue.

eOne Revenue Breakdown

Year Film Revenue All Revenue Film %
2012 £414 £502 82%
2013 £518 £629 82%
2014 £686 £823 83%
2015 £592 £785 75%
2016* £256 £337 76%
*1/2 FY in millions

Behind or Ahead of Curve?

Recently, eOne has been extremely active in the television space. In January 2015, they acquired a 51% stake in the Mark Gordon Company and they don’t show any signs of slowing.

On December 16th 2015, a convoluted production and funding arrangement between eOne, Amblin TV, Dreamworks, and many others was announced. In an attempt to cash-in on the television boom, eOne is building a greater presence in the U.S. But is eOne’s rush into television too little too late?

With the expansion of OTT services, the volume of scripted series in the U.S. has nearly doubled since 2009, and the number of basic cable series’ have almost tripled. There is a television bubble growing that will sooner, rather than later, burst.

The SPC Advance Report includes licensed guarantees for 175 films released by Sony Pictures Classics, spanning all major genres.

40% Decline in Combined U.K. Receipts

This year, Lionsgate and eOne have each only generated $60 million in box office receipts, a five year low for both distributors. Combined, Lionsgate and eOne have accounted for the lowest proportion of box office marketshare in the U.K. since 2011.