Lionsgate bets on long tail profits for Americana

Lionsgate bets on a long tail profit model for Americana after a soft domestic start.

Sydney Sweeney Americana still poised to turn a profit

Lionsgate opened Americana with an estimated 500000 dollars in the domestic box office, ranking 19th for the week on about 1100 screens with a per screen average of 436 dollars. The studio paid 3 million dollars to acquire the film at SXSW in 2023. These numbers show a modest start for a smaller film in this market. Lionsgate follows a strategy to release many small films each year under its premiere label with a mix of theater and streaming deals.

The company expects profits from a longer life cycle. The film will likely generate more income from home entertainment sales and streaming deals with platforms such as Starz or Netflix and from international rights. The film is not a major tentpole and the long term plan hinges on licensing and post theatrical revenue. The release also follows a unique model where the company sometimes extends windows or shares more with streaming in the early rights. The movie was produced for about 9 million by Bron and was held during a bankruptcy in 2023 before its release. The plan relies on a mix of theater play and later PVOD and SVOD licensing and international sales. The 30 day theatrical window is longer than some small titles and helps build awareness for post theatrical sales.

This release shows a studio style built on a portfolio of small films. The key is not a high opening but a network of licensing deals and home entertainment rights. The risk is whether audiences will follow these after the initial run and whether the streaming platforms will pay for the rights. The star power of Sweeney helps attract buyers and audiences but cannot guarantee big returns.

The broader trend shows studios shifting away from relying on box office alone and investing in the pipeline. The long tail approach may work for some titles and fail for others. The question is whether this model can sustain a steady stream of profit in a crowded market.

Highlights

The industry will watch how the plan plays out across platforms.