Alibrary of approximately 12,000 motion picture titles and television episodes in just four years. This could be sufficient to introduce Lionsgate, an independent producer and distributor of quality filmed entertainment. But VideoAge wanted to know more, and thus fired off a few questions to Craig Cegielski, Lionsgate’s executive vice president, Programming and Sales, international TV. Traded on the NYSE and based in both Vancouver, Canada and Santa Monica, California, Lionsgate reported revenues of U.S.$976.7 million and pretax income of $43.9 million in 2007. Financial results for 2008 are to be announced May 30. Last February the company reported revenues of $290.9 million and net profit of $2 million for the third quarter of fiscal 2008. In 2007 television sales, including international, were $109.3 million (up 50 percent from 2006), while television production revenues were $118.5 million. VideoAge International: Why are these Screenings exciting for you? Craig Cegielski: Of course, every year during L.A. Screenings we’re thrilled to host our international clients in sunny Santa Monica. This being our third L.A. Screenings, it has been incredible to be able to quickly become a key destination in the minds and busy schedules of the buyers, and we’ve continued to deliver each year. This year, we’re showcasing our new broadcast anthology series Fear Itself . This primetime anthology series debuts on NBC June 5. Each episode is helmed by amazing talents from the horror genre, including John Landis ( Twilight Zone: The Movie ), Breck Eisner ( Creature From the Black Lagoon), Stuart Gordon ( Re-Animator ), and Ronny Yu (Jet Li’s Fearless ) just to name a few. From the Academy Award-winning film of the same name, Crashthe series is another project that is currently underway here at Lionsgate. Glen Mazzara ( The Shield, Standoff ) has been hired to be the showrunner, while the series will be executive produced by the same team that brought you the amazing film — Paul Haggis, Bobby Moresco, Tom Nunnan, Bob Yari and Don Cheadle. This 13-hour series for Starz begins shooting in late May and will be ready to broadcast mid-September 2008. We’ll also be continuing to talk about our latest acquisitions The Guard and Chandon Pictures . The Guard is a 22episode one-hour action/drama about a Pacific Northwest search and rescue team. Chandon Pictures is our raucous half-hour comedy from Rob Carlton that features the lead character Tom Chandon and his documentary film company Chandon Pictures, working to fulfill his obsession with capturing the human condition through the magic of documentaries. The problem is that he’s forced to finance his passion projects through various odd video jobs — which turn out to be hilarious test subjects only he can film. And we can’t forget about Paris. Yes, Lionsgate is going to deliver a 10-episode series from our new reality production company Ish Entertainment. Specializing in celebreality, Ish is busy creating the newest series Paris BFF: I Want to be Paris Hilton’s New Best Friend. VAI: Will this year be particularly good for the indies? CG: It’s always about the content. Lionsgate has always positioned the series we were producing and distributing front and center. This might be counter to the larger competitors that lead with their logo, as if to say because it’s from this company, therefore it must be good product. And that simply has not been the case. Indies might benefit from the decreased number of pilots from the majors, which in turn should mean the buyers have more time to meet with other distributors. But truth be told, if the indies don’t have the content, they won’t get the time. VAI: What do you think of this new season with fewer pilots? CG: It will tell an interesting story, that’s for sure. While cable companies such as AMC, USA and F/X have operated from a successful position of “fewer and better,” this year the broadcast networks were forced to make decisions based on a limited number of developed projects due to the strike. It’s tricky from a buyer’s standpoint, as most of the majors will screen presentation pilots or shortened segments of programs that may or may not work when fully produced. VAI: Next year, will we go back to the way things were before or will the studios continue to make fewer pilots? CG: The number of pilots produced next year will be greater than this year, not because of a correction in the development cycle, but simply because of the level of competition. The ability of the consumer to get quality series no longer rests in the hands of the broadcast networks. Therefore, the need to develop and produce competitive programming will challenge the nets to try a wider variety of programming ideas. Pilots have been the safest way for networks to make the decision on whether or not an idea goes to series, and I don’t see this radically changing. VAI: At the Screenings, are you focusing on any particular territories? CG: With Fear Itself , Crash and the Paris Hilton project, we’re not narrowing the field this year. We aim to reach out to every territory with equal vigor to ensure our product remains on the air worldwide. VA. Many new companies want to become the “next Lionsgate.” How does it feel to be in this unique position? CG: I love to hear that new companies want to become the “next Lionsgate.” When I hear that I ask the question, do they want to mirror our ability to be decisive or our ability to set precedents in the marketplace, or perhaps be as diverse in the businesses we operate in, or is it our entrepreneurial spirit? Lionsgate embodies so many unique qualities that resonate from the top down. We have incredible leadership and such a committed workforce. It’s a well-balanced company that continues to improve upon perfection. VAI: If it can be revealed in general terms, what is the secret of your success? CG: I answered that in the above statement. But if I were to expand, I’d have to say it’s Jon Feltheimer and Michael Burns. These two executives live and operate what they preach. Their true open-door policy and commitment to support new innovative ideas has continually been one of our strongest assets. In addition, Kevin Beggs (president of Programming & Production) and Sandra Stern (COO of Television) have blazed a trail in television production and development that allows for Lionsgate to continually deliver amazing series such Weedsand Mad Men. Kevin and Sandra not only deliver series that excel creatively, but do this within such a disciplined financial model that benefits the company and participants alike. VAI: Do you consider Lionsgate a minimajor? CG: I consider Lionsgate the “Next Generation Studio.” I think everyone at Lionsgate feels this way. Each individual at Lionsgate moves the needle with everything they do — from the assistant to the CEO. It’s a powerful position to be in; to recognize that the decisions we make today matter today. No one here has the belief that “whoever is sitting in this chair 10 years from now can deal with it.” We own our work and take pride in our success as a company. VAI: What lies ahead for Lionsgate in the future? CG: If you look over Lionsgate’s movements for the past four years you can see our pursuit to expand our business. Whether it’s self-distribution in the U.K. and Australia, investing in Web portals like Break.com, acquiring an incredibly successful syndication business in Debmar/Mercury, acquiring Mandate Films, or our recent announcement of the launch of a new pay-TV channel in conjunction with MGM, Viacom and Paramount, Lionsgate is poised for further diversification and growth. V I D E O • A G E JU N E 2 0 0 8 28 Q u e s t i o n s & A n s w e r s Craig Cegielski Reveals The Secrets of Lionsgate’s Success Craig Cegielski
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