Lionsgate Just Made History as the First Independent Studio With a $1 Billion Film
Not long ago, Lionsgate looked like a studio searching for answers. After several disappointing years at the box office, many industry analysts believed the company would eventually need to sell or merge with a larger entertainment giant to survive. Instead, the studio has staged one of Hollywood’s biggest turnarounds, thanks to a string of successful releases led by the record-breaking performance of Michael.
According to The New York Times, Lionsgate has officially become the first independent studio to own a $1 billion film after Michael crossed the milestone at the worldwide box office. The achievement marks a historic moment for the company and completely changes the conversation surrounding its future.
Just a year ago, Lionsgate was facing serious challenges. The studio released 17 films in 2024 but earned only $251 million at the domestic box office. That was an 85 percent drop from its strongest year in 2012, when franchises like The Hunger Games, Twilight, Madea, and The Expendables helped generate more than $1.7 billion in ticket sales. As the poor results continued, Lionsgate’s stock price also dropped, and many believed selling the company was its best path forward.
Instead, the studio doubled down on ambitious projects. One of its biggest gambles was Michael, Antoine Fuqua’s biopic about Michael Jackson. Several major Hollywood studios reportedly passed on the film because they viewed it as too risky, given the controversies surrounding Jackson’s life. Lionsgate decided to move forward anyway, with Universal and Kino Films joining to distribute the movie internationally.
The decision proved to be a huge success. Michael became Lionsgate’s biggest film ever and the first in the company’s history to reach $1 billion worldwide. The film also became the highest-grossing music biopic of all time.
The success didn’t stop there. Lionsgate also found another major hit with The Housemaid, based on Freida McFadden’s bestselling novel. According to The New York Times, the thriller earned more than $400 million worldwide from a production budget of just $35 million. The studio has already started developing sequels for both films, giving it two brand-new franchises in the same year.
Sean Diffley, head of media and entertainment research at Morgan Stanley, believes Lionsgate has shown it can still thrive as an independent studio.
“They’ve proven they can operate on a stand-alone basis in an effective manner — that they can still create big hits and find fresh I.P. in a tricky market.” He also noted that larger companies still have advantages, saying, “At the same time, there’s certainly a view in the market that scale matters.”
Lionsgate is now building on that momentum with a packed release schedule. The studio has another Hunger Games film arriving later this year, while future projects include a Rambo prequel, two new John Wick movies, Now You See Me 4, sequels to The Passion of the Christ, a new Blair Witch Project, and another Saw film.
The New York Times also reported that Lionsgate’s television business remains strong, producing series for major platforms while its library of more than 20,000 film and television titles generates over $1 billion in annual revenue.
Lionsgate Motion Picture Group chairman Adam Fogelson believes the company is only getting started.
Lionsgate has become the first independent studio to have a $1 billion movie with 'Michael.' What do you think about the studio's comeback?
“I’m incredibly optimistic about where we’re headed, with every project driven by the distinct creative vision of some of the most talented filmmakers in the industry.”
For a studio that was recently viewed as a takeover target, the past year has completely changed its outlook. Thanks to Michael and several other successful releases, Lionsgate has gone from fighting for relevance to making Hollywood history as the first independent studio to own a billion-dollar blockbuster.
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