AceShowbiz - Adam Fogelson, chair of Lionsgate’s Motion Picture Group, is capitalizing on a wave of recent success as he steers the studio through an evolving industry landscape. With a slate officially launched only last September, Fogelson’s leadership is marked by a blend of blockbuster hits, strategic positioning, and tackling high-profile setbacks.

Among Lionsgate’s recent triumphs is the third installment of the Now You See Me franchise, Now You See Me: Now You Don't, which grossed $243.7 million worldwide on a $90 million budget. Another standout was The Housemaid, a franchise starter that earned $398 million globally against a $35 million budget. Both films underscore the studio’s ability to compete with compelling mid-budget projects that engage targeted audiences.

Fogelson stepped into his role as head of the motion picture group in January 2024, a pivotal moment following several notable disappointments for the studio. The video game adaptation Borderlands underperformed significantly, The Crow failed to take off, and the attempt to expand the John Wick universe with Ballerina did not materialize as hoped. These challenges, however, have not deterred Fogelson, who views them as part of a larger, complex picture of Lionsgate’s growth and resilience.

In an extensive interview conducted at his Santa Monica office, Fogelson emphasized that the studio’s identity as a pure-play content creator means it faces both remarkable highs and difficult lows. “There will always be both pleasant surprises and unpleasant surprises,” he said. “But if you operate efficiently, have the right team, and the right material, Lionsgate can be an incredibly compelling place to make, market and distribute motion pictures.”

Reflecting on the success of The Housemaid, which became a massive hit for a mid-budget film, Fogelson highlighted the importance of audience focus. “At companies like STX or Lionsgate, you can make films that speak directly to their target audience, which changes how many films you can support that aren’t aiming to be billion-dollar blockbusters,” he explained.

He also pointed out that marketing dynamics have shifted dramatically. “When I was growing up as a marketer, buying enough commercials on the right TV shows could guarantee people knew about your movie. That’s no longer true. Attention is too dispersed across channels. The team and cast on The Housemaid were not only committed to making a great film, but also to doing the hard work of promoting it.”

Despite these optimistic notes, Fogelson remains candid about the risks ahead. “We don’t have other large lines of business to offset a bad run of movies,” he said. “The swings in the industry, positive and negative, have become extreme.” Nevertheless, he stressed Lionsgate’s resilience: “In the year Borderlands released, the company faced what on paper looked like an incredibly challenging 18 months. Still, our mid- and low-budget films performed well, and overall we reported a profit as a pure-play entertainment company.”

Regarding the current wave of industry consolidation, Fogelson sees potential opportunity for Lionsgate. “If the deal goes through and Warners and Paramount each make 15 movies a year, maybe nothing changes. But if that number drops, every movie not made by those studios is an opportunity for us.”

He further noted that while film volume is important, quality is even more critical. “We will watch for open spaces created by consolidation because we can capitalize on them in ways others can’t or shouldn’t. More consolidation could mean more chances for us to make films, win projects, and attract filmmakers who might not feel fully supported elsewhere.”

The ability to place The Housemaid in the prime Christmas release window exemplifies this strategy. Unlike studios tied to $200 million tentpoles that must occupy that slot, Lionsgate can back films it believes in and foster trust with filmmakers. When asked if it was difficult to negotiate with the The Housemaid filmmakers, Fogelson acknowledged the challenge. “All dating and marketing conversations are tricky. We have as many talks before greenlighting as possible. You need well-thought-out answers to questions that can’t be definitively proven. Paul Feig, Todd Lieberman, Sydney Sweeney, and Amanda Seyfried asked the right hard questions, and after our answers, they trusted us.”

Under Fogelson’s guidance, Lionsgate is navigating a complex environment marked by shifting audience habits, fierce competition, and the pressures of consolidation. Yet, the studio’s recent successes and strategic approach to filmmaking and marketing suggest a company poised to capitalize on both opportunity and adversity in 2024 and beyond.