Lionsgate Studios Corp. (LION) is making a serious play to capture more advertising dollars, and the market liked what it saw. Shares climbed Thursday after the studio announced an exclusive partnership with FreeWheel that essentially rolls out the red carpet for advertisers looking to reach viewers on its free, ad-supported streaming channels.
Here's what's actually happening: advertisers can now buy ad placements across Lionsgate's U.S. FAST channels (that's "free ad-supported streaming television" for the uninitiated) directly through FreeWheel's supply-side platform. Media buyers get their pick of direct deals or programmatic transactions, which is industry-speak for automated ad buying with fancy targeting capabilities.
Why This Actually Matters
Lionsgate operates more than 40 FAST channels globally, with nearly 30 based in the U.S. These aren't obscure channels nobody watches. They're built around the studio's heavyweight franchises: John Wick, The Hunger Games, Twilight, The Conners, and Nash Bridges. There's also MovieSphere and, naturally, a 50 Cent Action channel, because why not?
By partnering with FreeWheel, a heavyweight in connected television advertising technology, Lionsgate is simplifying the entire process of how advertisers access this content. Previously, buying ads across these channels was presumably more fragmented. Now there's one platform handling everything, which Lionsgate expects will improve demand management and revenue growth.
The FAST Lane Is Getting Crowded
FreeWheel's involvement isn't just about technology. The company brings data showing that FAST is having a moment. A substantial chunk of FAST audiences represents incremental reach that goes beyond what traditional television delivers. Translation: brands are finding viewers they can't reach through regular TV.
That matters because advertisers are actively planning to shift budgets toward FAST formats in the coming months. Lionsgate is betting big on that trend by scaling up its ad-supported streaming operation.
How the Tech Actually Works
FreeWheel will serve as Lionsgate's exclusive ad-serving partner for its U.S. FAST portfolio. The platform lets publishers manage inventory and create curated advertising packages. Buyers can execute campaigns through one-to-one deals or programmatic placements, depending on what makes sense for their strategy.
The setup also provides what FreeWheel calls "unified ad decisioning" across Lionsgate's branded channels. That coordination is supposed to improve yield for Lionsgate while making things more efficient for buyers. Programmatic buyers get advanced targeting tools, transparent supply paths, and premium video formats.
What the Executives Are Saying
Chase Brisbin, Lionsgate's executive vice president of International SVOD Sales and head of Global Channels, framed the decision as obvious. "It was an easy decision to choose FreeWheel, a leader in the space, as our exclusive technology partner across our ad-supported FAST business," Brisbin said.
Greg Bel, FreeWheel's vice president of supply, echoed the enthusiasm. "We're excited to deepen our collaboration with Lionsgate," Bel said, emphasizing that the partnership strengthens advertiser access.
Lionsgate Studios (LION) shares traded up 1.95% to $8.63 following the announcement, suggesting investors see real potential in the expanded advertising infrastructure.