Lionsgate Says AI Will Save Tens of Millions a Year as Burns Floats $5.3 Billion Runway
Updated
Updated · Deadline · Jun 4
Lionsgate Says AI Will Save Tens of Millions a Year as Burns Floats $5.3 Billion Runway
2 articles · Updated · Deadline · Jun 4
Summary
Michael Burns said AI is already being applied across Lionsgate’s film and TV workflow—from specific shots and previewing films to budgeting—and should cut annual costs by “tens and tens of millions of dollars.”
More than $3 billion in studio revenue gives scale to those savings, while Burns said AI also speeds curation of FAST channels, AVOD services and other ways to monetize Lionsgate’s deep film and TV library.
Legal and labor sensitivities still shadow that push: Burns said guardrails around copyrighted work and actors’ likenesses should emerge through cooperation, after AI helped fuel the 2023 Hollywood strikes.
M&A speculation also resurfaced after Lionsgate’s split from Starz, with Burns calling the company an attractive strategic partner and naming private equity, media peers, sovereign wealth funds and AI firms as possible buyers.
Runway—Lionsgate’s AI partner since 2024—illustrates that shift in power: Burns noted the company’s $5.3 billion valuation as evidence that fast-growing AI groups could become credible acquirers.
As AI costs cripple some firms, how will Lionsgate ensure its projected savings become profit, not an expensive Hollywood experiment?
Lionsgate bets its future on AI. How can it shield its 20,000-title library from being stolen by rival AI systems?
Hollywood’s AI Revolution: Inside Lionsgate’s Runway Deal, Productivity Gains, and the Battle for Artistic Authenticity
Overview
In September 2024, Lionsgate announced a groundbreaking partnership with Runway, a leading generative AI company, marking a first-of-its-kind initiative in Hollywood. This collaboration aims to deeply integrate artificial intelligence into the filmmaking process, with Runway’s CEO, Cristóbal Valenzuela, highlighting the company’s mission to empower artists and studios through robust AI tools. These tools are designed to augment creative workflows and unlock new storytelling methods, reflecting Valenzuela’s belief that technological advancements have always shaped art and that the best stories are still ahead. The partnership positions AI as a transformative force to enhance, not replace, human creativity in film.