Lions Gate Entertainment reveals that revenues in the video-on-demand market grew by around 50 percent from last year, and part of this growth is attributed to the inroads the distributor has made in services like the Xbox Live Video Marketplace. While its digital revenue base was admittedly small to begin with, Lions Gate has nonetheless expressed interest in continuing to leverage digital distribution for its film titles.

Lions Gate CEO Jon Feltheimer revealed that video-on-demand sales for hit film Employee of the Month "exceeded USD 3 million on a film that grossed about USD 27 million at the domest box office".

He added, "Our VOD revenues grew by approximately 50 per cent in fiscal 2007 from the previous year... Our Internet delivered digital revenue grew by a multiple of seven in fiscal ’07 compared to the prior year, although obviously from a relatively small base."

Company president Steve Beeks observed, "This is an extremely promising sign for our entire library and the power of the virtual shelf space of digital delivery."

Wolfwood via gamesindustry.biz »