NEW YORK (TheStreet) -- Lions Gate Entertainment (LGF) is not enemies with video-streaming service Netflix (NFLX), despite its push into television with its $4.4 billion acquisition of premium cable TV channel operator Starz earlier this year, Lions Gate Vice Chairman Michael Burns said on CNBC's "Squawk Alley" on Tuesday morning.
"Someone asked the other day if Netflix is a friend, enemy or frenemy. But what they really are is a customer," Burns noted.
His comments come after Netflix said on Monday during its 2016 third quarter earnings call that it wants to move away from licensing shows from companies like Lions Gate so that it can own the shows, observed CNBC's Julia Boorstin.
Lions Gate isn't worried about that claim, Burns said, adding that carriers have made similar statements in the past, but they are always willing to compete for good content.
"I will tell you that when we have a show that a bunch of buyers want, we typically get a deal very similar to what we're looking for," he said.
Lions Gate is "a benevolent arms dealer," meaning it will sell its content to anyone, and it usually has a "lot of competition" for shows, Burns noted.
In fact, Netflix just ordered a show called "Dear White People" from Lions Gate, in addition to past and ongoing successes, such as "Orange is the New Black," Burns pointed out.
Lions Gate stock is down over 40% year to date and that includes the period in which it purchased Starz, noted Boorstin.
"I think the market hates uncertainty," replied Burns.
In addition, Lions Gate did not have a great year theatrically, but that should improve this year, he claimed.
With the addition of its television business and the Starz deal and other new ventures, 80% of its contribution will be coming from "very reliable cash flows" rather than the "very volatile motion picture business," he pointed out.
In addition, the company is working on producing some potential franchises, which can always provide a boost, Burns said.
"If you get lightening in a bottle with a 'Hunger Games' you can make a ton of dough," he said.
After Monday's market close, Netflix reported earnings of 12 cents per share, beating analysts' estimates of 6 cents per share. Revenue for the quarter came in at $2.29 billion, slightly surpassing estimates of $2.28 billion.
Shares of Lions Gate were higher in early afternoon trading, while shares of Netflix were surging by 19.61% to $119.37.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings team rates Lions Gate as a Hold with a ratings score of C. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.
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