Netflix announced it will be moving toward producing more original content, but Lionsgate Vice Chairman Michael Burns told CNBC on Tuesday that content licensing from other producers isn't going anywhere.
In an interview on "Squawk Alley," Burns said he has been hearing about channels and platforms wanting to develop their own original content for decades.
At the end of the day, he said, those platforms have little choice but to license content when other media companies produce shows or movies that buyers want.
"We're a benevolent arms dealer, so we'll sell to anyone," Burns said, "and we usually have a lot of competition for our shows."
And, as long as platforms like Netflix and Hulu have enough differentiated content, helped in part by licensing from outside sources, their businesses will remain strong, he said.
"We think that there's plenty of room for all of these players," Burns said, adding that Lionsgate has recently partnered with CBS, Amazon and Hulu to create shows on their respective platforms.
Burns said that now, Lionsgate is developing content with the aim of franchising, in the face of a dip in the company's stock following several less-than-successful motion picture releases earlier this year.
"[This year]'s going to be a much better theatrical year than it was last year," the media executive said.