UPDATE 1-Lions Gate sees distribution windows 'exploding'

* Lions Gate sees video-on-demand window evolving quickly

* Sees premium VOD window being accretive for industry

LOS ANGELES, June 2 (Reuters) - Lions Gate Entertainment Corp (LGF.N) said on Wednesday that offering films earlier than usual through cable at premium prices could offer new opportunities for revenue.

"We think this idea of variable premium pricing ... is a pretty smart way to create new windows, and we actually think it will end up being accretive and should result in a large overall revenue pie, so it is something that we will look at very closely," Lions Gate's co-chief operating officer, Steve Beeks, said on a conference call.

The studio, the target of a hostile takeover bid by billionaire Carl Icahn, said its businesses are performing well and reiterated its shareholders have demonstrated that Icahn's bid of $7 a share is inadequate. Fewer than 4 percent of holders tendered their shares.

The studio, home to the "Saw" films and "Mad Men" television series, reported a narrower-than-expected quarterly loss on Tuesday.

Regarding the industry's new distribution window efforts, Time Warner executives said last week at an investor conference that they too saw good opportunity and great customer demand for a new premium video-on-demand window and were also watching it closely.

Last month, the Wall Street Journal reported that Time Warner Cable Inc (TWC.N) pitched the concept of "home theater on demand" to Hollywood studios -- a scenario in which cable viewers could watch movies at home just 30 days after their release to theaters, for about $20 to $30 per movie.

Movies are usually available for cable viewing about four months after their theatrical release.

Lions Gate Chief Executive Jon Feltheimer agreed there appeared to be new revenue opportunities to be gained through changes and experimentation with the traditional distribution windows.

"We think windows right now are really about to explode, and really for content owners and distributors have really significant improving margin possibilities," he said.

Beeks noted, however, studios need to tread cautiously so as to not alienate traditional partners like movie theater operators.

"I do think of course there are risks, but I think it is something -- if you approach it smartly -- I think you can increase the pie and still protect your traditional partners," he said. (Reporting by Sue Zeidler; Editing by Steve Orlofsky)