STARZ ending Pay-2 deal with Universal
STARZ ending Pay-2 deal with Universal
The conclusion of the agreement means Universal films will no longer be available on STARZ following their first streaming stop.
STARZ is celebrating one year since completing its split from Lionsgate, and it’s still trying to stand on its own two feet. The company’s earnings report from the first quarter of 2026 had mixed results, but it was accompanied by a major announcement from CEO Jeff Hirsch: STARZ is exiting its Pay-2 streaming deal with Universal.
Key Details:
- We’re out: STARZ is ending its Pay-2 deal with Universal.
- Not enough profit: Hirsch explained that Universal’s unique Pay-1 strategy isn’t leaving much meat left on the bone for STARZ.
- Up and down: Financial results for the company were mixed in Q1.
STARZ will no longer receive movies from Universal after they have wrapped their Pay-1 windows. Originally, the deal was planned to run through the end of 2028, but as Hirsch points out, the unique structure of Universal’s Pay-1 window doesn’t leave much viewership for STARZ to scrape once it gets its hands on the movies.
Universal movies follow a strange path once they’re sent to streaming. The studio’s films are initially released on Peacock for a period of four months, then move to another streamer for 10 months, before moving back to Peacock or being licensed to another streamer.
Previously, Amazon’s Prime Video was the recipient of live-action Universal movies after their initial debut on Peacock. In January 2026, Netflix took over as the live-action streaming partner of Universal movies that are between stays on Peacock, entering the picture one year earlier than originally planned. But as Hirsch explains, by the time all this shuffling ends and movies hit STARZ, the demand for them has essentially evaporated.
“This unique dynamic with Amazon has resulted in lower viewership than we originally projected,” the CEO said. “In order to replace the revenue component of the Pay 2, we will reinvest and acquire high-performing titles at superior economics. We are thankful to our partners at Universal for working with us to find a mutually beneficial solution.
Hirsch’s announcement came as part of STARZ’s earnings report for the first quarter of 2026. The company saw net losses widen slightly from $154 million to $165 million, but enjoyed a higher adjusted EBITDA and equity-free cash flow than Wall Street predicted it would during the quarter. Like many other streamers, STARZ no longer reports its subscriber totals publicly every quarter.
STARZ
STARZ offers a subscription video streaming service that gives access to content on the STARZ channel without the need of a cable subscription. With your subscription, you’ll get access to 7,500+ films and episodes, including all of their current originals like “Outlander,” The Serpent Queen,” “BMF,” and “Power.”