STARZ Drops 800,000 Subscribers in Third Quarter; Revenue Dips As Well
STARZ Drops 800,000 Subscribers in Third Quarter; Revenue Dips As Well
The company pointed to a recent price increase as the biggest reason for last quarter’s subscriber loss.
The quarter ending on September 30 was one that Lionsgate would likely choose to forget. The company — which is still entangled with the STARZ streaming service and cable network — turned in a disappointing quarterly earnings report on Thursday, one which showed another loss in streaming customers accompanied by a dip in segment revenue.
Key Details:
- STARZ lost 800,000 subscribers in its fiscal second quarter.
- Revenue from media networks dipped $70 million year-over-year.
- Executives are hopeful for a rebound in STARZ subscribers in the current quarter.
The STARZ direct-to-consumer service’s results were folded into Lionsgate’s Media Networks segment, which still posted a $26.9 million profit in the quarter. That was essentially the only sliver of good news in that part of the company’s earnings report, however.
STARZ lost 800,000 customers during the quarter, dropping from 13.2 million in Q1 to 12.4 million currently. Lionsgate said this loss was not unexpected and was largely due to the $1-per-month price increase that STARZ enacted in September.
Segment revenue in North America was $347 million, with most of that driven by the STARZ linear channel and streaming service. That was a shortfall of around $70 million year-over-year; in 2023, Lionsgate Media Networks pulled in $416.5 million.
On the linear side, the Starz cable channel also lost viewers in North America, though not as many. It ended Lionsgate’s first quarter with 8.1 million subscribers and finished Q2 with 7.75 million, a decline of 350,000.
Lionsgate’s earnings report indicates that it expects to see subscriber growth from its streaming segment once again in the current quarter. STARZ is bringing back one of its most popular shows in “Outlander” later this month, which it may be counting on to bring audiences back to its platform.
Lionsgate and STARZ are still on the path to separating into two publicly traded companies by the end of 2024.
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.”