STARZ adds streaming subs, but other earnings data not so rosy
STARZ adds streaming subs, but other earnings data not so rosy
The company suffered losses in its linear audience, and losses widened as compared to the year-ago quarter.
Earnings report season is in full swing, and STARZ is the latest company to drop its report to the public. STARZ published its third-quarter earnings this week, and while the data held good news for those tracking the company’s streaming success, its other results were unfortunately far less encouraging as STARZ tries to forge its path as an independent company.
Key Details:
- Target missed: STARZ lost $52.6 million during Q3, missing Wall Street expectations.
- Streaming bright spot: The company added 110,000 streaming subscribers in the quarter.
- Not enough: When combined with linear losses, STARZ shed 130,000 net customers in the quarter.
STARZ didn’t meet Wall Street expectations during the third quarter of 2025, posting a loss of $52.6 million and a revenue step-back of 8% to $320.9 million. Its linear subscribership suffered as well, as the company lost 240,000 subs to land at 5.17 million. STARZ ended the second quarter with 5.4 million linear customers.
The company was able to add 110,000 streaming customers in the third quarter, rising to 12.3 million total. Over-the-top revenue was $222.8 million in the third quarter, as compared to $232 million in the year-ago quarter. In Q2, STARZ lost 120,000 streaming subscribers, so it has at least made up for those losses heading into the final three-month period of the year. Overall, STARZ now has a total of 17.5 million streaming and linear subscribers.
“Starz continues to execute well in a rapidly changing operating environment,” CEO Jeff Hirsch said during the company’s earnings call. “While the media industry continues to face significant headwinds, we are confident in our ability to deliver on our plan, and we are well-positioned to take advantage of the structural changes we expect to take place in the sector over the next 12-24 months.”
STARZ plans to decrease its year-over-year content investment to help improve its free cash flow, and Hirsch told analysts he believes that the company can improve its audience size without having to resort to price increases to generate more revenue.
The company may also be looking to acquire more assets in the future via mergers and acquisitions. Hirsch said that STARZ is “uniquely positioned” to pursue viable assets, thanks to its “track record of profitably converting our business from linear to digital and our industry-leading tech stack.” The CEO did not comment on the assets that he had his eyes on.
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.”