STARZ revenue rises, losses shrink in Q3
STARZ revenue rises, losses shrink in Q3
The company’s transition from linear to digital-first paid dividends in the third quarter.
Can a premium cable channel successfully transform itself into a streaming-first company without having billions in revenue every quarter to fall back on? STARZ is trying to prove that it can, and the company’s third-quarter earnings report shows definite progress in its goal of cultivating a robust and loyal streaming audience.
Key Details:
- Making more: Streaming revenue hit $226.6 million for STARZ in Q3.
- Losing less: The company narrowed its net loss to $34.8 million.
- I’m out: Media mogul Byron Allen has sold his 10.7% stake in STARZ.
STARZ generated $322.4 million in total revenue during the third quarter of 2026, beating Wall Street estimates of $319.5 million. Most of that total was generated by the STARZ direct-to-consumer service, which brought in $226.6 million thanks to greater subscription renewals.
Linear revenue slipped to $95.8 million in the quarter, making it clear once again that the future of the service is digital. There were some major premieres on STARZ during the third quarter, with “Outlander: Blood of My Blood” Season 2 debuting and the finale of “Power Book III: Raising Kanan” also dropping.
STARZ was also able to trim losses during the third quarter, from $52.6 million in the year-ago quarter to $34.8 million in Q3 2026. In short, STARZ has been able to boost the amount of streaming revenue it generates and narrow losses in 2026, showing the company is on the right track following its split from Lionsgate in 2025.
The end of the third quarter also ushered in a carriage dispute with Verizon that knocked STARZ channels off Verizon Fios on Oct. 1. But a few weeks later the two sides struck a new deal that restored STARZ channels to Fios, which means the dispute shouldn’t register as too large of a revenue hit to STARZ in the fourth quarter.
“Our third-quarter results reflect the continued strength of the business and our focused execution against our four key financial priorities,” Starz CEO Jeffrey Hirsch said in a statement. “Our portfolio approach to programming is driving a more durable revenue base, and we are just beginning to unlock the financial upside of increased ownership. We remain confident in our outlook and in our ability to continue delivering against our plan and create long-term value for our shareholders.”
Concurrent with the release of its earnings report, one of STARZ’s largest investors has revealed he’s no longer bought into the company. Allen Media Group founder and CEO Byron Allen acquired a 10.7% stake in STARZ in March, after which the company enacted a poison pill provision to prevent hostile takeovers. Allen has now sold all of his shares and will turn a profit of around $20 million from the sale. STARZ executives who were apprehensive about a possible takeover of the company by the deep-pocketed Allen can now rest a little easier.
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.”