Starz Subscribers Reach 17.6 Million, Losses Narrow Post-Lionsgate Split
The premium TV media company Starz, now operating independently after its split from Lionsgate, ended 2025 on a positive note. The company narrowed its losses to $20.7 million in the fourth quarter of 2025, a significant improvement from the $31.8 million loss in the same quarter of 2024. This positive trend is attributed to a steady increase in subscribers and a strategic shift in business operations.
During the October-December quarter, Starz reported a total of 12.7 million U.S. streaming subscribers, a growth of 370,000 customers from the previous period. This growth contributed to a total subscriber count of 17.6 million across all platforms, an increase of 170,000 subscribers. However, it's worth noting that Canadian customers are no longer included in these totals, as Starz transitioned from a joint venture with Bell Media to a content licensing agreement.
Despite the positive subscriber growth, Starz faced some financial challenges. The company reported content write-offs of $7.1 million and transaction and 'other' costs of $2.3 million during the three-month period. Streaming revenue for the quarter was $210.3 million, a slight decrease from the previous year's $239 million. However, linear and 'other' revenue rose to $112.5 million, up from $105.5 million in the previous year.
Starz CEO and President Jeffrey Hirsch expressed optimism in a letter to shareholders, stating, 'Just nine months after our separation, we are beginning to see the full impact of operating as a standalone company. We exceeded all our financial guidance in 2025 and expect 2026 to be a positive financial inflection point.' Hirsch highlighted the company's disciplined investment strategy, efficient operating model, and strong programming slate as key factors in driving sustainable OTT revenue growth and improving profitability.
Despite the positive outlook, Starz reported a loss per share of $1.24 on $322.8 million in revenue, slightly lower than Wall Street's forecast of an 85-cent loss per share on $322.2 million in revenue. However, the operating loss dropped significantly from $21.2 million in 2024 to $4.7 million in 2025.
As Starz continues to navigate its post-split journey, the company remains focused on its long-term targets, aiming to drive sustainable OTT revenue growth, expand profitability, and improve free cash flow. With a strong foundation and a strategic vision, Starz is poised to make significant strides in the competitive TV media landscape.
