Starz’s September-quarter results are less about the size of the revenue beat and more about the structure behind it. After splitting from Lionsgate Studios in 2025, the company is tilting its slate toward owned originals, and Q3 offered a clear read on how that shift flows through the financials.
Revenue holds, losses shrink
Total revenue rose to $322.4 million from $320.9 million a year earlier. OTT made up $287 million of the total, up year-on-year, while linear slipped to $95.8 million. The top-line result came in ahead of Wall Street forecasts.
The split is the better read than the headline. Starz grew OTT while absorbing a linear decline; that mix shift is what investors are paying for, because digital revenue can scale without the carriage friction that hits linear.
The company did not give a single net-loss figure in the release but said losses narrowed significantly. Starz closed the quarter with $86.8 million in cash and cash equivalents and $687.5 million in total debt; shares were flat on the day but have gained 85% year to date.
The ownership shift behind the number
CEO Jeffrey Hirsch framed the quarter as early proof of a more durable model:
“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.”
The Q3 slate made that concrete. Fightland, the company’s first owned series, premiered. Michael became the best-performing Pay 1 title in Starz history. The two play different roles:
- Owned originals stay in the Starz library and can be monetised across windows and geographies.
- Pay 1 films are acquisition tools; their value is highest when they convert viewers into subscribers who stick around.
- Portfolio programming spreads risk and smooths revenue, rather than betting a quarter on one event title.
For media planners, that is the real signal: Starz is prioritising titles it controls. Every owned hour has a longer payback period than a licensed movie that disappears when the window closes.
Q4 is the next test
The current slate adds the final season of P-Valley, two new Power Universe series, and another Starz-owned original—the untitled Black Rodeo series—now in production. P-Valley and Power Universe carry established audiences, so their job is retention as much as acquisition.
The quarter will show whether the ownership strategy can sustain revenue without a one-off blockbuster doing the heavy lifting. Distribution is the quieter thread: Starz reached a new agreement with Verizon Fios in October after a dispute and blackout, one of several new distribution agreements over the last four months. For a business with a shrinking linear base, rebuilding carriage is as meaningful as adding streaming subscribers.
Hirsch was scheduled to host an analyst call at 5 p.m. ET. Listen for any update on guidance or subscriber detail.
Source: Deadline
