Starz Charts a New Course: Streaming Growth Amidst Strategic Realignment

Fourth Quarter 2025 Performance: A Tale of Two Subscriber Trends

During the final quarter of 2025, Starz successfully expanded its over-the-top (OTT) subscriber base by 370,000, bringing its total streaming customers to 12.66 million. This growth is attributed in part to the strong performance of its original scripted content, including the third season of Power Book IV: Force and the debut season of Spartacus: House of Ashur. Conversely, the platform saw a reduction of 200,000 linear television subscribers during the same period.

Shifting Focus: From Linear TV to Streaming Dominance

The U.S. linear subscriber count for Starz concluded the fourth quarter at 4.97 million. Notably, the company reported no Canadian linear TV subscribers, a direct consequence of a strategic pivot in November 2025. Starz transitioned from a joint venture in Canada to a content licensing arrangement with Bell Canada, a move designed to free up capital for investing in original productions and to re-emphasize growth in the U.S. market.

Overall Subscriber Decline and Future Reporting Strategy

The total Starz Networks subscriber base decreased from 19.2 million in the third quarter to 17.63 million by the end of the fourth quarter. In a significant announcement, Starz CEO Jeffrey Hirsch revealed that the company would discontinue public reporting of subscriber numbers starting from the first quarter of 2026. This decision, he stated, aligns with the company's long-term objectives of focusing on sustainable OTT customer and revenue growth, alongside profitability targets, and is deemed to be in the best interest of its shareholders.

Financial Highlights: Narrowing Losses and Positive Outlook

For the fourth quarter, Starz recorded total revenue of $322.8 million, a slight decrease from $344.5 million in the previous year but an increase from $321 million in the third quarter. OTT revenue saw a decline to $210.3 million from $239 million year-over-year, while linear and other revenue improved to $112.5 million from $105.5 million. The company successfully reduced its net loss to $20.7 million, a notable improvement from the $31.8 million net loss reported in the same period of 2024.

Leadership's Vision: Sustainable Growth and Profitability

Jeffrey Hirsch, President and CEO of Starz, expressed optimism regarding the company's trajectory, stating that the firm surpassed all financial guidance targets for 2025. He anticipates 2026 to be a crucial turning point, marked by record-high OTT subscriber numbers and a stronger balance sheet. Hirsch emphasized a disciplined investment strategy, an efficient operating model, and a robust programming slate as key drivers for achieving sustainable OTT revenue growth, expanded profitability, and improved free cash flow in the long run.