Starz Shrinks Loss, Grows Revenue in Third Quarter Amid Digital-Led Transformation

The digital-led transformation at Starz showed dividends in the third quarter, with a revenue rise and a narrowed operating loss.

During the three months ending Sept. 30, overall revenues at the premium cabler were $322.4 million, just up from a year-earlier $320.9 million. That beat an analyst consensus for $319.5 million in overall revenues for the third quarter.

Higher OTT streaming revenue at $226.6 million on higher subscription rate renewals and following an April 2026 price hike. That came as linear and other revenue fell back to $95.8 million in the quarter. The year-over-year decline in linear revenue was partially offset by increased distribution revenue as Starz premiered its first original series since separating from Lionsgate, Fightland, on July 31. A second season for Fightland is in development.

Starz also premiered the finale of Power Book III: Raising Kanan and season two of Outlander: Blood of My Blood to extend that franchise. And the platform touted the launch in August of Antoine Fuqua’s Michael biopic on Starz after its breakout theatrical run, having helped drive subscriber acquisition and engagement for Starz as its best-ever performing Pay 1 title.

“Our third-quarter results reflect the continued strength of the business and our focused execution against our four key financial priorities,” Starz president and CEO Jeffrey Hirsch said in a statement that accompanied the financial results. “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.”

Hirsch underlined that optimism during an after-market analyst call where he reiterated his company’s 2026 outlook in key metrics: “The business is performing ahead of plan, despite a tough operating environment for many in the industry.”

Starz reported a narrowed net loss of $34.8 million, against a year-earlier $52.6 million net loss, and adjusted OIBDA at $44.2 million. The latest operating loss included a net benefit of $8.3 million when recognizing reduced programming contract termination fees and content impairment charges that offset severance and other costs during the latest quarter.

Cleaning up the balance sheet comes amid a strategic shift to digital services and streaming TV growth to go beyond legacy linear cable packages. After its separation from Lionsgate in May 2025, Starz has also looked to develop its own IP in-house and on a lower per-episode content cost overall, and to draw from within the Power and Outlander universes for new series.

The latest financial results also follow the media company reaching a new distribution agreement to restore its channels, Starz On Demand and the Starz app to Verizon Fios after a three-week carriage dispute. “Ultimately, we think we got to a good place,” Hirsch told analysts about renewing the Verizon deal after settling a carriage dispute, without being specific on the deal points.

Alison Hoffman, president of Starz Networks, said additional bundling of her premium service after recent deals with Peacock and Crunchyroll will continue. “We are built to be bundled. We are a complementary service. We will be in the bundling and ultimately the repackaging of the industry,” she told analysts.

NBCUniversal recently unveiled a pact with Starz to make the streaming destination for the Outlander and Power franchises available to select Peacock subscribers for $11.99 a month. And Sony’s Crunchyroll partnered with Starz on its first traditional streaming bundle to grow its anime streaming service in the U.S. market.

Hoffman also talked up Amazon recently launching a five-service streaming bundle on Prime Video that combines AMC+, BritBox, MGM+, PBS Masterpiece and Starz. “As you add more and more services, it starts to look like packaging. It starts to look like a tier. It really starts to resemble the old days of cable,” she said.

Hoffman also said Starz was on the hunt for more tentpole acquisitions to drive audience engagement and a new customer base after the success of launching in September SWAT Exiles, a spinoff of CBS’ SWAT series and starring Shemar Moore.