LOS ANGELES, Starz, newly independent after its split from Lionsgate, reported a challenging second quarter on Thursday, August 14, 2025, with a 7.4% revenue decline to $319.7 million from $347.6 million a year earlier. The company swung to a $27 million operating loss, compared to a $10.1 million operating income in the same period last year. The financial hit, detailed in a report by Variety, comes alongside a significant subscriber drop, with Starz shedding 520,000 total subscribers across its platforms.
The company’s over the top (OTT) streaming service lost 120,000 subscribers in Q2, ending with 12.2 million streaming subscribers in the U.S. Linear and other revenue also fell, dipping to $98.6 million from $113.2 million a year ago. Total U.S. subscribers stood at 17.6 million, down 410,000 from Q1, while Canada saw a loss of 110,000 subscribers, leaving Starz with 19.1 million North American subscribers. During an after market analyst call, CEO Jeffrey Hirsch attributed the subscriber declines to “continued pressure on linear subscribers and lower OTT subscriber additions,” pointing specifically to the underperformance of BMF’s fourth season, which fell short of advertising expectations.
Hirsch remained optimistic, highlighting the recent premiere of Outlander: Blood of My Blood as a bright spot, noting it delivered the third-highest series premiere subscriber additions in Starz’s history. “Our content strategy continues to resonate with our audience,” he stated, forecasting sequential revenue and subscriber growth in the second half of 2025. He also teased the return of the Spartacus franchise with Spartacus: House of Ashur, featuring an African American female gladiator to appeal to Starz’s core female and African American demographics. The series, ordered from Lionsgate Television in 2023, marks a continued partnership post-split. “The relationship is as strong, if not better, than it was before we separated,” Hirsch noted.
Investors, however, sent Starz shares down 6.3% to $14.39 in after-hours trading. Hirsch argued the stock is undervalued, emphasizing Starz’s “phenomenal tech back end and data stack” as a foundation for future growth and potential mergers. With upcoming content like Spartacus and a focus on digital expansion, Starz aims to reverse its subscriber slide in Q3.
Source: Variety
