What Happened to Starz?
Starz, initially launched in 1994 as a premium cable network, has successfully transitioned into a prominent streaming service. After being acquired by Lionsgate in 2016, it spun off as an independent publicly traded company (NASDAQ: STRZ) on May 7, 2025, to focus on a digital-first strategy and original content for women and underrepresented audiences. As of mid-2026, Starz is navigating a competitive streaming landscape, aiming for increased profitability and positive free cash flow.
Quick Answer
Starz, a premium cable network and streaming service, became an independent publicly traded company (NASDAQ: STRZ) on May 7, 2025, after its separation from Lionsgate. The company is currently pursuing a digital-first strategy, emphasizing original programming tailored for women and underrepresented audiences. Starz reported 12.7 million U.S. OTT subscribers at the end of 2025 and is projecting significant financial improvements in 2026, including positive unlevered free cash flow and an accelerated timeline for achieving a 20% margin by late 2027. It has also shifted its reporting focus from quarterly subscriber counts to revenue and profitability.
📊Key Facts
📅Complete Timeline14 events
Starz! Launches
Starz! (initially stylized with an exclamation point) launched as a premium subscription movie service, a joint venture between TCI and Liberty Media.
Liberty Media Gains Full Control
Following TCI's merger with AT&T Corporation, Liberty Media assumed full ownership of the corporate entity operating Starz.
Rebranded to 'starz'
Starz introduced a new logo and was rebranded as 'starz' in all lowercase.
Spins Off as Independent Starz Inc.
Liberty Media spun off its Liberty Starz subsidiary, which then became the independent publicly traded company Starz Inc.
Acquired by Lionsgate
Lionsgate completed its acquisition of Starz Inc. for $4.4 billion in cash and stock, making Starz a subsidiary of the larger media conglomerate.
Sony Output Deal Ends, Moves to Netflix
Sony announced it would not renew its first-run film output agreement with Starz, choosing instead a new deal with Netflix, impacting Starz's film library.
Lionsgate Announces Starz Spin-Off Plan
Following its acquisition of Entertainment One, Lionsgate revealed its intention to separate its film and television studio assets from Starz.
Starz Spins Off from Lionsgate, Becomes Independent
Starz officially completed its separation from Lionsgate, becoming an independent publicly traded company (NASDAQ: STRZ), focusing on digital growth and bundling.
Outlines New Post-Lionsgate Strategy
Starz details its new strategy as an independent company, emphasizing original content for women and underrepresented audiences and leveraging bundling deals.
Reports Strong Q4 2025 Results and 2026 Outlook
Starz reported exceeding its 2025 financial guidance, with 12.7 million U.S. OTT subscribers, and projected 2026 as a 'financial inflection point' with positive free cash flow.
Doubles Down on Women and Underrepresented Audiences
Starz reaffirms its strategic commitment to serving women and underrepresented audiences with premium, scripted storytelling, differentiating itself in the streaming market.
Exits Universal Film Deal, Accelerates Margin Target
Starz reported Q1 2026 results, showing positive operating cash flow. It also exited a Pay 2 film deal with Universal and moved up its 20% margin target to late 2027.
Announces Q2 2026 Earnings Call
Starz announced it would report its second-quarter financial results for 2026 on August 7, 2026, with an accompanying analyst and investor conference call.
Announces August 2026 Programming
Starz released its schedule for August 2026, detailing new movie and TV titles to be added to the service.
🔍Deep Dive Analysis
Starz, originally launched as 'Starz!' on February 1, 1994, began as a premium subscription movie service under a joint venture between Tele-Communications Inc. (TCI) and Liberty Media. Over its early years, ownership consolidated under Liberty Media by 1999, and the network underwent several rebrandings, including a shift to 'starz' in lowercase in 2005 and 'STARZ' in uppercase in 2016.
A significant turning point occurred on December 8, 2016, when Lionsgate acquired Starz Inc. for approximately $4.4 billion in cash and stock. This integration aimed to create a vertically integrated content powerhouse. However, by late 2023, Lionsgate announced plans to separate its studio business from Starz, driven by concerns that the combined entity was undervalued and that Starz was impacting the company's market value.
The long-anticipated spin-off was finalized on May 7, 2025, with Starz becoming an independent publicly traded company listed on the Nasdaq under the ticker symbol STRZ. This separation allowed Starz to pursue its own strategic, financial, and operational priorities, with a renewed focus on digital growth and direct-to-consumer offerings.
Post-spin-off, Starz has adopted a 'digital-first' network strategy, targeting key demographics such as women and underrepresented audiences with its original scripted series. The company aims to leverage bundling partnerships with larger platforms like Apple, Amazon, and YouTube to expand its reach. Financially, Starz reported 12.7 million U.S. OTT subscribers by the end of 2025, an increase of 7.6% year-over-year, and exceeded its adjusted OIBDA outlook for 2025, reaching $204 million.
Looking ahead to 2026, Starz management, led by CEO Jeffrey Hirsch, views it as a 'financial inflection point.' The company expects to generate between $80 million and $120 million in unlevered free cash flow and reduce its leverage ratio to approximately 2.7x by year-end 2026. Starz has also accelerated its target for achieving a 20% margin to the back half of 2027, a year ahead of previous guidance, partly due to exiting a Pay 2 film deal with Universal and increasing its owned original content library. The company has announced it will no longer disclose quarterly subscriber counts, instead focusing on OTT revenue growth, profitability, and cash flow.
What If...?
Explore alternate histories. What if Starz made different choices?