Starz Q2 Revenue Drop 8%, Streaming Subs Down After Lionsgate Split

Starz saw an 8% drop in revenue for its April 1-June 30 earnings, the now-standalone media company reported Thursday.

Additionally, Starz ended the three-month period with 12.2 million streaming subscribers in the U.S., down from 13.04 million in the prior quarter, before its split from Lionsgate. Total Starz domestic subscribers fell to 17.6 million, down 410,000 from the end of March.

Adding in Canada, total North American subscribers were 19.1 million, a drop of 520,000 customers. Starz says Canadian subscribers declined by 110,000 in the quarter “due to continued linear declines and lower OTT subscriber additions.”

Starz reported a net loss of $42.5 million ($2.54 per share) on $319.7 million in revenue for the quarter.

“In the three months since becoming a standalone public company, we have made significant progress toward achieving our key financial and operating objectives,” said STARZ President and CEO Jeffrey Hirsch. “Our content strategy continues to resonate with our audience as the subscriber additions from last weekend’s ‘Outlander: Blood of my Blood’ premiere were the third highest for a series premiere in Starz’s history. “Looking ahead, our highly compelling slate, coupled with an improved cost structure puts us on a clear path to achieving our key objectives: returning to revenue growth, improving our margins, and increasing our conversion of Adjusted OIBDA to free cash flow.”

Starz officially separated from Lionsgate after a three-year process on May 7, when the Starz stock began trading on the Nasdaq under the symbol “STRZ.”

In May, Starz reported total revenue of $330.6 million for its Jan. 1-March 31 quarter (its Q4 for fiscal 2025), down 6.2%, and an operating loss of $136.3 million (compared with an operating loss of $30.8 million). Starz did not report earnings per share for that quarter, noting it would begin EPS reporting with the quarter ending June 30, 2025.

At that time, Starz said it had gained 470,000 streaming subscribers in the period, to reach 13.04 million overall — while total subscribers fell 330,000 because of the loss of a Starz linear TV carriage agreement in Canada.

(Pictured above: Starz’s “Power Book III: Raising Kanan.”)