28 MAY 2021

STARZPLAY ACHIEVED A 70% YEARLY GROWTH

After losing $37.7 million in Q4, but surpassing $67 million revenue projections, the company, which recently reached 29.5 million total subscribers, is on track to reach nearly 60 million global subscribers by 2025.

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Lionsgate-owned streaming service Starzplay saw a 70% rise in its subscriber base in the year to March, taking the total for the service to 8.6 million with an expanded global footprint. The company said it had reached 29.5 million total subscribers in its fiscal fourth-quarter report, 16.7 million of those streaming. It sees a path to reach nearly 60 million global subscribers by 2025. “Starzplay’s international expansions would continue to be based on offering a targeted premium service, not a broad general entertainment platform, one that can sit on top of other platforms, and one that is defined by its exceptionally curated competitively price premium grown-up content," CEO Jon Feltheimer said.

 The overall Starz streaming and pay-TV offering grew subscribers by 23% year-over-year to March, ending the year 29.5 million global subscribers at year-end, excluding close to one million subs from US Spanish-language streaming service Pantaya. Lionsgate sold its 75% stake in the latter, launched in 2017 as a JV with Hemisphere Media Group, in April for US$124 million in cash. The company said that linear subscribers declined to 12.8 million while total global media network over the top subs reached 16.7 million representing 69% year-over-year growth.

The overall OTT base grew by three million sequentially, or by 22%, including Starzplay Arabia. Starz domestic OTT subs grew by 5%, exceeding the company’s fiscal year-end target of 13 to 15 million “and taking us past the digital inflection point of more over the top than linear subscribers”.

Starz surpassed 10 million streaming subs in the US, up 47%, with 80% of domestic subs now on OTT catalogs, as well as growing its international business. Feltheimer said that the company planned to ramp up its scripted series slate for Starz by 70% through 2022, including new seasons of Outlander and Ghost and news series "Blindspotting," "Heels" and "Shining Vale." Declining revenue in the Motion Picture segment was once again due to continued theater closures because of the coronavirus pandemic but was partially offset by higher library revenues. The studio also pivoted to online release strategies for films like “Run” and “Fatale.” The TV segment saw a profit of $9.1 million compared to $21.5 million in the prior-year quarter due to the timing of series deliveries.