Starz CEO Jeff Hirsch on New Media Landscape, Content Strategy, and Subscriber Growth

Starz's New Independent Strategy

• 🚀 Following its separation from Lionsgate, Starz is adopting a leaner strategy as an independent, publicly traded company.
• 🎯 Key initiatives include cutting content costs, increasing ownership of its shows, and pursuing bundling deals.
• 💰 The company aims to reduce debt to two times its market cap, focusing on financial health.

Content Spend and Ownership

• 💡 Starz plans to own more of its own shows to gain ownership economics, control costs, and create new revenue streams.
• 📺 The strategy emphasizes producing great content, with shows like 'Outlander' and the 'Power Universe' being central to their success.
• 💰 Current content cost is around $7 million per hour, with a goal to reduce it to $5.5 million per hour.

Digital Pivot and Subscriber Growth

• 📈 Starz has successfully pivoted to digital, with 70% of its $1.4 billion revenue now coming from digital sources.
• 🎯 80% of customers are add-ons, indicating strong consumer choice and content appeal.
• 📊 The company reported record subscriber growth in the last quarter, with a US base increase of nearly 2%.
• 🏠 The addressable market in the US and Canada is estimated at 80 million homes, with Starz currently serving around 20 million.

Focused Programming and Value Proposition

• 🎯 Starz maintains a focused programming strategy on women and underrepresented audiences, positioning itself as a leader in these demos.
• 🚫 The absence of advertising allows creators to take different approaches compared to broad-based, ad-focused streamers.
• 🌟 This mission-driven approach attracts creators who want to be part of Starz's specific focus, as seen with the acquisition of the book 'All Fours'.

Future Outlook and Industry Position

• 🧩 Starz has built its own tech platform, enabling it to scale and remain nimble in a rapidly changing media landscape.
• 🤝 The company sees opportunities to help scale linear networks that lack a digital future, particularly those focused on Starz's target demographics.
• 💰 Despite a recent operating loss, the company achieved an adjusted gain of $92 million, demonstrating profitability on an adjusted basis.