Starz CEO Jeffrey Hirsch on Content Strategy, Target Audience, and Streaming Growth

Starz's Strategic Separation and Focus

• 🚀 The separation from Lionsgate is viewed as a correct decision, validating the value of both entities and leading to positive stock performance.
• 🎯 Starz is strategically focusing on two core demographics: women and underrepresented audiences.
• 💡 The programming mandate is centered on narratives "for, by, and about" these target groups, exemplified by shows like "Outlander," "P Valley," and the "Power" franchise.

Content Strategy and Programming

• 📺 Starz offers adult, R-rated content with no advertising, allowing creators to explore narratives naturally.
• 🌟 Key shows like "Outlander" and "BMF" are highlighted as major draws, with "Outlander" having a prequel focusing on the parents of the lead characters.
• 📈 The company boasts five shows that attract 9 to 12 million viewers weekly, positioning them as significant players in the television landscape.

Financial Outlook and Content Investment

• 💰 Starz plans to spend approximately $700 million on content in 2026, encompassing existing franchises, new developments, and pay-one windows for Lionsgate and Universal.
• 📈 The goal is to increase profit margins from 15% to 20% by the end of 2028, partly by owning more content and leveraging international sales.
• ✍️ The company has opened four writer rooms for new shows, aiming to increase the slate of owned content by 2027.

Streaming vs. Linear Business Model

• 🤝 Starz positions itself as a complementary service to broad-based streamers like Netflix and Amazon, rather than a direct competitor.
• 💲 The service is priced below major streamers to reinforce its role as an add-on.
• 📊 While 70% of revenue comes from streaming, the linear business still holds value, with 80% of linear customers actively choosing Starz.
• 📉 There's an observed lessening of cord-cutting losses at the end of the first quarter, suggesting potential stabilization in the traditional business.