It was once one of the most lucrative deals in pay TV: for years, Starz secured the exclusive first broadcast rights (so-called Pay 1 rights) for cinema films from Sony Pictures. For many viewers, this made the channel the first port of call for the latest Hollywood hits. But those golden days are over - today, Netflix and Disney share these rights, and Starz is left with in-house productions and older titles.
The steep rise - and the slow fall
When Lionsgate acquired Starz in 2016 for 4.4 billion dollars, it was supposed to be a win-win situation: studio meets platform - a recipe for growth. But what followed instead were reorganisations, changes of boss and ultimately disappointed expectations.
Between 2005 and 2021, Starz had an exclusive contract with Sony, which secured the channel not only initial broadcasts, but also subsequent broadcasting rights. However, as early as 2013, it became clear that many of the films purchased fell short of expectations. While Sony raised the licence fees significantly several times - by around % in total - many titles grossed less than USD 10 million at the box office. This raised questions about the actual value of the deal.
What Starz really paid
The STARZ Pay-1 Film Rate Report shows how complex such licence agreements are: Prices were staggered according to cinema success, films were sorted into A, B and arthouse categories. The development of subscription figures also played a role in bonus payments. In addition, there were exclusive broadcasting rights with clear limits on the number of broadcasts and conditions for additional remuneration when films were viewed on on-demand platforms.
The end of the partnership and its consequences
The contract with Sony has been history since 2021. Starz now focuses on in-house productions and films from the Lionsgate and Summit portfolio - albeit with less appeal. Selected titles from other studios are also included, but usually only after the end of the Pay 1 phase.
The loss of prominent Sony titles such as Venom, Ghostbusters: Afterlife or The Equaliser 2 weighs heavily - especially as these films were successful even in difficult pandemic times. As a result, Starz has not only lost content, but also negotiating power.
Audience figures stagnate
The change is also noticeable on the subscription side. While Starz still had around 26.6 million subscribers in 2021, the number fell to 24.5 million by 2023. Growth has come to a standstill in the USA and is sluggish internationally under the new "Lionsgate+" brand. An attempt is currently being made to halt the downward trend with a bundled offer together with MGM+.
Conclusion: From licence power to niche player
What was once seen as a prestigious contract has ultimately proved to be an expensive deal with diminishing added value for Starz. While other providers are expanding their own streaming services and retaining exclusive high-quality content, Starz is now struggling with fewer attractive titles, declining visibility and a shrinking subscription model.
The switch to more in-house productions is a logical step - but it may come too late. In an increasingly competitive market, it takes more than nostalgia and long-running series to remain relevant.
FILMTAKE reports in detail.