Starz reported $308 million in second-quarter revenue, down 4% year over year, while streaming performance stabilized following the company’s decision to end its Universal film output agreement.
Starz reported $308 million in revenue for the second quarter of 2026, representing a 4% decline from the same period last year. The company also recorded a $147 million charge** connected to the termination of its film output agreement with Universal.
The company’s streaming business showed signs of stabilization during the quarter, although revenue from streaming remained under pressure. Starz has been reshaping its content strategy as it focuses on controlling costs and increasing the share of programming that it owns.
The decision to end the Universal agreement follows Starz’s earlier assessment that the deal was generating less viewing than expected. The agreement had provided Universal films to Starz, but the company said overlapping audiences with Amazon contributed to lower-than-projected viewership. Starz plans to replace the content through acquisitions that offer better economics.
Starz has also been expanding its original programming strategy. The company aims for owned original productions to represent 50% of its content slate by 2027**, while continuing to reduce content costs and improve profitability. Management has moved its target of reaching a 20% operating margin to the second half of 2027, earlier than previously projected.
The company has also stopped reporting subscriber figures on a quarterly basis and increased its monthly price to $11.99 in April. Executives said subscriber engagement and customer retention have shown encouraging signs as Starz adjusts its business following its separation from Lionsgate.
