Starz reported a widened loss for the first quarter of 2026 as the company marks one year since its spinoff from Lionsgate.
The financial results highlight the challenges the media company faces in maintaining over-the-top (OTT) growth while attempting to establish a sustainable independent corporate structure.
According to financial reports, OTT revenue for the first quarter of 2026 was $211.1 million [1]. This represents a decline from the $225.5 million [1] reported during the year-ago quarter. In addition to the dip in streaming revenue, the company reported linear and other revenue of $95.8 million [1] for the same period.
Despite the widening losses and the drop in streaming income, leadership maintains that the separation from its former parent company was a positive strategic move. The company is currently focusing on its operational efficiency, and long-term viability as a standalone entity.
"We are structurally stronger than when we were part of Lionsgate," Jeff Hirsch, CEO of Starz, said.
The earnings release, published this Thursday, provides the first comprehensive look at the company's fiscal health since it became an independent entity. The decline in OTT revenue suggests a tightening market for premium streaming services, a trend seen across the broader media landscape as consumers consolidate subscriptions.
While the revenue numbers show a downward trend, the executive leadership continues to emphasize structural improvements over immediate quarterly gains. The company is now tasked with balancing its content spend against the reality of lower streaming returns to avoid further losses in subsequent quarters.
“OTT revenue for the first quarter of 2026 was $211.1 million”
The decline in OTT revenue combined with widening losses suggests that Starz is struggling to find an immediate growth engine post-spinoff. While CEO Jeff Hirsch points to structural strength, the financial data indicates that the company is currently unable to offset the loss of the Lionsgate umbrella with organic streaming growth, leaving it vulnerable to further market volatility.
