Starz, the Lionsgate-owned network, will continue to be available on virtual MVPD YouTube TV after signing an extended multi-year deal.
With an agreement in place, YouTube TV offers 16 channels from Starz and Starz Encore, which are available as an add-on to the service’s pay TV lineup, a spokesperson confirmed. In addition to vMVPD YouTube TV, the deal covers Starz availability via Primetime Channels on the standalone YouTube app.
In the announcement, Starz said the extension deal includes new opportunities for bundling as well as special offers.
Reached by StreamTV Insider seeking more details around the bundling opportunities and offers, as well as whether the Starz streaming app is incorporated, the spokesperson said “Subscribers through YouTube can watch within the STARZ app.”
In terms of the bundling opportunity, the spokesperson affirmed this refers to potential to bundle a Starz subscription with another streaming service, such as MGM+, AMC+, BritBox or others, for example.
Starz touted the deal as YouTube TV is proving to be a powerful pay TV distributor even as the broader legacy linear TV industry continues to feel pressure and see declines. At last public disclosure in February, the Google-owned YouTube TV vMVPD counted 8 million subscribers. While it’s worth noting that YouTube at the time didn’t designate that those are paid subscribers (meaning it could include unpaid users on a free trial), that still represents more than half the size of subscriber bases of each of the two largest legacy U.S. pay TV providers, Comcast and Charter – each of which had roughly 13 million pay TV customers as of the end of June and report respective Q3 earnings later this week. Google-parent Alphabet reports later today, Tuesday October 29, but doesn’t typically provide updates on YouTube TV subscriber counts as part of its quarterly earnings presentation. The tally is also significantly larger than other vMVPDs, including nearly double the size of YouTube TV’s nearest-competitor Disney’s Hulu + Live TV, which had 4.4 million subscribers as of the end of June. And YouTube TV far surpasses vMVPD subscriber counts of Dish’s Sling TV with 1.99 million subs and sports-focused Fubo with 1.45 million North American subscribers as of the end of Q2.
In announcing the deal, Starz touted expanded distribution, as the Lionsgate unit faces its own legacy pay TV declines while also making forays into streaming through its OTT app, where executive have previously emphasized the value of bundling.
“We are excited to deepen our partnership with YouTube TV, the fastest-growing Pay TV distributor,” said Alison Hoffman, President of Starz Networks, in a statement. “This partnership further enhances our ability to deliver Starz’s extensive collection of premium programming to broader audiences at an exceptional value.”
YouTube TV offers a cable-like lineup of over 100 channels, with live linear TV networks and on-demand content. It’s introduced features like Multiview, alongside scoring big sports rights – namely NFL Sunday Ticket – to bolster the offering.
Starz, meanwhile, is going through its own restructuring under parent Lionsgate, which acquired the company in 2016 and is separating out the media networks unit comprising Starz networks and OTT platforms from its studio business. Those efforts included exiting Starz from all international territories expect for Canada and India and undertaking an evaluation of programming on Starz domestic and international platforms. As a result of the exits and strategic content review, Lionsgate’s media networks segment in the financial quarter ending June 30, 2024, recorded a content impairment charge of $1.9 million. Since starting the restructuring plan for its networks segment and through the end of June, Lionsgate has incurred impairment charges totaling about $746 million.
Quarterly revenue for the media networks segment, which represents Starz streaming platforms and linear networks distribution to OTT providers and MVPDs, among other digital efforts, declined 8.1% yoy to $350 million in the June period primarily reflecting exits from international markets. The segment posted quarterly profit growth, which totaled $57.5 million in the period.
As of the end of June, Starz counted 21.3 million North American subscribers across linear and OTT, after losing 500,000 in the period compared to the first three months of 2024. Starz North American OTT subscribers increased by about 700,000 compared to the same quarter a year ago but lost 180,000 sequentially, ending the period with 13.2 million. Year-over-year growth in OTT subscribers, which also helped bump Starz Networks revenue coinciding with a streaming price increase in the prior year, was offset by a quarterly revenue decline of $15.7 million for linear networks. Domestic linear Starz subscribers decreased by about 1.38 million yoy in the first quarter of Lionsgate’s fiscal year 2025 and dropped by around 320,000 sequentially, to end the period with a total of 8.1 million.
Lionsgate reports earnings for its Q2 fiscal year 2025 on November 7.
Article updated with information about Starz availability via YouTube Primetime Channels and potential to bundle Starz with another service.