Starz Entertainment Corp. (STRZ) is a Communication Services stock trading at $27.03 (as of 2026-09-02), with a market capitalization of $453.82M. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.
Starz Entertainment Corp. operates subscription video programming, delivering STARZ-branded premium services to viewers in the United States and Canada. It distributes its offerings through over-the-top platforms and distributors, including direct-to-consumer access via the STARZ-branded app and distribution through multichannel video programming distributors.
Understand Starz Entertainment Corp.: how it makes money
Starz sells a premium subscription streaming and linear TV service in the US and Canada, collecting monthly subscriber fees and distributor payments. Roughly 70% of revenue now flows through its OTT app and platform partners, with the rest from legacy linear channels that are in steady decline.
Starz must grow OTT subscribers fast enough to outpace content amortization, while the legacy linear channel that once guaranteed a distribution-revenue floor is in secular decline and dragging total revenue down.
Revenue by segment (latest quarter)
Over-the-Top
$0.2B
Linear & Other
$0.1B
Business quality (Weak): A mid-transition subscription business with a real content library but deeply negative operating margin (-57%), meaningful leverage, and a shrinking legacy revenue base. Quality grade: Weak.
Bull case
Peacock reach without capex: Peacock expands Starz's distribution reach to 48 million subscribers without incremental platform investment, giving the content slate a much larger free audience and a path to drive new direct subscriptions.
Hit content at lower cost: Fightland launched as Starz's second-best new IP premiere at $2.5 million less per episode, showing the studio can deliver tentpole-quality shows on a leaner budget and improving the long-run content-cost ratio.
OTT now the core engine: Over-the-Top revenue reached $210 million, or 70% of total revenue, confirming that the subscription app and platform deals have overtaken linear as the primary revenue source and growth vector.
Bear case
Linear base still eroding: Traditional video household declines continue pressuring the linear and other segment, which still accounts for $100 million (33% of revenue) in the most recent quarter and is shrinking as cord-cutting accelerates.
Debt constrains the turnaround: The refinancing adds term debt, leaving expected year-end leverage at approximately 2.7 times. That debt load limits Starz's flexibility to absorb subscriber softness or fund content through a slow growth period.
Near-term cash and margin pressure: Q2 unlevered free cash flow was negative due to content-payment timing, and Q3 profitability faces higher programming amortization from several major releases, making a sustained return to operating profit uncertain.
Valuation — source: SEC EDGAR (first-party)
Price
$27.03
Market Cap
$453.82M
Price / Book
1.53
Price / Sales
0.36
FCF Yield
0.3%
DCF Value (model)
$58.19
DCF Upside vs Price
115.3%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)
$963.40M
Net Margin
-12.0%
Revenue Growth (YoY)
-3.7%
EPS Growth (YoY)
343.7%
FCF Growth (YoY)
-39.7%
Financial Health — source: SEC EDGAR
Altman Z-Score
0.26 (distress)
Valuation vs Sector & Industry
Sector P/E (Communication Services)
25.0
Industry P/E (Entertainment)
39.4
Company
Sector
Communication Services
Industry
Entertainment
CEO
Jeffrey A. Hirsch
Employees
1,717
Country
CA
IPO Date
2025-05-07
Starz Entertainment Corp. earnings call transcripts