Lions Gate Entertainment Reports $1.37 Billion Revenue, Completes Separation into Starz and Lionsgate Studios

Lions Gate Entertainment Corp. (now known as Starz Entertainment Corp.) reported a total revenue of $1.37 billion for the fiscal year ending March 31, 2025, a decrease of 1.6% from $1.39 billion in the previous year. The decline was primarily attributed to a $26.4 million drop in revenue from its Starz Networks segment, which was partially offset by a $3.6 million increase in international revenue. The company experienced a significant reduction in its operating loss, which improved to $170.4 million from $903.5 million in the prior year, reflecting a decrease in total expenses from $2.30 billion to $1.54 billion.

The fiscal year also marked a pivotal moment for the company as it completed the separation of its Starz Business from Lionsgate Studios on May 6, 2025. This strategic move resulted in the establishment of two distinct publicly traded entities: Starz Entertainment Corp., which focuses on premium subscription video services, and Lionsgate Studios Corp., which encompasses the film and television production segments. The separation is expected to enhance operational focus and financial performance for both entities.

Starz reported a total of 22.89 million subscribers as of March 31, 2025, down from 24.32 million the previous year. The decline was driven by a reduction in linear subscribers, which fell from 8.42 million to 6.56 million, while over-the-top (OTT) subscribers increased slightly from 15.90 million to 16.33 million. The company has implemented price increases for its services, which contributed to a rise in OTT revenue, but traditional linear service revenue continued to decline.

The company has also undertaken a restructuring plan, which included exiting several international markets and performing a strategic review of its content offerings. This led to content impairment charges totaling $156.4 million for the fiscal year, down from $213 million in the previous year. Starz's management indicated that further restructuring may occur as they continue to evaluate their content strategy in response to changing market conditions.

Looking ahead, Starz expects to leverage its strong original programming and strategic partnerships to drive subscriber growth and revenue. The company is focused on enhancing its content library and improving its distribution agreements to adapt to the evolving landscape of the entertainment industry. Despite the challenges posed by competition and changing consumer preferences, Starz remains optimistic about its future performance and the potential for growth in the premium subscription video market.