Starz Faces Sharp Decline with 800,000 Subscriber Loss

Starz, the streaming service under the cable channel Starz, has experienced a significant loss in subscribers this year, losing over 800,000 users. This makes it the biggest loser among U.S. streaming services in 2024, joining a group of four major platforms that have seen a decline in paid subscribers. This decline contrasts sharply with the growth observed by Netflix and several other competitors.

According to data from subscription research firm Antenna, Starz’s subscriber count dropped by 840,884 between December 2023 and May 2024. This decrease represents nearly 9% of its total subscriber base. In comparison, Apple TV+ saw a reduction of 528,285 paid subscribers, while Hulu experienced a loss of 504,426 subscribers. Disney+ had the smallest decline among the major services, with a drop of 294,956 subscribers, but it still leads with 29.2 million paid subscribers.

The subscriber data, compiled by Antenna, reflects the status up to the end of May 2024. It includes only paid accounts and excludes trial users who have not yet converted to paid subscriptions. Antenna’s metrics are based on various sources such as digital purchase and cancellation receipts, banking and credit data, but do not account for certain bundles or wholesale deals like Paramount+ through Walmart+ or Netflix via T-Mobile.

The substantial subscriber loss for Starz follows its cancellation of several original series last year, including “Heels” and “Run the World,” as it prepared to separate from its parent company Lionsgate. The split, announced in December, involved Lionsgate merging with a special-purpose acquisition company and spinning off its studio operations. This move, valued at $4.6 billion, established Lionsgate Studios as a separate publicly traded entity and left Starz as part of the original business.

The separation was anticipated after Lionsgate acquired Starz in 2016 for $4.4 billion. Since the split, Starz has launched the horror series “Camp Pleasant Lake” and plans to bring back its popular show “Outlander” for the second part of its seventh season later in 2024. Additionally, Starz is expected to introduce the prequel series “Outlander: Blood of My Blood” later this year. Despite the losses, Starz has highlighted its profitability, noting growth in its over-the-top services with increasing subscriber numbers and average revenue per user. The company has attributed some of its subscriber losses to changes in onboarding processes and acknowledges that industry fluctuations can impact subscriber numbers.

In contrast, Netflix, Paramount+, Peacock, and Max have all gained subscribers this year. These services have also been responsible for high-profile events and popular content, including the Super Bowl, four of the year’s top five new shows, and beloved series such as “The Office” and “Suits.”

Netflix, with 64.8 million paid subscribers as of May 2024, accounts for 71.4% of the combined subscriber base of Apple TV+, Disney+, Hulu, and Starz. This highlights Netflix’s dominant position in the streaming market.

Starz, along with Apple TV+ and Max, offers some of the most expensive basic plans among streaming services. Starz’s plan costs $9.99 per month, equivalent to Apple TV+ and Max’s ad-supported basic plans. Ad-supported plans are cheaper at Disney+ ($8), Peacock ($8), and Hulu ($8), with Netflix at $7 and Paramount+ at $6. Hulu’s ad-free plan is the priciest at $18 per month, followed by Max at $17, Netflix at $15.50, and Disney+ at $14.

In summary, Starz’s dramatic subscriber loss in 2024 highlights the competitive and fluctuating nature of the streaming industry, with several platforms seeing contrasting trends in user engagement and service adoption.