Entertainment
Starz Q2 Net Loss Widens on Linear Decline, Universal Output Deal Exit
- Starz reported a net loss of $189.4 million, or $11.27 per share, on revenue of $307.9 million.
- Excluding a $147 million restructuring charge tied to its exit from a Universal Pay-2 film deal, its net loss narrowed slightly year over year to $42.2 million, or $2.27 per share.
- The company remains on track to convert 70% of its adjusted operating income into free cash flow and raised its forecast for both metrics. It also continues to expect positive year over year streaming revenue growth for the year.
Starz posted a second-quarter net loss that widened to $189.4 million thanks largely to a pricey termination fee from dropping its Pay-2 film deal with Universal.
Excluding the $147 million charge, it would’ve lost $42.2 million, or $2.27 a share, narrower than its loss of $42.5 million from a year ago. Total revenue, meanwhile, fell 3.6% to $307.9 million. Analysts, on average, forecasted revenue of $306.76 million and a loss of $1.63 a share, according to Yahoo Finance.
In addition to the restructuring charge, Starz’s quarterly results were weighed down by its linear TV business, which suffered a 12% drop in revenue to $87 million as pay TV audiences continue to erode.
But streaming continued to show progress, with revenue climbing 0.1% to $221.3 million. It marked a return to year-over-year revenue growth for the first time since the fourth quarter of 2024.
The gains in streaming were driven by the finale of “Outlander,” the premiere of “Raising Kanan” Season 5 and “The Housemaid,” which generated the second-highest audience engagement quarter of all time and the fourth consecutive quarter of engagement growth since its separation from Lionsgate.
As of the end of 2025, Starz’s Canada business transitioned from a distribution partnership with Bell Media to a content licensing model. When excluding a negative impact of $3 million related to its Canada operations in the prior-year-period, streaming revenue would’ve increased 1.4%.
During the quarter, Starz launched a partnership with Peacock to be made available as an add-on on the platform, expanding its reach to the Comcast-owned streamer’s 48 million subscribers. It also launched a new bundle with Crunchyroll through Prime Video.
Starz no longer reports subscriber figures on a quarterly basis, following in the footsteps of major players Netflix, Disney and Warner Bros. Discovery, but last disclosed in February a total of 12.7 million over-the-top subscribers and 5 million linear TV subscribers.
Elsewhere, Starz ended the quarter with $59.6 million in cash and cash equivalents and total debt of $625.1 million. Cash content spend was $182 million during the quarter. After exiting its Universal deal, Starz expects to report cash content spend below $600 million for the year.
Looking ahead, Starz President and CEO Jeff Hirsch told analysts that improved visibility into the second half of the year and the early performance of “Fightland” increase the company’s confidence that 2026 is shaping up to be a “more significant inflection year” than previously anticipated.
In addition to “Fightland,” other upcoming content coming to Starz includes the return of “P-Valley,” “Outlander: Blood of my Blood” Season 2 and the “Michael” biopic. The “Untitled Black Rodeo Show” is also starting production this month and several other Starz-owned projects are in development.
Starz reaffirmed its outlook for positive year over year streaming revenue growth and expects continued improvement in average revenue per user growth in the second half of the year as promotional subscribers convert to retail rates following its April price increase. It also maintained its forecast of an adjusted operating leverage ratio of approximately 2.7 times exiting 2026 and a 20% adjusted operating margin for the second half of 2027.
Additionally, Starz raised its adjusted operating income outlook from low-single-digit to mid-single-digit growth and its free cash flow outlook from between $80 million and $120 million to the mid-to-upper end of the range.
While Starz remains focused on executing against its operating plan, Hirsch said that management remains open to pursuing M&A opportunities that accelerate the company’s strategy and creates value beyond what it can achieve organically.
Starz Chief Financial Officer Scott MacDonald added that 2029 is shaping up to be a significant year for free cash flow growth due to the timing of final cash payments to Universal in 2028.
“The financial story for Starz is getting stronger and simpler every quarter: growing OTT revenue, expanding margins, growing free cash flow, and reducing leverage,” MacDonald said in prepared remarks to analysts. “We’re confident in our trajectory, and we look forward to continuing to demonstrate our progress.”
More to come…
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movies
Halloween Horror Nights Lineup: Full 2026 List Of Offerings
Universal Studios Hollywood has unveiled the final additions to its fan-favorite Halloween Horror Nights event.
Among them are the return of a haunted house based on the 1988 camp slasher classic Killer Klowns From Outer Space. Other new frights include “KILLceañera: Music by SLASH” and “Dead, Deader, Deadest.” There will also be a fiery stunt show based on The Purge franchise. Additionally, the park’s Halloweenified Terror Tram returns with an all-new host, Art the Clown from the Terrifier movies.
Halloween Horror Nights starts on Thursday, September 3 and continues select nights through Sunday, November 1.
Previously-announced haunted houses include those based on Sinners, Stranger Things, Hellraiser and Evil Dead as well as one that pays homage to Ozzy Osbourne, the Prince of Darkness.
Additionally this year, Universal Studios Hollywood will debut “Unmasking the Horror Tour Add-On,” a behind the scenes, daytime experience for guests who want a closer look at the craftmanship that goes into Halloween Horror Nights.
Ticket options for the main event include General Admission, Universal Express Ticket, R.I.P. Tour, Day/Night Ticket and After 2 p.m. Day/Night Ticket. Plus, Early Access Ticket provides entry to select haunted houses beginning at 5:30 p.m. (subject to change). Also, the popular Frequent Fear Pass and Ultimate Fear Pass allow guests to experience scares again and again throughout the season.
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movies
Tedde Moore Dead: Actress Played Ralphie’s Teacher in A Christmas Story
Tedde Moore, an actress who is best known as playing young Ralphie Parker’s teacher in A Christmas Story, has died. She was 79.
Moore died Wednesday in Huntsville, Ontario, according to a post on her Facebook page. A cause of death was not given.
“On Wednesday August 5th under sunny skies overlooking Fairy Lake, Tedde passed away surrounded by family physically and spiritually in her beloved Huntsville Muskoka,” the post reads. “Her bravery in this choice was almost overwhelming, beyond beautiful and also difficult. Forever the teacher, she had a quote for every occasion and a special way of touching the lives and hearts of everyone she met. Her magic and love will be remembered by all she took under her generous and welcoming wings.”
Moore played Miss Shields in the 1983 Christmas classic opposite Peter Billingsley. She memorably gives Ralphie a bad grade on his paper about wanting the Red Ryder BB gun for Christmas and also has to deal with Flick (Scott Schwartz)’s getting his tongue stuck on a ice-cold flagpole. Moore was nominated for a Genie Award, presented by the Academy of Canadian Cinema and Television, for best performance by an actress in a supporting role. She reprised her role for 1994’s My Summer Story, which, like A Christmas Story, was based on Jean Shepherd’s semi-autobiographical stories.
Her other TV appearances include spots on Friday the 13th: The Series, RoboCop: Prime Directives, Odyssey 5 and This Is Wonderland.
Moore played Mrs. Claus in the 2011 TV movie Mistletoe Over Manhattan and also portrayed Nanny Shaw in the miniseries The Kennedys that same year. According to iMDB.com, her final credit was the 2017 TV movie Magical Christmas Ornaments.
Born April 11, 1947, Moore was the daughter of Darwina Faessler Moore and actor Mavor Moore, best known for playing the title role in a Canadian radio drama adaptation of Nero Wolfe in 1982. Her grandmother was Canadian theater pioneer Dora Mavor Moore.
She attended the Royal Academy of Dramatic Art in London, graduating in 1967 with the Principal’s Medal of Honor. After graduating, she starred opposite Christopher Walken in the Stratford Festival production of A Midsummer Night’s Dream.
In 2009, Moore was diagnosed with multiple sclerosis.
Moore had two children with Canadian film and television director Donald Shebib, who directed many documentaries, including 1970’sGoin’ Down the Road and 1973’s Between Friends. Their children are daughter Suzanna, a child actor (Are You Afraid of the Dark?) turned teacher, and Noah, a child actor (Goosebumps) turned Grammy-winning music producer, also known as “40,” who is a frequent collaborator of Drake’s. 40, who produced the Drake hits “Hold On, We’re Going Home,” “One Dance,” “God’s Plan,” “Toosie Slide” and “Take Care,” was diagnosed with multiple sclerosis in 2007, two years before his mother.
Moore has another daughter, Zoë, from a previous relationship with actor Patrick Christopher Carter, and raised a foster daughter, Chaunce Drury.
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movies
Justice Smith Addresses Fans On ‘Heated Rivalry’ Harris Drover Casting
The casting of most beloved literary characters in screen adaptation inevitably creates online discourse as fans of the books have their own preconceived notions for what the characters should look like. Heated Rivalry is no exception, with the announcement on Friday that Justice Smith and Charlie Gillespie will play Harris Drover and Troy Barrett, respectively, in Season 2 of the hugely popular series based on Rachel Reid’s Game Changer books, triggering a strong reaction.
Smith appeared to address the discourse on his Instagram Story.
“I am moved by the support and love I’m getting from fans in my dms, fans who have welcomed me with open arms and who already feel a responsibility to protect me.”
The protecting part is likely a reference to negative comments posted online, a lot of them pointed at Smith’s casting.
“I am honored to play a character that you all care about deeply and I promise that I will take good care of him if you give me the chance,” he wrote, adding, “I am beyond excited for the experience.”
The negative online response to the Harris and Troy castings also prompted Reid to remind fans that Connor Storrie and Hudson Williams — now loved around the world for their portrayal of Ilya Rozanov and Shane Hollander, respectively — weren’t an easy sell either.
“Thinking about all the people last summer who told me the casting for llya and Shane was wrong and bad…,” Reid wrote on her Instagram Story.
Harris Drover and Troy Barrett are the central couple in Role Model, the fifth book in Reid’s bestselling Game Changer series, which is being used as source material for Season 2 alongside the Ilya and Shane follow-up book, The Long Game.
Troy is a hockey player on Ilya’s team with a history of bullying, while Harris is the team’s cheerful social media manager,
“From the start of the casting process, we knew we were looking for actors who could create something truly special together and bring that same depth and heart to the screen,” Heated Rivalry creator Jacob Tierney and fellow executive producer Brendan Brady said on Friday about the search for Harris and Troy. “Justice and Charlie do exactly that. They immediately connected with the vulnerability and resilience at the core of these characters, bringing an instinctive understanding of who Harris and Troy are.”
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