Starz Entertainment (STRZ) 2026 Baird Global Consumer, Technology & Services Conference summary

Business transformation and financial performance

• Achieved structural improvements and stronger financial health after separating from Lionsgate, including managing its own cash and narrowing the gap between content spend and amortization.

• Projects free cash flow conversion to exceed 70% by 2028–2029, with a focus on OTT revenue, adjusted EBITDA, and deleveraging.

• Stopped reporting quarterly subscriber numbers to prioritize long-term revenue growth over short-term metrics, resulting in reduced marketing spend and improved revenue acceleration.

• Raised prices in April, observing 25% better retention compared to previous increases, supported by a strong content slate.

• Leverage ratio improved from 3.4 to 2.9 post-separation, with guidance to reach 2.7 by year-end and potentially low twos by 2027.

Content strategy and audience engagement

• Focuses on premium, ad-free content targeting women and underrepresented audiences, positioning as a complementary add-on to major streaming platforms.

• Engagement up 8% year-over-year, driven by successful originals and movies like "Outlander" and "The Housemaid."

• Upcoming slate includes "Fightland," "P-Valley," "Outlander: Blood of My Blood," "Power: Origins," and new projects like "Black Rodeo" and "Kingmaker."

• Emphasizes ownership of content and cost control, leveraging co-productions and international partnerships to reduce expenses.

• Uses data-driven scheduling to transition audiences between shows, achieving high retention rates when launching new series after popular finales.

Industry positioning and growth opportunities

• Positioned as a premium add-on across major streamers, with new distribution opportunities expected via Peacock, Paramount+, and Disney+ integrations.

• Sees industry consolidation as beneficial, enabling expansion into ad-supported models and potential acquisitions of underutilized networks focused on women.

• Maintains a distribution-agnostic approach, ensuring consistent product experience across platforms and leveraging a robust in-house data stack.

• Marketing efficiency improved by focusing on higher-value, longer-retention subscribers and reducing churn through targeted offers.

• Exited the Universal Pay-2 deal to optimize content costs, replacing underperforming content with more cost-effective library acquisitions.