Starz to Go Solo with Stand-alone OTT Streaming Video Service

Starz is the latest premium channel to go solo as a direct-to-consumer, over-the-top (OTT) streaming video service, joining competitors Showtime and HBO. Starz CEO

Subscription News: Starz to Go Solo with Stand-alone OTT Streaming Video Service

Source: Starz

Starz is the latest premium channel to go solo as a direct-to-consumer, over-the-top (OTT) streaming video service, joining competitors Showtime and HBO. Starz CEO Chris Albrecht made the announcement at the Television Critics Association’s winter press tour, said Adweek.

“Yeah, we’re in the midst of doing it,” said Albrecht. “To have your own app is the opportunity to be distributed, either by our current distribution partners in different ways…or potential other portals. It is early days with that stuff, but it seems as if the new and the old are willing to exist side by side for a while. It’s an exciting project for us, and when we feel that we have it right, I think we’ll look at some business opportunities and make some decisions on that.”

This is quite a departure from Starz CEO Chris Albrecht’s statement last year that the company was “far away” from creating its own OTT streaming service, said Jason Lynch for Adweek. Yet not considering producing its own OTT app would likely have limited Starz’s ability to compete with HBO and Showtime, both of which have their own stand-alone streaming video services, making themselves available to viewers without a cable subscription.

Perhaps that’s also why Starz joined the Amazon Prime family, as we reported in December. Starz is available as an add-on subscription, accessible to members via the Amazon Prime streaming video dashboard. Prime members can get a free 7-day trial. After that, Starz is $8.99 a month. Like Netflix, Hulu and other OTT services, Starz offers classic TV shows, hit movies and Starz originals like Outlander, Power and Ash vs. Evil Dead.

Subscription News: Starz to Go Solo with Stand-alone OTT Streaming Video Service

Source: Starz

To date, Starz has not issued a formal press release or provided any details about a launch date for its new stand-alone streaming service. It has, however, announced the launch of a Starz original limited series of The Girlfriend Experience, a 13-part series available to viewers on April 10. Starz is also working on programming specifically for the Latino market with the development of Pour Vida and Santeria.

Insider Take:

Starz’s entry into the OTT market isn’t a surprise, but it is somewhat late to the party. Prior to joining Amazon Prime, getting in front of tens of millions of potential customers, only premium cable subscribers could access Starz programming. With a growing base of cord cutters and viewers who want to watch programs on the go, Starz is likely creating a stand-alone app out of necessity.

However, the fact that Starz is late to the party shouldn’t impact the company’s ability to be successful. There are plenty of subscribers to be had, as long as Starz offers a quality OTT product and seeks to differentiate itself with original content and an attractive mix of existing content through licensing arrangements and exclusive deals. Its trial run with Amazon Prime will provide a good test for Starz to determine its viability and popularity as an OTT app.

 

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