Starz looks to replicate Fightland model

Starz is looking to use streamer sales to “reinvigorate” its scripted franchises such as Power, while replicating the model for its UK-based drama Fightland to build international output deals.

The US network and streamer’s hit drama franchise Power is set to become available on Netflix around the world following a deal revealed earlier this summer with Lionsgate, Starz’s former parent company from which it split last year.

The agreement provides Netflix with non-exclusive rights to Power and its spin-offs - Ghost, Raising Kanan and Force - outside of the US, while the streamer has also picked up domestic rights to the original.

Starz has retained exclusive rights to future spin-off IP, and president of Starz Networks, Alison Hoffman, told analysts during a Q2 earnings call that the streamer deal “creates an opportunity for us”.

She continued: “It’s a way for us to introduce the franchise to new audiences and new viewers and really reinvigorate [it].”

Hoffman added that the most recent installments continue to drive Starz own DTC business “in terms of engagement, in terms of first title stream and subscriber acquisition”, adding that the Netflix deal supports broader awareness.

“We think it’s a good thing and it’s part of our strategy as our programming matures. We think that the syndication model actually works for us.”

Results & international deals

Starz, whose shares have soared since the Lionsgate split, reported modest Q2 results that saw revenues down 4% year-on-year to $307.9m, although that beat Wall Street expectations.

Losses increased to almost $190m but the decline was partly blamed on a $147m charge for ending its output deal with Universal.

Starz chief exec Jeff Hirsch said shows from the US studio giant provided “almost zero viewership or engagement” with viewers. Instead, the company is now embarking on a push to expand and own its original IP.

It is already working with Curtis ’50 Cent’ Jackson on Power: Origins and Power: Legacy, as well as UK-based drama Fightland, which Sky boarded as a co-commissioner. Starz’s slate also includes a family drama set in the world of Black rodeo.

“A big piece of our strategy around rebuilding our content library is getting ownership back on the network, building volume, and [building] scale with the franchises that we will then launch and sell internationally,” Hirsch said.

He noted Sky’s involvement as co-commission on Fightland and said more deals on the show from the rest of the world would be imminent, ”which will bring the per-episode cost down even further.”

“As we build our slate back and get volume, it gives us opportunities to do output deals around the world which are much more of an MG-type basis than a one-off.”

Hirsch noted that Fightland was “about $2.5m per episode cheaper” than its typical show, but added that the series had performed “exactly how we designed it to.”

The chief exec said that there were also opportunities to capitalise on second window rights, which hold less value for its core business.

Starz has emerged as a frequent partner on international scripted projects over recent months, having partnered with Sky on period drama Amadeus and with the BBC on Element Pictures’ upcoming David Nicholls adaptation.