Lions Gate's Q3 2025: Contradictory Signals on Starz Growth, Studio Performance, and Amazon Deal Impact

These are the key contradictions discussed in Lions Gate Entertainment Corp.'s latest 2025 Q3 earnings call, specifically including: Starz subscriber growth expectations, Studio's financial performance, and the impact of the Amazon deal on Studio profits:



Financial Performance and Studio Growth:
- Lionsgate's consolidated revenue for Q3 2025 was $971 million, with adjusted OIBDA at $144 million and operating income at $36 million.
- The Studio segment saw revenue growth of 3.2% year-over-year to $714 million, and Studio adjusted OIBDA grew 45% to $112 million.
- The growth was primarily driven by a strong performance in the Motion Picture Group, particularly from mid-budget films, and a 22% increase in trailing 12-month library revenue.

OTT Subscriber Growth and Starz Expansion:
- Starz ended the quarter with 12.6 million North American OTT subscribers, showing sequential growth of 170,000 subscribers.
- The return to domestic OTT subscriber growth was attributed to successful performance of original content, such as the seventh season of Outlander, and bundling strategies.

Pay Television and Content Distribution:
- Lionsgate extended its exclusive Pay 1 deal with Starz through 2028 and secured a new exclusive pay deal with Amazon Prime Video.
- This deal provides an early window for several films from the 2025 slate and ensures access to the full lineup of 2026 through 2028 slates, expected to significantly increase contributions from the pay television window.

library Performance and Diversification:
- Trailing 12-month library revenue reached $954 million, indicating a 22% increase year-on-year.
- This growth is attributed to innovative windowing strategies and the incorporation of advanced technologies, as well as the expansion of distribution through partnerships and bundling deals.