For a niche streamer like Starz, the value of original franchises like “Outlander” and “Power” are more critical than they would be at a Netflix, where originals roll out every week. But looking at the different ways that “Outlander” and “Power” actually deliver that value highlights the tough decisions the company has to make with its content.
The “Power” universe of crime dramas co-created by Curtis “50 Cent” Jackson has generated $130 million in streaming revenue through subscriber additions and retention between the second quarter of 2022 through the first quarter of this year, according to Parrot Analytics’ Streaming Economics data.
That exceeds “Outlander,” but thanks to an expansive licensing deal, Parrot estimates that the time-traveling romance show has generated $450 million in revenue for Netflix, despite only generating $75 million in direct streaming revenue for Starz.
The two franchises — each significant money makers for Starz — highlights the dilemma smaller services face when figuring out how to best utilize its original content. While keeping “Power” and its spinoffs on the service as an exclusive gives audiences justification for keeping their subscription, having “Outlander” explode on a bigger platform like Netflix gives it a sizable revenue and visibility boost.
It’s a decision that every streamer has had to make, but the stakes are higher at Starz, which is fresh off its separation from Lionsgate Studio and making its mark as an independent company. Its second report as a public company earlier this month was a mixed bag, with a loss of $42.2 million and its subscriber base shrinking by 520,000 to 19.1 million.
The company, for its part, is leaning towards the side of owning more of its intellectual property.
“I don’t view this as a tough decision for Starz,” CEO Jeffrey Hirsch said in a statement sent to TheWrap on Tuesday. “Our strategy is, and will remain, focused on a content scarcity approach. We have not seen any incremental benefits that accrue back to the network from our shows being licensed out to other platforms, so our strategy will continue to keep content exclusive.”
In a May interview with TheWrap, Hirsch confirmed “Blood of my Blood” will be an exclusive and not end up at Netflix.
The executive added he expects the IP ownership strategy will help the company get to his target of 20% margins by the end of 2028 through greater cost control and increased revenue streams.
Powerful franchises
“Power” and its three spinoffs are Starz’s heavyweight offerings. “Power” began as a drama about a drug dealer named James St. Patrick a.k.a. Ghost (Omari Hardwick) who wants to leave the crime world and go legit as a nightclub owner, but ends up having to juggle those two contradictory worlds.
The sprawling franchise, which now includes “Power Book II: Ghost,” prequel “Power Book III: Raising Kanan” and “Power Book IV: Force,” has earned more cumulative streaming revenue for the Starz service than “Outlander.”
While that universe is clicking along, there’s more at play with the “Outlander” franchise. Based on the Diana Gabaldon book series of the same name, the show premiered in 2014 and follows the time-traveling romance between Claire Randall (Caitriona Balfe), a former WWII nurse in 1945, and Jamie Fraser (Sam Heughan), a Highland warrior from 1743. The show will end its run with a 10-episode eighth and final season that is expected to premiere in early 2026.
Starz aims to keep the franchise going with a prequel spinoff, “Blood of My Blood,” focused on the love stories of Jamie and Claire’s parents, which premiered Aug. 8 and has already been renewed for a second season.
“Our content strategy continues to resonate with our audience as the subscriber additions from last weekend’s ‘Outlander: Blood of My Blood’ premiere were the third highest for a series premiere in Starz’s history,” Hirsch said in the earnings announcement.
But demand for the spinoff’s global premiere has trailed the last two parts of “Outlander,” which Parrot noted is a “natural dynamic for a new title still building awareness.” This also comes as demand for “Outlander” Season 7 Part 2 fell short of Part 1, which Parrot attributed to the year-long gap between releases.
Starz, so far, considers “Outlander: Blood of my Blood” a success. “It has generated the third highest number of subscriber additions for a series premiere in STARZ’s history and viewership has exceeded the last episode of “Outlander” Season 7 by 40%,” Hirsch said earlier this month.
While Parrot said the trailing results could open the door to repeating its “Outlander” deal with Netflix, Hirsch’s comments seem to dismiss this notion.
More franchises to come
Starz isn’t standing still. The streamer has another “Power” spinoff in the works, with “Power: Origins,” the second prequel after “Raising Kanan,” set to debut in 2027. A subsequent series, “Power: Legacy,” will follow after “Origin.”
The company also announced the revival of another franchise, “Spartacus,” with a spinoff titled “Spartacus: House of Ashur,” executive produced by Steven S. DeKnight and starring Nick E. Tarabay, who will once again take on the title character.
“Spartacus” is another franchise that spawned spinoffs and a loyal fanbase. It also found success on Netflix when it got licensed out.
It appears “House of Ashur” may follow the “Blood of my Blood” route and stay on as an exclusive, with Starz looking to ramp up the creation of new franchises.
“With no incremental overhead cost to the business, we will commence rebuilding our library and reclaim ownership economics, enhance cost efficiency and create new revenue streams,” Hirsch said. “We have officially opened writers’ rooms for several series that STARZ will own the IP.”
Jose Bastidas contributed to this story.
Editor’s note: An earlier version of this story said the company reported its first quarterly results in August. The story has been corrected. TheWrap regrets the error.
