HBO’s deal providing Amazon’s Prime Instant Video exclusive...
HBO’s deal providing Amazon’s Prime Instant Video exclusive streaming rights for select original series sets “a stake in the ground” for subscription video-on-demand (SVOD) agreements with premium channel suppliers, Starz CEO Christopher Albrecht said Thursday on an earnings call. The…
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
HBO/Amazon agreement, which starts May 21, covers HBO series, including The Sopranos and The Wire, which will be available to Amazon Prime customers at no additional charge to their membership fee. “It sets a precedent for monetizing programming on SVOD,” Albrecht said. The HBO pact is “good news” for Starz, which also pursued SVOD deals for its original series, including Spartacus, Black Sails, Magic City and The White Queen, Albrecht said. Meanwhile, Starz will feature 65 to 75 hours of original programming by 2018, partly funded by recent rate reductions it secured with Sony and Disney, company officials said. Starz expects to increase its original programming to 55 hours this year from 37 hours in 2013, as it launches new series, including rapper 50 Cent’s Power in July and The Outlander in August, analysts said. Starz’s Q1 net income improved to $64.9 million from $57.9 million a year earlier as revenue jumped to $420 million from $399.3 million. Programming networks and other service revenue increased to $363.3 million from $349.5 million, while home video net sales improved to $56.7 million from $49.8 million. Starz’s Q1 programming expenses rose to $156.2 million from $146 million a year ago, driving an increase in total costs to $306.5 million from $294.5 million, the company said.