Starz will no doubt be happy with its first half-week of trading results as an independent entity. Now officially split off from the larger Lionsgate group, these represent its first days as a stand-alone public company. To tell us more we have entertainment lawyer Brandon Blake, of Blake & Wang P.A. 

Brandon Blake

Successful First Trading Day

Starz listed on the Nasdaq (under the STARZ ticker) at $11.20, and saw an initial rise of 40%. After 8 years under the Lionsgate banner, Starz split off formally last week as the final regulatory processes came to a close. 

These gains are certainly a ray of light in a stock market facing serious headwinds from uncertain governmental economic policies and escalation in the tariff wars. 

Recovery for Entertainment Stocks?

While we’ve seen generally soft or mixed results from many of the key entertainment companies listing their Q1 results, especially with that turbulence added to the mix, we also saw the general entertainment stock sector see incremental recoveries last week, even after the somewhat controversial announcement of a potential “foreign film tariff” in the works. 

It’s common for newly listed stocks to see some optimism. Starz, however, bolstered by some exciting key first-look and library deals from its once-parent, Lionsgate Studios, as well as an already proven track record of successes, certainly makes for an appealing stock among the current markets. Most of its revenue is now derived from streaming. 

It seems Wall Street, at least, has confidence in Starz’s standalone streaming strategy, even amid the wider market challenges. With somewhere in the region of 28M subscribers globally, could this be the rise of a new boutique premium streaming service challenger? For now, we’ll have to wait and see, but it’s looking positive for Starz. 

Comcast, parent company of Peacock, may be struggling with the general contraction in the legacy media broadcast arena, but Peacock is thriving. While it hasn’t (yet) quite reached break even, its Q1 results show significant subscriber gains and a narrowed loss that’s well worth celebrating. Blake & Wang P.A. entertainment attorney, Brandon Blake, shares the full details. 

Brandon Blake

A Strong Q1 for Peacock

Peacock saw its operating losses narrow to just $215M, a big jump from last year’s $639M. Revenue also rose to 16%, or $1.2B. They also saw their paying subscriber numbers rise to 31M, mostly off the back of integrating Charter Communication’s subscribers into the fold. At the 2024 Q4, they were sitting at 36M, with no growth between Q4 and Q3.

Comcast’s overall revenues came in at $29.8B, slightly below the same quarter last year but on-target for the projected revenue for this quarter. Net income came in at #3.37B, down 12.5% on the prior year period. However, the adjusted EBITDA for the media division rose to $9.5B, and adjusted earnings per share rose 4.5% to $1.09. NBCUniversal’s studio unit also saw a 3% revenue rise, to $2.82B, with lower theatrical revenue offset by higher content licensing revenue.

Cagey About Profitability

Despite these notable gains, Comcast president Mike Cavanagh did not commit to any benchmarks for Peacock’s profitability over the coming year. However, he was positive about the streamer’s ability to further improve scale and monetization. 

He did cite the currently unstable US economic outlook and recessionary potential as part of the reason for this reticence. However, he was quick to reiterate that the company and the streamer are both well-positioned to weather these shifts. 
Overall, things are looking positive indeed for one of the smallest streaming competitors on the market currently. It will be interesting to see if they continue this steady growth into the rest of 2025. 

Amid a spate of rather mixed Q1 earnings, it seems that Netflix is emerging as the victor. Managing to top Wall Street expectations, the streamer has had a surprisingly successful growth spurt once again. To fill us in, we have Blake & Wang P.A. entertainment lawyer, Brandon Blake. 

Brandon Blake

Impressive Q1 Earnings

While Wall Street was expecting earnings per share for the streaming giant to hit $5.66, with revenue in the $10.5B range, Netflix announced $10.543B in total revenue, with earnings per share almost a full dollar higher, at $6.61. Revenue grew by 9% in North American territories, down from 15% in the last quarter of 2024.

Of course, this is also the first time that the streaming giant has not offered subscriber numbers per quarter, instead switching to only “select data” at milestone moments. The lack of this additional info was certainly felt, despite a slight rise in share price based on the positive Q1 results. Coming off the back of a superlative Q4 in 2024, however, it was certainly welcome news to see continued strong growth. 

A Least-Vulnerable Company?

As the US looks set for a turbulent economic environment in 2025, Netflix also received the dubious honor of being pegged as one of the “least vulnerable” media companies, especially given it doesn’t operate in the physical goods space. While an ad downturn is being predicted by some, Netflix’s late entry into this space makes it considerably less exposed than some other key streaming players. 

Looking ahead, the company expects to see higher revenue growth in the North American area in Q2, although it stuck to its 2025 targets of total revenue upward of $43.5 billion and operating margins of 29%. 

With a flurry of Q1 reporting set to hit us over the next few weeks, let’s hope to see more of the same positivity over other key entertainment companies. 

The entertainment world has certainly gotten more complex since streaming became a mainstream distribution platform. Most especially the Upfronts season, which has changed into a mammoth endeavor including the traditional Upfronts as well as the so-called New Fronts, aimed specifically at streaming, and the considerable cross-over we’ve seen of late with who presents where. Kicking off this Upfront season, we have some insight into AMC’s upcoming plans. Blake & Wang P.A. entertainment attorney, Brandon Blake, offers some insights from their latest advertiser pitch. 

Brandon Blake

An Unusual Pitch

In an unusual twist for an Upfronts pitch, AMC Networks are inviting not just their brand marketing partners and other clients, but also their distribution partners, to its (self-described) “immersive” programming showcase. 

They have a good point with this shift in traditional Upfront tactics. As ad placement becomes increasingly important to advertisers, it will no doubt be useful to have all those audiences together in one room. 

Big Plans

Alongside its attempt to bring classic literature to life through its new anthology franchise series, AMC is also expanding the slate for Acorn TV significantly, with several key new crime dramas earmarked for the platform. Timely, as they’re also launching a FAST TV option for the service, meaning advertiser buy-in will be critical. AMC indicated that it will be focusing on fully branded “moments” tied to key cultural themes throughout the year, from the Sundance Film Festival to Christmas itself. They also have announced a significant expansion in their horror lineup to match. 

All of this will be presented in a novel format, indeed, as they have also partnered with the Las Vegas Sphere for enhanced branding leaning into that horror theme. Will it be enough to help them pep up their flagging bottom line and reinvent themselves to better fit the modern entertainment environment? This will definitely be an Upfronts pitch to watch. 

It’s no surprise that the power of the House of Mouse brand has made it one of the top global players in entertainment media, really. With the nostalgic power of its cornerstone animations attracting both younger and older viewers, an edgier storytelling arm in Pixar, and its many, many beloved IPs, success in a “Disney space” is often a matter of competing for the No. 2 spot. Even Netflix has failed to challenge them on the revenue front. However, it seems that YouTube may just manage to surpass them. To tell us more, we have entertainment lawyer from Blake & Wang P.A., Brandon Blake.

Brandon Blake

YouTube May Take the Crown This Year

If current projections hold, we may even see Disney unseated this year. Based on projections from Wall Street analysts, YouTube is on track to pass Disney on the revenue front by the end of 2025. Last year the company brought in $54.2B in revenue. 

It also accounts for far more viewers— to the tune of twice that of Disney or, indeed, any other media giant. It’s always hard to properly compare one integrated business with another. After all, Disney has its highly successful parks arm, and YouTube is but one facet of Alphabet. However, it is estimated that, if YouTube was a standalone company, it would be worth somewhere between $475B and $550B.

Advertising “in the Living Room”

Entertainment media companies, looking for new ways to monetize their viewership, have bought into ad-supported models heavily over the last two years. Here, YouTube has an immense early-mover advantage. Some even feel it could be under-monetizing its offerings. As it covers the ground in dominating TV set viewing as well as online, this leaves the company well positioned to make the most of the rise in home entertainment viewing from digital sources.

While YouTube becoming the year’s top revenue earner may not have been on many lists, it makes sense, particularly as we’ve watched them climb up rankings like Nielsen’s Gauge. Now, it remains to be seen what they will do with the lofty throne they may well toss the world’s most famous mouse out of— and whether we could even be looking at a future where “YouTube Original” is a drawcard.  

Paramount+ has been in a flurry of new territory rollouts across the globe, and now we’re seeing increased expansion in some of their European territories as well. To fill us in, we have our insider expert, entertainment lawyer Los Angeles at Blake & Wang P.A., Brandon Blake.

Brandon Blake

Two New Subscription Tiers

As of last week, Paramount+ now has launched new subscription tiers (premium and ad-supported) for its Swiss, German, and Austrian markets. This supplements the existing standard tier already available in those territories. Notably, Paramount+ also went on record to note that almost half of their DTC signups in Canada, Australia, Mexico, Brazil, and the United Kingdom are being driven by these non-standard plans. The appeal of the ad-supported basic plan is easy to see. The premium plans offer dedicated viewers perks such as 4K UHD, Dolby Vision, and Dolby Atmos, as well as streaming on up to four devices concurrently. 

International Subscriber Growth

Paramount+ has seen immense subscriber growth in its international markets in the last few years, likely driven by its extensive (and rather recognizable) content library, which includes the Star Trek franchise and popular children’s hit SpongeBob. 

We’ve seen many streamers look to expanded streaming tiers as a subscription growth driver over the past year, including Netflix’s notorious password-sharing crackdown, which spurred the introduction of ad-supported plans across many streaming platforms.

As for these three European markets, specifically, Paramount+ has already seen “record-breaking” uptake in those areas at the end of last year. With the new introductions, they hope to solidify this growth for these markets and grow their DTC segment. 

Despite the recent rocky M&A activity at Paramount Global itself, Paramount+ is finally managing to carve its own space in the streaming market. Will this further expansion help to buoy that growth? It certainly seems like it. 

As we sadly see Village Roadshow file for bankruptcy, one key question remains— what will happen to its library assets? As the debates around the future ownership of this lucrative catalog heat up, we have entertainment lawyer at Blake & Wang P.A., Brandon Blake, to shed some light on the matter. 

Brandon Blake

Bankruptcy Filings

Despite several attempts to boost their in-house content development, and on the heels of a noted souring of the relationship with one-time partner Warner Bros. Discovery, Village Roadshow has been unable to repeat the magic it once had with popular franchises like Ocean’s Eleven and The Matrix. Sadly, the bulk of its current woes can be traced to its attempt to shift away from box office development into an in-house film and TV developer. 

Nor did a messy copyright entanglement with WBD help anything, especially as it sidelines quite a few of their more lucrative IPs, which have joint rights. There’s also a block on work for Village Roadshow from the Writers Guild of America due to unpaid dues for its members.

Library Assets Up for Grabs

Currently, it’s reported that Village Roadshow’s library assets generate over $50M a year, an appealing collection indeed for the right buyer. Especially as streaming services look to revive older library assets as an on-platform money generator, as we saw with Suits.

Ironically, Warner Bros. Discovery seems to be one of the frontrunners for the Village Roadshow library. While there is a tentative agreement in place with Content Partners, an investment firm, set at the $365M mark, this is only a baseline figure, and the company is still seeking higher bids. The assets themselves have been valued at anything from $100M to $500M, but the ongoing bankruptcy and litigation issues have made closing a transaction difficult. 

While it’s always sad to see a Hollywood stalwart fade away, at least Village Roadshow’s well-respected content library will live on. 

We’ve been watching the looming split between Lionsgate Studios and Starz for a long while now, primarily as the necessary SEC proceedings slowly worked their way through the courts. They have tentatively suggested that an official shareholder meeting be held by the end of April. Now, it seems that the news is official. To share more, we have entertainment lawyer Brandon Blake of Blake & Wang P.A. 

Brandon Blake

Special Shareholder Meeting

Lionsgate Studios and Starz will, indeed, honor that tentative promise after all. It was announced last week that the final shareholder vote will go ahead on April 23 this year, which is the last formal step required before the separation of the two entities. All shareholders on record as of March 12 this year will have a ballot open to them at the meeting. 

The State of the Separation

This has been a long time coming for the two entities— so long, in fact, that one of the first setbacks was the pandemic itself. However, despite the many roadblocks that managed to interfere along the way, the split itself seems to have been one of the most amicable and simple of the M&A activities we’ve seen of late. This is likely due to a shared group vision of each entity’s future prospects. 

This separation builds on a trend we have seen throughout the industry in recent years. Comcast, for example, is currently in the process of spinning off its remaining NBCUniversal cable networks into a company tentatively named SpinCo (for now) as a standalone publicly traded entity. That deal is currently set to close by the end of the year.

When the Starz/Lionsgate split finally closes, Lionsgate Studios will be 88% owned by Lionsgate itself. For now, however, it seems the deal is full steam ahead for an end-April closing. 

With the prospect of a strong recovery for the post-pandemic box office finally becoming a reality, will the promised new influx of Apple and Amazon MGM new films help ensure the strong slates needed for real growth? Our local entertainment lawyer, Blake & Wang P.A.’s Brandon Blake, takes a look.

Brandon Blake

New Entrants to Theatrical Spaces

Currently, the 2025 wide-release slate by pure release numbers is still below the volume we saw in 2019. However, it has significantly improved from the last few post-pandemic years, something we have highlighted is critical to maintaining theater-going momentum and interest.

Historically, Amazon MGM has only pushed films into theatres on a limited scale, mostly to cater to awards season requirements rather than as major releases in themselves. However, they recently expressed that they are anticipating growing to around 16 wide releases annually by 2027 and have already amplified their existing theatrical output. Interestingly, they’re also moving to in-house distribution rather than using third parties.

Likewise, we have seen Apple promise to beef up its number of theatrical releases as part of a wider push to build its brand. Again, historically, they have been shy about courting cinema screen time, so this is a big departure.

Indie Studios Help Significantly

These releases from mainstream studios are important to keeping theatre-going numbers high. Let’s not overlook, however, that independent studios like A24 and Neon also helped boost the number of cinema goers tremendously last year. These indie releases, alongside some successful alternate media releases like concerts, have likewise played a key role in keeping audiences interested and invested in cinema-going as part of their daily entertainment rather than just occasional blockbuster premiers.

Encouragingly, we have seen similar life cycles for theatrical releases to pre-pandemic trajectories despite the shortening of theatrical windows and the addition of PVOD releases to the mix. All in all, the theatrical release model is showing fantastic signs of recovery, and with more theatrical output from a broader range of studios, we’re well set for that long-awaited return to prominence. 

Disney may be well-positioned to knock Netflix off of its streaming pedestal— at least if their gains with their streaming bundles continue through the year. With immense customer traction, they’ve made significant gains in closing the gap with Netflix, as well as a substantial reduction in customer churn. To tell us more, we have entertainment attorney from Blake & Wang P.A., Brandon Blake.

Brandon Blake

Was Bundling the Secret All Along?

Of course, we’ve seen some steep subscription price increases from Disney throughout the 2024 and 2024 periods, so a rise in revenue alone was almost guaranteed. More importantly, however, their most recent findings suggest that their focus on bundling their various entertainment services with competitor streamers has made great strides in reducing customer churn. It’s suggested that 80%, or four-fifths, of their 1.6M subscriber gains in the July-December period are still with the Disney-Max bundle 3 months later. Additionally, their main bundle saw 10% more customer acquisitions than the Disney+/Hulu offering, and 20% more than Max alone, which also has bundles on offer.

Subscriber churn has been a growing problem for streaming services across the board, as subscribers dip in and out according to their viewing preferences. As a comparison, Netflix’s figures lie in the 55% range, despite offering more programming, as does the premium Disney+/Hulu/ESPN bundle. 

A Change Ahead for the Streaming Industry?

Naturally, it would be foolish to make sweeping pronouncements on a single quarter, no matter how successful. However, it does show that cross-company bundling has (or, at least, is perceived to have) more value for customers than within-service bundles like Max or Disney’s flagship offerings. Especially when it comes to addressing that thorny issue of churn. 

In a landscape that has also seen the average price of streaming offerings rise sharply, there’s obvious customer appeal in offering avenues into two different services through the same subscription cost. Will we see other services jump on this cross-platform model? Can Disney and Max sustain these gains? And will we finally see serious competition for Netflix’s premiere streaming position? It will be interesting to see how the rest of the year unfolds.