While headlines scream about Lionsgate's upcoming split and the reverberations of the Hollywood strikes, something fascinating hides in plain sight within their latest earnings call. A quiet revolution is brewing at Starz, one that hints at a potentially explosive future for the premium network.

Lionsgate's plan, as revealed in the transcript, isn't just about trimming the fat and going all-in on North America. It's about a fundamental shift in content strategy, one laser-focused on replicating the success of a streaming giant like Netflix.

Remember how Netflix disrupted the industry by focusing on volume and variety? Starz appears to be taking notes, albeit with a premium twist. Their weapon of choice? Movies, and lots of them.

Jeff Hirsch, Starz's CEO, emphasized the importance of movies in driving subscriber growth, highlighting the success of titles like "John Wick Chapter 4" and the return of their Pay 1 and Pay 2 deals with Lionsgate and Universal. But here's where it gets interesting. Starz is planning to drastically increase its movie offerings, jumping from a modest 13 films in fiscal year 2023 to a staggering 35+ by fiscal year 2025.

This isn't just about throwing any old film at the wall and hoping it sticks. Hirsch emphasized a commitment to "quality, world-class features," indicating a strategy of curating a library that caters to a wide range of tastes, much like Netflix's approach.

But there's a crucial difference between the two streaming players: Starz's focus on its core demographics. Hirsch repeatedly stressed the importance of their "two very valuable and profitable core demos," suggesting a targeted approach to content acquisition. They're not aiming to be all things to all people. They're building a premium movie library specifically designed to resonate with their existing subscriber base and attract new viewers within those demographics.

Starz Subscriber Growth and Revenue Projections

The numbers tell a compelling story. Starz's domestic OTT subscriber base grew by a healthy 700,000 in the last quarter, a testament to the early success of their movie-focused strategy. With a projected 70% of their revenue stemming from OTT by the end of fiscal year 2025, Starz is poised to become a digital-first entertainment company, fueled by a content engine that's leaner, meaner, and potentially more profitable than its larger competitors.

The million-dollar question, of course, is whether this bold strategy will pay off. Will a focus on curated, high-quality movies be enough to propel Starz to new heights in a crowded streaming landscape?

Only time will tell. But one thing is certain: by quietly building a content library tailored to its core audience's passion for film, Starz might just be on the cusp of becoming the streaming world's best-kept secret, a hidden gem waiting to be discovered.

"Fun Fact: Starz was originally launched in 1994 as a premium channel focusing on movies and concert events. Their return to a movie-centric strategy could be seen as a return to their roots."