Already set to roll out an online SVOD service in select international markets, premium cable network Starz is strongly considering doing the same in the United States.
"There is significant value in paid premium channels that is being constrained by current MVPD bundling," said Starz CEO Chris Albrecht to investors during the network's third-quarter earnings call Thursday.
"This is a tide that has to turn," he added. "I don't think it cannibalizes the existing business. It is a way to innovate and create real value."
Just like the HBO OTT service that was announced Oct. 15, Starz would target the growing number of U.S. broadband homes that currently don't have pay-TV subscriptions.
"Let's get them in the tent. Let's give them what they want," Albrecht said. "The distributors have to decide they want to not just sell them broadband but they want them to be video customers as well. … To us this is a no-brainer."
As for its earnings, Starz reported a profit of $55.8 million for Q3 on revenue of $408.2 million, coming in below analysts' forecasts.
For more:
- read this Starz third-quarter earnings release
- listen to the earnings call
- read this Variety story
- read this GigaOm story
Related links:
Starz meets with Murdoch, Fox to discuss possible acquisition
Starz's Albrecht: premium cable has 'much better product than Netflix'
It's really happening: HBO sets a la carte streaming plans for 2015