Comcast and Lions Gate Entertainment have now entered into a new agreement with each other after few months of tense interventions. We want to mention here that LG Entertainment is the owner of the premium channel ‘Starz’.
As a chunk of the deal, both Starz and Encore will remain in the premium channel package of Comcast for a certain period of time, until it starts offering the services independently. This makes it clear that the channel will reach more homes than it would as a stand-alone service.
Lions Gate has confirmed that it would license its TV and film content to the ‘Peacock’ which is a major streaming platform on Comcast from next April.
All the originals, as well as NBC staples, will be included on Peacock and Comcast officials have also affirmed that they will spend $2 billion on the peacock for improving the services further. The streaming platform relies basically on advertising. With this new deal, the content from NBC Universal is also going to add up on Starz in the United States and StarzPlay, which is an international streaming service.
From the last few months, Comcast was broadcasting an alert message to the cable customers indicating that the premium channel Starz and Encore are going to step back their services from their platform due to the end of the agreement. The sudden blackout threat caused a protest from customers as well as from the renowned rapper 50 cent on the social media platform. 50 cent is a popular actor on drama named ‘power’ showcased on Starz. He also confirmed that Starz will remain a part of the premium channel on Comcast till the end of its final season of ‘power’.
Though the terms and conditions of the latest deal have not been disclosed so far but if you want to purchase the channel individually, then you can by paying a nominal charge of $8.99 a month. The a la carte channel is available in the form of a consumer app on different OS.
The estimated loss to Lion’s gate after the Comcast deal was $225 which would have been a hard hit to the company, especially after the partnership with AT&T Inc.’s DirecTV unit, which has refused to pay the fees to the Lions Gate. An A la carte transition will no doubt be proven successful for Lions Gate in terms of financial profit but providing such channel in the premium package for a short period of time will definitely soothe the blow.
Lions Gate CEO, Jon feltheimer in the recent press conference revealed the company’s November earnings. He said the company is trying its best to generate maximum revenue by offering the a la carte service instead of the channel in the premium package. Moreover, the company revenue has also increased to 60% which was 40% earlier.