It only took about half a year for Starz to recognize that the leader in the premium cable space, HBO, was on the right track. In a classic follower move, Starz has announced that they too will offer an over the top (OTT) app to consumers seeking its content, without also buying a cable subscription. It has become a necessary step as their cable subscribers continue to downgrade and turn them off as well as their sister Encore networks. Per Multichannel, the OTT platform is weeks away from being released.
At the same time, rumors continue that Starz could be an acquisition target; however, given their lackluster results, their full value may be dropping precipitously. The hope is that they can rebound by finding new customers interested in this new OTT service. Most likely, the overall reason for an OTT distribution stream is to become more valuable for an inevitable sale of the company.