Yesterday, Starz Entertainment LLC, a wholly-owned subsidiary of
Liberty Media Corp.
) launched its two TV Everywhere services with Cox Communications
Inc. The two online authenticated services are known as STARZ PLAY
and ENCORE PLAY. The company will also launch its third streaming
services called MOVIEPLEX PLAY with Cox in near future. These three
services together will offer 1,500 premium movies and TV programs
Initially, STARZ PLAY and ENCORE PLAY will be available through
) developed several devices such as, iPhone, iPAD, and iPod through
Wi-Fi and wired broadband connections. However, Starz stated that
mobile connectivity, access through gaming consoles and
availability of these services on
) developed Android-based devices will be launched later on.
Furthermore, management is trying hard to enter into similar types
of deals with other large pay-TV operators.
Liberty Media has already decided to spin-off its Starz
entertainment segment as a separate entity by the end of 2012.
According to management, the spin-off of Starz will unlock the
latter's value by optimizing its capital structure and enabling
Starz to find several alternative ways and partnerships for both
content creation and distribution. At the end of second-quarter
2012, total subscribers base of Starz increased 9% to 20.7 million
while its sister TV channel Encore had 34.2 million subscribers, up
4% year over year.
The spin-off is envisioned to provide a cash dividend of $1.8
billion to Liberty Media. We believe the spin-off of Starz will
help Liberty Media to increase its stake in
Barnes & Noble Inc.
Live Nation Entertainment Inc.
), together with
SIRIUS XM Radio Inc.
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