Starz has opted
not to order a third season of "Crash," the TV drama from the team behind the eponymous Oscar-winning film. The decision comes as the pay-TV operator is trying to add original series to its
traditional movie lineup and with former HBO chief Chris Albrecht now in control.
"Crash," starring Dennis Hopper, was a co-production of Lionsgate and Starz. It premiered in October 2008
and ended season two in December after 26 total episodes.
Bill Myers, president-COO of Starz Entertainment at parent Liberty Media, said "Crash" failed to meet "audience expectations" and led to
a writeoff of $8 million derived from production costs in the fourth quarter.
However, executives expressed optimism about "Spartacus: Blood and Sand," a 13-episode series that debuted in January
on the Starz networks and has already been renewed for a second in 2011. The show was the subject of a significant marketing campaign last quarter (as was "Crash").
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Starz has plans to air two
original comedies - a second season of "Party Down" and the new "Gravity" -- this spring.
Albrecht became president-CEO of Starz, LLC in January, with oversight of pay channels under the Starz
and Encore brands. He helped HBO develop a run of original hits during his tenure there.
Albrecht signaled Thursday that a sort of re-launch at Starz is coming that aims for a brand "that feels
cohesive" between the original shows and movie offerings. He added that the aim is to deliver original series and some events year-round, with "a full complement" in place by the end of 2011.
"The job of programming any of these premium services I think is to create value and also differentiation from the other entries in the category," Albrecht said on a Liberty Media earnings call
Thursday. "I never felt that the pay TV game was a ratings game; it's really more an attitudinal game with the subscribers and the operators."
Separately, on the Liberty call, Myers said Starz
is evaluating "strategic alternatives" for the money-losing Overture Films studio, which has looked to produce films on a modest budget since it launched in 2006.
Overall, Starz Entertainment
saw revenue up 5% in the fourth quarter to $300 million -- $31 million of the increase was due to rate increases. Revenues were up 7% for all of 2009 to $1.2 billion.
Operating income swung
positive to $65 million from a loss a year ago.
Also within Liberty Media, QVC increased revenue in the holiday-season, October-December quarter by 13% (to $1.7 billion) -- with the beauty,
consumer electronics and fashion jewelry categories solid, according to CEO Mike George.
The company's push into e-commerce also saw growth, with a 27% revenue jump for QVC.com. George said
revenue improvements were "well ahead of most retailers." Globally, revenue was up 14% to $2.4 billion -- 71% of revenue is derived from the U.S. -- while operating income soared 40%. But for all of
2009, revenue was up a lesser 1% globally (to $7.4 billion) and operating income 7%.