70% of Starz On Demand Users No Longer Visit Video Stores, New Study Finds

70% of Starz On Demand Users No Longer Visit Video Stores, New Study Finds

Starz Customers Are More Satisfied With Their Cable Company Because of Starz On Demand, Study Confirms

ENGLEWOOD, Colo., Dec. 12 /PRNewswire/ -- In a powerful sign of how on-demand television is changing consumers' buying habits, a recent study released by Starz Entertainment Group LLC (SEG) shows that the vast majority of Starz On Demand customers no longer visit their local retailers to rent or buy DVDs. The study also found that 76% of users are more satisfied with their cable company because of Starz On Demand.

"We were extremely pleased with the satisfaction numbers because our goal is to add value for our customers, and Starz On Demand clearly does that," said SEG Executive Vice President Jerry Maglio. "But what really amazed us was how Starz On Demand is changing lives. The overwhelming majority of Starz on Demand users are no longer going to the video store because of Starz On Demand, which provides a virtual video store of more than 100 movies every month in tandem with the cable operators' other on-demand offerings."

The Starz On Demand Satisfaction Tracker was conducted among 488 current Starz subscribers (ages 18 - 64) with the same digital cable service in 10 major markets from September 26, to October 5, 2005. OTX Research fielded the study and processed the data. The findings showed that among Starz On Demand subscribers:

* 70% of users no longer go to the video store
* 72% of users rent fewer DVDs
* 60% of users buy fewer DVDs
* 76% of users are more satisfied with their cable company
* 96% of users believe Starz On Demand is easy to use
* 81% of users are very satisfied with Starz On Demand

SEG has been aggressively promoting usage of Starz on Demand. "Because Starz is not ad-supported, we can do things with Starz On Demand that other networks cannot," added Maglio. SEG provides a separate satellite signal to cable companies that offer on demand with messages reminding viewers that Starz On Demand comes at no additional charge and is easy to use. The company also premieres all its major theatrical movies in the on-demand format an average of 15 days before they appear on the linear services, and also includes bonus features on demand that are not available on the linear channels.

"We know we provide a great product and the best movies Hollywood has to offer, and we are thrilled our customers feel the same way," added Maglio. "Studies such as this show us where we are doing things right, and where we can continue to surprise and delight our subscribers."

Starz On Demand provides impulse viewing of more than 100 Starz Entertainment Group movies with full "DVD-like" functionality as part of the monthly Starz subscription and no fee per view. Starz On Demand offers a steady supply of hit movies including "The Aviator," "Hitch," "National Treasure," "Dawn of the Dead," "The Incredibles" and coming to Starz On Demand in 2006: "The Pacifier," "Guess Who," "Sin City," "Chicken Little," "Rent," "Flight Plan" and "The Chronicles of Narnia: The Lion, The Witch and The Wardrobe," and more.

Starz Entertainment Group LLC (SEG) is the largest provider of premium movie services in the United States with approximately 181 million pay units. SEG offerings include the Starz Encore Movie Pack with 13 digital movie channels and more than 750 movies per month, Starz HDTV, Starz On Demand, and Starz Ticket, an on-demand premium Internet movie subscription service available on the broadband platform. Starz Entertainment Group is a wholly-owned subsidiary of Liberty Media Corporation, www.starz.com.

Contact: Allyson Taylor Jonathan Taylor
Starz Entertainment Group The Lippin Group
(720) 852-1122 (323) 965-1990
allyson.taylor@starz.comjtaylor@lippingroup.com

Source: Starz Entertainment Group LLC

CONTACT: Allyson Taylor of Starz Entertainment Group, +1-720-852-1122,
allyson.taylor@starz.com; or Jonathan Taylor of The Lippin Group,
+1-323-965-1990, jtaylor@lippingroup.com, for Starz Entertainment Group LLC

Web site: http://www.starz.com/

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