Starz at UBS Global Media and Communications Conference

THOMSON REUTERS STREETEVENTS EDITED TRANSCRIPT STRZA - Starz at UBS Global Media and Communications Conference

EVENT DATE/TIME: DECEMBER 08, 2015 / 4:30PM GMT

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CORPORATE PARTICIPANTS Christopher Albrecht Starz - Chief Executive Officer & Director

PRESENTATION Unidentified Participant Up with us this morning Chris Albrecht, Chief Executive Officer & Director of Starz Networks, Chris. Thanks so much for coming.

Christopher Albrecht - Starz - Chief Executive Officer & Director Thanks, [Drew].

Unidentified Participant So look why don't we start out, I am sure have been asking everybody, he's had a long and industrious career, he used to run HBO, now running a public company. So what are your goals and targets right now, what would define professional success for you when you look forward?

Christopher Albrecht - Starz - Chief Executive Officer & Director Look, I think one of the good things about being a Public Company's CEO is that it helps really narrow your focus on what you're trying to do, which is grow shareholder value and increase shareholder value, make the company more valuable for the people that invest. Obviously there is different ways to do that. But every decision that we think about, every decision that we make has helped us against that goal. And it's something that we think in the short term, medium term, long-term. Obviously, those are factors that are gating factors in how you make some decisions. But we obviously want to grow our business. We want to grow our top line; we want to grow our bottom line. I think it would be nice to see Starz diversified more than we are now, but ultimately the goal is to increase shareholder value.

Unidentified Participant So why don't we start with your big announcement this morning, you want to sort of - for those who haven't seen it yet talk about the Amazon deal, that you announced with the implications out for Starz.

Christopher Albrecht - Starz - Chief Executive Officer & Director Right, well with Amazon's announcement, but Amazon announced that they were going to be selling a few services, Starz Showtime, and a couple of other services, on top them is On Prime, and a premium tier, which is something that's always been very important to us. We're very excited about it. It's our first opportunity to work with a digital distributor. You know, when we see there being a lot of energy coming into the category of selling video and I think this highlights the value of premium. I think it highlights the value of Starz and we have a lot of excitement and confidence around Amazon team. I mean the Prime product is amazing, they are retailers. So I think this points out again, how premium has always pulled through customers to other platforms, whether it was cable customers or whether it was satellite customers or whether it was Telco customers, and now we're seeing maybe one of the world's greatest retailers, who is going to be selling premium on top of what really is their core business. And I think it kind of mirrors what's happened before. Obviously, a little different but while there may be a lot more television out there, there's still only pretty much the same number of premium channels. So the more people that realize that value both on the MVPD side and on the new distribution platform side. I think the better story it is for Starz.

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Unidentified Participant And then what kind of pricing you said and how did you sort of arrive at that being the right number?

Christopher Albrecht - Starz - Chief Executive Officer & Director Right, so again it's Amazon pricing. So we have a wholesale deal with them, so they're wholesalers, which again mirrors the kind of relationship that we have with the MVPDs. So I'm not at liberty to say what the wholesale price is, but they're setting a retail price now of I think $8.99 for Starz and I think that comes after a seven-day free trial. So I mean aside from the Prime package itself, there is obviously Prime Video, which is a kind of gateway, I think, the upgrade into premiums and I've been very impressed with their team, very impressed with their technology and we're looking forward to a mutually beneficial partnership with them.

Unidentified Participant So I think you already said like on the wholesale side, you do not want to make a specific comment, I'll poke around a little bit to see if I get anywhere, but just in terms of the structure you already had in place with the traditional distributors, is there sort of any limiting factors as we think about you doing more of these types of deals in terms of pricing, where you could say, okay, we know it has to be in line to hire, otherwise other things get triggered, is there any sort of framework around wholesale rates for new OTT services versus traditional?

Christopher Albrecht - Starz - Chief Executive Officer & Director Again, we're not giving a specific number there, but sort of the rule of thumb has always been new distributors don't get the same deal that the old distributors get.

Unidentified Participant Right.

Christopher Albrecht - Starz - Chief Executive Officer & Director And I think same to us and it seems a way that we can look at our long time partners and go, you want that rate, we'll have to give you that rate, but I think that this was a good deal for both Amazon and Starz, obviously or those guys wouldn't have entered into it. There aren't any really any real gating factors, I mean one of the things that we try to point out to the distribution that people talk about or ARPU and everything and, yeah, Showtime's ARPU is higher, HBO'S ARPU was higher, but one of the opportunities there is that we can go into the distributors and say we'll -- that gives a room to actually offer Starz at a price that's less than maybe you need to offer some of these other premiums and look at people in the tent and let them see how terrific the programming is, and all the movies that they get and all the features that they get and we think ours are those stick around.

Unidentified Participant Well, it brings to one other question I wanted to ask you a little bit farther in the conversation was when would over-the-top launch and of course it's one thing to have Amazon start off the service, it's another thing for you to start to retail it direct to consumer yourself. Is that still something that you're considering, and what kind of timing would you put around that sort of an issue.

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Christopher Albrecht - Starz - Chief Executive Officer & Director There were so many permutations of this that we consider all of them. I think the thing that we are focused on and what we've been working on is creating our own app, which creates our own experience that we have more control over and that was one of the factors in some other decisions that we made around how we would start with a pure digital distributor. I don't necessarily consider it. I get confused with OTT versus direct to consumer versus - so I think this is still a wholesale relationship that is a different avenue to the consumer. And there may be some other ones that we can take that seem more direct to the consumer without us actually being the company that has to manage all of the marketing and all of the customer service and it's obviously that that's not something that we would do, but I think there are plenty of interesting companies that are looking at becoming distributors of video and see the premiums as an opportunity for them to compete in a way that let them be innovative if they have a basic video package like Amazon does, but it also allows them to be able to be in business with what are the premium and I think they're called premium for a reason, arguably the best video services out there. So we are considering everything. As I've said before, we're looking at the marketplace, we're looking at what HBO and Showtime have done we are being careful in the decisions that we make, because what we want to do is honestly have our cake and eat it too.

Unidentified Participant I was going to ask you if you learnt anything from the HBO launches and the Showtime launches so far, but is there sort of anything notable as you sort of track those?

Christopher Albrecht - Starz - Chief Executive Officer & Director Well, it's been a little information that I can get some of the portals or some of the partnerships that they have are people that we talked to as well. And sometimes we get some hints as to what they think work with what they've done before and what they might do differently moving forward. A little easier to talk to Showtime about some things than it is sometimes to talk about HBO, they are a little more guarded about stuff. I was reading Les' comments, I think, from (inaudible) this morning - yesterday about Showtime and their Digital subs or OTT subs and he was saying that they're not giving out numbers, but that they are very happy and I think that there's a lot of opportunity there. I would echo that. And we think that there's a lot of opportunity there. But what that says to me, knowing Les as long as I do and knowing what little friendly information they've shared with us, they're happy with what they're doing and they're optimistic. So a little bit of a different spot within considering they've got CBS sort of sitting under them, but we're still analyzing the marketplace and I think the marketplace is literally at the very beginning.

Unidentified Participant Well, I want to go back there a little bit on over the top for you, because your strategies about - if I sort of think back a few years ago, it was almost sort of more defensive warehouse brand for traditional distributors, and now here you are sort of starting with digital distribution of the products. I mean sort of can you just walk us through sort of, well one, do you feel like the relationships with pay TV distributors is going to change it all as a result of having digital distribution of the product. And two, how has the world changed that made you think this is not the right strategy going forward.

Christopher Albrecht - Starz - Chief Executive Officer & Director So actually hard to predict what the large MVPDs will do. I mean, it is absolutely, I think, a fact of life that the premiums are a good business for them even if it's only to cement in all the other things that they want to sell, right, so there's different margins for HBO, different margins for Showtime, different margins for Starz. It would be shocking to me if they abandon the distribution of premiums, are they happy about what's going on? I think the only thing that makes them happy is if you go and you say pay me half of what you paid me last year. But separate from that, I think we've had long relationships, they are trying to innovate. We certainly want to incent them to innovate, we want to help them to innovate, we want to be part of what they're doing on their packaging, whether it's over HSD, or however they're delivering it. There's a lot of confusion in the marketplace as to what's any packages are and aren't, and whether there's for skinny video packages are they on top of HSD, but again premiums are unique, they're not ad supported. They are of the highest quality products that any of the distributors have to offer both on the content side

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©2015 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. DECEMBER 08, 2015 / 4:30PM, STRZA - Starz at UBS Global Media and Communications Conference and on the technology side. And if they want to continue to be in the video distribution business, I think they're well-served to continue to partner effectively and efficiently with us to satisfy those customers and to hopefully grow their base. This is more important than ever before for them to hold on to their video subscribers, both basic and premium, because clearly there are other people. The Amazon relationship seems to me to be, as I said before, the most liked in an MVPD relationship, which is we're wholesaling on top of a bundle that already is being marketed to the consumer and highlighted by a premium tier, so that was something that was important to us and that we felt was a very good first step, especially since that company seems very committed to making this work, Amazon, I mean.

Unidentified Participant So at the top you talked about driving shareholder value and I would think obviously is part of that sort of just driving growth of the traditional business as well and can you walk through sort of what are the efforts to drive growth in terms of, I mean, I guess it goes across the board but subscribers to start with?

Christopher Albrecht - Starz - Chief Executive Officer & Director Subscribers, I think are really - there's not a lot of - I don't think Starz could spend the amount of money necessary in the open marketplace to drive the awareness of Starz from an MVPD better than a concise, well-crafted targeted marketing campaign in partnership with the MVPDs. So I think we gain subscribers when we're working hand-in-hand with our long MVPD distributors in the traditional environment. And I think as we look at it, part of what we are saying to our distributors is the demographics that we are bringing into Starz that are interested in Starz may very well not be long-time premium customers and that if we can package appropriately, even above the stack, there may be low-hanging fruit available to you before that isn't the HBO subscriber, but is somebody that is looking for Power, Outlander, Survivor's Remorse, or some of the other or Ash vs Evil Dead, which is the youngest gaming show that we've had. And I think that works well for saying to them, hey, why don't you bring those potential new subscribers into your tent. It also works well when we're talking to potential new distributors to say here are some things that can attract, you can market to audiences that might be very receptive to this instead of just trying to have a service that seems intended for everyone and that kind of makes it a little bit of a hard job, I think as we see marketing whether it's on a digital platform, I don't mean the distribution platform, but whether it's social media or whether you're marketing - whether you're spending your marketing dollars digitally, it's more and more important and more and more effective to be able to target specific audiences and I think that's going to start to work on both sides of the equation MVPD, non-MVPD to just augment what's the base. As I look at our business, I'd like to think that there was good growth in the MVPD business, but if I look at the MVPD business and I say If we could just grow mid-single digits revenue on top of that every year, that would be not a bad business and if we could then augment that with some real new business in this digital world, that would have a really nice impact on that foundation. And then if we think about international as literally a new frontier for us then I think we've got some pretty interesting and potentially lucrative building blocks for growing our company and growing that shareholder value that we had talked about in the beginning.

Unidentified Participant So as we think about that mid-single digit number, I know there was a little bit of a mix shift issue more recently for, I think, pretty much older premiums as we sort of think about 3Q. And the telcos have had the strategy of you versus [AT&T] and push everything to DirecTV and Verizon has been selling off pieces of their territory, because those have been not really very high premium penetration platforms that are winding down a little bit, is there something that investors should think about mix shift as an issue for a while or are you seeing any change in that dynamic?

Christopher Albrecht - Starz - Chief Executive Officer & Director Again, I see numbers after like a month or so or two months, we have to estimate with our distributors and then they report numbers to us a couple months later, but it does seem to me as if AT&T and DirecTV are now refocused on what their transition is going to be. AT&T U-verse did a fantastic job with premiums and I think DirecTV has been in transition with their merger. And it would be terrific to see the combined platform have the kind of penetration that AT&T U-verse had, it seemed to work pretty well for AT&T U-verse, not sure why it wouldn't work well for DirecTV, especially since they're really a high-quality video platform and that seems to be a big part of AT&T's strategy is to have that be a really robust video platform.

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I think the way you make that a really robust video platform is to make sure that you have as many subscribers as you possibly can both on the basic and on the premium side. So it's hard for me to predict how this transition will morph, but the AT&T folks seem to be very focused on making sure that that investment pays off. And we think that goes hand in hand with making sure that you're mining the opportunities that you have with your video customers.

Unidentified Participant While we switch at that as part of this growth discussion of the content and your strategy there because obviously that drives a lot of the value, and you've made a big push in the regional content. You talked about a lot and from our perspective, it seems like you've certainly gone after underserved viewers, women, African-Americans, that appears to be paying off with [LGBD], Survivor's Remorse and Power are heading into their third season. What shows as you look forward that you are excited about and is your content strategy evolving at all?

Christopher Albrecht - Starz - Chief Executive Officer & Director Our country strategy is always evolving. I mean, certainly the Hispanic audience, Latino audience, whatever word is the appropriate word of the week. They are a very different audience than I think people might think off the top of their head, and we are interested in making sure that there are things on Starz that appeal to them probably second generation or at least bilingual audiences, although we do have our Starz and Encore Hispanic feeds. We look at the LBGT audience, again audiences that are not exclusive, meaning the people that I don't know who are just transparent. But I would imagine it's not just LBGT people or transgender people. Same thing with the audience that watches Starz, we're seeing that expand. Same thing with the audience that watches Outlander. So for us it's let's target and get people on the tent, and then show them what else we have. And hopefully those stick around and watch even more and value the service even more. It would be great to spend more money on originals. And I think the business as it is, we feel that we're growing into this 80, 90 episodes a year of scripted television and that seems to be a good number for us. It's kind of around what Showtime has, like someone as HBO has, but again we're targeting different audiences. And we don't have to compete head on with everybody to be successful. All these companies have made a lot of money being sold side by side or packaged in interesting ways for the consumer.

But I'm excited about the Alejandro Inarritu show that's coming up called the One Percent, it stars Ed Helms and Hilary Swank, I just read the script on the plane coming in, it was terrific; excited about American Gods from Bryan Fuller & Michael Green on the Neil Gaiman book, again something that's got a real fan base, that we know will take the social media and just be avid supporters of this and social media is becoming, I think, the most important recommendation engine for how people find and decide what they want to watch or what they want to download or whatever we're calling the experience now, but they want to binge on.

Unidentified Participant I think one of the original content subs you're doing is (inaudible) and we sort of look at Flesh and Bone made a decision before the first season aired to stop that and went for a second season of Ash vs Evil Dead before that aired. So can tell us about thinking around your development and what you're seeing and are you finding up enough good shows?

Christopher Albrecht - Starz - Chief Executive Officer & Director Yeah, I think there is - ironically, there're so many shows out there. Now there is competition for shows, but there are more opportunities for shows than the amount of money that we're spending. That's why I think if we could prove that there is really additional revenue to be had and be able to grow our business, then we might consider investing more money in original programming, because that would drive -- that could even further drive those new opportunities. Ash vs Evil Dead cost less than half the amount of money an episode than Flesh and Bone cost. We are extremely proud of Flesh and Bone, Moira Walley-Beckett has got nominated for Writers Guild Award, no surprise because she is a phenomenal writer and that show was just going to be too difficult to mount on a yearly basis. Ash, I mean the amount of social media activity that was generated by that

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Unidentified Participant So where are you on in terms of sort of licensing versus ownership when you think about this 80, 90 episodes a year?

Christopher Albrecht - Starz - Chief Executive Officer & Director We have probably half our shows that we license and I think that balance probably needs to be more than half of our shows or shows that we control all the rights to. So whether that's wholly owned or whether that's in partnership and we've bought the rights but as we look to build, as we look to preserve the value of Starz, we don't want to see the shows show up on competing platforms three weeks after they have finished their run on Starz, and at the same time as we think about building international, certainly we can license our shows as a partner campaign. So if we licensed the show from Sony, and they licensed the show overseas since Sony is recouping their deficit and they have an opportunity to make money, what we don't have an opportunity to do is build the business. So it's not so much about owning things so that you can license them. I think it's about owning things so that you can kind of control how you're going to monetize those rights and what value creation can come from controlling or owning those rights.

Unidentified Participant I think I want to talk about international, before we get to that, why don't we just finish up on content, because I think you're (inaudible), you've built up the original content spend to getting pretty close I think to the 80, 90 episodes. So that sort of suggests that on the original content spending side, that might start to level off, but we also spend a lot of time thinking about what happens when the Disney movies go away, and there is a huge content savings that comes from that and as you sort of think about that fall off and programming spend that's going to come in over the next couple of years, do you think let's redeploy that money and changing how many hours of programming we have on or you know as you just said, we've got enough programming so that money goes in our pocket. How do you sort of think about this dynamic?

Christopher Albrecht - Starz - Chief Executive Officer & Director Look, I look at it as another resource that we used to create value. And so we'll look at the opportunities to deploy that if it's in stock buyback, if it's in growing our margins, if it's in investing in programming, there is going to have to be - or if it's in all those things or if it's investing in new businesses. I think there's going to have to be a real reason behind what happens to those to the money that's no longer going to Disney. And as I look at it right now, we'll see what happens with Amazon. I don't see a giant immediate opportunity to invest, certainly not all a bit, to invest more in originals but certainly if we saw that there was real growth potential from doing that it is what we do and I think people have shown that building a library is probably as valuable as almost anything else that you can do. So as the world becomes more still with more video offerings it's not a bad thing to have a really robust one, but you have to be able to monetize it. So we're looking at that, we have had plenty of time to think about it. But also as we talked about earlier that the new landscape is just evolving. So it's hard to place bets on the NFL Season next year when we're still playing in this one. And I think that's the way we sort of look at the Disney opportunity. The money is going to be there, shows are going to be there, it would be easy for us to tee up more things that are in development and green light them or we can hold them on development and see how we might want to flow through some things and just be a little more disciplined or a little tougher on some of the decisions, a little stingier on some of the things that we green light. But we're certainly aware that that money is going to be there and we're ending - next year this time we'll have, I imagine next year this time or may be a little earlier, we'll have the Star Wars film on and we'll be very happy to see it there. And it's sad to see Disney go and can't wait to ask them how they feel about that Netflix field two years from now?

Unidentified Participant Not a bad way to end on, on Star Wars 7, that's a pretty good sort of finish to the Disney movies -

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Christopher Albrecht - Starz - Chief Executive Officer & Director Yeah, it could be the biggest movie of all time.

Unidentified Participant It could be, better be, I think any concerns at all on your part or not having those Disney movies when you sort of think about 17 and beyond in terms of fresh movies coming in?

Christopher Albrecht - Starz - Chief Executive Officer & Director Again, this is about money, there was no price we would have spent for Disney movies, but if you look at how these movies perform, I mean you can't chill frozen with a stick, okay. So that's the most (inaudible) life even on VOD platforms, but the moves perform for a couple of weeks and they don't perform nearly the way they used to perform. So by the time Star Wars gets to HBO, I worked with HBO, that's a flashback, By the time Star Wars gets to Starz, it will have been, I mean I think every person in the world will have gone to the theater to watch it, right. And the people that don't do that will be either downloading it, will be buying on iTunes or wherever they'll get it and it will be on EST and all the big box retailers, it will be for the people to still buy this, it'll be on DVD, it will be on DoD on their MVPD platform and then it will come to Pay TV. So it would still be a great movie for us, but I don't think we can look at any of these output deals and say that they still have the same value that they had years ago. I believe Tom Rothman is going to do a great job at Sony and that there will continue to be a really robust studio, they need that movie business to work. He's a terrific film executive. We know we're going to get a lot of movies from them. We know we'll get some really big movies from them. We know we'll get some more targeted movies from them that will be interesting to go along with and kind of program with some of our originals and the Disney movies will come back. We have second and third windows on these two, maybe we'll make a library deal with Disney, library films because you can actually go out and pick them, perform extraordinarily well. The amount of usage that ENCORE gets, which is basically a library service, is astounding when you think about how many other things there are, how many other ways there are for people to watch movies, but if you want to find a good movie to watch, go to Encore.

Unidentified Participant So turning to International, I mean you mentioned that as one of the strategic focuses, you've lost some OTT in the Middle East, how are you to grow international?

Christopher Albrecht - Starz - Chief Executive Officer & Director Piece by piece, I think the partnership model is one that's good for us. There is a lot of energy out there by people in all areas of the world that are not ready to see it become - to see Netflix on the world. And if they're going to build businesses to compete with Netflix or to make that to sort of plant their flag then Starz becomes a really interesting partner, not just because we have content, because we don't have so much content, but we're great curators. We understand the subscription business. We have money and we can bring other partners along with us because I think there are people that in some cases are pure financial partners that look at us and say, well, these guys are interested in it, then it's probably a pretty interesting investment. So we're building a Rolodex , which still exists, of territories and partners that we've interacted with. And we still sort of have the door open, and there's a lot of incoming that surprises us, because of what people see us doing. And we're going to be opportunistic and it's not either/or, it doesn't mean that we still can't license to a territory and have ownership in a platform or have a license deal from the platform that we have some ownership in. But we're going to be opportunistic, but we're going to need to continue to look at the world and say there is money to be made for Starz out there.

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Unidentified Participant To start to breakdown between sort of emerging markets and sort of the bigger developed markets, where the developed markets, partnering on a channel makes sense, because you've got a big robust ecosystem, in the emerging markets, why not go OTT and be there early in yourself because there isn't much of a marketplace.

Christopher Albrecht - Starz - Chief Executive Officer & Director I mean, the way that we look at it is that in real developed countries, Western Europe, obviously, being one of them, for us to go in there with the Starz brand of platform, we would probably need to partner with an established media player in that territory, whereas it's not necessary for us to do in emerging markets. And in the emerging markets, you're finding a little bit more of an entrepreneurial spirit than in the more developed markets where they are much more entrenched media companies. But even inside the Liberty array of assets there are interesting companies for us to talk to about potential partnerships and about the potential expansion of the brand and even though we're not a Liberty company anymore and jumble some of our offices there.

Unidentified Participant They're pretty close. So why don't we before we turn to that, just lastly on the US, we're always wondering what the cadence is for the renewal cycle, I've had this sort of thought that some of the distributors were stacked up around the end of the Disney deal, because they weren't sure whether or not it was going to get done. Is pretty even as you look forward in terms of renewals each year, is there any sort of rollercoaster ride there?

Christopher Albrecht - Starz - Chief Executive Officer & Director Look, there's always renewals, obviously as some of these companies consolidate, when you had a renewal, we charter and then you had a renewal with Time Warner, if those deals come together with Bright House and everything, then that renewal starts to change in terms of complexion, same thing with AT&T and DirecTV. I'm not saying that as a bad thing or as a good thing, but I think that's been more of an impact on how these renewals work than anything that's happening with Disney. There are just fewer people out there. So the chances are when you have a deal up with one of them it's going to be a bigger piece of what your business was than it was a few years ago. That's just math. But we have lots of deals that are continually in transition, the deals are multi-year, which is why even though we can gain subscribers in non-consignment deals or with non-consignment distributors, the revenue opportunities for that, while happening on a yearly basis so we have yearly increases, may not really be available to us until we have the opportunity to enter into an extension discussion. So we are confident that the story that we have to tell and the opportunity that we have to offer the MVPDs puts us in a good position with a smile on our face and a box of candy in our hands to continue to have successful extensions and distribution discussions with the large MVPDs and the smaller ones as well, because there's still a lot of the smaller ones. Obviously, they are just a much smaller piece of the pie.

Unidentified Participant Any of those revenue opportunities coming up soon.

Christopher Albrecht - Starz - Chief Executive Officer & Director There's always revenue opportunity. Look at the Amazon announcement today, I mean I was just e-mailing with Michael Paul, who runs that opportunity, and Mike he looks like, wrote this whole long email to me, it was great and I just replied to him, thanks, let's go make some money.

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Unidentified Participant So can we talk a little bit about the Malone empire again saying - so you are a part of it, but obviously a pretty deep association. A lot of the investors in this room think consolidation media is inevitable and relatively obvious as a premium here and a bit of a unique part of it, because you don't have ad-supported cable issues that some of the other companies have. But how do you see your place in media as you look out a few years, do you think there will be consolidation, you think that Liberty will be part of that dynamic?

Christopher Albrecht - Starz - Chief Executive Officer & Director Well, I think obviously what Liberty does is up to John and Greg and then there is Liberty as a company and then. there is John, as an investor and those two things are often talked about in the same discussion, but they're not the same thing. I know that John and Greg, believe that consolidation on the content side is something that would be, it has the potential to create a lot of value. And I would agree with that, that there is A potential to create a lot of value. I think different combinations offer different opportunities. I don't really see combinations. I mean other than price and governance and who runs it and all that said, I don't really see in any of these combinations that people talk about any downside. To me I look at this and go, yeah, of course this makes sense, but it doesn't mean that it's easy and it doesn't mean that it's going to happen. But I think if you've got ad-supported revenue and you've got subscription revenue and if you're a content manufacturer and you have a platform or multiple platforms, if you're a large taxpayer and somebody's got Canadian stat. I mean there are all sorts of things that happen that offer immediate or potential mid and long term. And I think as people look at consolidation, it doesn't mean that it's one company, it could be multiple companies. That said, we go to work every day thinking, all right how we're going to get our next deal done and what programs should we put on. And I just looked at the budget and I have a copy to handout to everybody. And we're not planning on something happening other than running our business the way that we see is best to build that value, that I keep talking about.

Unidentified Participant That seems like a good place to have.

Christopher Albrecht - Starz - Chief Executive Officer & Director Thanks very much. Thanks everybody.

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