CANNES - U.S. pay TV outfit Starz is to launch in international markets with the creation of the international Starz Play service, according to a press report.
It has inked a pact with Peter Ekelund's Swedish media group Parsifal Entertainment, which helped set up HBO's streaming service in the Nordic countries, to create Starz Play, an over-the-top video streaming service that will launch in the Middle East, Africa, Asia and Latin America, the Financial Times reported Sunday.
The deal, which the company will unveil on Monday at the Mipcom television market in Cannes, comes as Netflix expands rapidly in international markets.
"What we focused on is how quickly and dramatically HBO succeeded with its Nordic program," Chris Albrecht, Starz chief executive, told the FT.
"The amount of money and capital investment needed to build these new platforms is a fraction of what it is to build a linear (television) channel," he said. "This gives us an international business that has real potential."
Parsifal has invested alongside Starz in the new service, as well as unnamed financial institutions.
© 2014 Variety Media, LLC, a subsidiary of Penske Business Media; Distributed by Tribune Content Agency, LLC
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