In its first earnings report since splitting from Lionsgate, Starz posted a nearly $43 million net loss and lost 520,000 subscribers in North America. The results highlight the challenge for the newly independent company as it navigates the streaming wars on its own.

• Subscriber bleed: The subscriber drop included 120,000 streaming customers and 290,000 linear TV subscribers in the U.S. CEO Jeff Hirsch blamed the dip on the underperformance of the network’s crime drama "BMF.
• Prequel to the rescue: But Starz is pinning its hopes for a turnaround on its content slate. The company touted the premiere of its "Outlander" prequel, "Blood of My Blood," which it said delivered the third-largest number of new sign-ups for any series premiere in its history. "Our content strategy continues to resonate with our audience," Hirsch said in a statement.

The report puts Starz in a tough spot as an independent, smaller player in an industry dominated by giants. Just last week, Lionsgate CEO Jon Feltheimer told investors a future M&A deal for the studio is “probably gonna happen,” explaining that the split was designed to create “optionality for both sides.”

• Also on our radar: Meanwhile, former parent company Lionsgate is forging ahead with its own slate of major movie tentpoles, including a Hunger Games prequel and a Michael Jackson biopic. That move comes amid recent buzz that Legendary was exploring an acquisition of the studio. To carve out its own path to profitability, Starz plans to lower its annual content spending to the $600 million to $650 million range in the coming years.