Published On: September 22, 2011

Starz Ends Deal with Netflix

Published On: September 22, 2011

Starz Ends Deal with Netflix

Netflix will suffer yet another blow to the service. The company could not reach a successful agreement with one of its content providers, Starz, leaving some hefty consequences to deal with.

netflix_logo_225.gifNetflix can’t seem to catch a break. Home Media Magazine reports that Starz ended content license negotiations with Netflix. Starz was a good partner for Netflix, supplying many titles for the streaming service.

Additional Resources
• Read more streaming, apps, and downloads news from Home Theater Review.
• Learn more about Netflix digging its own grave.
• Read the Home Media Magazine article on their website.

As a result of this breakdown in negotiations, Netflix will lose access to the Starz content, which includes movies from Sony Pictures and Disney Studios, albeit not until the current agreement expires on February 28, 2012.

When Netflix first reached an agreement with Starz, the licensing fees totaled up to $30 million. With the rise popularity in streaming, the price rose as well – up to $300 million a year.

When Netflix and Starz couldn’t come to an agreement over the pricing, Starz walked, which has puzzled some.

Michael Pachter, an analyst with Wedbush Securities in Los Angeles found the decision bad for both parties saying, “They all need each other, and it doesn’t make sense that Starz would walk.”

Now the task to Netflix is to find a new partner that will help them fill the void in content they will have once Starz content disappears.

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