Starz Ends Contract Renewal Negotiations with Netflix

Starz announced that they have ended formal renewal negotiations with Netflix, and Starz President & CEO Chris Albrecht issued the following statement:

"Starz Entertainment has ended contract renewal negotiations with Netflix. When the agreement expires on February 28, 2012, Starz will cease to distribute its content on the Netflix streaming platform.  This decision is a result of our strategy to protect the premium nature of our brand by preserving the appropriate pricing and packaging of our exclusive and highly valuable content.  With our current studio rights and growing original programming presence, the network is in an excellent position to evaluate new opportunities and expand its overall business."

Netflix's Steve Swasey told CNET in response to the announcement:

"Starz has been a great content partner since 2008 and we are thankful for their support. While we regret their decision to let our agreement lapse next February, we are grateful for the early notice of their decision, which will give us time to license other content before Starz expires."

The current Starz deal, estimated to be worth about $30 million per year, gave Netflix streaming hit movies from Sony & Disney, and contract renewal discussions were rumored to be in the $300 million range.

It'll be interesting to see if Netflix and Starz are able to get back to the negotiating table in time to rewew the agreement in one form or another, or if Netflix will cut new deals with the studios directly.

The timing of this deal couldn't be worse -- the price increase is just starting to impact customers who are already thinking about the value of their Netflix subscription. 

Thanks to FearNo1, Justin, Nick, Seth, Tom, Nathan, Zatz, Keith, Chris, and everyone else for sending this in.

Comments

[Noor Almtowaq]

Read this: how instant watch works!

example for TANGLE - starz play
theater november 2010
DVD march 2011
pay preview may 2011
starz play july 2011
instant watch aug 2011
disney channel oct 2012
99 cents junk aug 2012 lol

7 things to get to us to enjoy for FREE
this is how starz play works or movie company goes

IRON MAN 2 - Epixhd

theater May 7, 2010
dvd Sept 28,2010
pay pre oct 2010
epixhd march 2010
intant watch 90 days release jun 2011 - till dec 2012
cable tv summer 2012
99 cents - 2013 lol

here is what you see and this is how it works.

comment me!

[Louis S]

To amend my earlier statement, i'm seeing a LOT of news on Blockbuster forming thier own streaming service to compete with Netflix beginning next month. I have a feeling that Starz is moving over to Blockbuster, and will be essentially starting Blockbuster's streaming service. It actually makes a lot of sense if you think about it. Now that Dish owns Blockbuster, and is notorious for pulling channels off of its service when they can't reach a deal, Dish probably worked out a lucrative, exclusive deal with Starz which included rights to stream its movies through the Blockbuster on Demand service. If that's the case, then we have an interesting battle on our hands.

[Crow550]

Dish really needs to let people know that this is the New Blockbuster. As tons of people were burned by the old owners of the company that caused the company to nearly die.

Well see if Starz stays with Blockbuster or decides they could use more Money and go with Netflix too.

[D]

anyone ever hear about a movie named billy stewart and the belly button gang?

[D]

Noor, what the hell are you talking about? Does anyone get his point?