Skip to comments.Netflix to lose Starz, its most valuable source of new movies
Posted on 09/01/2011 7:56:51 PM PDT by Wayne07
Premium cable network Starz Entertainment will end its deal to provide movies to Netflix, a surprise decision that will deprive the popular online video service of its most valuable source of recently released movies.
Analysts had said that if Starz were to renew its agreement, which expires in February 2012, it could have been worth as much as $300 million to John Malone's Liberty Media-owned network.
However, executives at Starz apparently concluded that they would lose even more money by giving consumers a reason to subscribe to Netflix instead of the cable channel.
"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," Starz said in a statement Thursday. "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."
Starz, which controls pay-cable rights to movies from Walt Disney Studios and Sony Pictures, signed its current agreement with Netflix in 2008. At that time, online video was watched by only a small number of tech-savvy young people and the estimated $30 million per year the cable network received was seen as new revenue that would have little impact on its traditional television business.
(Excerpt) Read more at latimesblogs.latimes.com ...
the best deal for the money is to by a basic cable package + hbo + steaming netflix
You get just about everything you could want with that combo for very little money.
Starz sucks. They are headquartered here in Denver and are known as a really bad place to work.
I wonder if Netflix is going to back down their rates again since they will not have the content that they did prior. Probably not.
When Netflix nearly doubled my rates, I was outta there.
Cancelled my subscription yesterday as did millions of others.
Ooh! Bad karma!.....
Better deal is cancel cable, buy a $399 computer with hdmi output, and watch everything free via the internet.
Steaming Netflix?.........they do XXX?....
which service do you recommend?
We cancelled our DVD part of the deal and just went with streaming. The selection is not really that good anymore, and with Starz going away there will be no reason to continue with Netflix; we’ll have to cancel.
I download every show via bit torrent so why would I fork over my dough for liberal crap channels like HBO and give em’ a ratings point? When Spartacus aired on Starz, I never watched them live but waited 24 hours til eztv uploaded them on the web.
I don’t think it is a coincidence Starz makes this announcement the day the Netflix price hikes take effect. It is a low blow - cable companies hate the competition from the internet.
I wonder why you can’t just subscribe to the various channels streamed online?
I won’t go back to cable or sat. They fund the opposite agenda that I believe should be funded. I will not take something I will never watch because it is offensive to my beliefs. Though luck Starz you lost this customer.
Yea probably not. If Netflix had seen this Starz loss coming they probably wouldn’t have changed rates. Well at least not changed things the way they did. I waited till the 31st then dropped the streaming portion. I rarely used it anyway.
Check your mail.
check your mail :)
You naughty boy...
For all their annoying pop ups that somehow get through most pop up blockers, I won’t shed a tear if Netflix losses money or goes out of buisness