Starz To Pull Content From Netflix

Starz plans to pull all of its movies and TV shows from the Netflix streaming library after talks failed. Starz which is owned by John Malone’s Liberty Media said that they have ended talks with Netflix to renew a deal that ends February 28th 2012. Netflix stands to lose a large amount of content as Starz has licenses for first run Sony and Walt Disney movies.

The original deal with Netflix and Starz was negotiated for $30 million a year four years ago. Now with a new deal between Netflix and Starz analysts would expect it to cost around $200-300 million.

Starz states their reason for not renewing the deal with Netflix in that they want to preserve the premium nature of the Starz brand. They would do this by assigning appropriate pricing and packaging to their product.

Starz is not affected by the deal and claims that the money that was set aside for Starz would be used to secure other premium publishers and make Netflix even better. Netflix shares fell 8% after news of the Starz deal in after hours trading on Nasdaq. Starz content will leave a large gap in the Netflix library once it is gone, hopefully Netflix can secure another publisher quickly.

Starz currently accounts for over 1,000 movies on Netflix.


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