Sony Pulls Movie Streams From Netflix -Netflix says action is temporary -Starz deal - High-Def Digest Forums
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Old 06-18-2011, 06:46 AM
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Default Sony Pulls Movie Streams From Netflix -Netflix says action is temporary -Starz deal

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Sony Pulls Movie Streams From Netflix

17 Jun, 2011
By: Erik Gruenwedel

Netflix says action is temporary; scuttlebutt suggests expedited license renewal with Starz Entertainment

Sony Pictures Home Entertainment has quietly pulled its movies from Netflix’s streaming queue due to contract issues with aggregator Starz Entertainment.


In a post on Netflix’s blog (blog.netflix.com), Pauline Fischer, VP of content acquisition with Netflix, confirmed the situation between two “valued” content providers without elaboration.

Indeed, Sony’s top-grossing films since 1984, which include Spider-Man, Spider-Man 2, Spider-Man 3, Men in Black, Ghostbusters, Hancock, The Da Vinci Code, Terminator 2: Judgment Day, Men in Black 2 and Hitch, are available on Netflix only via DVD and/or Blu-ray Disc. More recent titles pulled from streaming include Salt, The Karate Kid and The Social Network.


Starz, which distributes Sony and Disney movies, among others, to multichannel video distributors such as cable and satellite TV, sub-licensed content to Netflix streaming several years ago for $30 million annually.

That agreement — now widely panned by media executives as a give-away to Netflix — expires early next year. Renewal is expected to fetch Starz a tenfold increase in license fees from Netflix.

Richard Greenfield, analyst with BTIG Research in New York, said the pullback by Sony appears to be due to a clause in the original output deal as it relates to digital rights and the number of third-party (Netflix) digital streaming subscribers created.


Netflix’s burgeoning subscriber growth (and stock valuation) throughout the past few years has been due to its market-leading streaming service.

“We suspect Starz wants to have a sense of what its new Netflix deal looks like, before it renegotiates with Sony in terms of how much of the dollar upside goes to Sony versus [them],” Greenfield wrote in a June 17 post.
http://www.homemediamagazine.com/net...-netflix-24254
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Old 06-18-2011, 06:57 AM
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Understanding this is temporary, how noticeable is this for consumers. I know I get irritated when I cannot get the next season of a TV series or lose access to something in my streaming que.
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Old 06-18-2011, 06:58 AM
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Nuts. Somehow I missed towergrove's existing thread on the subject.

http://forums.highdefdigest.com/high...nt-stream.html

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