Starz Says It Won’t Renew Giant Netflix Deal - High-Def Digest Forums
Reply
 
Thread Tools Search this Thread Display Modes
  #1  
Old 09-01-2011, 05:51 PM
Senior Member
Thread Starter
 
Join Date: Aug 2008
Posts: 3,924
Default Starz Says It Won’t Renew Giant Netflix Deal

More at the link.
http://allthingsd.com/20110901/starz...-netflix-deal/
Quote:
Satellite TV provider Starz says it won’t renew its distribution deal with Netflix when it expires next February.

If the company follows through on that statement, it will mean Netflix won’t be able provide digital access to movies from Sony and Disney — a scenario Reed Hastings and company have been trying to avoid for years.

Here’s the statement from Starz: “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.” No comment yet from Netflix.

Netflix shares have dropped 9 percent in after-market trading after Starz put out its press release.
Time to open up that chequebook. They'll need premium payouts now.
Reply With Quote
  #2  
Old 09-01-2011, 05:53 PM
vikingfan's Avatar
Senior Member
 
Join Date: Jun 2007
Posts: 1,947
Default

And the Psound spin begins in 5....4.....3.....2....1....
Reply With Quote
  #3  
Old 09-01-2011, 06:03 PM
Flex Mentallo's Avatar
Senior Member
 
Join Date: Apr 2007
Posts: 1,676
Default

I see this as more a posturing move than anything else. Starz wants to get paid and Netflix has the funds to make the deal work. Add in how UV/Disney Keychest (or whatever it's called) rollouts may affect physical sellthrough I believe Starz (and their studio partners) will probably take a wait and see approach for the next few months.

At the end of the day a deal will be brokered. Any Netflix deal signed, for far more than the original $30 million, will make an immediate impact to Starz's bottom line and in no way, even with posturing, will Starz turn down a potential billion dollar payday.
Reply With Quote
  #4  
Old 09-01-2011, 06:24 PM
Banned
 
Join Date: Nov 2010
Posts: 4,634
Default

Amazing!

Obviously Starz has their own reasons, but it is hard to believe they are just going to leave money on the table. Especially since Disney's CFO was talking last year about the revenue boost from a renewal.


Quote:
The premium cable channel Starz said Thursday that it would not renew its closely watched distribution deal with Netflix, lending the online streaming service a major, although not entirely unexpected, blow.

The deal expires on Feb. 28, 2012. The Starz chief executive, Chris Albrecht, said in a statement Thursday afternoon that negotiations for a new deal had ended.

The distribution deal is significant because Starz supplies a bounty of hit movies and several TV series to Netflix, helping retain subscribers to the monthly streaming service. Starz controls the online distribution of Sony and Walt Disney films, so films from those studios would no longer be available on Netflix after Feb. 28, unless there is a change in Starz’s stance toward the service.

Mr. Albrecht said, “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.”
http://mediadecoder.blogs.nytimes.co...-with-netflix/
Reply With Quote
  #5  
Old 09-01-2011, 06:30 PM
Malanthius's Avatar
Senior Member
 
Join Date: Nov 2007
Posts: 6,577
Default

Quote:
Originally Posted by Flex Mentallo View Post
I see this as more a posturing move than anything else. Starz wants to get paid and Netflix has the funds to make the deal work. Add in how UV/Disney Keychest (or whatever it's called) rollouts may affect physical sellthrough I believe Starz (and their studio partners) will probably take a wait and see approach for the next few months.

At the end of the day a deal will be brokered. Any Netflix deal signed, for far more than the original $30 million, will make an immediate impact to Starz's bottom line and in no way, even with posturing, will Starz turn down a potential billion dollar payday.
I agree. Stars knows how to play the game. And Netflix has deep pockets. I think they will be back sooner than later.
Reply With Quote
  #6  
Old 09-01-2011, 06:40 PM
Malanthius's Avatar
Senior Member
 
Join Date: Nov 2007
Posts: 6,577
Default

Quote:
Originally Posted by vikingfan View Post
And the Psound spin begins in 5....4.....3.....2....1....
Quote:
Originally Posted by PSound View Post
Amazing!

Obviously Starz has their own reasons, but it is hard to believe they are just going to leave money on the table. Especially since Disney's CFO was talking last year about the revenue boost from a renewal.




http://mediadecoder.blogs.nytimes.co...-with-netflix/
Funny. I didn't see any spin there. Another bad day for one of these guys I see.
Reply With Quote
  #7  
Old 09-01-2011, 06:47 PM
Banned
 
Join Date: Nov 2010
Posts: 4,634
Default

Quote:
Originally Posted by Malanthius View Post
I agree. Stars knows how to play the game. And Netflix has deep pockets. I think they will be back sooner than later.
Starz made $403 million in revenue in Q2 of this year. So they have about $1.6 billion in total revenue with 19 million subs.

Netflix has ~ 24 million subs and is expected to make ~ $3 billion this year.
Reply With Quote
  #8  
Old 09-01-2011, 06:55 PM
Senior Member
 
Join Date: Oct 2006
Posts: 1,346
Default

There costs are going up though. That's the main reason Netflix likely had to increase prices so drastically upward.
Reply With Quote
  #9  
Old 09-01-2011, 07:08 PM
Banned
 
Join Date: Nov 2010
Posts: 4,634
Default

Quote:
Originally Posted by Malanthius View Post
Funny. I didn't see any spin there. Another bad day for one of these guys I see.
Spin is pointless. The news is what it is.
Reply With Quote
  #10  
Old 09-01-2011, 07:10 PM
Banned
 
Join Date: Nov 2010
Posts: 4,634
Default

The article has been updated with Netflix's response:

Quote:
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.

While Starz was a huge part of viewing on Netflix several years ago because it was some of the only mainstream content Netflix offered, over the years Netflix has spent more and more licensing great TV shows from all four broadcast networks and many cable networks, and we have licensed 1st run movies from Relativity, MGM, Paramount, Lionsgate and others. Because we’ve licensed so much other great content, Starz content is now down to about 8% of domestic Netflix subscribers’ viewing. As we add even more content in Q4, we expect Starz content to naturally drift down to 5-6% of domestic viewing in Q1. We are confident we can take the money we had earmarked for Starz renewal next year, and spend it with other content providers to maintain or even improve the Netflix experience.

We have tremendous respect for the Starz creative team, and we look forward to someday licensing some of their original or licensed content.
http://allthingsd.com/20110901/starz...-netflix-deal/
Reply With Quote
Reply

Related Topics
Thread Thread Starter Forum Replies Last Post
Amazon and NFL Renew Thursday Night Football Streaming Deal for Prime Video scohen HD Digital Downloads (NEW!) 1 05-02-2018 11:38 PM
HBO and Universal Renew Pay Window Deal Until 2022 TheDickWard HDTV Programming and Info 0 01-08-2013 03:21 PM
Starz quits talks to renew Netflix streaming deal cheez avenger High Definition Smackdown 2 09-01-2011 08:05 PM
Sony Pulls Movie Streams From Netflix -Netflix says action is temporary -Starz deal Kosty High Definition Smackdown 2 06-18-2011 06:58 AM
Liberty Media in No Hurry to Re-up Netflix/Starz Deal Lee Stewart High Definition Smackdown 4 01-14-2011 03:27 PM


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off