NEW YORK - There won't be as many stars appearing on Television shows on Netflix coming this February. Thats because Starz a subsidiary of Liberty Media has severed ties between the companies which will limit the content that Netflix can distribute.
Starz said the contract will cease on February 28, 2012. According to Starz this is to protect the " premium nature of our brand by preserving the appropriate pricing and packaging of our exclusive and highly valuable content."
This ends a relationship which originated in 2008 between the companies which has been markedly criticized. CEO of Time Warner Jeffrey Bewkes said, “Starz (a media company) undermined the business model of cable television.” Starz gave the right to some 2,500 new movie and television titles for approximately $25 million. This was a coup by Netflix on innocent and fresh-faced Starz. The deal allowed Netflix to significantly broaden its content for a very small cost.
Bewkes added "Why would anyone subscribe to Starz, when they can basically get the whole thing for about nothing?" A media analyst was quoted as calling this “probably one of the dumbest deals ever.”
Netflix has already spent a significant amount on content in the last year and it may all be for not as they lose one of their biggest content providers.
You guys were bang on target on this one. Shorted them near their peak and loving every leg this decline! :D
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