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Netflix Loses Starz Deal
Beginning in February, the popular streaming service will be losing a big chunk of movie titles that came through a long term deal with Starz.
The announcement came yesterday, coincidentally on the same day that Netflix price hikes began to go into effect for all users. Starz has had the streaming deal in effect with Netflix since 2008. The team- up between the two media companies resulted in over 1,000 movies being made available for instant viewing to Netflix members.
"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," read a Starz statement on the subject.
Netflix CEO Reed Hastings responded to the news with plans to spend the money elsewhere and acquire content from other providers. Nonetheless, Starz saw stocks drop 8% after the news broke yesterday.
Lots of gamers take advantage of Netflix's extensive streaming catalog, thanks in large part to the fact that every console now has a way to connect to Netflix. Will the departure of Starz Play content on February 28th, 2012 affect you? Better start watching those movies.
[Thanks to reader Melissa for the tip!]
[Source: Variety]
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