• Bloomberg, Sunday, January 17, 2010 11:14 PM

Walt Disney Co. is in talks with Liberty Media Corp.'s Starz that may limit the movie channel's ability to provide films online to Netflix Inc., say sources. Starz seeks access to Disney films for as many as five years on its cable channel, as well as continued digital rights. Disney wants viewers watching Starz movies online through companies such as Netflix to pay more for what the studio considers a premium channel.

The digital rights are part of contract talks that may also determine how much Starz pays Disney and whether films from Spielberg's DreamWorks Studios will be included. Netflix depends on Starz for access to movies, including "Wall-E" from Disney's Pixar. Starz has signaled it will resist giving up digital rights to Hollywood studios as industry business models shift.

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