Around the Net

Netflix Fails To Extend Starz Deal

Netflix reportedly offered Starz more than $300 million a year to renew their content partnership, but to no avail. "The pay cable channel was insistent on so-called tiered pricing," writes The Los Angeles Times, citing sources. Tiered pricing would have require Netflix subscribers who wanted movies and television shows from Starz and other premium providers to pay more than the standard $8 per month.

"That demand was apparently a key sticking point in talks that fell apart this week. As a result, their deal, which began in 2008, is set to expire at the end of February. "Starz wanted Netflix to charge a premium price for its content in order to put the popular online video service more in line with cable and satellite providers."

Going forward, Netflix has to figure out how to sustain subscriber growth despite the looming loss of popular first-run movies like "Tangled" and "The Karate Kid." Bigger picture, the Starz snafu doesn't bode well for Netflix, which is heavily reliant on entertainment companies and their best content.

Read the whole story at Los Angeles Times »

Next story loading loading..