Netflix Losing Starz, Big Source of New Movies
It's another dose of bad news for the red-envelope company
By John Johnson, Newser Staff
Posted Sep 1, 2011 7:44 PM CDT
Netflix envelopes in the mail.   (Getty Images)

(Newser) – More grief for Netflix, already stung by a customer backlash over its decision to split its mail and streaming services and jack prices. Starz said today it won't renew its contract in February to supply newly released movies and TV shows, reports the LA Times. It's a big deal because the pay-cable network controls the rights to Disney and Sony movies, and those offerings went a long way toward helping Netflix surge in popularity in recent years.

Netflix downplayed the significance and said it no longer relies on Starz as much as in years past, but the bottom line is that customers carping that the service's instant streaming service is too shallow will likely see things get worse, writes Jason O. Gilbert at the Huffington Post. The move is another sign that cable networks no longer view Netflix as a potential partner but as a direct competitor, adds AP. Netflix shares slid 9% on the Starz news, reports MarketWatch. Click for more.

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Showing 3 of 19 comments
Sep 3, 2011 8:36 PM CDT
I still think that Netflix still provides a great service, even if you only subscribe to streaming. It was inevitable that they could not continue forever to charge only $2 extra for DVD rentals. Of course it is now facing tremendous new competition from Hulu Plus, Epix, Crackle, the Movie Vault, Amazon and other streaming sources, some of them now "free." That is, relying on some advertising revenues. I still like Netflix because of the rating system, where they recommend movies based on your previous ratings, as well as the search feature, which makes it convenient. If you know how to make use of the service, you can find many more movies than what they recommend. But even at $7.99 for DVD rentals, it's still a bargain compared to even online streaming rentals, which usually vary from $2 to $5 to pay to downstream and view a more recently released movie. But Netflix will be facing a big squeeze now for sure. I hope it survives. It's still a great service for the price even now.
Sep 2, 2011 12:13 AM CDT
Between ISP data caps and the Movie studios, they are gonna kill off Netflix. It's a shame, their service works great if you find a movie you want to watch. They pioneered the field, but now are going to be shut out content wise.
Sep 1, 2011 11:32 PM CDT
The fact of the matter is that we all did this to ourselves. I paid $20 per month to watch a limitless amount of movies from blockbuster when I was in high school. Once Netflix came people started to get all of their movies cheaper and more convenient. I myself found Netflix very convenient, but they can never offer you the variety of quality movies than your neighborhood movie stores can.