Netflix, Starz contract talks fail
Date: Thursday, September 1, 2011, 2:46pm PDT
- Diana Samuels
- Reporter – Silicon Valley / San Jose Business Journal
Netflix Inc. and Starz Entertainment have failed to reach an agreement in their contract talks, Starz announced Thursday afternoon, and users will no longer have access to streaming Starz movies starting in March.
“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,” Starz CEO Chris Albrecht said in a statement Thursday.
Starz has distribution rights for both the Walt Disney Co. and Sony Pictures, according to Reuters, and offered some of the newest and most popular streaming movies on Netflix (NASDAQ:NFLX). Their contract is set to end Feb. 28, 2012.
“WIth our current studio rights and growing original programming presence, the network is in an excellent position to evaluate new opportunities and expand its overall business,” Albrecht said.
Los Gatos-based Netflix did not immediately post a statement on its website Thursday.
Netflix’s shares fell almost 11 percent to $208 in after-hours trading, according to Reuters.
Diana Samuels can be reached at 408.299.1835 or firstname.lastname@example.org.