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Starz Will Leave Netflix: Most Valuable Source of New Movies Gone

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By Admin on September 02, 2011 11:16 AM

The Starz-Netflix partnership will come to an end on February 28 as a result of a negotiation breakdown between the online streaming company and cable content provider.

As Netflix's most valuable source for recently released movies, Starz will be taking with it films from both Walt Disney Studios and Sony Pictures, reports the Los Angeles Times.

Subscribers will only be able to access recent releases tied to Paramount Pictures, Lionsgate and MGM, as the paper further reports that HBO has refused to license the rights to 20th Century Fox, Universal Pictures and Warner Bros. films.

Though a new Starz-Netflix agreement may have netted the cable network as much as $300 million, the Times explains that the company felt that continuing its online streaming partnership would have diminished its brand.

As a premium cable network, Starz competes directly with Netflix, reports TheWrap. As a result, customers have been cancelling their Starz subscriptions and turning to Netflix, which provides a cheaper, vaster array of content.

Netflix's controversial price hike also went into effect on September 1, replacing its $9.99/month plan, which included both one DVD and unlimited streaming. The company has rolled out two separate plans--one for DVDs and one for online streaming--at $7.99/month each.

That's a 60% increase.

Subscribers who have not changed their subscriptions will be automatically enrolled in both plans, according to the Seattle Times.

Between the price hike and the lack of premium Starz Netflix content, it may be time to reevaluate your home entertainment options.

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