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Tiger JJ
Iowa State Fan
Member since Aug 2010
545 posts

Netflix Loses Starz Deal, Stock Crushed In After Hours Trading
quote:

Starz has announced today that it ended its contract renewal with Netflix.

From the statement:

Starz Entertainment has ended contract renewal negotiations with Netflix. When the agreement expires on February 28, 2012, Starz will cease to distribute its content on the Netflix streaming platform.

Netflix's stock is down about 9% in after hours trading.

Netflix depends on the Starz agreement to bring in current releases for its streaming service. That will all end February 12, 2012 when the contract expires.

There are about 1,000 movies from Starz available to stream on Netflix right now, according to the company's FAQ page.

It also means movies from Sony and Disney, which were available on Netflix via Starz, will be gone when the agreement expires.

We're waiting for Netflix to issue a statement.


LINK



Muppet
Kansas State Fan
Member since Aug 2007
50512 posts

re: Netflix Loses Starz Deal, Stock Crushed In After Hours Trading
So what is Starz's plan? Are they launching their own streaming service or just getting out of that business altogether?
This post was edited on 9/1 at 4:31 pm


Tiger JJ
Iowa State Fan
Member since Aug 2010
545 posts

re: Netflix Loses Starz Deal, Stock Crushed In After Hours Trading
I find these streaming deals to be really confusing. Disney comes through Starz?


nino2469
LSU Fan
Baton Rouge, LA
Member since Sep 2004
5386 posts

re: Netflix Loses Starz Deal, Stock Crushed In After Hours Trading
Not good news since today the new pricing went into effect for everyone.


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Flair Chops
Miami (FL) Fan
to the west, my soul is bound
Member since Nov 2010
34351 posts

re: Netflix Loses Starz Deal, Stock Crushed In After Hours Trading
quote:

Netflix's stock is down about 9% in after hours trading.
I'm not a stock broker, but that seems like a lot.


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Pilot Tiger
Georgetown Fan
Washington DC
Member since Nov 2005
68965 posts

re: Netflix Loses Starz Deal, Stock Crushed In After Hours Trading
geez, wtf is up with netflix??

Lots of crappy news coming up lately


keakdasneak
LSU Fan
Member since Dec 2006
6982 posts

re: Netflix Loses Starz Deal, Stock Crushed In After Hours Trading
The industry is going to end up repeating the same mistakes as the music industry and lose young customers to illegal downloads if they don't get their shite together.


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Muppet
Kansas State Fan
Member since Aug 2007
50512 posts

re: Netflix Loses Starz Deal, Stock Crushed In After Hours Trading
Yeah, Disney was paying Starz to pay Netflix to stream their content, or some convoluted shite like that.

I'm not all that savvy about the entertainment business, but I'm sure I'll notice when 1,000 something titles go missing.


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iwyLSUiwy
Southern Fan
I'm your huckleberry
Member since Apr 2008
21527 posts

re: Netflix Loses Starz Deal, Stock Crushed In After Hours Trading
Jesus man that is a lot of good movies headed out the door. Netflix is only going to get worse.


SaintEB
New Orleans Saints Fan
Member since Jul 2008
18387 posts
 Online 

re: Netflix Loses Starz Deal, Stock Crushed In After Hours Trading
Since I finished 24, I think I'll be canceling netflix all together now.


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TigerinATL
New Orleans Pelicans Fan
Member since Feb 2005
45375 posts
 Online 

re: Netflix Loses Starz Deal, Stock Crushed In After Hours Trading
Maybe the lockouts have jaded me but my first thought on this was it's simply a negotiating tactic. It's been pretty widely assumed that the new deal would be in the $200 - $300 million range. If NetFlix loses this deal for real then they are done.

ETA: The timing makes it seem like a negotiating tactic too. If you have until February why publicly break of negotiations on the same day that NetFlix's price hikes go into effect?
This post was edited on 9/1 at 4:54 pm


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Freauxzen
USA Fan
Utah
Member since Feb 2006
29285 posts
 Online 

re: Netflix Loses Starz Deal, Stock Crushed In After Hours Trading
quote:

geez, wtf is up with netflix??


quote:

The industry is going to end up repeating the same mistakes as the music industry and lose young customers to illegal downloads if they don't get their shite together.


This.

I was an extremely active in downloading movies and TV illegally about 4 years ago. Since I was able to use Netflix, I haven't downloaded a single movie illegally. Why do they want to push people away.

It seems we are moving towards one of two things:

1) Every single cable operator will have their own service like HBO. This will result in a rapid increase in prices for the customer. They aren't only reverting back to the problem before cable, since cable is essentially a group share model, but they are just making stupid mistakes.

2) Brow beating new technology into submission to where we keep cable as it is now and make on-demand some sort of premium service.

They are basically saying: Screw you consumers!


OBUDan
LSU Fan
Chicago
Member since Aug 2006
40723 posts

re: Netflix Loses Starz Deal, Stock Crushed In After Hours Trading
Losing DIsney would be a big blow (if that's what's happening).

But the Starz Play has dog shite nothing anyhow, so good riddance.


TigerinATL
New Orleans Pelicans Fan
Member since Feb 2005
45375 posts
 Online 

re: Netflix Loses Starz Deal, Stock Crushed In After Hours Trading
quote:

I find these streaming deals to be really confusing. Disney comes through Starz?


Rember, Starz is a cable movie channel. They have deals with Sony, Disney, etc. for their content. NetFlix's deal with Starz had given them access to those movies but Sony had an out clause that let them pull their movies off of NetFlix if they reached something like 22 Million subscribers. Disney has a similar out clause but I'm not sure what the subscriber number is. Sony wants its movies on NetFlix and so does Starz, but they want to get paid a lot more for it. NetFlix really doesn't have a choice. I think the previous deal was about $30 million per year and they're probably going to have to go close to $300 million per year to keep Starz, Disney and get Sony back.


tims0912367
Member since Apr 2009
2598 posts

re: Netflix Loses Starz Deal, Stock Crushed In After Hours Trading
quote:

But the Starz Play has dog shite nothing anyhow, so good riddance.


Starz actually had some of the better movies in the poor selection that is and always has defined Netflix. The problem was the encodings licked balls. I'd see the Starz logo and immediately abort, because I knew the quality would be terrible, with massive judder and macroblocking. That's true for a great deal of the non-Starz content as well, including the quasi-HD stuff, and I've decided to pull the Netflix plug altogether.


TulaneTigerFan
Tulane Fan
Seattle
Member since Sep 2005
35856 posts

re: Netflix Loses Starz Deal, Stock Crushed In After Hours Trading
I'd like to see Amazon either price out or absorb Netflix and use their ridiculous amount of cash to strike more deals for streaming content than Netflix could dream of.


keakdasneak
LSU Fan
Member since Dec 2006
6982 posts

re: Netflix Loses Starz Deal, Stock Crushed In After Hours Trading
quote:

Sony wants its movies on NetFlix and so does Starz, but they want to get paid a lot more for it. NetFlix really doesn't have a choice. I think the previous deal was about $30 million per year and they're probably going to have to go close to $300 million per year to keep Starz, Disney and get Sony back.


That's understandable but Netflix is in effect the main vehicle through which movie/tv steaming takes place right now. To cut that off without offering an alternative is just going to alienate the consumer. Cutting off the nose to spite the face...

Put it this way. I know the music industry wanted to bend Apple over at first, but I'm 32 years old and came of age during the boom of napster and birth of broadband. I pay for every single album that I own because of the ease of Itunes.


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Tiger JJ
Iowa State Fan
Member since Aug 2010
545 posts

re: Netflix Loses Starz Deal, Stock Crushed In After Hours Trading
quote:

The problem was the encodings licked balls. I'd see the Starz logo and immediately abort, because I knew the quality would be terrible, with massive judder and macroblocking. That's true for a great deal of the non-Starz content as well, including the quasi-HD stuff, and I've decided to pull the Netflix plug altogether.


I noticed Party Down was kind of jerky sometimes. And they didn't even have Spartacus.


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Helo
LSU Fan
Orlando
Member since Nov 2004
4068 posts
 Online 

re: Netflix Loses Starz Deal, Stock Crushed In After Hours Trading
Last year an analyst published a report that Netflix should either buy or buy into controlling Starz to prevent this.

I agree that it has to be a negotiating tactic. If Starz stops doing business with Netflix, there is no other outlet nearly as large to attempt replacing that lost revenue with. There are many small fragmented options but Netflix is already embedded in millions of devices and has a huge customer base.

I see either a deal being done or Starz losing it's contract to distribute future movies for some studios.


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Volvagia
LSU Fan
Fort Worth
Member since Mar 2006
44091 posts

re: Netflix Loses Starz Deal, Stock Crushed In After Hours Trading
So long Netflix.

It's been fun.

The only question is how long the process of dying will be.


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