Starz to Leave Netflix Streaming

If you follow us on Twitter you were one of the first to hear about how, it appears, Starz programming will soon be a thing of the past on Netflix Instant.

Yesterday, the world came to arrive at the news that Netflix and Starz, when discussing new contracts for when the current ones expire, could not reach an agreement.

From the LA Times:
Premium cable network Starz Entertainment will end its deal to provide movies to Netflix, a surprise decision that will deprive the popular online video service of its most valuable source of recently released movies.

Analysts had said that if Starz were to renew its agreement, which expires in February 2012, it could have been worth as much as $300 million to John Malone's Liberty Media-owned network.

However, executives at Starz apparently concluded that they would lose even more money by giving consumers a reason to subscribe to Netflix instead of the cable channel.
So what does it mean for us Netflix streaming lovers? Obviously less movies (around 1,000), and especially, less newer movies.

To me, this all seems like a complicated mess that has to do with Starz not fully embracing this new distribution method.

According to the Wall Street Journal:
Starz was asking for an increase of 10 times the licensing fee that Netflix paid in 2008.

To renew the deal Netflix offered Starz more than $300 million per year, according to the Los Angeles Times, but Starz was pushing for tiered pricing, whereby Netflix subscribers who wanted Starz content would be required to pay more than the standard $8 per month.
TEN TIMES!? Starz, you can't be serious. I guess you're really gung-ho on the notion that people should pay a premium for your movies, that just so happen to be bad quality (technically-speaking) and not that great (with some exceptions). You have to be out of your mind to think that Netflix was going to give you that kind of money.

I know we're all freaking out about this to a certain extent, but perhaps that $300 million or so that Netflix was going to throw away at Starz might be used to bring in other/better content?

My prediction though, is that Starz will grow some sense and realize that this is the new medium for today's television fans.

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