Even with all that money rolling in from the just-activated price hike, Netflix can’t afford to renew a deal with Starz that brings first-run Disney and Sony movies to the streaming network service. Actually, strike that: they probably can afford it, but Starz just doesn’t want Netflix’s money. Starz just announced it was walking away from the negotiation table despite the $300 million cash pile that Netflix reportedly threw down.
That $300 mil price tag is ten times larger than the one on the original $30 million deal that Starz (which owns the rights to first-run Disney and Sony films) signed four years ago.
Starz issued a press release
that explained the failed negotiations: “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.”
In other words, while other content companies only complain that streaming “buffet-style” services like Hulu and Netflix devalue their content, Starz put their money where their mouth is, or their foot in their mouth where the money would’ve been, or something. In any case, load up on the Disney and Sony goodness while you can; the Starz deal ends on February 28, 2012.
Image credit: onecentatatime.com