Starz & Netflix End Streaming Pact

ENGLEWOOD: Starz Entertainment has ended contract renewal negotiations with Netflix after the companies failed to reach a deal to stream new films.

Chris Albrecht, Starz’ president and CEO, issued the following statement about the decision: "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. 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. 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."

Netflix and CEO Reed Hastings responded to the news with their own statement: "While we regret their decision to let our agreement lapse next February, we are grateful for the early notice of their decision, which will give us time to license other content before Starz expires," Hastings and Netflix said. “We are confident we can take the money we had earmarked for (the) Starz renewal next year and spend it with other content providers to maintain or even improve the Netflix experience.”

Netflix acknowledged that Starz content was "a huge part of viewing on Netflix several years ago because it was some of the only mainstream content Netflix offered," but said Starz content now accounts for only 8 percent of U.S. viewing and that Netflix expects that to decline to 5 percent to 6 percent by the first quarter of 2012.