Netflix to Lose Starz Content

Netflix and Starz have been unable to reach an agreement to renew their content streaming deal, which will result in the loss of over 1,000 movies from Netflix’s instant streaming service on March 1st, 2011. The company was prepared to pay Starz $300 million per year to retain the content, which is over ten times the current rate, but Starz turned down the offer. Netflix could¬†potentially¬†move to a tiered pricing structure with more expensive premium plans, but this could split the customer base and overcomplicate the service.

Netflix is fighting hard to keep prices low, but if additional providers decide to pull out, it could force the service to reconsider their pricing strategy in order to retain content.

[LA Times]

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