Starz is leaving Netflix
>By Christopher Weaver
One of the most important partners to Netflix has announced that they will not be renewing their agreements. Starz Play has been bulking Netflix’s movie offers with 2,500+ titles since 2008, but all good things must come to an end. Starz Entertainment content will be removed from the Netflix library as of February 28th, 2012. Netflix was pursuing a renewal with Starz due to the fact that their content accounts for 8% of all subscribers’ viewing. Starz on the other hand felt their content was at risk of becoming undervalued. Don’t worry, Netflix CEO Reed Hastings has stated that the earmarked money for Starz will be used to bring new content to their catalog, and here is his official statement:
Starz has been a great content partner since 2008 and we are thankful for their support.
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.
While Starz was a huge part of viewing on Netflix several years ago because it was some of the only mainstream content Netflix offered, over the years Netflix has spent more and more licensing great TV shows from all four broadcast networks and many cable networks, and we have licensed 1st run movies from Relativity, MGM, Paramount, Lionsgate and others. Because we’ve licensed so much other great content, Starz content is now down to about 8% of domestic Netflix subscribers’ viewing. As we add even more content in Q4, we expect Starz content to naturally drift down to 5-6% of domestic viewing in Q1. We are confident we can take the money we had earmarked for Starz renewal next year, and spend it with other content providers to maintain or even improve the Netflix experience.
We have tremendous respect for the Starz creative team, and we look forward to someday licensing some of their original or licensed content.