NFLX - Starz Ends Contract Negotiations With Netflix
Last Update: 9/1/2011 5:13:58 PM
DOW JONES NEWSWIRES
Starz on Thursday said the pay-TV channel ended contract negotiations with
online-video giant Netflix Inc. (NFLX), saying it would cease to distribute the
company's content on Netflix's streaming platform next year.
"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," according to the company's statement.
Shares of Netflix dropped 10% to $210.50 after hours.
Netflix has generated increased anxiety in the entertainment business for its
growing heft. Some networks and cable operators fear Netflix, which has millions
of subscribers, could siphon away their customers, particularly with its new
video streaming service.
"With our current studio rights and growing original programming presence, the
network is an excellent position to evaluate new opportunities and expand its
overall business," Starz said. The channel is owned by Liberty Media Corp.
(LSTZA, LSTZB).
A Netflix spokeswoman wasn't immediately available to comment.
-By John Kell, Dow Jones Newswires; 212-416-2480; john.kell@dowjones.com
(END) Dow Jones Newswires
September 01, 2011 17:13 ET (21:13 GMT)
