Netflix subscribers have about a half year left to consume as much Starz programming as possible. Starz has decided to remove all of its content from Netflix as of February 28, 2012. This is the date where the contract with Starz and Netflix expires. Starz is no longer interested in using Netflix to distribute its library of content.
Starz is pulling out because of money. In a statement released today, Starz said, “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.”
This basically translates to Starz saying it thinks its content is way more valuable without Netflix. In a way, Starz may feel distributing its content on Netflix could discourage customers from subscribing to Starz through their cable provider.
Starz will also take movies from Disney and Sony with it when it leaves Netflix.
Netflix later responded to Starz by thanking the company for making this announcement so far ahead of time.
“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,” a Netflix statement read.
Netflix also took a slight jab at Starz by saying Starz viewership from Netflix subscribers is down to 8 percent. Netflix expected Starz viewership to slide even further due to agreements Netflix has made with other content providers.