Yesterday, Starz announced it would not be renewing its contract with Netflix that’s set to expire on February 28, 2012. From that date forward, Starz content in addition to movies from Disney and Sony will no longer be offered for instant streaming. In a statement, Starz said in so many words that it feels its content is valuable enough to be more profitable elsewhere. Today, a report has surfaced that points to one of the main reason why Starz pulled out.
According to the L.A. Times, Starz wanted Netflix to charge its customers more to access Starz. Instead of the typical $7.99 a month price for unlimited streaming, Starz wanted another pricing option for Netflix subscribers looking to watch Starz content.
Netflix of course, denied the request of Starz. Even though Netflix offered Starz $300 million to renew its contract, Starz refused the offer.
Netflix said it will use the money it’s saving from the botched Starz agreement to secure more content for its subscribers.
Via [LA Times]