US cable broadcaster Starz ended contract renewal negotiations with video-streaming site on Thursday
Netflix shares fell as much as 9% in after-hours trading late on Thursday after the video-streaming site lost one of its major US cable TV suppliers of content, along with thousands of blockbuster films including The Social Network.
The US cable broadcaster, Starz, abruptly ended contract renewal negotiations with Netflix on Thursday after the companies failed to reach a deal to stream new films.
In a statement, 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.”
The collapse in talks means thousands of movies from studios including Disney and Sony will be pulled from Netflix on 28 February. It comes just months after Netflix described the Starz contract as “one of our most important deals”.
A spokesman for Starz added: “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.”
Netflix, which also has an online DVD rental business, and Starz have been in talks for months for extend the contract, which was struck in 2008.
Full Story Via The Guardian