More grief for Netflix, already stung by a customer backlash over its decision to split its mail and streaming services and jack prices. Starz said today it won't renew its contract in February to supply newly released movies and TV shows, reports the LA Times. It's a big deal because the pay-cable network controls the rights to Disney and Sony movies, and those offerings went a long way toward helping Netflix surge in popularity in recent years.
Netflix downplayed the significance and said it no longer relies on Starz as much as in years past, but the bottom line is that customers carping that the service's instant streaming service is too shallow will likely see things get worse, writes Jason O. Gilbert at the Huffington Post. The move is another sign that cable networks no longer view Netflix as a potential partner but as a direct competitor, adds AP. Netflix shares slid 9% on the Starz news, reports MarketWatch. Click for more. (More Netflix stories.)
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