Saturday, September 3, 2011

The Netflix Conundrum: Seeing Starz

Starz will be pulling its content from Netflix. That's a mighty blow and the stock has dropped in wake of the announcement.  Starz has remained relatively mum on the subject, which makes me wonder if they are still holding out for their preferred outcome.

This could mean a lot of things. It could be that Netflix has decided to not remain exclusive with Starz (rumors have flown about HBO trying to horn in on the action many months ago).  It could be that Starz wasn't getting enough money and a struggling Netflix couldn't pay what they wanted.  This could be related to the split of downloaded vs. DVD content.

One thing is for sure, however.  Neither company is going away anytime soon, so this is just a standard hiccup in the normal business of things, just with some awesome potential.

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