Netflix was unable to reach a new agreement with Starz, a company that provides a significant percentage of the content Netflix offers in its streaming video service.
In 2008, Netflix paid Starz around $30 million for the right to stream its movies and TV shows for 4 years. This time, it offered $300 million for another four years but the deal wasn’t accepted. Discussions broke down because Starz wanted Netflix customers to have to pay an additional fee to Starz to view its content.
Starz is concerned that the growth of Netflix is eroding consumer interest in its main product, a cable movie channel. Growing numbers of people are canceling their cable subscriptions and turning to on-demand services like Netflix.
There is a Netflix app for the iPhone and iPad, as well as some Android-based devices. The app appears regularly in the Top 20 list on the iTunes app store. The software is free but the service costs $8 a month.
Netflix will be losing movies like “Toy Story 3” and “Tangled” at the end of February next year. Nevertheless, the company is upbeat about its future. CEO Reed Hastings said, “We are confident we can take the money we had earmarked for the Starz renewal next year, and spend it with other content providers to maintain or even improve the Netflix experience.”