Netflix (NFLX) Continues to be Smacked Around by Hollywood
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Netflix Inc. (Nasdaq: NFLX) has long had an Achilles heel in its business model, and it may be getting an arrow shot through it.
The media content subscription service is losing premium cable partners at a rapid pace, as Hollywood is starting to perceive Netflix as a real threat to subscription revenues.
The latest to defect is Starz announcing Thursday it will stop making its original series available to stream on Netflix, which lost Showtime content just days earlier. Liberty Media Starz is one of the longest running and most important partners in the Netflix stable.
Starz will now institute a 90-day delay for its content on the service, instead of making shows available the day after airing. The new terms will be in place the day after Starz' new series "Camelot" premieres on April 1.
The pay channel will also bring similar terms to its movie content. Starz currently provides Netflix with movies once it gains the rights from Sony Pictures and Walt Disney Pictures.
Netflix responded saying, "Movies are not impacted and contractually cannot be delayed."
Once the contract between the two companies expires in early 2012 this may no longer be the case.
Netflix has apparently ticked off the wrong people with its plans to generate original content, starting with the forthcoming series "House of Cards."
The media content subscription service is losing premium cable partners at a rapid pace, as Hollywood is starting to perceive Netflix as a real threat to subscription revenues.
The latest to defect is Starz announcing Thursday it will stop making its original series available to stream on Netflix, which lost Showtime content just days earlier. Liberty Media Starz is one of the longest running and most important partners in the Netflix stable.
Starz will now institute a 90-day delay for its content on the service, instead of making shows available the day after airing. The new terms will be in place the day after Starz' new series "Camelot" premieres on April 1.
The pay channel will also bring similar terms to its movie content. Starz currently provides Netflix with movies once it gains the rights from Sony Pictures and Walt Disney Pictures.
Netflix responded saying, "Movies are not impacted and contractually cannot be delayed."
Once the contract between the two companies expires in early 2012 this may no longer be the case.
Netflix has apparently ticked off the wrong people with its plans to generate original content, starting with the forthcoming series "House of Cards."
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