Netflix has received a lot of criticism and consumer backlash for its decision to raise prices. Now, the company is taking another major hit after it announced that it will no longer provide movies and television shows through Starz, reports Newser
Starz said today that it will not be renewing its contract in February to supply new movies and television shows to Netflix. This means that Netflix will have no access to Disney and Sony movies, for which Starz has exclusive rights.
Given that the Disney and Sony movies provided a major boost to Netflix’ instant streaming service, the company will have to find another way to keep their selection strong.
Netflix downplayed the significance of the announcement, but the market responded noticeably. Netflix shares dropped 9 percent after the Starz news.
This decision by Starz not to renew the contract could mark a shift in the tide for Netflix. Cable networks may no longer view Netflix as a partner, but rather as a direct competitor, reports Newser. And this could really hurt Netflix’ ability to negotiate with cable channels over video content.
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