Netflix stock falls as talks on Starz deal unravel
Netflix’s negotiations to keep a key piece of its Internet video library have collapsed, dealing a major blow to the largest U.S. video subscription service as it raises the prices for most of its 25 million customers. The setback triggered a nearly 9 percent drop in Netflix Inc.’s stock price.
Starz Entertainment delivered the bad news Thursday in a terse statement announcing that it won’t renew a contract that allows Netflix to show a lineup of recently released movies and TV shows over high-speed Internet connections.
That means Starz content will be removed from Netflix’s streaming service starting in March. Starz’ library includes movies from Walt Disney Co.’s assorted studios and, until recently, Sony Corp.
Nice to hear this kind of news right when the price increases go into effect for current Netflix subscribers. Now we get to pay more for less - what a bargain! If they lose any more providers, we will soon be hearing about the demise of yet another once-great service.