James Delahunty
3 Jun 2011 1:51
DVD rental and video streaming heavyweight expects large price tag to retain TV Shows and Films.
A deal between Netflix and Liberty Media's Starz network is set to expire early next year. It was originally struck four years ago, costing Netflix $30 million. Starz has the online distribution rights to content from Walt Disney Co and Sony Corp's Sony Pictures.
Netflix now has more than 23 million customers in the United States. It's video streaming service has gained considerable popularity, largely due to its integration with many different platforms (game consoles etc.).
To renew a deal with Starz is certainly going to cost considerably more than $30 million. When asked if the deal could cost up to $200 million, Netflix CEO Reed Hastings said that would not be shocking.
"We are paying more for content every time we renew," Hastings said about striking new content agreements. "We view that as a positive." Netflix is aggressively pursuing content deals to keep customers happy, targeting popular content such as Glee.