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Netflix will pay more for Starz deal renewal

Written by James Delahunty (Google+) @ 03 Jun 2011 1:51 User comments (2)

Netflix will pay more for Starz deal renewal 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.

Tags: Netflix
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2 user comments

13.6.2011 2:26

as long as the disney channel shows remain, ill be a happy camper

23.6.2011 12:56

Be careful what you pay up front to netflix, It may not be enough to cover their expenses and all the exec's will enjoy what they can skim on private islands when the bubble bursts. They don't have a very big reserve fund I understand.

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