Netflix may be losing Starz and its content. Maybe.

It was a perfect pairing.  Netflix got the bump of having all kinds of great stuff, and Starz got to specially brand a section of Netflix, and go from an also-ran to a big-time cable player.  Now, it looks like the marriage may be over.  Starz and Netflix appear to be heading for a break-up, with Starz indicating they will let their agreement with Netflix expire in February 2012.  In 2008, Starz agreed to let Netflix stream its content for $30 million a year; now, Starz is turning down a $300 million streaming agreement to walk away.

“While we regret their decision to let our agreement lapse next February, we are grateful for the early notice of their decision, which will give us time to license other content before Starz expires,” said Netflix in a statement.

That said, there’s a long time between now and February 2012, and Netflix has been very important to boosting Starz’s business and vice-versa.  Now, it’s a situation where both parties don’t really need the other, but they have to like having the other one around.  For Starz, Netflix is a boon to their original series business; for Netflix, Starz is a great way to get Disney and Sony content without having to pay Disney prices.

If Netflix can get AMC’s streaming rights and Showtime’s streaming approval, they should be able to get Starz back to the table.  However, it’s going to cost them a lot; that might be why Netflix had to increase their prices.

Tags: Starz. Netflix, streaming video, Netflix will lose Starz in February 2012, Starz and Netflix negotiations, Starz and Netflix, Netflix streaming video negotiations, Starz will leave Netflix, Hollywood, movies, home theater, Netflix streaming, streaming video

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