Splitsville is painful for Netflix and their shareholders

Posted By on September 2, 2011

There seems to be a little tarnish on the once high-flying Netflix who has dominated the DVD and streaming movie market since the demise of the big box video rental stores. Their model seemed to be invincible until someone realized that business is only as good as having content … and customers willing to pay the high percentage increase being demanded (change my plan last month). Some might suggest they were getting too big for their britches … and after a major content provider pulled away today, their NFLX stock took another dive. I will be curious to know if management has any plans to prevent a further slide in shareholder value?

netflix110902

Starz to Split From Netflix

Fee Dispute Means Pay-TV Channel’s Programs Won’t Be Available for Streaming

Pay-TV channel Starz has called off talks to renew its streaming deal with Netflix Inc., in a move that could deprive the online video service of one of its richest sources of newer movies.

Although Netflix has brokered several deals over the past year with other content companies, the decision by Starz means Netflix will no longer be able to offer newer movies like "Toy Story 3" and others from the studios of Walt Disney Co. and Sony Corp., the two major studios with which Starz has distribution rights.

MORE (subscription required)

Comments

Desultory - des-uhl-tawr-ee, -tohr-ee

  1. lacking in consistency, constancy, or visible order, disconnected; fitful: desultory conversation.
  2. digressing from or unconnected with the main subject; random: a desultory remark.
Do NOT follow this link or you will be banned from the site!