Netflix Loses 1,000 Starz Movies
It seems to be all going south for Netflix. A few months ago we wrote about the exodus of nearly 1 million subscribers, in large part to the over 60% increase in subscription fees across the board. Early numbers coming out Netflix had suggested that the DVD rental and online streaming content site would be able to weather the storm. But one wonders given the latest news about Netflix.
According to reports, Netflix has just lost some very exclusive content from Starz, the cable and content provider run by News Corp. The loss of these movies will see fan favorites like Toy Story 3 and Tron disappear from the Netflix playlist. So far there has been very little reaction from subscribers but according to Netflix, the pulling of these movies will have very little impact on overall customer satisfaction. Apparently, Starz viewing accounted for only 2% of all viewing, and this number is drop from the 8% that was recorded the year before.
Clearly then the deal between Starz and Netflix had come to the end of its life and was yielding very little for either parties. On the upside, Netflix has said that it plans to invest $500 million in content over the rest of 2012, so at the very least, subscribers will have much to enjoy.