Starz has ended it's contract negotiations with Netflix (NFLX) the same day the video rental/streaming company enacts the price increase announced early last month. The current deal expires February 28th, 2012. That will be the last day Starz extensive catalog of movies will be available on Netflix (NFLX). This is especially bad because most of the more current movies available for instant streaming were courtesy of Starz. Shares are plunging 10% in the After-Hours. I'm tempted to start a position tomorrow because I think long term Netflix (NFLX) is a great investment. They'll get more content deals, and one day Starz will come crawling back. How do they expect to distribute their content and get anything close to the $350m they were getting from Netflix (NFLX)?
This is not a recommendation to buy or sell any securities. DAK had no positions in the stock mentioned but positions can change at anytime.
No comments:
Post a Comment