Netflix Debacle??

Okay, so it’s no secret that Starz is pulling all of it’s streaming content from netflix. So, this will basically only effect the users that use Netflix for streaming (I’m one of those people). However, the ones that use the Netflix DVD by mail plan will remain unaffected.

Some people are crying out, saying that this spells doomsday for Netflix, as several of the titles on netflix right now are there, because of the contract with Starz. The contract ends on February 28th, I believe and some have even said that they will drop their netflix service after this, to which is to be predicted…any sign of change and people start running for the hills.
Some have questions as to why Starz refuses to renew the contract and, as it always seems, it comes down to money. Starz basically said that they didn’t want to keep their content with netflix streaming uness Netflix jacked their prices up to almost $30 a month. In the end Netflix said no and Starz walked away from a 30 million dollar deal.
What Starz is going to do with all it’s content is still a mystery, but I think they will try to build a site that rivals Netflx. But it will be more costly and, while it will have the newer movies, it will lack what makes Netflix special: TV series that you cannot get anywhere else.
Now, thankfully Starz has told Netflix early of their intent to drop the contract, so that gives Netflix time to go looking around for content elsewhere to make up for loss in streaming content.
Some sources say that Netflix is in talks with HBO, which is odd, because Reed Hastings has said, at one point, that HBO would be the only company to rival Netflix and now it could seem the two are combining forces. What I am most excited about is that True Blood may finally be available for streaming if this deal does indeed go through.
Also keep in mind that Netflix is also spreading it’s consumer audience to Europe and places outside of America, which will increase the money that comes in.

My honest prediction of what will happen is this: HBO will join up with Netflix later in the year and Starz will start up it’s own, pricier, service, which will be a commercial failure and they will eventually come back to Netflix for a smaller price of what they were offered.
In the end Netflix will have HBO and Starz and the content will almost be doubled. That’s more what I hope will happen, anyway.

SIde note, it’s odd that some are still saying that HBO-go will be the downfall of netflix. It’s odd, because you need a cable or satellite subscription to even use HBO-go. This fact, more than anything, makes me think that the possible deal between netflix and HBO will happen, so that HBO can get money and get it’s content to more people. It only makes sense.

And, going back a bit, when Starz does leave and a gap of content is placed in the streaming area, netflix will have 30 million dollars to fix that. Plus they will also be making original content, much like HBO and Showtime does. And from the looks at Lillyhammer I have gotten it seems they are going in the right direction with this move. I have also heard rumors that Netflix will be making new episodes of Arrested Development soon, but that probably is just a rumor.

And for all of you out that are worrying that the Starz contract coming to end spells the end for Netflix, here is a comforting fact:
6% of content streamed through Netflix in the year 2011 was owned by Starz, the rest was owned by the people that did renew their contract. So no worries, infact that could prove to be the change that Netflix needs. I am looking forward to the first season of Lillyhammer and to see what Netflix will do in the year 2012.

And no, I am in no way sponsored by Netflix.
I am sponsored by no one.
You’re welcome.


One comment on “Netflix Debacle??

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