Disney Objects To Starz / Netflix Deal

January 15, in Business

We were afraid this might happen.

Seems that Disney took exception to having Starz lease out their films to Netflix in a deal that seems to be legally sound (I am not a lawyer nor do I play one on TV) but very much against the spirit of the deal.

See, Disney made an agreement with Starz to be the primary broadcast source for its movies.  But Starz is in turn the primary provider of streaming video content to Netflix.  Now with Disney and Starz’s agreement about to expire, Disney’s bringing up the fact that they’re not real happy with this concept, and want to get some limits set on where the content can be resold.

Worse yet for Netflix, it seems that Disney’s considering starting up its OWN streaming network, using its own content as a base.  Considering what Netflix had to do to get the content from Warner Brothers, any loss in streaming content is a huge blow to Netflix, who now looks to be putting all its eggs in one basket called streaming.

Will Netflix lose a huge source of content?  Or will an agreement be reached?  Keep it here.

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