Starz Entertainment, a popular premium cable network, has decided to end its deal with Netflix, a leading brand in the online video service industry.
This surprising move by Starz Entertainment - an important source to Netflix for recently released titles - leaves the company with no other option than to find an alternative movie source as soon as possible.
According to many experts, if Starz was to renew its agreement which is due to expire in February 2012, the deal could have reached the $300 million range as Starz provides many types of movies to customers via media streaming.
However, according to the company’s top decision makers, renewing the agreement with Netfliz would do more harm than good for Starz.
"This decision is a result of our strategy to protect the premium nature of our brand by preserving the appropriate pricing and packaging of our exclusive and highly valuable content," Starz said in a statement Thursday, as reported in an LA Times blog post.
"With our current studio rights and growing original programming presence, the network is in an excellent position to evaluate new opportunities and expand its overall business," it added.