Starz To Delay Movies On Netflix [Netflix & Other Video On Demand Services To Wait 90 Days Before Getting Starz Original Content & First-Run Movies]

Posted on TFTS by Kevin Schram on Friday, 25. March 2011 under: Audio,Visual, Internet Highlights

More bad news for Netflix and other online video rental sites. Starz, the premium cable network that played a role in putting Netflix’ Instant Watch streaming service on the map is taking another swing at the online video service, which seems to get more and more popular every day. They’ve announced that they’ll be withholding their own original content as well as first-run movies that they have the right too from Netflix for 30 days.

Netflix and Starz signed a deal to let Netflix show their movies on the Instant Watch streaming service in 2008. That deal was for $30 million and lasted four years. Considering it gave Netfilx access to a big library of Sony and Disney movies to put on their streaming service, it was a big plus for the company and considered a “steal” for Netflix. Some analysts have estimated that it will cost Netflix $230 million or higher to renew a similar deal.

The upcoming Starz original show Camelot will be delayed 90 days before appearing on Netflix and the other video rental services, like iTunes and Amazon Video-On-Demand. Starz went on to hint to the Wall Street Journal that movies that they have the right to first-run on premium cable would follow suit.

This is just the latest attack on Netflix. The rising star of the internet has faced increasing resistance from “old media” content providers, who don’t feel they’re being adequately compensated for what they provide to Netflix and its customers. Yesterday, I wrote about how Showtime (owned by CBS) was yanking their ongoing original content (like Dexter and Californication) from Netflix. Warner Bros. and other movie studios have also hit Netflix’ old-school DVD rental service. They’ve blocked Netflix from getting access to new release DVDs for up to 30 days after they’ve come out for DVD sale and pay-per-view.

Netflix isn’t worried about old media trying to slow down their selections though. Talking about Starz’ 90 day delay to the WSJ, Netflix rep Steve Swasey said: “Netflix members value completeness more than freshness,” meaning that Netflix customers would rather have a TV show in a complete archive rather then have it right away.

As I alluded to yesterday, Netflix, Hulu Plus, iTunes and Amazon VOD – they’re all stuck between two masters. They’re trying to serve us (the internet savy user) and the old media studios. Eventually, something has to give.