Disney renegotiating Starz deal, might pull movies from Netflix streaming
Nilay Patel|January 15, 2010 6:04 PM
Warner forcing Netflix to accept delayed DVD rentals in exchange for better streaming terms, Disney and Starz are reportedly renegotiating their deal, and blocking Netflix is one of the terms. Most new releases on Netflix right now are part of the StarzPlay package, and the studios don't get a cut, since they've already sold those rights to Starz. As we all know, the studios aren't big fans of not getting a cut, so what Disney is trying to do is block Netflix from dealing with Starz and force it to license streaming rights directly -- not the end of the world and certainly not impossible, but a move that has the potential to disrupt service and raise prices. As of right now, things are status quo and no one's talking on the record, but we've got the feeling there's a shakeout coming -- stay tuned.