Just because Netflix (NASDAQ:NFLX) has begun producing its own content as means to offset the rising costs of licensing agreements, does not mean that Starz’s (NASDAQ:STRZA) deal with Sony (NYSE:SNE) will not be a blow.
On Monday, Sony Pictures gave the pay-television network Starz the exclusive rights to its movies — which range from Men in Black to Ghostbusters to Resident Evil. Now, Netflix has no hope of making a similar deal with the Japanese company.
In September 2011, Starz ended contract renewal discussion with Netflix because the companies could not agree on pricing or packing, and its programming was removed from Netflix in March of 2012. In a statement, Starz Chief Executive Officer Chris Albrecht said the decision was a “result of our strategy to protect the premium nature of our brand.” Netflix originally paid $30 million back in October of 2008 for the rights, which many analysts called a steal. By the time the deal came up for renegotiation, Netflix’s offer of $200 million was just not enough, so Starz pulled its 2500 movies, including films from Sony…
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