Netflix Offered Starz $300 Million-Plus for Streaming Deal Renewal
NEW YORK – Price, exclusivity and packaging were key factors in the talks between Starz and Netflix about a renewal of a streaming video deal before Starz said on Thursday that it was ending the discussions, according to sources.
Netflix offered Starz, led by CEO Chris Albrecht, more than $300 million a year, compared to about $30 million under the current deal, which now expires at the end of February, the LA Times reported.
However, Starz was looking for tiered pricing, which would have seen subscribers of Netflix, led by CEO Reed Hastings, pay more than the standard $8 per month for content from the premium TV provider.
That is in line with comments from Starz executives who said repeatedly this year that they were looking to charge Netflix more in line with cable and satellite TV distributors, which have seen the streaming video service as a reason for consumers to cut the pay TV cord.
A source said the announcement on the end of the talks came just ahead of Labor Day weekend as Netflix had asked Starz for enough lead time before the deal’s expiration.