As we all know by now, Starz and Netflix fell out and contract negotiations halted without a deal. Now, we know why as Starz has announced that they are working on their own TV everywhere authenticated product that will stream their content to any connected device.

Their new service, according to the Starz CEO, is set to debut next year and will first manifest itself as a new TV and movie channel for cable and satellite. In addition to that they have stated they are "exploring possibilities of a stand-alone online service for Internet subscribers."

The move comes after the failure of Netflix to pony up enough cash to keep the media company happy and their content flowing through the subscription service. In regards to that, Chris Albrecht, Starz CEO, had this to say, "Within two to three years, the Netflix deal would have been a drag on our earnings."

Ouch. It sounds like those final contract negotiations did not go well at all.

The two sides failed to reach an agreement because Starz, the exclusive TV and video first-run distributor of Walt Disney Co and Sony Pictures releases, had wanted to have a premium tier in the Netflix package, similar to what it has on cable television, said the recent press release. So they wanted you to pay more for their stuff than other stuff, how self-centered and egotistical of them.

It seems that, with this new move, Starz is aiming to hit the younger audience who is more interested in not having a pay TV service and who want to access content outside of the home. It also seems that they are going to charge quite a bit for the service if they were already thinking that everyone should pay more just for their stuff.

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In stating that they're looking at a stand alone streaming service it means they are willing to unbundle themselves from traditional cable and satellite operators, unlike HBO which requires you to have a subscription to their cable/satellite channel to get their HBO Go service. Who wants to bet the Starz Online package will be $7.99 a month?

  • Dan Clark

    I'd pay 15 a month for HBO standalone.

  • Oba Erik

    Starz needs a kick in the hiney....

  • Liann

    We have all seen the millionaires limo up to the red carpets, and we are all tired of over-paying for the privilege.

    Cut the damn prices already. A DVD costs 6 cents to mass produce, and it costs less than that to stream a movie over the internet.

  • Chris Lane

    What?? Screw starz. They weren't even remotely worth a premium service INSIDE a premium service (netflix). Their new service will die, I'm sure. and like Jay T says above, I'm glad Netflix didn't give in to their overhyped demands.

  • Jay T

    I would not pay 7.99 a month for starz, only thing worth watching on starz is Spartacus which im sure this will be its last season and who cares about the other starz shows? 7.99 x 12 = way for the year? Any other movies on starz i can spend 95.88 towards netflix, redbox etc. Im glad that netflix didnt fold to starz on adding a premium tier to its service. Sounds like starz was trying to get netflix to succumb to the old cable model that doesnt work for most people anymore.