Netflix shoots itself in the foot... aka no more free streaming

If Netflix gets to a point where they aren't streaming anything I want to see, I will cancel. It's as simple as that. Everything else is academic. I think I might have watched one or two Starz offerings in the past couple months. I probably won't even notice them being gone.

 

Netflix Loses Starz

Starz has walked away from negotiating a new deal to continue streaming their catalog via Netflix.

The article also points out that Netflix had been streaming around 1,000 movies as part of the Starz deal. This would certainly seem to be a pretty big blow for the company, especially in combination with its recent PR problems regarding the new pricing structure (which also went into full effect today...), though the article includes a quote from Hastings that "top-shelf titles" only account for 8% of digital viewing.

As far as I can recall right now, this is the first big content loss for Netflix (not counting the Sony Pictures/Starz issue earlier this year separately), and - as a subscriber - I hope it doesn't presage other companies following in Starz's footsteps. Netflix's decision to enter into original series of their own with House of Cards seems like an even wiser decision now.

 

Re: Netflix Loses Starz

...and this is why I jumped to all-DVD when Netflix made me choose. There is no way studios are going to pry loose their content when it comes to streaming. They don't care about DVDs because that technology is on its way out. But as long as Netflix's streaming library can't match its DVD library, it's not out for me.

What the consumer wants is Netflix with a streaming library of every title ever made. But Netflix is having trouble convincing the studios to give them that at a price it can pass on to consumers at a reasonable cost.

In the end, technology wins out, so sooner or later, Netflix or some similar service will offer streaming with a very broad library of titles. But it's going to be a bumpy road getting there. I'm taking my DVDs and hiding until it all sorts out.

Netflix making their own content won't make up for the content that the consumer wants and can't get through them. Their expansive library is a major selling point. When I want a TV show or movie, I don't want to have to think about who made it. I don't care who made it.

 

Re: Netflix Loses Starz

I'm on the verge of canceling (or at least temporarily de-activating) my Netflix account. I've had the same DVD sitting in my living room, unwatched, for the last 2 months, and there is not enough on the streaming menu that I watch to justify paying for it.

I just don't watch that much TV in general. All of the stuff that I've wanted to watch, I've either already seen or I own.

 

I loved that part, too. Their rep is pretty trashy so far. They've yet to produce anything that sounds worth even putting on my queue. I have no idea why anyone would subscribe.

 

It really never made much sense for Starz to be streaming on Netflix in the first place. Starz may not exactly be HBO-level-quality, but their business model is fairly similar. They have to actually get people to purchase their channel, and Netflix is more of a deterrent than a help.

 

That's true for HBO and Showtime as well. And you could throw all of cable in there - AMC, TNT, FX, etc - pretty soon you've eliminated everything on TV worth watching. Half of my queue is TV shows (some stuff like Justified that I could have watched live but missed out on, but mostly premium cable shows), so that doesn't work for me.

It's far cheaper for me to pay under $1 for 3-4 DVDs for a full season than it would be to subscribe for a 3 month season for $20/month. That's $3 vs $60, kind of a no-brainer, huh? So no wonder premium cable is angry at Netflix. I've been expecting them to crunch the numbers sooner or later. I just hope they continue to regard DVDs as irrelevant.

 

Exactly. Get the DVDs for cheap like Weeds and The Big C and there is no need to spend a hundred a year on a channel.

 

But there is an argument to make that Netflix helps cable by giving viewers a way to catch up with serialized shows and then make the jump to live viewing. That's probably a stronger argument for basic cable networks, which are less likely to get cancelled in favor of Netflix since you'd have to cancel dozens of channels at once, including sports and news that are Netflix-proof. As long as CNN and ESPN are in the same tier, AMC/TNT/FX etc are probably safe, so Netflix does them a service of sometimes helping them get more eyeballs for ads.

 

This is a three way battle, and Starz! Made a strategic mistake when they cut the streaming deal with Netflix.

Studios were unwilling to cut deals directly with Netflix because they threatened their already existing relationships with the cable and premium networks. Netflix did an end run around this with their deal with stars!. However the content gained from that deal showed the potential in streaming, and the studios have grown more willing to talk to Netflix, which the networks fear. Also, Netflix is beginning to act more and more like a proto-network, eating up syndicated shows, b movies, and just starting to look at a small number of flagship original programing.

With their dividing of the into two distinct and separate divisions, they no longer have to treat both parts of the company the same. It's smart. They can build the streaming side as the first true internet based tv replacement model, without the anchor of the DVD-by-mail rental business holding that change back.

Also, keep in mind that epix just signed a deal with Netflix, so that may have carried some weight in stars! decision to pull out.

 

Well this clarifies things.

 

HBO, Showtime, and Starz are in a slightly different financial category from AMC, TNT, and FX. I don't think AMC, TNT, and FX are nearly as hurt by having some of their content on Netflix.

 

Re: Netflix Loses Starz

Netflix and epix just signed a streaming deal, and as mentioned in th other thread, starz! may have signed a streaming deal with dish/blockbuster. If such a deal with starz! was cut it could explain why the blockbuster stores recently lost their HBO focal wall.

 

Could explain why the blockbuster stores recently lost their HBO focal wall.

HBO, Showtime, and Starz! Are really getting into making, or co-making their own programing, while AMC, TNT, and FX are still mostly buying their shows from the studios. Also, Showtime is a part of the Epix group that just signed a deal with netflix for streaming.

 

Netflix in Canada has a terrible selection. TERRIBLE! I don't know why I maintain a subscription.

Just thought I'd throw that out there...

 

Rumor is spreading that dish may have bought hulu, in further plans to take on Netflix.

 

Re: Netflix Loses Starz

This in no way affects my queue, so I don't care.

I'm never going to subscribe to cable or any such thing again until or unless someone offers a buffet-style set up that lets me choose the handful of channels have have something on them that I care about seeing (FX, AMC, Showtime, HBO, Comedy Central, NFL Network, and maybe ESPN) because I'm simply not willing to pay for things I don't want to watch. Honestly, I only know two people who still have pay TV of any sort, so focusing on that appears to be a losing proposition for everyone.

So we'll either be able to watch the few things we DO want to watch on Netfilx or Hulu at reasonable rates, or we'll go back to other methods through which these companies get nothing. I guess it's up to them.

 

Hmm...the Epix deal took place last year, a contract near the $900 million range over 5 years. Is there an article you've come across detailing something new regarding Epix?

And Epix is owned by Paramount, MGM, and Luionsgate. The execs running Paramount weren't happy that Sumner Redstone split Viacom into 2 separate companies, putting cable and pay channels Showtime on one side (Viacom) with the studio on the other (CBS Corp). and wanted back in on the pay tv arena...

 

Re: Netflix Loses Starz

I'm actually pretty happy with Netflix for the most part and mostly do streaming. I will be dropping the DVD's very soon and am leaning towards stoping cable all together. I never thought I'd be saying that since I've practically worshiped cable all of my life, but it's just getting worse and worse. I do have shows that I love, but I can never watch them at the time they air and I don't have a DVR, so it's just better to watch them online. I hate that they won't just pay writers to write good shows, but the reality shows will kill television it seems.

As for them losing Starz, I'm not really sure this will effect me because I don't really watch the movies Starz has on Thierry, I mainly watch old tv shows, old obscure movies and documentaries, so, it's not a problem.

 

I knew that this was going to happen.