Friday, September 2, 2011

Netflix and STARZ End Contract in 2012

In the spirit of Netflix's radio commercials where valid question receive irreverent answers, I would like to offer this question:  What company has chosen to make its primary route of distribution a route where only 6% of their top 100 items are available, at the cost of upsetting the customer base for the other 94%. Additionally, that same company has its contract with its primary provider of the 6% end in less than a year. Answer, NETFLIX.
Netflix appears to be going down a strange path of self destruction.  I've never seen a popular company make so many missteps and upset its customer base so much in so little time.  In my previous blogs, I have mentioned that it is apparent that Netflix wants to go all in when it comes to being the primary provider of streaming content.  Unfortunately, their drive has come at the cost of upsetting its base of customers that still use physical DVDs.  I'm as in favor of streaming only as they get, but the vast majority of titles a person wants to see, especially new content, is simply not available online.  As I said in my question, only 6 titles out of Netflix's top 100 viewed titles are available online.  That tells me right away that most of what I want is not viewable via streaming.  The primary provider of Netflix's content that is less than 4 years old is STARZ.    You learn this quickly if you search for any decent instantview content, you will see it is through STARZ.  IN fact, when I sorted the instantview option by rating, I couldn't see any 4 or higher star content that wasn't through STARZ.  This is only important when you learn that STARZ and Netflix will be ending their relationship in 2012.  If Netflix doesn't have other more significant deals with other studios for content, then the Netflix strategy is a bust.  If I were a Netflix share holder, I would be more nervous than ever considering the reluctance of most studios to making their content available through streaming.  Could we be seeing the end of Netflix in the wake of the end of blockbuster.

1 comment:

Kansas Bob said...

I have cancelled streaming but plan to keep the dvd service as it meets our movie viewing needs. Even so, this news is pretty pathetic.