Netflix to Stream Starz Movies
Deal for 'Starz Play' service broadens rental service's online offering.
By Glen Dickson -- Broadcasting & Cable, 9/30/2008 8:06:00 PM
Movie-rental service Netflix and premium cable programmer Starz Entertainment are announcing a deal Wednesday under which Netflix’s “instant streaming” online-movie service will now carry the roughly 2,500 movies, TV shows and concerts offered by Starz’s “Starz Play” broadband subscription-movie service (formerly known as Vongo), as well as a live streaming feed of the Starz TV network.
The Starz content should be a significant boost to the Netflix streaming service, which is available to Netflix DVD-rental subscribers paying $8.99 per month and up and which can be can be viewed on PCs, laptops or living-room TVs through new media-extender devices made by Roku, LG Electronics and Microsoft.
While Netflix currently offers more than 12,000 choices of movies and TV episodes for instant streaming, including new primetime fare from CBS and ABC, its movie selections draw heavily from independent and foreign films.
By doing the deal with Starz Play, Netflix is now offering instant-streaming of 1,000 Starz titles, including Spider-Man 3, Ratatouille, Pirates of the Caribbean: At World’s End, Superbad, No Country for Old Men and Hannah Montana/Miley Cyrus: Best of Both Worlds Concert.
Since launching Vongo in 2006, Starz maintained that running a successful online subscription-movie service would require doing deals with premium programmers like itself and HBO because of the rights to movies, or “windows,” that the premium networks own.
For example, Starz’s first window for major movies begins 9-11 months after theatrical release and lasts about 18 months. That is followed by about five years in which the movie is only available electronically on broadcast or basic-cable networks. Then Starz’s second pay TV window begins, lasting another year-and-a-half.
“It’s not just the first window,” Starz spokesman Eric Becker said. “You can’t get access [on a subscription basis] until about nine years after theatrical release.”
While Netflix could obviously rent physical DVDs of popular movies during that time frame, it couldn’t make them available through an online-subscription service -- a model it is trying to shift its business to in order to keep pace with pay-to-download services like Apple’s iTunes.
For Starz, the Netflix deal gives it a mainstream presence online for Starz Play, which is currently marketed by telco Verizon Communications through its FiOS fiber-optic service but hasn’t yet struck deals with other multichannel operators to market the service. In addition to making it part of the “instant streaming” lineup, Netflix said it will offer a Starz Play-only subscription, without the ability to rent physical DVDs, for $7.99 per month.
Netflix is also teaming up with Starz Play to offer a sneak preview of the first full episode ofCrash, the Starz original series based on the hit movie, in advance of the Starz primetime premiere Oct. 17 at 10 p.m. (EST/PST).
“The coupling of Starz Play with our growing library of streaming content is an important step forward for both companies and for consumer choice,” said Ted Sarandos, chief content officer for Netflix, in a statement. “Our deal reflects the creative ways we are working with content partners to expand the profile and the number of choices our subscribers can watch instantly over the Internet, in addition to the 100,000 titles we offer on DVD through the mail."
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for all the anti-apple posts. I am running netflix in xp, on a windows partition. it often doesn't work. hulu does. the drm is awful. xp phones home to microsoft servers. don't want that. it's just another example of hollywood and software drm making it easier to pirate content than to use it 'legally.' drm doesn't work!!! haven't we learned anything yet! I'd rather pay for it and have it work. but piracy is easier. what's wrong with this picture!!!!
anonymous - 10/1/2008 1:14:00 PM EDT -
LOL @ Apple
Shouldn't it just work? Maybe you should call Steve Jobs and give HIM the run around.
Netflix service works great on my PC, I love it. And this news is just icing on the cake for my subscription... although if they keep this up I may just downgrade my subscription from 3-dvds to just 2 or 1.
CompatibleWithAll - 10/1/2008 11:06:00 AM EDT -
The Netflix service has commercials too. Also it only works in IE on Windows and really doesn't work that well. I am sad to see Netflix working with Microsoft on this. I used to like them but since they are trying to force me to use MS products I can't say they will keep me as a customer.
Dan - 10/1/2008 10:56:00 AM EDT -
I think this is fantastic news. I have been using the Roku box for a couple of months now and cannot receommend it more highly - it is easy to use and works perfectly. It is well worth the $100 to get movies directly on your TV (rather than watch on your PC) and allows you to just throw stuff in your queue that you may not check out on DVD - since it is so easy to try part of a movie/show and move to something else. Now with the Starz deal announced, others are sure to follow. The only drawback I can think of right now is that HD picture quality is not yet available - but since the Roku box has all the appropriate connections, I expect it eventually. The quality now is more than decent enough to view on my 50" screen.
dave - 10/1/2008 10:22:00 AM EDT -
The $7.99 is only if you want Starz only, it is not in addition to the regular Netflix fees.
Robert Smith - 10/1/2008 10:02:00 AM EDT
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