Uh oh! Netflix is experiencing technical difficulties again. We just reported the mass exodus of customers in October of last year and now they may lose a few more. ]Netflix customers don’t play! They showed them that when 800,000 of their customers abandoned ship last year. But this time it’s not really their fault.
According to the Huffington Post, the contract between Starz and Netflix expires today, February 28. The original contract was written in 2008 for five years at $30 million, but to renew it there had been buzz of Starz possibly jacking the price up more than six times that amount.
In the report, it appears that Starz is not happy about Netflix refusal to implement a “tiered pricing system” that would create various prices (higher prices) for Starz content. Starz feels that their content is too valuable for them to release it all at one set price to Netflix customers at the original contract price they had with Netflix.
Essentially, Starz is putting the same squeeze on Netflix that Netflix put on their customers last year. So for those of you that didn’t get the memo before now, you might have to break down and pay for Starz directly or get cable. Read more here.