The Drum Awards for Marketing - Extended Deadline

-d -h -min -sec

Sony

Back to mail order, as Netflix pulls some Sony films from streaming service

Author

By The Drum Team, Editorial

June 18, 2011 | 2 min read

There's nothing as attractive as streaming movies right there on your telly but this weekend some Netflix customers were being told in the States that for some films, it was back to mail order. Seems that Netflix was just too successful. Talks are under way. Our guess is that money will sort it out!.

In a blog post Friday, Netflix told customers about the hiccup, as movies such as "Easy A" and "Grown Ups" stopped being available on its "Watch Instantly" service. Customers can still rent the films as DVDs through the mail but as one subscriber said ,"Frankly, it's nothing like the same."

Starz said all parties "were working diligently to resolve the issue." The trouble seems to be that Netflix's "explosive subscriber growth", in the words of one insider, triggered a clause in Sony's deal with Starz - leading to the stoppage, said the San Jose Mercury News. Netflix's ability to stream Disney and Sony movies has helped boost growth to an astonishing 23.6 million subscribers in the U.S. and Canada in March. The deal with Starz is up next year and Netflix is expected to pay big bucks to renew it. How big? Netflix CEO Reed Hastings gave a clue this month when he said it "wouldn't be shocking" if Netflix paid more than $200 million per year for the Starz service. Right now the estimated figure is a (comparatively) piddling $30 million a year .
Sony

More from Sony

View all

Trending

Industry insights

View all
Add your own content +