This is actually a huge deal. Not a lot of the movie studios like Starz, as they
gum up distribution with artificial release windows. Starz is like a maffia king
when it comes to distribution, and they're notoriously despised in the
entertainment world. Netflix needs this deal to survive, despite the
cost. For one, its content has tanked since it lost its content distribution
contract with Starz a year ago. I suspect that if Netflix can hang on long
enough, it'll be able to recoup its investment in individual studios.
Besides, Disney has been salivating at this space for nearly two decades, so if
Netflix is bankrupt, I bet you can guess who will step in to run the company.
But more interesting is the transition that the studios are making.
They're ditching paid television services, in favor of internet service.
This is a whole industry shift. Netflix is a great service in that it's
relatively ad free, should be a win for the consumers in the end.
This deal could also be seen as the death of TV in its traditional sense. With
Smartphones, tablets and pc's dominating the way we view content, content
creators are looking for ways to monetize that distribution in a way that
doesn't give it away free, but also is more affordable than simply pirating
it (which is very easy to do with digital media).