This decision is a result of our strategy to protect the premium nature of our brand by preserving the appropriate pricing and packaging of our exclusive and highly valuable content. With our current studio rights and growing original programming presence, the network is in an excellent position to evaluate new opportunities and expand its overall business.In sentence one, Starz illustrates a major Netflix conundrum -- it cannot attract premium content with its current pricing scheme in place. Thus it's desperate and unsustainably expensive move into original programming. In sentence two, Starz reaffirms the reality that content owners hold the cards in relationships with glorified bootleggers such as Netflix.
It should come as no surprise that the content owner went with Amazon and Wal-Mart's on-demand options over the Netflix $7.99/month, unlimited viewing option. Sony and Starz made this dynamic clear in 2011. Netflix has been able to survive since then thanks largely to a mix of cash bailouts and that way Hastings has about him. But part of Hastings' aura contains a stubbornness of epic proportion. And his refusal to include tiered pricing and/or on-demand options, amidst massive spending on originals and international expansion, will doom Netflix to insolvency. Follow @rocco_thestreet -- Written by Rocco Pendola in Santa Monica, Calif.