(Image source: Gadgetell)

BY GARY COTTON

You're watching multisource entertainment video news analysis from Newsy.  

Netflix is seeing stars today after losing one of its biggest video providers--Starz. A blogger for the LA Times lays out the simplest reason for the split.

“...executives at Starz apparently concluded that they would lose even more money by giving consumers a reason to subscribe to Netflix instead of the cable channel.”

Netflix has taken some heat lately after hiking its prices--
And an analyst on CNN explains--Starz wanted a bigger piece of the pie.

“Earlier this year, Netflix called Starz one of it’s most important deals because it’s one of the few that gives it’s Netflix customers streaming access to relatively recent films, and now that the streaming video service is so popular it’s not much of a surprise Starz wants more money. It’s a tough environment for Netflix right now, the companies facing a subscriber backlash now that it’s raising prices.”

Just how big of a loss it this? An analyst tells the Hollywood Reporter...

“‘A loss of subs could leave Netflix struggling to pay the over $2.4 billion in off balance sheet content obligations...’”

After losing a key partner, taking a hit in the stock market , and facing around 2.4 billion in content obligations , what’s Netflix’s next move?

An analyst on CNBC says-- time to go shopping.

“They will definitely go on a shopping spree here. This is going to be essentially $250-300 million dollars that was kind of ear marked here to spend on content through Starz, and I think you’ll see them going out an acquiring new TV and movie content."

The breakup means no more movies from Sony or Disney for Netflix subscribers. An analyst for Bloomberg says less content could mean a higher price.

“Netflix had had fantastic growth because they had benefited from being able to hook up their product with the Xbox and the Sony Playstation 3 essentially bringing Internet television to television sets...Some of the contracts they had written dramatically under priced their ability to stream...So they’re going to raise the price or change the terms of trade very significantly..."

Netflix says  Starz content makes up about 8% of domestic Netflix subscribers’ viewing.
 

Transcript by Newsy.