Goldman Sachs: Starz Delay Won't Impact Netflix (NFLX)

In a report released this morning, Goldman Sachs said that it did not believe that the delay of Starz programming on Netflix

would impact the streaming rental service for the following reasons: (1) “Consumers do not go to Netflix to view first run or dayand- date content – the 28-day delay on DVDs implemented last year had no impact on Netflix subscriptions (unlike on Redbox),” Goldman Sachs writes. “Most of the streamed movie content comes to Netflix through output deals, which encompass films that are already at least 12 months old." (2) “There is currently a 90-day delay on all content associated with Netflix's EPIX deal, which has gone unnoticed by consumers.” (3) “Starz's move in the immediate term is only on its original content, which is untested and again not a reason for being a Netflix subscriber.” This update follows press reports indicating that Starz is planned to “delay the availability of first run original content by 90 days on Netflix with the premiere of Starz's new series ‘Camelot' on April 1,” Goldman Sachs writes. “Starz also plans to delay films through its Disney

and Sony

output deals at some point in the future,” Goldman Sachs adds. “According to Netflix, its current contract with Starz, which expires in 1Q2012, does not allow for a delay for these movies.”