There has been a shroud of uncertainty surrounding the end of the world in 2012 according to the Mayan calendar but could the Mayans have been pointing to the end of Netflix’s monopoly?
Netflix (NASDAQ:NFLX) sunk like a stone today following the company’s announcement that Starz will no longer provide content to the online streaming and DVD rental company.
Netflix and Starz have been in negotiations for some time regarding the renewal of their content distribution partnership but those talks have now collapsed.
Starz is the exclusive provider of content from Sony Corp. (NYSE:SNE) and Walt Disney Co. (NYSE:DIS)and the breakdown in negotiations means Netflix will no longer be able to provide content from those providers after the deal expires on February 28th 2012.
The news has obvious attracted a great deal of short selling but there is no doubt that the lack of Mickey Mouse will have a serious impact on the company subscriber base and profits moving forward. The void could see an end to the company’s long standing monopoly in the online streaming business and could allow company such as Amazon.com (NASDAQ:AMZN) and Google (NASDAQ:GOOG) to step in.
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