Joseph O'Halloran ©RapidTVNews | 02-09-2011

Just as Netflix’s new price tariffs have kicked in, customers of the over the top (OTT) provider have been dealt another blow with the news that Starz Entertainment has pulled the plug on supplying content.

The Liberty Media subsidiary offers premium movie and original programming entertainment and has been a key provider of content for the Netflix bouquet especially in terms of new movie content from Walt Disney and Sony Pictures.

The move comes at a crucial time for Netflix which along with fellow leading OTT provider has been gaining huge traction particularly when competing against cable TV services.

Explaining the move, company president and chief executive officer, Chris Albrecht, said: "Starz Entertainment has ended contract renewal negotiations with Netflix. When the agreement expires on 28 February 2012, Starz will cease to distribute its content on the Netflix streaming platform. 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."

Netflix’s and Starz’s business relationship has been somewhat strained since April 2011 when the content owner changed the terms under which its products were aired, namely implementing a 90-day window between the first broadcast date of its shows on its channels and their availability on Netflix.

Initial reports from Wall Street have indicated a fall in the price of Netflix stock since the announcement by Starz.