Netflix faces hefty Starz renewal fee

In a report looking at likely stories and trends in the entertainment industry in 2011, the BTIG Research analyst also reiterated his view that Netflix will renew its streaming content deal with Starz, which expires this year -- or try to acquire it instead, a possibility that he had previously mentioned. Greenfield predicted a new deal to be finalized late in the first quarter or early in the second for a price tag of more than $300 million per year, well above the current $30 million and Greenfield's previous estimate of $250 million per year on average. "If no deal happens, look for Netflix to try and buy Liberty Starz," he said. "While Netflix streaming is split evenly between movie and TV viewing, Starz represents the single largest piece of the movie segment and is critical for Netflix to maintain, especially if it wants to keep shifting its subscribers away from its DVD business."

With Hulu.com, TV.com and broadcast TV network's Web sites looking to move behind authentication walls that block out people who aren't pay TV subscribers, "the days of watching your favorite show online or on mobile devices 24 hours or less after they air are quickly coming to an end" for those who don't have subscriptions to show, Greenfield also predicted.