Starz Dumps Netflix for DirecTV Bucks

Starz Entertainment (NASDAQ:LSTZA) and DirecTV (NASDAQ:DTV) announced on Monday they have expanded their relationship by forging a multi-platform distribution deal that will enable DirecTV to offer Starz content on the satellite provider’s new DirecTV Everywhere service.

The agreement allows DirectTV to offer Starz Online and Encore Online services on its DirecTV Everywhere service for Starz Super Pack subscribers. The agreement also enables DirecTV to launch Movieplex, Indieplex, Retroplex, Movieplex On Demand and Movieplex Online service on DirecTV Everywhere.

DirecTV already offers 15 Starz and Encore channels, with eight in high definition for its Starz Super Pack subscribers. The new deal will provide an additional 600 or so movies and TV programs per month for DirecTV. The Movieplex On Demand and Online services will add around 200 more titles. Financial information and other details of the deal were not disclosed.

Many experts believe Netflix (NASDAQ:NFLX) owes much of the early success of its streaming media service to a similar relationship with Starz, according to blog TechnoBuffalo. The multi-year deal allowed Netflix to boost its fledgling service with Starz content that included Disney (NYSE:DIS) offerings and other top movies. When the Liberty Media-owned Starz decided to allow the contract to expire in February, there was much speculation about where — if anywhere — the cable network would place its on-demand content.