[UPDATE] Netflix losing Starz content in Febuary 2012

[UPDATE: Netflix CEO Reed Hastings issued a statement on the matter to The Hollywood Reporter, stating that Starz content, while initially one of the biggest sources of Netflix’s licensed content, has recently dropped to eight percent of Netflix subscribers’s viewing. Hastings went on to say “[w]e are confident we can take the money we had earmarked for [the] Starz renewal next year and spend it with other content providers to maintain or even improve the Netflix experience.” Overall, this seems to be a generally amicable affair, as Starz did give Netflix almost six months of notice. Netflix can’t be happy about their hit on the stock market, but at least no one’s throwing any pies yet.]

In what can only be described as a startling move, Starz has announced today that it will not renew its contract with Netflix in Febuary 2012. For those of you that don’t know what that necessarily means, Starz provides a HUGE chunk of programing for Netflix Instant, including original shows like Spartacus (lulz), most Disney and Sony films (they own a majority of the Pay TV/streaming rights), and a lot of newer releases that show on Starz before other pay channels.

I’m sure I don’t have to tell you that this is a severe blow to the Netflix Instant library as their stock dropped 10% after the announcement. I’m not sure what that really means, but what I do know is that after February I can’t re-watch old episodes of Party Down anymore. DAMN YOU, STARZ!

[Via Wall Street Journal, THR]