Starz looking for $350M+ in Netflix renewal? (NYP)

By Nancy Tartaglione

Starz, The New York Post reports, is shooting for upwards of $350 million a year to renew its online streaming deal with Netflix. This would exceed the $250 million to $300 million range analysts had predicted. The current agreement is set to expire in the first quarter of 2012 and there has been much speculation that a renewal would cost Netflix far more than the $30 million it pays Starz now.

"They are looking at something north of $350 million," a top pay-TV exec told The Post. "The stock already implies a $300 million deal."

Starz has seen its stock rise more than 45% in the past year. It fell $1.45 on Tuesday to $76.27. Netflix stock, which has soared 143% over the same period, closed at $270.80.

NYP:

Starz has been key to Netflix's efforts to move away from snail-mail DVDs to digital streaming. It has also provided the online version of Netflix with its freshest films, helping to grow its subscriber base to more than 20 million.

The terms of its renewal are being closely watched by both Wall Street and Hollywood, as well as cable, satellite and telco companies that also pay to air Starz programming. Cable giant Comcast is reportedly paying Starz around $220 million a year.

In a Charlie Rose interview last month, Netflix boss Reed Hastings indicated a lower starting point for negotiations.

"With renewal expectations in the $250 million to $300 million range, investors may be set up for a disappointment," Stifel Nicolaus analyst Ben Mogil wrote in a note to clients, The Post reported.