Starz could benefit from skipping Disney deal - analysts

Wed Dec 5, 2012 3:27pm EST

Dec 5 (Reuters) - Passing on a pricy Disney distribution deal could help premium movie channel Starz become a more attractive acquisition target for media companies when Liberty Media spins it off in late December or January, analysts say.

Netflix said on Tuesday it signed a deal with Disney that gives it exclusive rights to stream Disney movies beginning in 2016, a pact analysts estimated to be worth more than $350 million.

Starz currently has an agreement with Disney for the rights to stream movies 7 to 9 months after they come out in theaters. That deal expires in 2016.

A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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