Showtime for Netflix! (NASDAQ: NFLX)

NEW YORK - Starz a subsidairy of Liberty Media Corp will delay new content streaming on Netflix for up to 90 days. Starz, which purchased the right to show Disney and Sony movies, in turn sold that right to Netflix which has allowed the company to prosper. A media analyst was quoted as calling this “probably one of the dumbest deals ever,” as it gave Netflix an avenue to grow for a cheap price.

The deal between the companies ends in 2012 and most analysts expect that Netflix will pay more for this content deal, if it is renewed. The current cost is around $30 million a year. Recently, Netflix has been paying increasingly more for its content as evidenced by the following deals.

It announced a deal with Epix Studio for $200 million a year, which allowed them to show a large amount but mostly older movie titles. It then announced a deal with Relativity Media to show its library of only 30 or so movies for $100 million a year. It later announced a deal with Disney to air some of its shows for $200 million. Last week it announced a deal that sees the company pay $100 million for the right to show one television show the "House of Cards" starring Kevin Spacey, which will air exclusively on Netflix.

The deal with Starz is unique, in that it provides a large amount of premium television shows and movies, for a much cheaper price than its later deals.. The contract soon expires which we means, Netflix subscribers may lose access to the large amount of content.

To read our premium Netflix report click here.