Starz wanted Netflix to charge more for "premium tier"
Netflix couldn't come to a deal to keep Starz content on their service, so they'll be losing it next February, but it turns out Starz wanted more than just Netflix's money to stay -- they wanted more of our money too:
Netflix offered Starz more than $300 million per year to renew their agreement, but the pay cable channel was insistent on so-called tiered pricing, according to people close to the negotiations but not authorized to speak on the record. Tiered pricing would require Netflix subscribers who want movies and television shows from Starz and other premium providers to pay more than the standard $8 per month.
Basically, they wanted Netflix to become as expensive as cable so we, the customers are discouraged from leaving cable and living off digital antennas and services like Netflix.
That's nice for Starz, but do you want to pay more for Netflix to keep The Karate Kid on your iPhone, iPod touch, iPad, and Apple TV?