Lions Gate told Comcast customers last month that they may soon lose access to Starz content amid a contract dispute. The DOJ is now looking into it.
, the owner of Starz, have both been contacted by the Department of Justice as part of an informal inquiry into two companies' contract negotiations, according to people familiar with the matter.
Lions Gate, as well as members of Congress, called upon the Justice Department to look into whether TV providers such as Comcast could be abusing their market position in negotiations over content licenses, said the people who asked not to be named because the inquiry is confidential. The DOJ was responsive to the requests and has been asking for information from the two parties, the people said.
Michael Burns, vice chairman of Lions Gate Entertainment Corp., left, and Jon Feltheimer, chief executive officer of Lions Gate.Comcast, the owner of CNBC parent NBCUniversal, accounts for about one-third of Starz's 24.4 million domestic subscribers. On. Oct. 16, Lions GateIf the two companies don't strike a new deal before the contract expires,it will replace Starz channels with Epix channels in its Xfinity TV bundle, starting Dec. 10.
Lions Gate shares have plunged 49% this year, including dipping more than 9% since the company notified Comcast customers of the potential cutoff last month. The burgeoning conflict is the latest sign of the broader tension that's becoming commonplace in the streaming wars. Comcast is under pressure from cord-cutters and facing growing competition from a la carte streaming apps running on platforms from
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