Reported today, Starz has backed out of discussions with Netflix to renew their multibillion dollar agreement to allow Netflix to stream movies via it’s instant streaming.   The current agreement runs through February 28th, 2012.

“Starz Entertainment has ended contract renewal negotiations with Netflix,” Starz president and CEO Chris Albrecht said in a statement. “When the agreement expires on Feb. 28, 2012, Starz will cease to distribute its content on the Netflix streaming platform.”

He added: “This decision is a result of our strategy to protect the premium nature of our brand by preserving the appropriate pricing and packaging of our exclusive and highly valuable content. With our current studio rights and growing original programming presence, the network is in an excellent position to evaluate new opportunities and expand its overall business.”

What’s this all mean?  More than likely a huge shrinking in what you are going to see via instant.   Not to mention Netflix’s Starz Play feature, where most, if not all the worth while movies reside.   This move likely mirrors HBO’s decision to offer its movies via its own streaming service (HBO Go) in leu of offering their movies to Netflix much like Starz and Showtime.   We will keep you updated as more becomes available.