Seeing no Starz

High-flying Netflix fell back to Earth yesterday on fears that its soaring subscriber growth will slow.

Netflix dropped nearly 9 percent after its popular online service lost access to a chunk of film and TV rights controlled by pay-TV channel Starz.

Without a new deal, Netflix customers won’t be able to watch Disney and Sony films controlled by Starz starting in February of next year.

The news sparked a rush to judgment by Wall Street analysts and investors concerned Netflix’s subscriber growth would be crimped.

The timing is also less than ideal for Netflix, which just hiked prices on customers this month and is facing a reinvigorated competitor looking to take advantage of the situation.

Blockbuster, which Dish Network bought out of bankruptcy, is reportedly launching its own streaming media service in October, according to Bloom-berg News. Dish declined to comment.

Ramping up the competition, Blockbuster has also bought promoted tweets on Twitter to welcome Netflix customers to its DVD by mail business.

Several analysts believe Netflix is in for a tougher time ahead.

“This year they are potentially fighting on too many fronts,” said Arash Amel, an analyst at IHS Screen Digest. “They’re fighting their consumers with the price hike, media companies who want more money and then there’s international.”

” In July, Netflix announced it would launch in 43 territories in Latin America. Right now the service is available in the US and Canada.

Starz’s decision to turn down an estimated $300 million a year may reinforce some media companies’ resolve to hold out for more money from Netflix.

Some programming providers might even look to bolster the competition, whether it comes from Amazon, Google’s YouTube, Apple or Walmart’s Vudu.

At the same time, Starz’s change of heart will give Netflix the cash to do other deals, potentially leading to bigger dollars for other streaming rights partners.

Analysts say Time Warner CEO Jeff Bewkes appears to be in the catbird seat as Warner Bros. is the only major company not to have a major deal with Netflix.

A Warner spokesman had no comment on a potential tie-up with Netflix.

Netflix stock dropped 8.64 percent, or $20.16, yesterday to close at $213.11. That’s down from a yearly high of $304.79.