Netflix shares are trading sharply lower in after-hours trading Thursday after Starz Entertainment announced that it has ended negotiations to renew its streaming distribution deal with the online video service.

FORBES: Netflix Shares Tumble As Starz Renewal Talks Collapse

However, licensing content for distribution through streaming works out to be more expensive for Netflix than through DVD distribution.

FORBES: Netflix Stock Is Overvalued By Almost 100% But Streaming Grows Like A Weed

Many talent agents are watching the bottom line more closely as new forms of film distribution, such as streaming, threaten to upend the entertainment business.

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The new relationships include both financial backing and business agreements that demonstrate the industry's confidence in Roku as the distribution platform to bring streaming entertainment to mainstream consumers.

ENGADGET: Roku picks up financing from BSkyB, News Corp and more, keeps eye on the premium streaming crown

Beyond video content, CEO interaction with employees on internal channels and live streaming of executive events that allow for social distribution and community interaction are on the rise.

FORBES: Study: CEOs And Social Media Remain An Unlikely Pair

LONDON--June 25, 2012--LOVEFiLM, an Amazon Company, and Twentieth Century Fox Television Distribution have today announced a major multi-year content deal giving LOVEFiLM members streaming access to recent and forthcoming movies and TV series.

ENGADGET: Lovefilm, Fox UK deal brings more TV shows next month, movie exclusives in 2013

DivX Plus Streaming has been approved by studios and adopted by companies helping fuel over-the-top entertainment distribution.

ENGADGET: Toshiba to launch TVs with DivX Plus Streaming certification

While the company will likely pay more for content as it builds out the streaming business, the economics of the business appear to be improving as it makes the gradual switch to digital distribution.

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