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Where does that information come from? Is that a common way for such deals to be made?

Here is where I saw it:

"However, the contract Starz has with Sony has a subscriber cap with regard to Netflix. The home entertainment company now has more than 23.5 million subscribers, which exceeds the cap. Starz pulled the movies from Netflix so it wasn't in jeopardy of violating its deal with Sony."

http://latimesblogs.latimes.com/entertainmentnewsbuzz/2011/0...

Please note that it was Starz who had a contract with sony that had subscriber count as a term in the contract, not netflix.

He pulled that information out of thin air. It is not true.

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