”This is what the shorts were waiting for,” says Fast trader Guy Adami after hearing news that Starz will pull its movies and shows from Netflix’s video streaming service by next February after renewal talks failed.

Starz, in a statement on Thursday, said the decision was "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."

”It’s not going to end with Starz,” adds trader Stephen Weiss. “Other providers will say they want their pound of flesh.”

Both Adami and Weiss are looking for Netflix to trade lower. “If Netflix closes below $200, it’s Katy bar the door,” says Adami. “It becomes a broken growth stock selling at a ridiculous multiple.”

Jon Najarian and Brian Kelly agree. They too think $200 is a key level. If the stock breaks below that level they expect shorts “will pile on.”

However, Kelly adds if $200 holds it might not be a bad level to get in.

______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to

Trader disclosure: On September 1, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Jon Najarian is long (AAPL) call spreads; Jon Najarian is long (JBL) call spreads; Jon Najarian is long (GLD) call spreads; Jon Najarian is long (FNSR) call spreads; Jon Najarian is long (CLWR); Jon Najarian is long (CCI); Jon Najarian is long (CIGX); Adami Owns (AGU); Adami Owns (C); Adami Owns (GS); Adami Owns (INTC); Adami Owns (MSFT); Adami Owns (NUE); Adami Owns (BTU); Pete Najarian owns (AAPL);’ Pete Najarian owns (C); Pete Najarian owns (HPQ); Pete Najarian owns (MS); Weiss owns (AAPL); Weiss owns (COP); Weiss owns (JPM); Weiss owns (QCOM); Weiss owns (DVN); Weiss owns (VZ); Weiss owns (TWM); Weiss owns (SDS); Weiss is short (X); Weiss owns (BTU)

For Brian Kelly
Accounts managed by Brian Kelly Capital own (TLT) options
Accounts managed by Brian Kelly Capital own (JJG) options 
Accounts managed by Brian Kelly Capital are short (FXE) via options
Accounts managed by Brian Kelly Capital are short (SLV)
Accounts managed by Brian Kelly Capital are short (JJC)

Brian Stutland
Stutland Equities is a market maker holding positions in (VIX) futures and options and (VXX) stock and options
Stutland Equities holds hedged option positions in (SPX) and (SPY)

Carter Worth
**No disclosures

CNBC.com with wires.