Pakistanis angry over detentions in Times Sq. case Monday, May 24, 2010
ISLAMABAD – Relatives of three men detained by Pakistan for alleged links to the suspect in the attempted Times Square bombing say the men are innocent.
They
AFP - Thursday, August 6TAIPEI (AFP) - - Taiwan's Beijing-friendly government on Wednesday denied boycotting an Australian film festival amid a row over the e
BERLIN (Reuters) - Chancellor Angela Merkel suffered a double blow on Thursday as a senior party ally in east German
Minister seeks closure of anti-Berlusconi websites Wednesday, December 16, 2009
ROME (AFP) - – The Italian government moved Tuesday to close down Internet sites encouraging further violence against Prime Minister Silvio Berlusconi, who
By ELAINE KURTENBACH,AP Business Writer AP - Wednesday, March 18SHANGHAI - Asia's stock market rally seemed to be running out of steam Wednesday, despite an
Edition:
U.S.
Arabic
Argentina
Brazil
Canada
China
France
Germany
India
Italy
Japan
Latin America
Mexico
Russia
Spain
United Kingdom
Home
Business
Business Home
Economy
Technology
Media
Small Business
Legal
Deals
Earnings
Social Pulse
Business Video
The Freeland File
Aerospace & Defense
Investing Simplified
Markets
Markets Home
U.S. Markets
European Markets
Asian Markets
Global Market Data
Indices
M&A
Stocks
Bonds
Currencies
Commodities
Futures
Funds
peHUB
Dividends
World
World Home
U.S.
Brazil
China
Euro Zone
Japan
Africa
Mexico
Russia
India Insight
World Video
Reuters Investigates
Decoder
Politics
Politics Home
Supreme Court
Politics Video
Tech
Technology Home
MediaFile
Science
Tech Video
Tech Tonic
Social Pulse
Opinion
Opinion Home
Chrystia Freeland
John Lloyd
Felix Salmon
Jack Shafer
David Rohde
Nader Mousavizadeh
Lucy P. Marcus
Nicholas Wapshott
Bethany McLean
Anatole Kaletsky
Zachary Karabell
Edward Hadas
Hugo Dixon
Ian Bremmer
Lawrence Summers
Susan Glasser
The Great Debate
Reihan Salam
Frederick Kempe
Mark Leonard
Breakingviews
Equities
Credit
Private Equity
M&A
Macro & Markets
Politics
Breakingviews Video
Money
Money Home
Tax Break
Lipper Awards 2012
Global Investing
MuniLand
Unstructured Finance
Linda Stern
Mark Miller
John Wasik
James Saft
Analyst Research
Alerts
Watchlist
Portfolio
Stock Screener
Fund Screener
Personal Finance Video
Money Clip
Investing 201
Life
Health
Sports
Arts
Faithworld
Business Traveler
Entertainment
Oddly Enough
Lifestyle Video
Pictures
Pictures Home
Reuters Photographers
Full Focus
Video
Reuters TV
Reuters News
Article
Comments (1)
Pictures
The 25 highest-paid musicians
The top-earning singers this past year. Slideshow
Follow Reuters
Facebook
Twitter
RSS
YouTube
Pictures
Reuters Photojournalism
Our day's top images, in-depth photo essays and offbeat slices of life. See the best of Reuters photography. See more | Photo caption
Syria's displaced animals
A look at animals caught in the crossfire of the Syrian civil war. Slideshow
Seattle's marijuana experts
Voters in Washington state approved an initiative legalizing marijuana. A look inside Canna Pi, a medical marijuana dispensary in Seattle. Slideshow
Sponsored Links
Choppy Wall Street ends mostly up, Apple falls
NEW YORK - A volatile trading session ended with stocks mostly higher on Wednesday, even as Apple, the most valuable U.S. company, suffered its worst day of losses in nearly four years. | Video
» More Business News
Sudan shopping mall fights the odds post-secession
KHARTOUM - Shop assistants display expensive Italian baby clothes in a vast showroom, waiters in white shirts serve latte in trendy cafes and an army of cleaners mops the floors - Khartoum's new al-Waha mall is a world away from the rest of Sudan.
» More Small Business News
China denounces EU airline carbon law, seeks talks
BEIJING/HONG KONG - China reiterated its opposition on Thursday to a European Union plan to limit airline carbon dioxide emissions and called for talks to resolve the issue a day after its major airlines refused to pay any carbon costs under the new law.
» More Green Business News
Investing Tools
Hot Stocks
Stock Screener
Fund & ETF Screener
Portfolio
Netflix says it won't raise prices after Disney deal
Tweet
Share this
Email
Print
Related News
Netflix says it won't raise prices after Disney deal
12:56pm EST
Netflix to get Disney films in TV distribution deal
Tue, Dec 4 2012
Wall Street slips as investors seek cliff progress
Tue, Dec 4 2012
Former Disney CEO Eisner back in moviemaking with Universal
Tue, Nov 13 2012
James Bond soars to box office record with "Skyfall"
Sun, Nov 11 2012
Related Topics
Entertainment »
Fashion »
Deals »
Global Deals Review: 2011 Q3 »
Global Deals Review: 2011 Q2 »
Global Deals Review »
Inflows Outflows »
A part of the signage at the main gate of The Walt Disney Co. is pictured in Burbank, California, May 7, 2012.
Credit: Reuters/Fred Prouser (
By Lisa Richwine
NEW YORK |
Wed Dec 5, 2012 2:44pm EST
NEW YORK (Reuters) - Netflix Inc doesn't plan to pass along the cost of the rights to Walt Disney Co movies to subscribers, a senior executive at the video streaming company said on Wednesday.
Netflix, which analysts estimate paid more than $350 million for the exclusive rights to stream Disney movies to TV beginning in 2016, is not considering a price increase to help finance the deal, said Ted Sarandos, the company's chief content officer, at the UBS Global Media and Communications Conference.
"We are not contemplating" raising the $8-a-month subscription fee for unlimited online viewing, Sarandos said during an interview with filmmaker Harvey Weinstein.
The deal gives Netflix streaming rights to movies from Disney's live-action and animation studios, including those from Pixar, Marvel, and "Star Wars" producer Lucasfilm.
Netflix suffered from a consumer backlash and stock plunge after it announced an unpopular price increase in July 2011.
But Netflix's rising content costs have raised worries on Wall Street, with some analysts concerned that Netflix paid too much to get Disney's movies. Tony Wible, an analyst with Janney Montgomery Scott, estimated in a report that Netflix paid more than $350 million a year to secure the deal.
Sarandos called the arrangement with Disney a "game changer" that for the first time will bring new movies from a major Hollywood studio to an Internet-streaming service rather than a cable channel such as HBO or Showtime. Calling Disney a "near-perfect" media company, he said the two began discussing a deal before Disney acquired Lucasfilm and announced plans for new "Star Wars" movies.
Disney talked with other outlets before deciding Netflix was the best platform for its first-run movies, Disney Chief Financial Officer Jay Rasulo said. "This was the highest value deal for us to do. We are thrilled to do it with them," Rasulo said, also speaking at the UBS conference.
Sarandos said Disney's movies will bolster one of Netflix's most popular types of content - animated children's movies. Netflix had a previous deal to stream Disney movies through an agreement with Liberty Media's Starz network, which currently holds the exclusive rights to distribute new Disney films on TV.
"When we looked at the data of when we used to have Starz, the ones that constantly performed for us were those big animated features, lots of repeat viewing," Sarandos said. "It's a nice, safe brand halo when you put your kid in front of an iPad."
In January, Netflix executives played down the importance of Disney movies to its service. At that time, 15 Disney titles including "Toy Story 3" and "Tangled" accounted for about 2 percent of U.S. viewing on the Netflix streaming service, the company said in a quarterly letter to investors.
On Wednesday, Sarandos said Netflix would like to bring more, fresher content from other studios to its service.
Wedbush Securities analyst Michael Pachter said he thought investors' positive reaction to the Disney deal was unwarranted given the price Netflix likely paid. "Ultimately, we think that deals such as the Disney deal could spell doom for Netflix," said Pachter, who rates Netflix "underperform."
"Perhaps most importantly, a long-term and expensive content deal makes Netflix less attractive to potential acquirers," Pachter said in a research note.
The agreement received applause from Weinstein, who called it "probably the biggest content deal in the history of our business." He joked he had used Netflix as a "babysitter" at times with his two-and-a-half-year-old child. "Moving into the family area is a very smart play in terms of you almost cornering the market," Weinstein said.
Netflix already had deals to stream movies with smaller studios including Weinstein's studio, The Weinstein Co, as well as Dreamworks Animation and Relativity Media.
Sarandos said he had not heard any response to the deal from Carl Icahn, the activist investor who recently purchased a nearly 10 percent stake in the company. Netflix adopted a poison pill defense to prevent a takeover.
"This relationship is pretty new," Sarandos said of Icahn. But he said Icahn has been "publicly and privately very supportive" of Netflix.
Netflix shares, which rose 14 percent when the Disney deal was unveiled on Tuesday, gained 1.7 percent at $85.15 in Wednesday afternoon trading on the Nasdaq. Disney shares were up 1 percent at $49.81 on the New York Stock Exchange.
(Reporting by Lisa Richwine; Editing by Peter Lauria and James Dalgleish)
Entertainment
Fashion
Deals
Global Deals Review: 2011 Q3
Global Deals Review: 2011 Q2
Global Deals Review
Inflows Outflows
Related Quotes and News
Company
Price
Related News
Tweet this
Link this
Share this
Digg this
Email
Reprints
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (1)
AlkalineState wrote:
Edition:
U.S.
Arabic
Argentina
Brazil
Canada
China
France
Germany
India
Italy
Japan
Latin America
Mexico
Russia
Spain
United Kingdom
Back to top
Reuters.com
Business
Markets
World
Politics
Technology
Opinion
Money
Pictures
Videos
Site Index
Legal
Bankruptcy Law
California Legal
New York Legal
Securities Law
Support & Contact
Support
Corrections
Connect with Reuters
Twitter
Facebook
LinkedIn
RSS
Podcast
Newsletters
Mobile
About
Privacy Policy
Terms of Use
AdChoices
Copyright
Our Flagship financial information platform incorporating Reuters Insider
An ultra-low latency infrastructure for electronic trading and data distribution
A connected approach to governance, risk and compliance
Our next generation legal research platform
Our global tax workstation
Thomsonreuters.com
About Thomson Reuters
Investor Relations
Careers
Contact Us
Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.