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Edition: U.S. Article Comments (0) Email Print Reprints Read Elizabeth Smart storms out of kidnapper's trial 01 Dec 2010 Euro to struggle vs dollar and pound: Reuters poll 7:17am EST Russia dismisses U.S. cable claims about Putin 8:08am EST Japan's Motion to Kill Kyoto Protocol a 'Slap in the Face,' Advocates Say 1:00am EST China says North Korea ties survived "tempests" | 10:01am EST Discussed 71 Saudi king urged U.S. to attack Iran: WikiLeaks 64 South Korea names security adviser as defense minister 64 Obama to propose two-year federal worker pay freeze Watched Bejeweled bra exposed in NY Thu, Oct 21 2010 Row over vote orgasm video Fri, Nov 19 2010 World reacts to WikiLeaks release Mon, Nov 29 2010 Analyst Research Report Title Price Plunkett's Retail Industry Almanac 2010 Provider: Plunkett Research, Ltd. $299.0 Buy Plunkett's Retail Industry Trends & Statistics 2010 (Summary) Provider: Plunkett Research, Ltd. $149.0 Buy Entertainment & Media Industry Market Research and Competitive Analysis 2010 Provider: Plunkett Research, Ltd. $299.0 Buy E-Commerce & Internet Business Industry Market Research and Competitive Analysis 2010 Provider: Plunkett Research, Ltd. $299.0 Buy E-Commerce & Internet Industry Trends, Statistics & Analysis 2010 (Summary) Provider: Plunkett Research, Ltd. $149.0 Buy 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. Special Report Nissan-Renault turns over a new Leaf With this month's launch of the Leaf, Nissan-Renault hopes its electric vehicle will win green points and lift their brand images after years of trailing rivals such as Toyota and Honda -- a weakness that has grated at management for years. Full Article More Green Business news Time Warner's Bewkes skeptical of Netflix plan Tweet This Share on LinkedIn Share on Facebook By Jennifer Saba and Yinka Adegoke NEW YORK (Reuters) - Time Warner Inc Chief Executive Jeffrey Bewkes questioned whether Netflix Inc's current business model of paying top dollar for rights to stream movies and TV shows over the Internet is... Related News Netflix scrambles future of TV and films Wed, Dec 1 2010 Netflix partner Level 3 spars with Comcast on fees Mon, Nov 29 2010 Microsoft eyes leap back into TV: sources Mon, Nov 29 2010 UPDATE 1-Reuters Summit-Microsoft eyes leap back into TV-sources Mon, Nov 29 2010 Video, newspapers aim to avoid music fate Fri, Nov 26 2010 Analysis & Opinion Hulu Plus cuts price by 20%. Is it cheap enough? Conan could turn out to be U.S. cable barbarian Related Topics Technology » Media » Stocks Jeffrey Bewkes, Chairman and CEO of Time Warner Inc. speaks at the Reuters Global Media Summit in New York December 1, 2010. Credit: Reuters/Mike Segar By Jennifer Saba and Yinka Adegoke NEW YORK | Thu Dec 2, 2010 8:48am EST NEW YORK (Reuters) - Time Warner Inc Chief Executive Jeffrey Bewkes questioned whether Netflix Inc's current business model of paying top dollar for rights to stream movies and TV shows over the Internet is sustainable in the long-term. Bewkes said for a subscription service to work it would have to pay premiums for the best content soon after it is released in theaters or broadcast on television or risk devaluing the programing. "It's hard to see how that kind of economics can fit into a service that charges $8 or $10 a month because the math doesn't work," he said at the Reuters Global Media Summit on Wednesday. Founded in 1997 as a DVD rental-by-mail service, Netflix has surged in popularity after it began offering movies and TV programs over the Web in 2007. Bewkes also said he sees the fast-growing Netflix as a direct competitor HBO, to his company's premium priced pay-TV network. Netflix declined to comment on Bewkes' remarks. Bewkes also cast doubt on Netflix's long-term sustainability given the postal costs involved in Netflix's traditional business of sending rental DVDs through the mail to customers. "The problem that they got if you start going through sustainability questions is not so different from Blockbuster." Blockbuster went into bankruptcy earlier this year after struggling with debt and operating costs involved in maintaining retail outlets. Netflix, which now has more than 16 million subscribers, has itself made clear it wants to reduce the size of its DVDs-by mail business to focus on its online service. Last month Chief Executive Reed Hastings announced plans for an unlimited streaming subscription for $7.99 a month while raising the price of some of its other streaming plus DVD rental plans. Netflix's big push into streaming has raised concerns on Wall Street it will disrupt the healthy cable business as consumers turn to its cheaper entertainment service. U.S. pay television subscriptions have fallen for two straight quarters -- the first ever occurrence. Time Warner reported HBO will lose 1.5 million subscribers this year as distributors dialed back on promoting the channel responsible for "True Blood" and "Boardwalk Empire." Bewkes said rival premium pay-TV channels like Epix and Liberty Media's Starz had made an error in licensing their shows to Netflix. Epix, which is jointly owned by Viacom's Paramount, Lions Gate and MGM studios, signed a five-year $950 million deal with Netflix in August. 1 2 Next Technology Media We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language, all capital letters or appear to be spam, and we review comments frequently to ensure they meet our standards. 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. Comments (0) Be the first to comment on reuters.com. 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