Light Reading
Netflix will pay up to obtain the rights to Disney flicks during the coveted pay-TV window

Netflix Swipes Disney Deal From Starz

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner
12/4/2012
50%
50%

Netflix Inc. (Nasdaq: NFLX) got some longer-term relevance Tuesday by securing the rights to offer Walt Disney Co. (NYSE: DIS) flicks in the coveted pay-TV window starting in 2016.

Netflix will also start to get access to "high-profile" Disney direct-to-video fare starting next year. The pay-TV part of the agreement, which covers titles from Disney Animation, Pixar and Marvel, essentially seizes those rights from long-time Disney premium programming partner Starz Entertainment LLC .

And forgive Netflix execs if they end up gloating a bit. Starz reportedly wouldn't do a new deal with Netflix in 2011, when the streaming giant offered to pay about $300 million but balked at the idea of creating a premium-level subscription tier around Starz content. (See Did Starz Reject $300M Netflix Offer?)

Netflix and Disney didn't disclose financial terms, but Netflix "could ultimately pay more than $300 million," reports The Los Angeles Times.

Why this matters
Netflix, which is getting pressured by Carl Icahn to sell while the getting is good, will need good content to keep its growth engine stoked. The company has been paying the price for a small set of original series, but Disney is as good a horse as any to have in the streaming stable.

The deal will also put pressure on Starz to generate more popular originals and assemble deals with other leading studios when new distribution deals come available. In a statement, Starz points out it has rights to Disney Studio film titles "into 2017," and that "our decision not to extend the agreement" past that date creates room to invest in Starz's own exclusive, original series for its pay-TV partners.

For more



— Jeff Baumgartner, Site Editor, Light Reading Cable

(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
12/5/2012 | 5:16:28 PM
re: Netflix Swipes Disney Deal From Starz


Here's the full statement from Starz:

"Starz will continue to be the exclusive home of all Disney movies, including the Lucas Film, Marvel and Pixar releases, and their accompanying digital streaming rights, into 2017.  Our decision not to extend the agreement for Disney output past that time allows us the opportunity to implement our plan to dramatically ramp up our investment in exclusive, premium-quality original series which will best meet the needs of our distributors and subscribers.”


 


 

Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
12/5/2012 | 5:16:25 PM
re: Netflix Swipes Disney Deal From Starz


With the Disney deal and its strategy to develop original content, Netflix is of course trying to turn itself into a premium service along the lines of HBO, Starz and Showtime.  When you decide where your premium  video subscription dollars go to, what's more important to you: access to new studio titles or solid originals? 


For me, it's the latter... newer movies I really care to see that I didn't see at the theater I tend to catch in the first VoD window and pay that relatively small premium. As channels like HBO go, most of my viewing is spent on their top-notch originals. JB

Flash Poll
LRTV Custom TV
Why SPs Should Consider Cisco's EPN

8|27|14   |   5:40   |   (0) comments


Sultan Dawood from Cisco discusses Cisco's EPN, which enables SPs to build agile and programmable networks delivering new network virtualized services using Cisco's Evolved Services Platform (ESP).
LRTV Huawei Video Resource Center
Huawei’s Showcase @ Big Telecom Event 2014

8|26|14   |   2.56   |   (0) comments


SoftCOM is Huawei's framework for telecom business and network transformation. Haofei Liu, Solution Marketing Manager, Carrier Business Group, Huawei, showcases Huawei's SoftCOM architecture in this video.
LRTV Huawei Video Resource Center
Huawei @ BTE 2014: Director of Integrated Solutions on SoftCOM & NFV Monetization

8|26|14   |   4.43   |   (0) comments


Libin Dai, Director of Integrated Solutions, Carrier Business Group, discusses Huawei's SoftCOM and NFV monetization. Huawei believes that NFV monetization should be service-driven rather than network-driven, and that operators should have network transformation, service transformation and a compatible and collaborative ecosystem in place in order to deploy NFV.
LRTV Huawei Video Resource Center
Huawei @ BTE 2014: Director of US NFV Lab on CloudEdge & the Future of NFV

8|26|14   |   4.06   |   (0) comments


Sean Chen, Director of US NFV Lab at Huawei, discusses Huawei's new approach to NFV in open collaboration. Huawei believes that through Proof of Concept tests, it could help operators learn and communicate with the industry more effectively. Sean believes that successful implementation of NFV should have its values reaching to end users and discusses how Huawei's ...
LRTV Huawei Video Resource Center
Huawei's Highlights @ Big Telecom Event 2014

8|26|14   |   3.34   |   (0) comments


At the Big Telecom Event in Chicago Huawei showcases its high-level strategy, the SoftCOM architecture, which helps operators reduce the cost of ownership of their network infrastructure and generate additional revenue in the ICT service environment. Huawei showcases over 30 pilot programs from across the globe, focusing on the industry-leading commercial ...
LRTV Custom TV
VeEX – Live from the Show

8|21|14   |   5:58   |   (0) comments


An overview of VeEX Test and Measurement solutions including TX300S multi-service test set with VeExpress cloud-based management system, UX400 universal modular platform supporting 100G testing, and the redesigned RXT modular platform.
LRTV Custom TV
Transitioning CE 2.0 Networks Into the SDN & NFV Era With Telco Systems

8|19|14   |   5:19   |   (0) comments


Telco Systems' Ariel Efrati (CEO) and Moshe Shimon (VP of Product Management) discuss virtualization and how the company's new Open Metro Edge solution utilizes the SDN and NFV concepts to accelerate and orchestrate service delivery through its innovative product portfolio and software applications.
LRTV Custom TV
NFV Myths: Is NFV Still Several Years Away?

8|11|14   |   1:13   |   (0) comments


Some say that NFV (network functions virtualization) is still several years away from being implemented on mobile operator networks. This isn't the case. Operators can get started on their paths to NFV now, as this short video from Skyfire shows.
LRTV Custom TV
A New Security Paradigm in SDN/NFV

7|28|14   |   02:54   |   (0) comments


Paul Shaneck, Global Director Network Solutions for Symantec, discusses the evolving virtualized network, explaining how Symantec is leading the security discussion as it relates to SDN and NFV, and helping to ensure the network is protected and compliant.
LRTV Documentaries
Sprint's Network Evolution

7|24|14   |   14:59   |   (0) comments


Sprint's Jay Bluhm gives a keynote speech at the Big Telecom Event (BTE) about Sprint's network and services evolution strategy, including Spark.
LRTV Documentaries
BTE Keynote: The Software-Defined Operator

7|24|14   |   18:43   |   (1) comment


Deutsche Telekom's Axel Clauberg explains the concept of the software-defined operator to the Big Telecom Event (BTE) crowd.
Light Reedy
Numbers Are In: LR's 2014 Salary Survey

7|24|14   |   1:25   |   (7) comments


Our fourth annual Salary Survey paints a picture of who's hiring, firing, earning, and yearning for a change in the telecom industry.
Upcoming Live Events!!
September 16, 2014, Santa Clara, CA
September 16, 2014, Santa Clara, CA
September 23, 2014, Denver, CO
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
Hot Topics
Comcast Streams Back to School
Mari Silbey, Independent Technology Editor, 8/21/2014
Level 3 Does Big Data Differently
Carol Wilson, Editor-at-large, 8/21/2014
T-Mobile: Small Cells? We're Dense Already
Dan Jones, Mobile Editor, 8/22/2014
Utilities to Pump $11.2B Into Smart Grid – Study
Jason Meyers, Senior Editor, Utility Communications/IoT, 8/26/2014
Rogers, Shaw Take Aim at Netflix
Mari Silbey, Independent Technology Editor, 8/26/2014
Like Us on Facebook
Twitter Feed