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
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Interviews
The New Wave of IP + Optical Integration

11|21|14   |   04:29   |   (7) comments


At the Alcatel-Lucent Technology Symposium, Heavy Reading senior analyst Sterling Perrin talks about how SDN has reshaped the discussion around packet and optical integration.
LRTV Huawei Video Resource Center
Huawei Highlights at BBWF 2014

11|20|14   |   3:40   |   (1) comment


Broadband World Forum is one of the world's largest telecoms, media and technology events with over 7,800 senior executives from across the globe converging on Amsterdam every year to identify the Next Big Thing. BBWF is an exciting place to meet the entire industry under one roof and identify the latest in network innovation, service optimization and customer ...
LRTV Huawei Video Resource Center
How Will BCMS Stimulate Margin for Broadband Operators?

11|19|14   |   6:52   |   (0) comments


In BBWF 2014, Liu Shuqing emphasizes the value of FMC 2.0 based full service experience by throwing light on the BCMS solution. The underlying principle of this innovative technique is to create network robustness and driving network from connection oriented to ACE – BAND oriented infrastructure, in which applications, cloud, and user experiences will be an asset ...
LRTV Huawei Video Resource Center
SingleFAN3.0: Better Connected Experience

11|19|14   |   3:06   |   (1) comment


At the BBWF 2014, David Hu, the VP of Huawei Access Network Product Line, talked about the future of access networks – SingleFAN3.0: faster broadband, wider coverage, and smarter connection.
LRTV Interviews
Basil Alwan Interview: The Road to Cloud

11|19|14   |   09:09   |   (0) comments


Alcatel-Lucent's head of IP and Transport talks about the migration towards a web-like networking environment, the impact of the cloud, SDN and NFV, and the yet-to-be-announced FP4 chip.
LRTV Documentaries
FairPoint Makes a Fair Point About Analytics

11|19|14   |   1:56   |   (1) comment


The US-based communication service provider gets to grips with advanced analytics, tackling data and breaking down the silos within its own business.
LRTV Documentaries
Analytics Lets C Spire Get to Know Subs

11|19|14   |   3:01   |   (2) comments


It's all about the data for US operator C Spire as it uses analytics to personalize its customer service down to individual subscribers.
LRTV Interviews
Nuage Branches Out With SDN: CEO Interview

11|17|14   |   9:32   |   (0) comments


Sunil Khandekar, CEO of Alcatel-Lucent's SDN-focused unit Nuage Networks, talks about the opportunities and challenges of breaking out of the data center into wide-area networks.
Light Reedy
Telecom Analytics Grows Up

11|14|14   |   1:15   |   (4) comments


The big data analytics debate has moved on from a year ago, with some experts suggesting it's no longer a technology challenge.
LRTV Huawei Video Resource Center
Huawei Compass

11|14|14   |   3:17   |   (1) comment


At OpenStack Summit 2014, Shuo Yang, Huawei Principal Cloud Infrastructure Architect introduced Huawei Compass, the software tool for solving customers' problems on the journey of OpenStack Cloud.
LRTV Huawei Video Resource Center
Huawei's Cloud Strategy in European Region

11|14|14   |   2:56   |   (1) comment


At OpenStack Summit 2014, Dr. Gotz, CTO of Huawei IT in European Region introduced Huawei's cloud strategy in European region.
LRTV Huawei Video Resource Center
Huawei's Contribution on OpenStack

11|14|14   |   5:58   |   (0) comments


At OpenStack Summit 2014, Dennis Gu, Huawei Chief Architect of Cloud Computing introduced the relationship between OpenStack and cloud computing, and Huawei's contribution on OpenStack.
Upcoming Live Events
December 2, 2014, New York City
December 3, 2014, New York City
December 8-10, 2014, Reykjavik, Iceland
February 12, 2015, Atlanta, GA
April 14, 2015, New York City, NY
May 6, 2015, McCormick Convention Center, Chicago, IL
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
Irish Telecom outlines the rise of VoIP technology, including its adoption within businesses and their perception of its quality.
Hot Topics
Bell Labs Chief Slams 'Toy' Networks
Robert Clark, 11/19/2014
$38.3M: Ain't That a Kik in the SMS
Sarah Reedy, Senior Editor, 11/20/2014
Do You Have a 2020 Vision?
Dennis Mendyk, Vice President of Research, Heavy Reading, 11/21/2014
The New Wave of IP + Optical Integration
Ray Le Maistre, Editor-in-chief, 11/21/2014
Google, AT&T, BT Unite on Network Data Models
Carol Wilson, Editor-at-large, 11/20/2014
Like Us on Facebook
Twitter Feed