Under the deal’s terms, Disney stands to collect an estimated $350 million a year from Netflix for its movies beginning in 2016, according to Janney Montgomery Scott analyst Tony Wible. Those technology brethren, however, don’t have the liquidity concerns that, some analysts say, could affect Netflix’s ability to shoulder the costs. The streaming video ambitions of Inc, Google Inc and Apple Inc set the stage for fierce bidding between these technology giants and the pay-TV networks for the rights to bring Hollywood movies into the living room. Netflix isn’t the only company to emerge on the scene, either. Netflix’s arrival as a bidder for the television rights to Hollywood movies means that the studios can now play the company off of traditional pay-TV networks like Time Warner’s HBO to extract higher fees in contract renewal talks.Īnd Netflix couldn’t have come along at a better time for the studios, which were being threatened with having their fees slashed by the pay-TV networks who have argued for years that they are better served by investing in original programming than licensing movies. That’s the sound ringing in the ears of Hollywood studio executives after Walt Disney Co landed a rich deal with Netflix to stream its movies to television. A Netflix disk envelope is displayed in Encinitas, California, July 25, 2011.
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