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Though the common refrain from analysts is that Disney (DIS) made out like bandits in its major...

  • Tuesday, December 11, 2012, 9:05 AM ET
    Though the common refrain from analysts is that Disney (DIS) made out like bandits in its major content deal with Netflix (NFLX), Rocco Pendola isn't so sure. He prefers the Time Warner (TWX) model of building a digital content powerhouse internally and just selling the scraps to Netflix, Amazon, and other content channels. With ESPN in its back pocket, Disney has the clout to gets its own networks in front of plenty of households. Why empower Netflix?
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    DIS controls the content and therefore, the moat. Any increase in $$$ that DIS will be looking for down the road can simply be passed on to NFLX.
    11 Dec 2012, 09:31 AM Reply Like
  •  
    I fail to see Rocco's point (as usual)... Netflix OUTBID the incumbent, Starz, for the rights to those movies. It doesn't even get full access until 2015 but starts paying something along the lines of $300 million a year at contract start. Netflix is taking the risk here, not Disney.
    11 Dec 2012, 10:52 AM Reply Like
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