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More on the Netflix-Disney deal: The agreement will begin with 2016 theater releases from...

More on the Netflix-Disney deal: The agreement will begin with 2016 theater releases from studios under the Disney umbrella including Pixar, Marvel, and Walt Disney Animation. Netflix subscribers will be able to watch the selected titles ~7 months after release on a variety of platforms. In addition, older Disney titles will be added to the firm's mix of movies. Quick analyst take: On the positive side, it's a major coup for Netflix that's likely to separate it a bit from the crowded pack of streaming options. On the other hand, the deal doesn't launch for 3 years and with financial terms undisclosed, analysis is handcuffed.
Comments (13)
  • idkmybffjill
    , contributor
    Comments (1586) | Send Message
     
    Wow. Nice Netflix timing by Icahn.
    4 Dec 2012, 02:13 PM Reply Like
  • scott trader
    , contributor
    Comments (4641) | Send Message
     
    long ways off but positive, new Star Wars out by then also... gives plenty of time for someone to aquire nflx...

     

    yep Old man Icahn still got mojo!!!!!
    4 Dec 2012, 02:41 PM Reply Like
  • Andrew Shapiro
    , contributor
    Comments (1879) | Send Message
     
    The amount paid for these rights are unknown. In the past NFLX has had to pay and is still paying a fortune for such content. If domestic market is nearing saturation, then its all the content in the world is not going to expand the subscriber growth numbers, only maintain them from leaving.
    4 Dec 2012, 02:49 PM Reply Like
  • AxiosCap
    , contributor
    Comments (291) | Send Message
     
    Exactly right Andrew. People need to look at the metrics on how many homes have high speed internet vs domestic subs for NFLX - about as deeply penetrated as it can get.
    4 Dec 2012, 02:54 PM Reply Like
  • scott trader
    , contributor
    Comments (4641) | Send Message
     
    they did have to outbid......and yes they have been highly criticized in past for paying too much but so was Disney for the Marvel aquisition and that worked out well..
    ..aapl should partner up with nflx they've got a few extra rubles...not make much of a dent....
    4 Dec 2012, 03:01 PM Reply Like
  • Andrew Shapiro
    , contributor
    Comments (1879) | Send Message
     
    years ago Starz and HBO paid around $20MM per movie. Price alot higher now with some many more bidders.
    4 Dec 2012, 06:37 PM Reply Like
  • Josh Krause
    , contributor
    Comments (1361) | Send Message
     
    They won't get the TV content because Disney is going to give that to Hulu.

     

    The movie content won't even start appearing until 3 year from now and even then will have a 7 month delay from the release date.

     

    This is just ridiculous to think that it will have any lasting impact. There will be an initial spike with people not actually reading the details and thinking this means a strategic partnership from the two companies.

     

    The deal was not listed as exclusive so I expect a similar announcement by Amazon in the near term as well.
    4 Dec 2012, 03:10 PM Reply Like
  • Tvaddic
    , contributor
    Comments (237) | Send Message
     
    Netflix already has Disney television content, it created a big stir in 2009, when Disney and NBC allowed their shows to be streamed on Netflix, even though they own Hulu. They want to go where the money is, and Netflix has more money than Hulu.

     

    Even though the Disney first run deal doesn't start until 2016, Netflix has access to some older Disney classics today, like Alice in Wonderland, Dumbo, Aladdin etc.

     

    Also the deal is 3 years from now, because Starz own the rights to Disney films now, and the irony is that Netflix was trying to pay Starz for its Disney access a year ago. Starz should be worried.

     

    And even though it wasn't stated in this article, Netflix will have exclusive access to Disney films, including Pixar and Disneynature.
    5 Dec 2012, 02:03 AM Reply Like
  • Andrew Shapiro
    , contributor
    Comments (1879) | Send Message
     
    The exclusive access costs NFLX extra and is only for the 2016 product not the immediate product purchase. That was for non-exclusive use.
    5 Dec 2012, 01:07 PM Reply Like
  • BIG_BEN
    , contributor
    Comments (154) | Send Message
     
    Well dang. My puts came within $.05 of hitting my limit yesterday. Where do you see the stock going after the initial jump? I think the spike seems a bit extreme given that it will not come in to effect until 2016.
    4 Dec 2012, 04:08 PM Reply Like
  • Derek A. Barrett
    , contributor
    Comments (3534) | Send Message
     
    Netflix is not going away, sorry shorts. Was only a matter of time and at some point you have to wonder if they will be bought out by someone like a Disney.
    5 Dec 2012, 01:48 AM Reply Like
  • AxiosCap
    , contributor
    Comments (291) | Send Message
     
    With a $5B mkt cap and another $5B in debt who is buying that? That doesnt even count the DIS deal which sounds like it could be another 3B. Anyone with the means to pay that has the means to start their own and not have all of the problems NFLX has. Their greatest asset is their name.
    5 Dec 2012, 08:40 AM Reply Like
  • Andrew Shapiro
    , contributor
    Comments (1879) | Send Message
     
    Not need to wonder whether a studio would buy out one of its many distribution channels that counts one offering other competitor's product to survive. - they never would.
    5 Dec 2012, 01:09 PM Reply Like
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