SAN FRANCISCO (AP) — Netflix's video subscription service has trumped pay-TV channels and grabbed the rights to show Disney movies shortly after they finish their runs in theaters.
The multiyear licensing agreement announced Tuesday represents a breakthrough for Netflix as it tries to add more recent movies to a popular service that streams video over high-speed Internet connections.
Netflix will have exclusive U.S. rights to offer the first-run movies through its streaming service during the period normally reserved for premium TV network such as HBO, Starz and Showtime. That period starts about seven months after movies leave theaters. The exclusivity does not extend to DVDs, a service Netflix is trying to phase out.
Investors applauded Netflix's coup, lifting the company's stock by $8.86, or nearly 12 percent, to $84.86 in afternoon trading.
It's the first time that one of Hollywood's major studios has sold the coveted rights to Netflix Inc. instead of a premium TV network. DreamWorks Animation SKG Inc. licensed the pay-TV rights to its movies to Netflix last year under a deal that begins in 2013, but those movies don't wield the same box-office appeal as Disney, whose stable includes Pixar Animation and Marvel.
Starz currently holds the rights to The Walt Disney Co.'s movies under a deal that expires in 2015. Beginning in 2016, Netflix will get the movies instead. Direct-to-video movies will come to Netflix sooner, as will older movies such as "Dumbo" and "Alice in Wonderland." In Tuesday's news release, the Los-Gatos, Calif.-based Netflix didn't disclose how much it is paying Disney.
The Disney deal gives Netflix a measure of revenge against Starz, which had been demanding a price that Netflix refused to pay when their licensing agreement expired earlier this year. The Starz rights had included Disney movies, so losing that access had been seen as a blow to Netflix.
The stock price of Liberty Media Corp., Starz' owner, dropped $7.08, or 6.4 percent, to $103.97 in afternoon trading. Shares of Disney, which is based in Burbank, Calif., lost 3 cents to $49.26.
Business
Netflix outbids TV for Disney movies
-
-
Moped Army founder returns to Kalamazoo
Vintage moped enthusiast Daniel Kastner is re-rooting his 10-year-old moped business in Kalamazoo, and he’s brought some creative friends with him.
Continued ... -
Assumed Names: 05/24/2013
Assumed Names filed in Grand Traverse County:
Continued ... -
GM aims Cruze diesel at Jetta
The marketing people at Chevrolet make no secret of the goal for the new diesel version of the Chevrolet Cruze: Take sales from Volkswagen.
Continued ... -
Michigan's April unemployment rates by region
Michigan’s major labor market areas, their seasonally unadjusted jobless rates for April, followed by March:
Continued ... -
Troy clamps down on hookah bars
The Detroit suburb of Troy is clamping down on hookah bars, prompting worries from business owners that they’ll be shut down.
Continued ... - Thursday, May 23, 2013
-
Fifth Third Bank's Northern Michigan CEO Eckhoff to retire
Mark Eckhoff, Fifth Third Bank Northern Michigan’s president and CEO, will retire as of May 31.
Continued ... -
Traverse City Convention & Visitors Bureau named best in state
Readers of Michigan Meetings + Events magazine have named the Traverse City Convention & Visitors Bureau the best CVB in the state of Michigan.
Continued ... -
Median CEO pay rises to $9.7M
CEO pay has been going in one direction for the past three years: up.
Continued ... -
AAA: 31.2 million drivers to take Memorial Day road trip
It’s going to be another busy Memorial Day weekend on the nation’s highways.
Continued ... - Wednesday, May 22, 2013
-
Meeting set on delivery-by-sail venture based in Northport
Dragonfly Sail Transport is holding an informational meeting Sunday at Brew North. Dragonfly is a new initiative based in Northport that aims to work with local merchants to deliver products to outlying harbor towns by sail.
Continued ... -
GM to invest $44.5M in Lansing factory
General Motors says it will invest $44.5 million at a Lansing factory, creating 200 new jobs.
Continued ... -
Venture capital conference returns
About three dozen companies are expected to present business plans at a two-day venture fair presented by University of Michigan’s Zell Lurie Institute for Entrepreneurial Studies.
Continued ... -
Donald Trump to address Oakland GOP
Donald Trump was set to address a group of Oakland County Republicans in Novi.
Continued ... - Tuesday, May 21, 2013
-
GM: 110 paid internships
General Motors is kicking the tires on a unique new internship program for Detroit-area high school students.
Continued ... -
Gas prices rise 10 cents over past week
AAA Michigan says gasoline prices have risen about 10 cents during the past week to a statewide average of about $3.88 per gallon.
Continued ... -
Couple, resort in Twitter tussle
An Internet entrepreneur and former Wall Street derivatives analyst contends central Idaho’s Sun Valley resort and the Twitter Inc. social media site heisted his handle.
Continued ... -
Court rules for Fannie Mae, Freddie Mac in Oakland lawsuit
A federal appeals court overturned a lower court ruling and threw out tax claims by Oakland County against the federally charted mortgage giants Fannie Mae and Freddie Mac.
Continued ... -
Ex-Saab execs arrested on accounting charges
A Swedish prosecutor says three former executives of automaker Saab Automobile AB have been arrested on accounting fraud charges.
Continued ... - Sunday, May 19, 2013
-
Oryana celebrates 40 years in business
In the early 1970s, a small group of Traverse City families got together to drive to Ann Arbor and purchase the grains and beans they couldn’t find locally.
Continued ... -
Chamber View: Multiple opportunities for learning
The people who make up our local business community often wear many hats – boss, line worker, ambassador, bookkeeper, mentor … the list goes on.
Continued ... -
Business Memoranda: 05/19/2013
Custer Workplace Interiors has added Emily Heilig to its northern Michigan sales team.
Continued ... -
Business in Brief: 05/19/2013
Become a contractor; Solar projec tbeing offered; MMC joins Spectrum. (Plus more)
Continued ... -
Building Permits: 05/19/2013
Building permits issued in Grand Traverse County:
Continued ... -
Real Estate Transfers: 05/19/2013
Address, asking price and sold price:
Continued ... -
The Record: 05/19/2013
Assumed names filed in Grand Traverse County:
Continued ...
-
Officials: Tsarnaev Friend Linked to Slaying
Obama:Sexual Assault Threatens Trust in Military
Bridge Collapse Survivor: 'Rough Day'
Jersey Shore Open for Business
Raw: Memorial Day Flags Placed at Arlington
New Wheelchair Lift Promises More Access
First Person: Mom Discusses Famous Tornado Photo
Raw Video: Washington State Bridge Collapse
Boy Scouts Approve Plan to Accept Gay Boys
Officials: Truck Hit Bridge Before Collapse
Sheriff: No Sign Killing of 2 Kids Was Planned
Obama Defends Drone Strikes, With Limits
Raw: Jurors Deadlock on Jodi Arias Penalty
Boy Scouts Decision "First Step" Say Activists
Raw: Utah Teen Arrested in Death of His Brothers
Closer Look at Okla. School Where Children Died
Two Suspects in Murder Known to London Police
"Be Ready": NOAA Warns of Busy Hurricane Season
SeaWorld: Penguins Are Coolest Thing in Florida
