Netflix Internet video service in America has the right to show the Disney movie, soon, they left the theatre, the coup may become costly mistakes, if the deal will not bring more customers.
Tuesday the license agreement for many years, on behalf of a popular service, because it tried to strive for more exclusive show a big breakthrough Netflix video through the high-speed Internet connection. The method is to make Netflix more like the traditional pay TV channels such as HBO, Starz TV and Showtime
Financial terms not been disclosed, but analysts estimate, Netflix, Disney will pay each year more than 350 million dollars. This is a heavy bill, the bill would require Netflix company to accelerate its user growth or consider raising the price - this is the management has vowed not to raise interest rates last year, irritated customer.
The Netflix rob a Disney movie Starz television failed to achieve and Netflix update a separate license agreement terms rights. Until February, Netflix of streaming media services for Disney movie stars, through trade. Be interpreted as a strike, weaken the Netflix market value loss.
Investors applauded Netflix company is better than the Starz television get directly from huate Disney Disney rights - closed Starz and other opponents win exclusive offers.
Netflix shares rose 10.65, the dollar or 14%, Tuesday closing since April $86.65, it's the highest closing price. It is still far below the peak of nearly 305 yuan of time, Netflix company announced that its price growth in July 2011 to achieve. Prices for those who want to Internet video transmission and receiving through the mail DVD, also as high as 60%.
Starz television owners, free media company, the company's share price sunk at $5.49, or nearly 5%, to $105.56. Disney's share price has risen a penny $49.30.
This is the first time, a major Hollywood film company has sold coveted Netflix right company, rather than a pay TV network.
Dreamworks animation SKG company authorized pay-tv Netflix movie in 2013 began an agreement, according to last year, but the film failed to play the same, Disney's box office rallying point.
"This is a big leap the Internet TV, Netflix chief content officer ted said:" we feel very happy and proud, the iconic family brand and Netflix cooperation, to become a reality, Sarandos.
Netflix CEO of reed's black, depend on more compelling movies and TV programs, to attract more customers. The company hope that they will become loyal users, once they see the video is how to monthly $8 - price fall KouLv, most of the pay TV channel. In addition, Netflix can be as an independent service, and premium channels, such as Starz TV station need to cable or satellite television set, an average of about $80 a month.
Netflix company has 25.1 million Internet video users through September in the United States, from the same period last year 21.5 million. Starz television channel charge of September, 20.8 million users from 19 million m a year ago.
Jenny capital markets analyst Tony said the friend, the license agreement is a sign of Disney's long-term in Netflix faith, although competition, streaming media service, from Amazon.com company, Comcast and Verizon Communications Inc
Disney agreement that Netflix of streaming media services in the United States sole rights, Disney's reality and animation film period, usually reserved for pay TV channel. This period is usually after the start of the movie about seven months left the theatre. Subscription service, it can usually show movies for eighteen months tensile. Disney sole doesn't extend to the DVD, service provider Netflix is trying to phase out.
Starz television will keep to 2015 published a Disney movie in the theater rights, and Netflix them in 2016 and later film. Next Disney directly to the video Netflix movie will come, and classic movies, such as "little fly like" and "Alice in wonderland" will be released the Netflix.
Disney's stability, including pixar animation company and Marvel, and will soon have Lucas "Star Wars" franchise, too. It's $405 million takeover lucasfilm "Star Wars" legend will have at least three additional installment. However, the installation will not be including Disney plans to release a "Star Wars" movie theater in 2015, Starz television rights in Netflix bag, because Netflix will be in the "Star Wars" section.
Wedbush securities Michael palmer chet said he suspected a Disney movie will attract enough users, in order to offset the cost.
"These costs will sink Netflix," he said.
, palmer chet has urged investors to sell their shares of Netflix, because he thinks, this company will lose money or release small profits, in a few years.
Netflix Internet video copyright rising cost has become the major source of concern, in the past year, as the company's earnings to reduce. The company, the company is headquartered in California lowes and torres, has warned that it may be for the last three months of 2012 record losses, this will be the loss in the second quarter. According to the potential in the fourth quarter of the size of the setback, Netflix company this year can complete the ten years of the first annual loss.
In the future five years, even in Disney agreement signed before, Netflix owed $500 million in the Internet video licence fee




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