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Netflix, Inc. Message Board

  • generalnesta111 generalnesta111 Dec 4, 2012 1:55 PM Flag

    part of text from release -- seems weak

    Okay. What am I missing. 2 years until they get the theatrical release. In the meantime, they get direct to video content? Isn't this just more meh content for $. I think you can fade this:

    "Beginning with its 2016 theatrically released feature films, new Disney, Walt Disney Animation Studios, Pixar Animation Studios, Marvel Studios and Disneynature titles will be made available for Netflix members to watch instantly in the pay TV window on multiple platforms, including television, tablets, computers and mobile phones. Also included in the agreement are high-profile Disney direct-to-video new releases, which will be made available on Netflix starting in 2013.

    Separately, Disney and Netflix have reached agreement on a multi-year catalog deal that today brings to U.S. Netflix members such beloved Disney movies such as "Dumbo," "Pocahontas" and "Alice in Wonderland."

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    • Hastings:

      "We are very happy with knowing exactly what our commitments are and we do not have any plans to change our licensing structure and the
      people that we generally bid against other networks are in the same model where they are bidding fixed fee."

      When Epix signed with Amazon Prime, Netflix went down 11%. That's because Epix signed a variable pricing deal that would increase remuneration for Epix as Amazon Prime added more members. This was a de facto profit sharing deal.

      Hastings believes in Fixed Pricing, and most of Hollywood does also. On a fixed price deal, you need to be able to spread the cost out amongst your subscriber base. Amazon Prime and Redbox/Verizon don't have the subscribers to do this. It would be a HUGE money losing proposition to take on Disney with 3 million subs or much less with Redbox/Verizon.

      Netflix is nearly a monopoly in a fixed rate environment.

 
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