On Monday Novermber 19th - Disney announced they were exiting their streaming business -- an poof !! two weeks later Disney does a deal with NFLX.
When a Company like Disney -- realizes they cannot compete -- it speaks volume to their belief in the NFLX model -- DIS is an expert in the Broadcasting and Content Business -- and they still, they turned to NFLX -- for their Installed Base and knowledge of the Streaming market.
Others Content will soon follow -- Cable Companies are running scared.
I still can't believe this stock is so cheap --- vs the $100B + valuaton of Comcast ..
They didn't turn to Netflix. But rather Netflix was willing to shell out the most $$$. If Netflix ends up failing, this will have ZERO impact on Disney's reputation. They will just go with the next highest bidder. Nice thought though....
NFLX paid the most $$$ to get the deal. Wait till the cash burn on that goes on the books. still a long time to 2016. its a huge dive coming and people who only look at today's wondrous rally will scratch their heads yet again as to how & why such a dive happened after a DIS deal. just ye wait & see
Disney doesn't lose out since the deal does not start until 2016. Who knows what the world will be like ? In the interim, they took NFLX's big deposit and continue to sell the DVDs. If I were the big studio, I would pick AAPL to distribute my movies. There is a lot more room to expand beyond 20M subscribers. And who knows how long that 20M will hold. Someday NFLX will have to do a 'Pay per view' pricing model in order to get people to go to their site.
Hind site is 20-20. Hope you had good enough eyesite to put money up. Most of your comments are pure spin, but my favorite is "Disney...realizes they can't compete". Well that certainly not true! After Disney produces movies, shows them in the theaters and on their channels, and sells the movies at stores, AND it becomes 2016, and after Nflx shells out a LOT of money, Then if Nflx is still around, it will stream Disneys movies. Reminds me a lot of the yahoo deal. Hold your stock until 2016! It will be an "investment" that will show you who you are.
the timing is just so perfect -- Disney shuts their streaming business and the signs with NFLX --- the content providers (aka Disney) are tired of being ripped off by the Comcast, DISH -- and are looking for cheaper distribution... yes NFLX is paying a lot -- but the Cable guys are charged a fortune by the likes of HBO, ESPN to carry their content -- which results in turn results in a $100 bill/month to the consumer. .. NFLX is the new wave... or go back to using rabbit ears.
I'm glad you brought that up. Disney made some comments when they exited their streaming experiment that it was harder than they thought and ...
"The site's capabilities never reached the level of rival streaming sites such as Netflix (Nasdaq: NFLX ) . According to an Associated Press report, Disney said the site lacked "the flexibility that many users today demand."
So they closed it down, and now they announced they're going with Netflix. If you can't beat 'em, join 'em.
"The agreement is the first time one of Hollywood’s big studios has chosen Web streaming over pay television. Netflix has made similar “output” deals with smaller movie suppliers like DreamWorks Animation and the Weinstein Company. But all of the majors — Disney, Paramount, Universal, Warner Brothers, Sony and 20th Century Fox — have stayed with Starz, HBO or Showtime until now."
All of a sudden cable is looking horse-and-buggyish.