Printed from http://www.electronista.com

Netflix may pay studios $1.2 billion for streaming rights

updated 02:35 pm EDT, Wed October 27, 2010

Netflix paying $1.2 billion in streaming rights?

Netflix' recent moves to bring its content online only rather than its traditional method of mailing out DVDs is costing the company a minimum of $1.2 billion, according to an SEC filing from yesterday. Thfee would cover the streaming rights for the movies and TV shows to Hollywood studios. The price is a marked increase from the $229 million Netflix spent on rights three years ago.

A large portion of that number, estimated at between $900 million and a billion dollars, was spent on a five-year deal with pay channel Epix. The agreement would expire in 2011, though a renewal is likely, as Netflix receives its Sony and Disney content from the company. At least one analyst, Barclays' Douglas Ammuth, believes the company will have $2 billion in costs for streaming rights by the end of 2011. [via AllThingsDigital]



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Asus Chromebook C300

When Chromebooks hit the market back in 2011, consumers didn't know what to do with them. The low-cost laptops, powered by Google's Ch ...

Plantronics BackBeat Pro Bluetooth headphones

Looking for a pair of headphones that can do everything a user requires is a task that can take some study. Trying to decide on in-ear ...

Lemur BlueDriver

"Oh no, the check engine light is on…again! What one of the hundreds of reasons could it be this time? Probably going to cost a fort ...

Sponsor

toggle

Most Commented

 
toggle

Popular News