Disney Cut A Deal With Netflix

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Bob Iger, chairman and CEO of Walt Disney Co.,speaking Tuesday at Goldman Sachs’ Communacopia conference in New York, said Netflix will face other challengers in the subscription video-on-demand space with varied windowing and packaging.

“It’s much more a marathon than a sprint,” he said. “We like what we’ve seen from Netflix… but it’s going to be really hard for them to corner the market or get a monopoly” because the barriers to entry in SVOD are lower than they’ve been in traditional media.

Disney cut a deal with Netflix in December 2012, under which the Internet video company will obtain exclusive access to new and catalog titles in the pay TV window in the U.S. after Disney’s pact with Starz expires at the end of 2015. Netflix will pay Disney $200 million to $300 million annually for the streaming rights, according to analyst estimates.

Source: Variety

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