Netflix Cuts Deals to Stop the Bleed
Netflix (NASDAQ:NFLX) announced a new multi-year licensing agreement with MGM Studios that appointed Netflix as MGM’s exclusive subscription streaming service in the UK and Ireland for first-run feature films. Expected to be launched in 2012, this service rolls out ahead of schedule and offers viewers MGM blockbusters in their pay TV window on various devices within a year of the theatrical release.
“We are delighted to be entering the UK and Ireland with a legendary studio like MGM at our side,” said Ted Sarandos, Netflix (NASDAQ:NFLX) chief content officer. “And we are excited to be extending our relationship with MGM from the U.S. to these important markets and proud to be the exclusive home for their films in the traditional Pay TV window.”
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This deal follows Netflix’s (NASDAQ:NFLX) earlier, exclusive distribution deal with Dreamworks (NASDAQ:DWA) for streaming movies and shows. It’s another attempt to keep up with media giants Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), and Google (NASDAQ:GOOG) as the race to control the family room starts to get violent — Netflix stock has lost over 62% over the past three months.
“We are thrilled to grow our partnership with Netflix (NASDAQ:NFLX) as they expand into the UK and Ireland,” said MGM Co-Chairmen and Chief Executive Officers Gary Barber and Roger Birnbaum. “Developing this relationship further will help us bring our films, both old and new, into the homes of our loyal audiences with the great ease Netflix offers customers,” said Roma Khanna, MGM’s President Television Group and Digital.
- Netflix, Inc. (NASDAQ:NFLX): The shares recently traded at $91.43, up $1.41, or 1.57%. Its market capitalization is $4.80 billion. They have traded in a 52-week range of $74.25 to $304.79. Volume today was 1,648,769 shares versus a 3-month average volume of 9,070,710 shares. The company’s trailing P/E is 20.78, while trailing earnings are $4.40 per share. About the company: Netflix Inc. is an online movie rental service. The Company ships DVDs with no due dates or late fees, directly to the subscriber’s address. Netflix also provides background information on DVD releases, including critic reviews, member reviews and ratings, and personalized movie recommendations. Get the most recent company news and stock data here >>