Will This Deal Interest Netflix Subscribers?
Content is a key driver of Netflix’s (NASDAQ:NFLX) success. While the company ended last year on a somewhat disappointing note, reporting an 88 percent decrease in its third-quarter net income in October, lowering expectations for subscriber additions, and losing content deals to Amazon (NASDAQ:AMZN), so far 2013 has been different. In the past several weeks, Netflix has greatly increased its library, which is essential for keeping old users as well as acquiring new ones.
On Monday, the company announced that it had licensed content from two Time Warner (NYSE:TWX) units. Beginning in March of this year, Netflix’s library will be stocked with the previous seasons of animated and live-action programming from Warner Bros. Television Group’s Cartoon Network, including “Adventure Time,” “Ben 10,” and “Regular Show.” In addition, Warner Bros. Animation’s “Green Lantern” will be made available on Netflix’s Just for Kids section and the video-streamer will exclusively carry the first and second seasons of Warner Horizon Television’s series “Dallas” starting next January.
This is the second deal Netflix made with Time Warner in the past week. On January 7, the company inked an agreement to carry “addictive serialized dramas” produced by Warner Brothers, including J.J. Abrams’ “Bad Robot” and “Political Animals,” starring Sigourney Weaver. Shares of the video-streaming service temporarily broke the $100 mark following the initial deal and the company’s most recent addition has pushed shares up more than 2 percent in afternoon trading on Monday.
“This unprecedented agreement brings to Netflix members earlier and more exclusively than ever before complete previous seasons of some of the most prominent and successful shows on network and cable television,” said Netflix” Chief Content Officer Ted Sarandos in a statement last week. “Through deals like this, Netflix is making the production economics right for the continued creation of the kind of compelling serialized dramas and thrillers that our members love.”
Investing Insights: Sprint Can’t Escape Drama.