The relationship between Netflix and cable/content providers has always been a bit tenuous at best, but it has gotten down right nasty lately. The issue is streaming, in particular the deals Netflix is making with third party providers like Starz. The Starz deal gives Netflix the rights to stream Disney and Sony content for an estimated $25 million. This is a far cry from the traditional licensing fees charged to cable operators. The Starz deal will expire in 2011 and the fee may jump up to $250 million per year.
Time Warner's CEO, Jeff Bewkes, recently made a statement and thinks Netflix days at the top are numbered. He thinks the rise of Netflix was due to an era of experimentation which is now over.
"It's a little bit like, is the Albanian army going to take over the world? I don't think so."According to the New York Times, the comments were made last week as UBS sponsored a media conference in New York that it says turned into a "platform for executives to express their grievances and emphasize that they will now aggressively try to tilt the economic balance between Netflix and content creators back toward the media conglomerates." [Engadget]
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