According to Bloomberg, Disney and Starz are in negotiations that may eventually affect Netflix’s ability to stream Disney films via its “Watch Instantly” service.
Disney is seeking more money from viewers who watch Starz movies online though Netflix and other outlets. Netflix users currently pay no premium for the streaming services. Also under negotiation is digital rights, determining whether DreamWorks and Pixar movies are included with the Starz package or whether Netflix will have to make a deal directly with Disney.
“Netflix may be challenged to retain some of its most appealing content when Starz renews its Disney distribution deal, which expires in 2012,” says Lazard Capital Markets analyst Barton Crockett.
Result for: dreamwork
Paramount has announced that it has become the final major studio to move to Blu-ray, after it had been HD DVD exclusive since last August.
“We are pleased that the industry is moving to a single high-definition format, as we believe it is in the best interest of the consumer,” the studio said in a statement.
“As we look to (begin) releasing our titles on Blu-ray, we will monitor consumer adoption and determine our release plans accordingly.”
There was no other details issued as to when the transition would begin nor was there word on what titles would be first released on Blu-ray. There was also no word on whether Dreamworks would be moving with its parent company but that announcement is expected soon.
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Dreamworks Studios has announced that they are still “locked” into an exclusivity deal with Toshiba to distribute their movies on HD DVD only and would continue to do so until Toshiba tells them differently.
“We have a partnership with Toshiba and have an obligation to see this through,” DreamWorks Chief Executive Jeffrey Katzenberg said.
“As you know, we have been well-compensated for our support. It really is in their court at this point to really declare what the next step will be. We’re poised either way to jump into the marketplace when the conditions are right to do so,” he added.
Katzenberg’s comments seem to imply that all the past rumors were indeed correct and Dreamworks and Paramount were paid over $150 million USD to go HD DVD-exclusive for 18 months. It seems however that Paramount had a different clause in there contract because they recently dropped HD DVD in favor of Blu-ray.
