Wednesday, August 11, 2010

Netflix to Pay $1 Billion to Add Films to Its On-Demand Service - NYTimes.com

A major Netflix milestone

It was a coup — albeit a costly one — for Netflix, which knows it needs to lock up the digital rights to films as customers stop receiving DVDs by mail and start receiving streams via the Internet. The deal will start Sept. 1.

Ted Sarandos, the chief content officer for Netflix, said he was essentially taking the “huge pile of money” that Netflix paid in postage for DVDs by mail — about $600 million this year — “and starting to pay it to the studios and networks.”

Netflix to Pay $1 Billion to Add Films to Its On-Demand Service - NYTimes.com

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