Netflix (NASDAQ:
NFLX
) just can't catch a break. The DVD rental and streaming video
giant has
endured more setbacks
than all of its competitors combined. While Amazon (NASDAQ:
AMZN
) brags frequently about the
addition of new content
for Amazon Prime, Netflix is still reeling from the loss of
Liberty Media's (NASDAQ:
LMCA
) Starz. Up until 2011, Starz had an unusual partnership with
Netflix. Per the terms of their agreement, Netflix was able to
stream Starz content (including new films) to its own users. This
gave the streaming video site access to content from Sony (NYSE:
SNE
) and Disney (NYSE:
DIS
).
When Starz announced that it
would not renew its contract
with Netflix, the service lost a plethora of big films, including
Toy Story 3 and The Social Network.
By the time The Avengers was released and became the
biggest film of the year
, Starz had already moved on. Netflix attempted to compensate for
the loss by signing a multi-year contract with DreamWorks
Animation (NYSE:
DWA
).
Meanwhile, Disney found a new home to stream its prized
movies: Amazon Prime. In September, Amazon
announced
that it had signed a deal with EPIX that will allow it to stream
films from Disney, MGM, Lionsgate (NASDAQ:
LGF
) and Viacom's (NYSE:
VIA
) Paramount Pictures. Thus, if consumers want to stream The
Avengers and The Hunger Games, they will have to sign up for
Amazon Prime.
If Netflix thought 2012 could not get any worse, then it must
not have been prepared for yesterday's announcement. Disney
acquired Lucasfilm -- and the
entire Star Wars franchise
-- from George Lucas for $4 billion. The studio will conclude the
first Star Wars saga with three new films, along with new TV
shows (including a series on Disney XD), video games and
merchandise. Disney has hinted at additional theme park
attractions, as well as additional Star Wars films that are
separate from the primary saga.
This is potentially huge for Amazon, which may now be able to
add the three Star Wars trilogies to its streaming video
service.
For Netflix, this news is more depressing than receiving an
apple instead of candy on Halloween. While the site could have
benefited from the production of new Star Wars films, Netflix no
longer has the ability to stream content from Disney.
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@LouisBedigianBZ
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