Netflix Agreement Calls for Start in September, Azteca Says
Netflix Inc. (NFLX) signed a three-year agreement with TV Azteca SAB to use the broadcaster’s programming for a service in Latin America starting in September, an Azteca executive said.
Azteca, Mexico’s second-largest broadcast network, will provide 1,000 to 1,500 hours of drama series and soap operas, known as telenovelas, under the non-exclusive agreement, said the executive, who can’t be named under company policy. The executive didn’t disclose financial terms of the deal.
Netflix, the DVD-rental and streaming service, plans to begin offering movies and TV shows streamed over the Internet in 43 Latin American countries this year, the company said this month. The Los Gatos, California-based company is seeking new sources of growth and funds to acquire more film rights.
“We haven’t given any details about the date of the launch of the service and have no comment on that front,” Steve Swasey, a Netflix spokesman, said today.
Netflix gained $4.95, or 1.8 percent, to $281.53 at 4 p.m. New York time in Nasdaq Stock Market trading. Azteca dropped 17 centavos, or 1.8 percent, to 9.07 pesos in Mexico City.
The movie-streaming company’s shares fell as much as 12 percent in afterhours trading after it forecast third-quarter sales and profit that fell short of analysts’ estimates.
To contact the reporters on this story: Crayton Harrison in Mexico City at tharrison5@bloomberg.net
To contact the editor responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net
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