Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

HBO Said to Stop Sales of DVDs to Netflix After Accord Ends

Jan. 5 (Bloomberg) -- HBO, Time Warner Inc.’s premium cable network, halted sales of DVDs to Netflix Inc. following the Jan. 1 expiration of an agreement between the companies, according to a person with knowledge of the situation.

HBO chose not to renew the deal as it pursues a separate strategy of expanding HBO Go, an on-demand streaming service, in conjunction with pay-TV operators, said the person, who wasn't authorized to speak publicly.

The cable channel had agreed to sell discs at a discount to Los Gatos, California-based Netflix, operator of a DVD-by-mail and online streaming service. Netflix often acquires DVD from third-party distributors.

Steve Swasey, a Netflix spokesman, had no immediate comment. Keith Cocozza, a spokesman for New York-based Time Warner, declined to comment.

Netflix fell 1.4 percent to $79.30 at the close in New York. Time Warner gained 0.8 percent to $36.79.

HBO’s decision was reported earlier by the New York Times.

To contact the reporter on this story: Edmund Lee in New York at elee310@bloomberg.net

To contact the editor responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.