Netflix Rises After Obtaining Web Rights to Weinstein Films
Netflix Inc. (NFLX), the largest subscription streaming service, rose to the highest in more than two years after signing a multiyear accord for exclusive rights to movies from the Weinstein Co.
Netflix, based in Los Gatos, California, gained 5.2 percent to $273.29 at the close in New York. The stock has almost tripled this year and is approaching the all-time closing high of $298.73 set in July 2011.
With the deal, Netflix obtains exclusive pay-television rights to Weinstein and Dimension films starting with pictures released in theaters in 2016, the companies said today in a statement. Other terms weren’t released. Netflix also has film streaming arrangements with Walt Disney Co. and DreamWorks Animation SKG Inc. (DWA)
Netflix is combining original programming, such as the women’s prison series “Orange Is the New Black,” with first-run and library films to sustain new subscriber growth and finance foreign expansion. The company reported 630,000 new domestic streaming customers in the second quarter, for a total of 28.6 million paid U.S. subscribers.
The company already carries some documentaries and foreign films from closely held Weinstein, the New York-based film company owned by brothers Harvey and Bob Weinstein. Those include the Oscar winning best picture “The Artist,” according to the statement.
To contact the editor responsible for this story: Anthony Palazzo at email@example.com