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Friday, August 24, 2012

Netflix, Inc.(NASDAQ:NFLX) Denies Responsibility for Jacking up TV Content Rates in the U.K.


Video content provider Netflix, Inc.(NASDAQ:NFLX) said on Thursday that the company is prepared to pay a "tremendous amount of money" to buy the exclusive rights to popular films and television shows.

A senior executive in the company said that it had faith in the potential of the market and that was why was investing large amounts of money in it.

Ted Sarandos, chief content officer of Netflix, was responding to criticism levlelled against the company that it was paying exorbitant rates to buy exclusive content in the video-on-demand market in the United Kingdom.

He also denied that Netflix was responsible in any way for jacking up the prices of television and online content in the UK. There have been reports that the cost of buying online rights for UK television content have risen almost ten-fold since the company launched its services in the country and Ireland in January this year.

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To a specific query on this Sarandos told the  MediaGuardian Edinburgh International Television Festival, ""That's funny … the way my licensing team works is that if something gets viewed a tremendous amount of times, let's pay a tremendous amount of money to get it.

"It's not like we've just dropped into town and started dropping money on this thing. We've been doing this in the US, which is also a difficult media market, for over six years. This is a big business and a big market and, yes, it's expensive."

While no figures have been made public it is widely believed that Netflix is spending hundreds of millions of pounds in acquiring these properties adding to its vast library of content.

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