Netflix Licenses Shows from Time Warner

Andrew Klips |

Shares of Netflix (NFLX) were getting treated like the ugly duckling for more than one year since hitting all-time highs of $304.79 in July of 2011 with analysts fretting over stiffening competition from companies such as Amazon.com (AMZN), light earnings reports, disgruntled users, the loss of some movie rights and more.  Shares plummeted from those highs as low as $52.81 in August 2012, but have trekked ahead by about 100 percent since as bargain hunters are back on the stock.

Adding fuel to the upward reversal in share value was a deal in December that gives Netflix licensing rights to products Walt Disney Animation Studios (DIS) starting in 2016.  Netflix has also begun producing some of its own content in a move to thwart similar moves by rivals such as Hulu.

On Monday the streaming video service said that it has struck a new licensing deal with Time Warner Inc. (TWX) and Warner Brothers Television Group to provide a new block of programs to its subscribers.  Starting March 30, Netflix users in the United States will be able to watch complete previous seasons of animated and live-action programming from Cartoon Network, Warner Bros. Animation and Adult Swim.

Los Gatos, California-based Netflix will also exclusively have rights to the season one and two of the popular Warner Horizon Television-produced TNT series Dallas in January 2014.

Hitting the menu at the end of March will be shows such as Robot Chicken, Aqua Teen Hunger Force, Sony Pictures Television's The Boondocks and the Emmy®-winning Childrens Hospital from WBTVG's Studio 2.0, Adventure Time, Ben 10, Regular Show, Johnny Bravo and Warner Bros. Animation's Green Lantern will become available on the popular "Just for Kids" section on Netflix.

"We are delighted that Netflix will become the exclusive over-the-top streaming subscription destination for past seasons of favorite Cartoon Network and Adult Swim titles," said Ted Sarandos, Chief Content Officer of Netflix. "We're also thrilled to be able to offer the latest seasons of Dallas, one of the greatest all-time guilty pleasures."

Financial terms of the deal weren't disclosed.

Monday’s news piggybacks an announcement from Netflix last week that a licensing agreement with Warner Bros. Television Group would bring eight serialized dramas to subscribers.  Shows that will be available shortly after their airing date will include USA Network miniseries “Political Animals” starring Sigourney Weaver; an A&E western mystery series called “Longmire”; and “Revolution,” a drama set in post-apocalyptic America.  Also included in the package will be episodes of Fox’s “Fringe” and “The Following”; Warner Brothers’ “Chuck” and “The West Wing”; and ABC’s “666 Park Avenue.”

Shares of NFLX closed trading Monday at $103.44, ahead by 2.13 percent on the day and at their highest level since April 23, 2011.

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Companies

Symbol Name Price Change % Volume
AMZN Amazon.com Inc. 805.75 1.05 0.13 2,353,511
DIS Walt Disney Company (The) 93.27 -0.14 -0.15 4,407,725
NFLX Netflix Inc. 95.94 0.11 0.11 6,179,471
TWX Time Warner Inc. New 76.73 -0.58 -0.75 2,178,969
VPCOU Vapor Corp Unit Pfd Conv Ser A & Wt Ser A Exp 2020 n/a n/a n/a 0

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