Reuters first with Hollywood backlash against Netflix
12.01.2010
Reuters exclusively reported on Dec 1 that three of six big Hollywood movies and TV studios are moving quickly to staunch Netflixs aggressive tactics to dominate the future of digital media. Shares of Netflix, which many had viewed as overvalued, fell as much as 4 percent the following morning. The story, which was based on weeks of reporting with Hollywood insiders, said media companies are considering a variety of options, including delaying when Netflix can make new DVDs available for rent and raising the prices of digital programs. The report was backed by exclusive comments from top media executives including the deputy chairman of News Corp attending the Reuters Global Media Summit. Time Warner CEO Jeff Bewkes also decided to mount a company-wide campaign against Netflix, beginning with his interview with Reuters at the Summit. His exclusive comments to Reuters that Netflixs current business model was unsustainable were subsequently echoed by members of his executive team at other conferences later in the week. Prominent media outlets including Forbes, the Los Angeles Times and PaidContent cited Reuters stories. The Wall Street Journal followed three days later with their own look at Netflix.
