Netflix not threatened by Warner/Facebook tie-up
March 11, 2011
Netflix, the US mail-order and online movie-rental service, doesn’t view Warner Bros’ plan to offer $3 film rentals on Facebook as a greater threat than other rivals pose, Chief Content Officer Ted Sarandos has said.
“Nobody goes to Facebook to watch movies,” Sarandos said in an interview at a film finance conference in Los Angeles. Netflix will eventually get shows from Warner Bros.’ sister company HBO by offering to pay the cable channel the “right amount,” he said.
Netflix fell 5.8 per cent on March 8th, the day Time Warner’s Warner Bros studio announced plans to offer rentals on Facebook for $3, starting with ‘The Dark Knight’. That sent the price of Netflix below $200 for the first time since January.