Netflix got a major jump on its competitors when it bought the exclusive streaming rights to Walt Disney Co. movies but some subscribers found themselves clutching their wallets, fearing the coup would result in a price increase.
Not so, says a senior Netflix executive.
Ted Sarandos, the company's chief content officer, told analysts at the UBS Global Media and Communications Conference that the Netflix is not planning to raise prices to finance the deal, which gives Netflix exclusive rights to stream Disney movies beginning in 2016, Reuters reported.
Although the price wasn't revealed, industry sources say Netflix paid more than $350 million for rights to Disney's live-action and animation films.
"We are not contemplating" raising the $8-a-month subscription fee for unlimited online viewing, Sarandos said during an interview with filmmaker Harvey Weinstein at the event, Reuters said.