Jefferies Comments On Netflix Reaction To Sony-Starz Deal

According to Jefferies, Netflix NFLX sub growth triggered Sony-Starz deal clause. Jefferies said that Sony content was initially pulled from Netflix streaming service on Fri 6/17, as a result of a temporary contract issue between Sony-Starz. “Reuters reported that a deal clause in this agreement was triggered once Netflix hit 22.8M subs in the U.S., allowing Sony to ask Starz for better financial terms. As such, Sony content is expected to remain off of Netflix until a new pay TV/streaming agreement is reached between the two parties.” Netflix closed on Friday at $256.96.