Netflix buys exclusive rights to Disney movies









Netflix Inc. has acquired exclusive U.S. rights to movies from Walt Disney Studios in a deal that catapults the Internet video-on-demand service into direct competition with pay TV giants such as HBO and Showtime.


The three-year agreement takes effect in 2016 and is a blow to the pay channel Starz, which currently has the rights to broadcast Disney movies, including its Pixar animated films and Marvel superhero pictures, about eight months after they are released in theaters.


Starz's sole remaining movie provider is now Sony Pictures. That partnership ends in 2016.





VIDEO: Disney buys Lucasfilm - Mickey meet Darth Maul


Disney has also agreed to give Netflix nonexclusive streaming rights to more of its older titles — including "Dumbo," "Pocahontas" and "Alice in Wonderland" — starting immediately.


Netflix's chief content officer, Ted Sarandos, called the deal "a bold leap forward for Internet television."


"We are incredibly pleased and proud this iconic family brand is teaming with Netflix to make it happen," he said.


Netflix stock soared on the news, rising $10.65, or 14%, to $85.65.


Shares in Starz's parent company, Liberty Media Corp., fell $5.49, or 5%, to $105.56.


Currently, Netflix has nonexclusive rights to movies from Paramount Pictures, Lionsgate and Metro-Goldwyn-Mayer via a deal with pay channel Epix, as well as an array of library titles from other studios. Its only exclusive movie rights come from independent studios such as Relativity Media and DreamWorks Animation. It also has a wide variety of television reruns.


Sarandos and Netflix Chief Executive Reed Hastings have long said the company wanted to get exclusive pay TV rights to films from one of Hollywood's six major studios to boost its online entertainment service.


PHOTOS: Disney without Pixar


However, Hastings has also at times downplayed the importance of new movies. Netflix previously had streaming rights to Disney and Sony movies via a deal with Starz. In January, investors expressed their concerns that the pending disappearance of those movies would hurt the service. Hastings said in a letter to investors that Disney films accounted for only 2% of domestic streaming and the loss would not be felt.


Since then, though, the Disney movie slate has become more attractive. At that time, Netflix did not have access to movies from Disney's Marvel superhero unit or the "Star Wars" titles from its pending acquisition of Lucasfilm Ltd.


The end of the Starz agreement accelerated a trend that has seen Netflix evolve into a television company, with reruns of shows such as "Mad Men" accounting for about two-thirds of the content streamed by users.


With several original programs launching next year, including the Kevin Spacey political drama "House of Cards," and a direct connection to a growing number of Internet-enabled televisions, Netflix is on the verge of standing on par with many TV networks.


Netflix charges $8 a month for its streaming service, while premium cable networks such as HBO cost $13 to $18 a month, and that's on top of a monthly bill for other channels that typically exceeds $50. It remains to be seen whether the addition of Disney products and more original programming could lead Netflix to increase its price.


PHOTOS: Hollywood back lot moments


The Netflix spending spree could continue, with Sarandos telling Bloomberg News on Monday that his company would bid for rights to Sony movies when its Starz deal expires.


Netflix might have a tougher time wresting away the rights to Warner Bros., 20th Century Fox or Universal Pictures releases from their current deals with HBO, which like Warner is part of Time Warner Inc. Paramount, Lionsgate and MGM are almost certain to stick with Epix, of which the trio are co-owners.





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L.A. fire chief blames slower response times on budget cuts









Los Angeles Fire Chief Brian Cummings turned the tables on City Council members Tuesday, blaming increased 911 response times on budget cuts approved by lawmakers.


"You gave us a budget," Cummings said during a nearly two-hour City Hall hearing. "We're giving you the most effective Fire Department that we can within that budget."


Cummings was summoned to appear before the council after he failed to produce a plan to improve service and response times, which have grown longer since budget cuts were ordered three years ago after the economic downturn.





The council asked for the blueprint in April. On Tuesday, Cummings was given an additional 60 days to submit the plan.


Cummings blamed the delay on the department's data problems, which have been the subject of multiple investigations by city auditors and outside experts. Years of response time data were found to be flawed and the LAFD has accurate data only for the last two to three months, Cummings said.


Reliable performance data from a longer period is needed before changes in the department deployment plan can be recommended, he said. Improvements will require more funding, he added.


"The simple answer is money," Cummings said. "The way we improve response times is by putting more resources in the field."


The department's performance has been under scrutiny since March when fire officials acknowledged producing inaccurate response time data that made it appear rescuers were getting to emergencies faster than they actually were.


Fire officials are dealing with other embarrassments. Federal officials are investigating whether confidential information was obtained illegally on hundreds of patients who rode in Fire Department ambulances, according to a city lawyer. The department also has been criticized by the city's top budget officials for going over its budget by millions of dollars.


On Tuesday morning, The Times reported on a YouTube video titled "Firehouse Burlesque Hula Hooping" showing a woman in high-heels and tight shorts dancing with a hoop at a Venice fire station. The video was a promotion for Hoopnotica, a fitness company. The firm's chief executive said the shoot was unplanned, lasted no more than 30 minutes and that no money changed hands.


Last year, firefighters from the same Venice firehouse and another station were investigated for allowing fire engines to be used in porn shoots. Shortly after those videos surfaced, the controversy spread to Cummings when the chief acknowledged that he once posed for racy photos with a bikini-clad woman when he was stationed in Venice as a captain.


Cummings said the department was investigating the hula hoop video. Councilman Mitchell Englander, who chairs the council's Public Safety Committee, said firehouse antics are "another part of the culture we have to change."


At the council meeting, Cummings and other fire officials reviewed the recent findings of a task force formed to examine the department's various data management troubles.


Councilman Eric Garcetti said he was happy the data problems were being addressed, but said he wanted a detailed plan for service improvements.


He also said the department needs stronger leadership. "I want somebody fighting for this department," he said. "Talk to your firefighters out there. They don't feel that is happening."


After the economic downturn, the council and Mayor Antonio Villaraigosa cut the LAFD's annual budget by $88 million — from $561 million in 2008 to $473 million in 2011.


The cuts led to service "brownouts," which took units out of service on a rotating basis, and which were eventually replaced by a new deployment plan. Cummings, an assistant chief at the time who oversaw development of the redeployment, predicted response times would match pre-recession levels following the changes. But investigations by The Times and City Controller Wendy Greuel found response times for medical emergencies have increased over the last four years.


Councilman Richard Alarcon admonished his colleagues, saying they should have known their budget cuts would lead to slower response times.


"Even Barry Bonds can't hit home runs with a plastic bat," said Alarcon, who voted against the cuts.


This spring, responding to concerns about the department's performance and the controversy over the accuracy of its data, lawmakers added back $40 million to the department budget. Cummings has requested an additional $50 million in next year's budget.


kate.linthicum@latimes.com


robert.lopez@latimes.com


ben.welsh@latimes.com





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Facebook just realized it made a horrible mistake












Facebook (FB) announced on Tuesday that it will begin opening Facebook Messenger to consumers who do not have a Facebook account, starting in countries like India and South Africa, and later rolling out the service in the United States and Europe. This is a belated acknowledgement of a staggering strategic mistake Facebook made two years ago. That is when the messaging app competition was still wide open and giants like Facebook or Google (GOOG) could have entered the competition. WhatsApp, the leading messaging app firm, had just 1 million users as late as December 2009. By the end of 2010, that number had grown to 10 million. Right now, it likely tops 200 million, though there is no current official number on the matter.


SMS usage started peaking in countries like Netherlands in 2010. Companies like Facebook, Twitter and Google were being offered a giant new market on a silver platter with more than 3 billion consumers worldwide use texting on their phones and many of them started drifting away from basic SMS towards IP-based alternatives a few years ago. None of the behemoths saw or understood the opportunity.












They allowed the mobile messaging market to turn into a free-for-all between tiny start-ups like KakaoTalk, Kik, Viber, WhatsApp, etc. And with astonishing speed, the global market picked a winner and rallied around it. Back in early 2011, there was serious debate about the relative merits of different messaging apps and which one might ultimately edge ahead.


In December 2012, the competitive landscape is stark. Kik is not a Top 5 app in any country in the world. Viber is a Top 5 app in 21 countries, but they are countries like Barbados, Nepal and Tajikistan. WhatsApp is a Top 5 app in 141 countries, including the U.S,, U.K., Germany, Brazil and India. The only real weakness of WhatsApp lies in China, Japan and South Korea, where local champions still lead. But those local apps have zero chance of breaking out of their home markets.


The mobile messaging app competition is over. It turned into a red rout sometime during late 2011 and WhatsApp has emerged as the sole beneficiary of a textbook case of the network effect.


Facebook, Google and Twitter threw away their golden chance to create an SMS killer and grab hold of a billion users globally. It would have been so easy and cheap to develop a simple texting app in 2009, leverage the current user base of any of the IT giants and then watch the app soar to global prominence.


And it is so very, very hard to do now. Dislodging WhatsApp now would mean neutralizing a smartphone market penetration advantage that is hitting 80% in some markets. People often ask me why I’m so fixated on WhatsApp and the answer is simple: it’s the most popular and important mobile app in the world. And it beat Facebook, Twitter, Google and other major companies before they even realized there was an important war being waged.


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Social Media News Headlines – Yahoo! News


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David Mamet, Kathie Lee Gifford suffer losses


NEW YORK (AP) — David Mamet's new play "The Anarchist" and Katie Lee Gifford's "Scandalous" will both end their Broadway runs much earlier than their creators wanted.


Producers said Tuesday night that Mamet's play starring Patti LuPone and Debra Winger portraying an inmate and warden respectively will close Dec. 16 after just 23 previews and 17 performances.


Producers of "Scandalous," a musical about the life of preacher Aimee Semple McPherson, said it will quit even earlier, after the matinee on Dec. 9 following 60 shows. Both shows got dreadful reviews and struggled at the box office.


Those two shows join "The Performers," a play set in the porn industry, with quick exits in the past few months on Broadway. "The Performers" opened and closed in November after just 23 previews and seven regular performances.


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Recipes for Health: Mediterranean Lentil Purée — Recipes for Health


Andrew Scrivani for The New York Times







The spicing here is the same as one used in a popular Egyptian lentil salad. The dish is inspired by a lentil purée that accompanies bread at Terra Bistro in Vail, Colo.




1/4 cup olive oil


1 large garlic clove, minced or pureed


1/2 teaspoon freshly ground cumin seeds


1/2 teaspoon freshly ground coriander seeds


1/8 teaspoon freshly ground cardamom seeds


1/4 teaspoon ground fenugreek seeds


3/4 cup brown or green lentils, washed and picked over


Salt and freshly ground pepper to taste


1 tablespoon plain low-fat yogurt (more to taste) or additional liquid from the lentils for a vegan version


Chopped cilantro for garnish (optional)


1. Combine 2 tablespoons of the olive oil and the garlic in a small frying pan or saucepan over medium heat. When the garlic begins to sizzle, add the spices. Stir together for about 30 seconds, then remove from the heat and set aside.


2. Place the lentils in a medium saucepan, cover by 1 to 2 inches with water, add a bay leaf, and bring to a boil. Add salt to taste, reduce the heat and cook until tender, 40 to 50 minutes. Remove the bay leaf. Taste and adjust salt. Place a strainer over a bowl and drain the lentils. Transfer to a food processor fitted with the steel blade.


3. Purée the lentils along with the garlic and spices. With the machine running add the additional olive oil and the garlic. Thin out as desired with the broth from the lentils. The purée should be very smooth; if it is dry or pasty, add more yogurt, broth, or olive oil. Taste and adjust salt. If desired add a few drops of lemon juice. Transfer to a bowl and sprinkle the cilantro over the top if desired, or spread directly on croutons or pita triangles.


Advance preparation: This will keep for four days in the refrigerator. You will probably need to moisten it with additional yogurt, olive oil or broth, and you may want to warm it and drizzle on a little more olive oil before serving.


Nutritional information per tablespoon: 31 calories; 2 grams fat; 0 grams saturated fat; 0 grams polyunsaturated fat; 1 gram monounsaturated fat; 0 milligrams cholesterol; 3 grams carbohydrates; 1 gram dietary fiber; 1 milligram sodium (does not include salt to taste); 1 gram protein


Martha Rose Shulman is the author of “The Very Best of Recipes for Health.”


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Netflix buys exclusive rights to Disney movies









Netflix Inc. has acquired exclusive U.S. rights to movies from Walt Disney Studios in a deal that catapults the Internet video-on-demand service into direct competition with pay TV giants such as HBO and Showtime.


The three-year agreement takes effect in 2016 and is a blow to the pay channel Starz, which currently has the rights to broadcast Disney movies, including its Pixar animated films and Marvel superhero pictures, about eight months after they are released in theaters.


Starz's sole remaining movie provider is now Sony Pictures. That partnership ends in 2016.





VIDEO: Disney buys Lucasfilm - Mickey meet Darth Maul


Disney has also agreed to give Netflix nonexclusive streaming rights to more of its older titles — including "Dumbo," "Pocahontas" and "Alice in Wonderland" — starting immediately.


Netflix's chief content officer, Ted Sarandos, called the deal "a bold leap forward for Internet television."


"We are incredibly pleased and proud this iconic family brand is teaming with Netflix to make it happen," he said.


Netflix stock soared on the news, rising $10.65, or 14%, to $85.65.


Shares in Starz's parent company, Liberty Media Corp., fell $5.49, or 5%, to $105.56.


Currently, Netflix has nonexclusive rights to movies from Paramount Pictures, Lionsgate and Metro-Goldwyn-Mayer via a deal with pay channel Epix, as well as an array of library titles from other studios. Its only exclusive movie rights come from independent studios such as Relativity Media and DreamWorks Animation. It also has a wide variety of television reruns.


Sarandos and Netflix Chief Executive Reed Hastings have long said the company wanted to get exclusive pay TV rights to films from one of Hollywood's six major studios to boost its online entertainment service.


PHOTOS: Disney without Pixar


However, Hastings has also at times downplayed the importance of new movies. Netflix previously had streaming rights to Disney and Sony movies via a deal with Starz. In January, investors expressed their concerns that the pending disappearance of those movies would hurt the service. Hastings said in a letter to investors that Disney films accounted for only 2% of domestic streaming and the loss would not be felt.


Since then, though, the Disney movie slate has become more attractive. At that time, Netflix did not have access to movies from Disney's Marvel superhero unit or the "Star Wars" titles from its pending acquisition of Lucasfilm Ltd.


The end of the Starz agreement accelerated a trend that has seen Netflix evolve into a television company, with reruns of shows such as "Mad Men" accounting for about two-thirds of the content streamed by users.


With several original programs launching next year, including the Kevin Spacey political drama "House of Cards," and a direct connection to a growing number of Internet-enabled televisions, Netflix is on the verge of standing on par with many TV networks.


Netflix charges $8 a month for its streaming service, while premium cable networks such as HBO cost $13 to $18 a month, and that's on top of a monthly bill for other channels that typically exceeds $50. It remains to be seen whether the addition of Disney products and more original programming could lead Netflix to increase its price.


PHOTOS: Hollywood back lot moments


The Netflix spending spree could continue, with Sarandos telling Bloomberg News on Monday that his company would bid for rights to Sony movies when its Starz deal expires.


Netflix might have a tougher time wresting away the rights to Warner Bros., 20th Century Fox or Universal Pictures releases from their current deals with HBO, which like Warner is part of Time Warner Inc. Paramount, Lionsgate and MGM are almost certain to stick with Epix, of which the trio are co-owners.





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Chino Hills seeks to close home used by pregnant Chinese women









A Chino Hills residence allegedly housing women from China who want to give birth to U.S.-citizen children is on the verge of being shut down by the city after complaints about traffic and a sewage spill.


The home is on a hilltop at the end of a long driveway on Woodglen Drive, an area zoned for single family houses. City officials have issued a cease and desist order, alleging that the site is being used as a hotel in a rural residential zone. They plan to take the property owner to court.


"Who the customer base is, is not our concern," said city spokeswoman Denise Cattern. "Our concern is that it's a hotel."








A website that city officials believe is associated with the business describes a full range of services, from shopping trips for pregnant women to assistance obtaining American passports for newborns.


A 30-day stay at the Chino Hills facility, along with a month of prenatal care, costs $10,500 to $11,500, according to the Chinese-language website, www.asiamchild.com.


Asiam Child is based in Shanghai, with branches in Anhui province and Nanjing, the website says.


The property owner, Hai Yong Wu, did not return a call seeking comment. A man who left the hotel in a black BMW on Monday afternoon would not speak to reporters.


So-called birth tourism appears to be an active but largely under-the-radar industry in Southern California. One local Chinese phone book has five pages of listings for birthing centers, where women from China and Taiwan stay for a month or so before going home with their U.S.-citizen babies. When the children get older, they may return here to study, perhaps paving the way for the rest of the family to immigrate more easily.


In San Gabriel last year, code enforcement officials shut down a facility where about 10 mothers and seven newborns were staying.


Federal immigration officials say there is no law prohibiting pregnant women from entering the U.S. But obtaining a visa through fraud would be a crime, said Virginia Kice, a spokeswoman for U.S. Immigration and Customs Enforcement.


Chino Hills officials have notified federal authorities about the residence. Kice said she could not confirm whether ICE is investigating.


Neighbors report seeing groups of pregnant women walking along the quiet cul de sac. Cars from the residence sometimes drive down the street at unsafe speeds, they said.


In addition to the single-family zoning violation, the city has cited the owner for allegedly constructing additional rooms without a permit. A sewage spill estimated at 2,000 gallons also prompted a cease and desist order.


"It would be nice to have my neighborhood back. It was a quiet little street," said neighbor Sonya Valez.


On Saturday, a group called Not in Chino Hills staged a street-corner protest against the site.


"They go back," said Rossana Mitchell, a co-founder of the group. "They don't pay taxes, they don't assimilate."


cindy.chang@latimes.com





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Facebook voting begins on Instagram data-sharing, email privacy












SAN FRANCISCO (Reuters) – Facebook Inc opened the polls on Monday for its roughly 1 billion users to vote on a variety of changes to the social network‘s policies, including a proposal to scrap the user voting system that Facebook introduced in 2009.


Facebook also said it had “clarified” some of the proposed changes, specifying that a new policy allowing it to share user data with recently acquired photo-application Instagram will be carried out in compliance with applicable laws and that Facebook will seek user consent when necessary.












The proposed changes, which Facebook announced on November 21, generated roughly 89,000 user comments as well as concerns from some privacy-advocacy groups and a request for more information from the Data Protection Commission in Ireland, where Facebook’s European business has its headquarters.


“Based on your feedback and after consultation with our regulators, including the Irish Data Protection Commissioner‘s Office, we’ve further clarified some of our proposals,” said Elliot Schrage, Facebook Vice President of Communications, Public Policy and Marketing in a post on Facebook’s company blog on Monday.


Facebook is proposing to eliminate the 4-year-old system that allows users to vote on changes to its governance policies. The company says the voting system hasn’t functioned as intended and is no longer suited to its current situation as a large publicly traded company subject to oversight by various regulatory agencies.


Facebook said on Monday that it would incorporate user suggestions for creating new tools to “enhance communication” on privacy and governance matters.


Another proposal would loosen the restrictions on how members of the social network can contact other members using the Facebook email system. The company said it planned to replace the “Who can send you Facebook messages” setting with new filters for managing incoming messages.


Facebook’s potential information sharing with Instagram, a photo-sharing service for smartphone users that it bought in October, flows from proposed changes that would allow the company to share information between its own service and other businesses or affiliates it owns.


The change could open the door for Facebook to build unified profiles of its users that include people’s personal data from its social network and from Instagram, similar to recent moves by Google Inc.


Facebook said on Monday that the proposed change was “standard in the industry” and “promotes the efficient and effective use of the services Facebook and its affiliates,” such as allowing users in the U.S. to interact with users in Europe.


“This provision covers Instagram and allows us to store Instagram’s server logs and administrative records in a way that is more efficient than maintaining totally separate storage systems,” the company wrote in a separate post on its website Monday titled “explanation of changes”.


“Where additional consent of our users is required, we will obtain it,” Facebook said.


Facebook users have until December 10 to vote on the policies using a special third-party application provided by Facebook and Facebook said the results will be certified by an independent auditor.


The vote is only binding if at least 30 percent of users take part, and two prior votes never reached that threshold.


(Reporting By Alexei Oreskovic; editing by Andrew Hay)


Tech News Headlines – Yahoo! News


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Court upholds $319M verdict in 'Millionaire' case

LOS ANGELES (AP) — A federal appeals court on Monday upheld a $319 million verdict over profits from the game show "Who Wants to Be a Millionaire" and rejected Walt Disney Co.'s request for a new trial.

A jury decided in 2010 that Disney hid the show's profits from its creators, London-based Celador International. The ruling Monday by a three-judge panel of the 9th U.S. Circuit Court of Appeals found no issues with the verdict or with a judge's rulings in the case.

"I am pleased that justice has been done," Celador Chairman Paul Smith said in a statement.

Disney did not immediately comment on the decision.

The ruling comes more than two years after the jury ruled in Celador's favor after a lengthy trial that featured testimony from several top Disney executives. The company sued in 2004, claiming Disney was using creative accounting to hide profits from the show, which first ran in the United States from August 1999 to May 2002 and was a huge hit for ABC.

The jury found that Celador was owed $269.2 million, and a judge later added $50 million in interest to the judgment.

The appeals court determined the verdict was not "grossly excessive or monstrous" and that it was not based on speculation or guesswork.

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Generic Drug Makers Facing Squeeze on Revenue


They call it the patent cliff.


Brand-name drug makers have feared it for years. And now the makers of generic drugs fear it, too.


This year, more than 40 brand-name drugs — valued at $35 billion in annual sales — lost their patent protection, meaning that generic companies were permitted to make their own lower-priced versions of well-known drugs like Plavix, Lexapro and Seroquel — and share in the profits that had exclusively belonged to the brands.


Next year, the value of drugs scheduled to lose their patents and be sold as generics is expected to decline by more than half, to about $17 billion, according to an analysis by Crédit Agricole Securities.“The patent cliff is over,” said Kim Vukhac, an analyst for Crédit Agricole. “That’s great for large pharma, but that also means the opportunities theoretically have dried up for generics.”


In response, many generic drug makers are scrambling to redefine themselves, whether by specializing in hard-to-make drugs, selling branded products or making large acquisitions. The large generics company Watson acquired a European competitor, Actavis, in October, vaulting it from the fifth- to the third-largest generic drug maker worldwide.


“They are certainly saying either I need to get bigger, or I need to get ‘specialer,’ ” said Michael Kleinrock, director of research development at the IMS Institute for Healthcare Informatics, a health industry research group. “They all want to be special.”


As one consequence of the approaching cliff, executives for generic drug companies say, they will no longer be able to rely as much on the lucrative six-month exclusivity periods that follow the patent expirations of many drugs. During those periods, companies that are the first to file an application with the Food and Drug Administration, successfully challenge a patent and show they can make the drug win the right to sell their version exclusively or with limited competition.


The exclusivity windows can give a quick jolt to companies. During the first nine months of 2012, sales of generic drugs increased by 19 percent over the same period in 2011, to $39.1 billion from $32.8 billion, according to Michael Faerm, an analyst for Credit Suisse. Sales of branded drugs, by contrast, fell 4 percent during the same period, to $174.2 billion from $181.3 billion.


But those exclusive periods also make generic drug makers vulnerable to the fickle cycle of patent expiration. “The only issue is it’s a bubble, too,” said Mr. Kleinrock. He said next year, the generic industry would enter a drought that was expected to last about two years.  Of the drugs that are becoming generic, fewer have exclusivity periods dedicated to a single drug maker.


In 2013, for example, the antidepressant Cymbalta, sold by Eli Lilly, is scheduled to be available in generic form. But more than five companies are expected to share in sales during the first six months, according to a report by Ms. Vukhac.


Heather Bresch, the chief executive of Mylan, the second-largest generics company in the United States, said Wall Street analysts were obsessed with the issue. “I can’t go anywhere without being asked about the patent cliff, the patent cliff, the patent cliff,” she said. “The patent cliff is one aspect of a complex, multilayered landscape, and I think each company is going to face it differently.”


Jeremy M. Levin, the chief executive of Teva Pharmaceuticals, the largest global maker of generic drugs, agreed. “The concept of exclusivity — where only one generic player could actually make money out of the unique moment — has diminished,” he said. “In the absence of that, many companies have had to really ask the question, ‘How do I really play in the generics world?’ ”


For Teva, Mr. Levin said, he believes the answer will be both its reach  — it sells 1,400 products, and one in six generic prescriptions in the United States is filled with a Teva product  — and what he says is a reputation for making quality products. That focus will be increasingly important, he said, given recent statements by the F.D.A. that it intends to take a closer look at the quality of generic drugs. Mr. Levin also said he planned to cut costs, announcing last week that he intended to trim from $1.5 to $2 billion in expenses over the next five years.


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