The Simple Reason Netflix Is Paying More Than $500 Million For Seinfeld
Just weeks after reports emerged that Netflix (NASDAQ: NFLX) was losing both The Office and Friends -- its two most-watched shows -- the leading streamer flipped the script, securing the rights to stream Seinfeld globally for five years starting in 2021.
The news couldn't come at a better time for Netflix. The streamer's stock has been reeling after a disappointing second-quarter earnings report that included the company's first U.S. streaming subscriber loss ever, news that The Office and Friends were departing its service, and fears of incoming competition starting with the launch of Disney+ this November. Shares have fallen 17% over the last three months.
The market cheered the news that Seinfeld was coming to Netflix streams, giving the stock a modest boost this week, but the price the company is paying is sure to give some investors sticker shock. Though Netflix hasn't disclosed the amount, The Wall Street Journal cited a source who said that Netflix was paying more than the $500 million NBCUniversal agreed to for the streaming rights to The Office for five years, or the $425 million WarnerMedia is shelling out for the same period of time for Friends.
Source Fool.com
