AfterDawn: Tech news

Sony to buy Netflix or IMAX?

Written by Andre Yoskowitz (Google+) @ 03 Jun 2011 12:31 User comments (26)

Sony to buy Netflix or IMAX? Speculation has begun to crop up that Sony may be looking to buy Netflix or IMAX, two extremely high-profile companies, in an effort to boost revenue.
Reports claim Sony is already negotiating a bid for IMAX, but others believe Netflix would be an equally attractive acquisition.

IMAX, while a cash cow, would be hard to integrate to Sony's existing products (outside of Sony Pictures) whereas on the other hand Netflix better integrates into the PS3, HDTVs and other Web-connected devices that have become Sony's bread and butter.

According to merger arbitrage specialist Sachin Shah, Sony has:

A lot of cash on their balance sheet to put to work if they wanted to. They could do multiple deals and it could start becoming exciting for shareholders.

It’s hard for me to believe that these guys have destroyed that much value in such a short time. Stringer really has to do something to revitalize the company. For Sony to continue to compete, they’re going to have to start doing deals.


IMAX has a market cap of $2.4 billion while Netflix is significantly more expensive at $13.9 billion.

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26 user comments

13.6.2011 12:36

Sony can have IMAX.
Netflix? Oh no, there goes the neighborhood.

Jeff

23.6.2011 12:48

If they buy netflix, I will have to cancel my subscription. I'm sure they will find a way to edited by moderator for language it up

This message has been edited since its posting. Latest edit was made on 03 Jun 2011 @ 14:34

33.6.2011 12:56

Originally posted by solamf30:
If they buy netflix, I will have to cancel my subscription. I'm sure they will find a way to edited by moderator for language it up
I cancelled my sub a few month ago. Personal prefs but I don't like the way Netflix is going with their streaming. I have a feeling that ultimately there no hard copies, just streaming.
Boo!
Jeff
This message has been edited since its posting. Latest edit was made on 03 Jun 2011 @ 14:34

43.6.2011 13:16

I'm sure someone will compete with Sony with better choices and cheaper prices.

53.6.2011 13:49

Originally posted by Jeffrey_P:
Sony can have IMAX.
Netflix? Oh no, there goes the neighborhood.

Jeff
Yep, pretty much. They tend to screw things up lately, don't they? Well anybody's Netflix account is sure to be hacked if Sony gets them!!



Chance prepares the favored mind. Look up once in a while and you might learn something. - BLUEBOY

63.6.2011 13:55

They should save their money and use it to fix their security issues. Sony buying Netflix is bad for Netflix subscribers, period.

73.6.2011 14:14

Let them have iMax I cant imagine what would happen if they get netflix, especially now that they seem to be a prime target for hackers.

83.6.2011 14:21

I wonder if Sony would allow Nintendo and Microsoft to still use Netflix on their own consoles if Sony does buy it.

93.6.2011 14:27

I can see nothing good about Sony acquiring Netflix. Sure hope it dose not happen.

103.6.2011 15:28

"We're sorry. Netflix servers are currently offline. By the way, your credit card information and password has been compromised. Have a nice day! -Sony/Netflix team"

113.6.2011 15:59

If SONY buys Netflix, I will cancel my subscription.

123.6.2011 17:13

Let's see, Sony owns how many of the film rights already to rentals there...?

And how long will it take for them to lose control of the account information on those servers...?

Quick!!! There's a bunch of you young braniacs in here!!! Someone come up with a countdown clock!!!


133.6.2011 17:20

So the next time Sony gets hacked are they going to shut down the Netflix site for months too? And on a serious note, I don't want Sony to buy Netflix because then hackers WILL target that site too.



143.6.2011 17:30

I thought I had something clever to say but you guys pretty much sumed it up.


“Breathe in. Breathe out. Breathe in. Breathe out. Forget this... and attaining enlightenment is the least of your problems.”
–Zen Judaism by Someone Clever

153.6.2011 17:58

Sony would screw up a wet dream.
I have Netflix but am reconsidering it. We still do not have an XBMC client so that means I don't get to use the streaming.
If Sony gets it that would be the last straw and I would move on.


Oh, Im sorry... Did the middle of my sentence interrupt the beginning of yours?

163.6.2011 20:42

Originally posted by LordRuss:
Let's see, Sony owns how many of the film rights already to rentals there...?

And how long will it take for them to lose control of the account information on those servers...?

Quick!!! There's a bunch of you young braniacs in here!!! Someone come up with a countdown clock!!!
Yes, and Sony under contract dictates to Netflix when new release date is cool.

Just what we all need is Sony running the show....
Jeff
This message has been edited since its posting. Latest edit was made on 03 Jun 2011 @ 20:42

Cars, Guitars & Radiation.

174.6.2011 1:02

nice hope they get it would be cool.

184.6.2011 1:35

I hope Sony buys IMAX; the 3D fad would end the next day, and they would only sell tickets to Lazer Zeplin and other such late-night shows designed for stoners.

If sony buys netflix, I will be forced to cancel my subscription...and I can't use blockbuster because they claim I owe them hundreds of dollars for a game a returned on time years ago...and I can't buy blurays because no one can; the licensing on them amounts to a long-term rental; you don't even have the rights you get with a lease.

At that point, it is either stop watching movies or start pirating them...if the industry really wants to close all my routes to both purchases and affordable rentals, then I won't feel even a tiny bit guilty about going off their grid.



194.6.2011 3:38

Originally posted by blueboy09:
Originally posted by Jeffrey_P:
Sony can have IMAX.
Netflix? Oh no, there goes the neighborhood.

Jeff
Yep, pretty much. They tend to screw things up lately, don't they? Well anybody's Netflix account is sure to be hacked if Sony gets them!!


That is exactly my concern as well.

204.6.2011 3:42

Originally posted by KillerBug:
I hope Sony buys IMAX; the 3D fad would end the next day, and they would only sell tickets to Lazer Zeplin and other such late-night shows designed for stoners.

If sony buys netflix, I will be forced to cancel my subscription...and I can't use blockbuster because they claim I owe them hundreds of dollars for a game a returned on time years ago...and I can't buy blurays because no one can; the licensing on them amounts to a long-term rental; you don't even have the rights you get with a lease.

At that point, it is either stop watching movies or start pirating them...if the industry really wants to close all my routes to both purchases and affordable rentals, then I won't feel even a tiny bit guilty about going off their grid.
Still there are a other NetFlix type rentals, check out http://www.greencine.com and a couple more a few friends told me about in the past which i can't remember there names. Nice think about some of the other Netflix model rentals, some of them specialize more in foreign files or indie movies for example, not just the main stream stuff from hollywierd.
This message has been edited since its posting. Latest edit was made on 04 Jun 2011 @ 3:43

214.6.2011 4:16

Netflix doesn't specialize in stuff from hollywierd either...it seems most of the things on there are TV shows, indie movies, and foreign films. That is why I like netflix; they have (almost) everything.



224.6.2011 7:26

Sony is already in bed with Netflix. You can't access Netflix through the PS3 unless you are on the latest PS3 firmware.

234.6.2011 8:31

If Sony acquires Netflix, count on your monthly subscription fee doubling in price. I'll cancel my Netflix account if Sony buys Netflix, no matter what the price.

244.6.2011 10:46

Sounds like a bunch of you folks are starting to figure out a 'possible' grand scheme for the corporate giant that is Sony.

There's nothing like owning a huge chunk of the rights to a bunch of the movies that the rental house you're going to own in the first place (then you don't have to share in those profits)... then there is this HUGE loathing in the Hollywood scene alone for those people in the independent film movement, who if it weren't for rental houses probably couldn't break even on production costs or get recognized at the Oscars, might now finally get squashed.

It 'could' get ugly folks. Just in this forum alone there's hinting of downloading if costs get any worse due to more corporate greed, so it isn't my old dusty assed bellicose breathing this time...



254.6.2011 12:15

It isn't even corporate greed...it is corporate "logic". Most studios are in a mode that they were forced to adopt about 30 years ago, and they keep making money like that, so they can't even think of working in different ways. In spite of the fact that their current methods are failing fast, most of them are still making lots of money, and they will keep themselves in controlled death spirals until they are in a terrible position. Let's just hope that the government lets them die; they are NOT too big to fail; they are failing because they are too big.

Avatar sold more copies than any other movie last year...10,000,000 worldwide. The average charge (what they charged the stores) was about $18, and the case, disk, and shipping cost about $1 of that...so they made about 170,000,000 on disk sales...worldwide...for one title. That sounds like a lot, and it isn't pocket change...but if they sold a $0.25 rental to one in ten people worldwide, they would have made $173,000,000...and they could have gotten sales close to that for a pile of other titles while they were at it. There would be server costs of course, and some people don't have fast enough internet...but it is a more profitable business after all is said and done.



264.6.2011 13:01

@KillerBug

Yup to the whole mess... It's what has the whole world economy in an uproar. I want to blame the US for the whole thing. We set the model and folks who don't know how to play the game jump on the band wagon end up falling 'death victim'.

Another problem to this mess is the "theoretical" money to be made game that Hollywood play too. They've been doing that for years & for a while it's worked for "them", but I think it leaked into Wall Street & somehow polluted the rest of the works.

I've already moaned about this in the past, so doing it again would be both redundant & painful. I don't see my signature line coming up at the bottom, so my blog site doesn't come up... I hit this topic at least once and I know I've commented on it in these forums, so my profile page may take you to one of my rant in accordance if your remotely interested.

But I think I'm not telling you something you haven't figured out already...


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