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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Time Warner CEO says consumers benefit from cable TV bundling

Consumers may want to pick and choose what channels they pay for but Time Warner Inc. Chairman and Chief Executive Jeff Bewkes says they don't know how good they have it under the current pay-television system.

"I don't think it's desirable for consumers to break the bundle," Bewkes said in remarks at the UBS Media and Communications Conference in New York on Tuesday. "You end up paying more for less."

The bundle, which is industry lingo for how cable networks are packaged and sold to distributors and customers, has become a hot topic of late because of rising pay-TV bills. On Monday, Glenn Britt, the chief executive of Time Warner Cable, which is a separate publicly traded company, warned that he was looking to drop underperforming channels.

"This stuff is just starting to cost too much. If we as a broader industry want to keep this going we need to get the prices of packages lower," Britt said.

The majority of cable networks are owned by a handful of media giants including Time Warner Inc., News Corp., Viacom and Walt Disney. Typically, these companies package all their channels together. While a pay-TV distributor may end up getting a discount on a highly rated channel through this method it also usually means carrying less popular channels as well.

"They have to figure out who gets the money and who drives the value -- we think that’s us," Bewkes said.

Time Warner's cable properties include TNT, CNN, TBS and TruTV. Bewkes reiterated that he expects "double-digit" rate increases in future contracts for those channels from distributors. TNT already gets more than $1 per subscriber per month from cable and satellite operators, according to SNL Kagan, an industry consulting firm.

With regards to the issue of people watching less live television, Bewkes noted the number of consumers watching content on platforms other than television is growing and media companies are getting paid for it.

"The monetization of the viewing is taking place even if the measurement hasn’t caught up," Bewkes said.

"This is supposed to be an erratic business of hits and misses -- well not for us."

As for CNN, which last week named former NBCUniversal Chief Executive Jeff Zucker as its new worldwide president, Bewkes said the all-news channel needs to be "much more expansive" in what it covers and not "reduce news coverage to political subjects."

ALSO:

Netflix takes Disney pay TV rights from Starz

CBS's David Poltrack touts new golden age of TV

Rising sports costs could have consumers crying foul

Follow Joe Flint on Twitter @JBFlint.

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Google updates Gmail for iOS to support multiple accounts, deliver autocomplete suggestions

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Huston's "Infrared" wins Bad Sex fiction prize

LONDON (AP) — It's the prize no author wants to win.

Award-winning novelist Nancy Huston won Britain's Bad Sex in Fiction award Tuesday for her novel "Infrared," whose tale of a photographer who takes pictures of her lovers during sex proved too revealing for the judges.

The choice was announced by "Downton Abbey" actress Samantha Bond during a ceremony at the Naval & Military Club in London.

Judges of the tongue-in-cheek prize — which is run by the Literary Review magazine — said they were struck by a description of "flesh, that archaic kingdom that brings forth tears and terrors, nightmares, babies and bedazzlements," and by a long passage that builds to a climax of "undulating space."

Huston, who lives in Paris, was not on hand to collect her prize. In a statement read by her publicist, the 59-year-old author said she hoped her victory would "incite thousands of British women to take close-up photos of their lovers' bodies in all states of array and disarray."

The Canada-born Huston, who writes in both French and English, is the author of more than a dozen novels, including "Plainsong" and "Fault Lines." She has previously won France's Prix Goncourt prize and was a finalist for Britain's Orange Prize for fiction by women.

She is only the third woman to win the annual Bad Sex prize, founded in 1993 to name and shame authors of "crude, tasteless and ... redundant passages of sexual description in contemporary novels."

Some critics, however, have praised the sexual passages in "Infrared." Shirley Whiteside in the Independent on Sunday newspaper said there were "none of the lazy cliches of pornography or the purple prose of modern romantic fiction" — though she conceded the book's sex scenes were "more perfunctory than erotic."

Huston beat finalists including previous winner Tom Wolfe — for his passage in "Back to Blood" describing "his big generative jockey" — and Booker Prize-nominated Nicola Barker, whose novel "The Yips" compares a woman to "a plump Bakewell pudding."

Previous recipients of the dubious honor, usually accepted with good grace, include Sebastian Faulks, the late Norman Mailer and the late John Updike, who was awarded a Bad Sex lifetime achievement award in 2008.

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Online: http://www.literaryreview.co.uk

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Software Programs Help Doctors Diagnose, but Can’t Replace Them

SAN FRANCISCO — The man on stage had his audience of 600 mesmerized. Over the course of 45 minutes, the tension grew. Finally, the moment of truth arrived, and the room was silent with anticipation.

At last he spoke. “Lymphoma with secondary hemophagocytic syndrome,” he said. The crowd erupted in applause.

Professionals in every field revere their superstars, and in medicine the best diagnosticians are held in particularly high esteem. Dr. Gurpreet Dhaliwal, 39, a self-effacing associate professor of clinical medicine at the University of California, San Francisco, is considered one of the most skillful clinical diagnosticians in practice today.

The case Dr. Dhaliwal was presented, at a medical  conference last year, began with information that could have described hundreds of diseases: the patient had intermittent fevers, joint pain, and weight and appetite loss.

To observe him at work is like watching Steven Spielberg tackle a script or Rory McIlroy a golf course. He was given new information bit by bit — lab, imaging and biopsy results. Over the course of the session, he drew on an encyclopedic familiarity with thousands of syndromes. He deftly dismissed red herrings while picking up on clues that others might ignore, gradually homing in on the accurate diagnosis.

Just how special is Dr. Dhaliwal’s talent? More to the point, what can he do that a computer cannot? Will a computer ever successfully stand in for a skill that is based not simply on a vast fund of knowledge but also on more intangible factors like intuition?

The history of computer-assisted diagnostics is long and rich. In the 1970s, researchers at the University of Pittsburgh developed software to diagnose complex problems in general internal medicine; the project eventually resulted in a commercial program called Quick Medical Reference. Since the 1980s, Massachusetts General Hospital has been developing and refining DXplain, a program that provides a ranked list of clinical diagnoses from a set of symptoms and laboratory data.

And I.B.M., on the heels of its triumph last year with Watson, the Jeopardy-playing computer, is working on Watson for Healthcare.

In some ways, Dr. Dhaliwal’s diagnostic method is similar to that of another I.B.M. project: the Deep Blue chess program, which in 1996 trounced Garry Kasparov, the world’s best player at the time, to claim an unambiguous victory in the computer’s relentless march into the human domain.

Although lacking consciousness and a human’s intuition, Deep Blue had millions of moves memorized and could analyze as many each second. Dr. Dhaliwal does the diagnostic equivalent, though at human speed.

Since medical school, he has been an insatiable reader of case reports in medical journals, and case conferences from other hospitals. At work he occasionally uses a diagnostic checklist program called Isabel, just to make certain he hasn’t forgotten something. But the program has yet to offer a diagnosis that Dr. Dhaliwal missed.

Dr. Dhaliwal regularly receives cases from physicians who are stumped by a set of symptoms. At medical conferences, he is presented with one vexingly difficult case and is given 45 minutes to solve it. It is a medical high-wire act; doctors in the audience squirm as the set of facts gets more obscure and all the diagnoses they were considering are ruled out. After absorbing and processing scores of details, Dr. Dhaliwal must commit to a diagnosis. More often than not, he is right.

When working on a difficult case in front of an audience, Dr. Dhaliwal puts his entire thought process on display, with the goal of “elevating the stature of thinking,” he said. He believes this is becoming more important because physicians are being assessed on whether they gave the right medicine to a patient, or remembered to order a certain test.

Without such emphasis, physicians and training programs might forget the importance of having smart, thoughtful doctors. “Because in medicine,” Dr. Dhaliwal said, “thinking is our most important procedure.”

He added: “Getting better at diagnosis isn’t about figuring out if someone has one rare disease versus another. Getting better at diagnosis is as important to patient quality and safety as reducing medication errors, or eliminating wrong site surgery.”

Clinical Precision

Dr. Dhaliwal does half his clinical work on the wards of the San Francisco V. A. Medical Center, and the other half in its emergency department, where he often puzzles through multiple mysteries at a time.

One recent afternoon in the E.R., he was treating a 66-year-old man who was mentally unstable and uncooperative. He complained of hip pain, but routine lab work revealed that his kidneys weren’t working and his potassium was rising to a dangerous level, putting him in danger of an arrhythmia that could kill him — perhaps within hours. An ultrasound showed that his bladder was blocked.

There was work to be done: drain the bladder, correct the potassium level. It would have been easy to dismiss the hip pain as a distraction; it didn’t easily fit the picture. But Dr. Dhaliwal’s instinct is to hew to the ancient rule that physicians should try to come to a unifying diagnosis. In the end, everything — including the hip pain — was traced to metastatic prostate cancer.

“Things can shift very quickly in the emergency room,” Dr. Dhaliwal said. “One challenge of this, whether you use a computer or your brain, is deciding what’s signal and what’s noise.” Much of the time, it is his intuition that helps figure out which is which.

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Stocks close lower as budget talks continue

Stocks are closed slightly lower on Wall Street as budget talks continue in Washington.

The Dow Jones industrial average fell 14 points to close at 12,952 Tuesday. It traded in a narrow range of just 82 points.

The Standard and Poor's 500 index lost two points to 1,407. The Nasdaq composite was down five and a half points at 2,997.

Investors are waiting on developments from Washington in the budget talks, which are aimed at avoiding a series of sharp government spending cuts and tax increases that begin to kick in Jan. 1.

Big Lots soared after the discount retailer raised its forecast for full-year profits.

Falling stocks narrowly outnumbered rising ones on the New York Stock Exchange. Volume was light at 3.2 billion shares.

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Boehner makes counteroffer on 'fiscal cliff'

WASHINGTON — Rejecting President Obama’s call to raise tax rates for the wealthy, House Republicans unveiled a counteroffer that would cut Medicare, Medicaid, Social Security and other federal programs while raising new revenue by overhauling the tax code.

House Speaker John A. Boehner (R-Ohio) and his GOP leadership team sent the White House the three-page offer Monday afternoon as the administration turned up the volume on their complaints that Republicans have been unwilling to put a serious proposal on the table.

“With the fiscal cliff nearing, our priority remains finding a reasonable solution that can pass both the House and Senate, and be signed into law in the next couple of weeks,” Boehner and the other leaders wrote in the letter to the president, describing a plan that draws from an earlier deficit-reduction proposal from Erskine Bowles, the Democratic former co-chairman of the president’s fiscal commission.

Noticeably missing from the counteroffer, which was also signed by Rep. Paul D. Ryan (R-Wis.) who had been Republican Mitt Romney’s vice-presidential running mate, was Ryan’s House-passed budget proposals for turning Medicare into a voucher-like program for the next generation of seniors.

QUIZ: How much do you know about the fiscal cliff?

“We recognize it would be counterproductive to publicly or privately propose entitlement reforms that you and the leaders of your party appear unwilling to support inn the near-term,” the letter said.

The Republican offer comes as talks to avert the year-end budget crisis that economists warn could derail the economy had hit a stalemate. Existing tax rates will increase Jan. 1, rising about $2,200 on average Americans in the new year, if nothing is done. Enormous budget cuts are scheduled days later, a one-two punch of economic contraction.

Obama has been fighting to preserve the lower tax rates for all but the wealthiest households, those earning more than $250,000 for couples and $200,000 for singles. The president has said the nation can no longer afford tax breaks for the wealthy that would cost about $900 billion over the decade. But Republicans are fighting to keep the tax breaks for all.

Monday, Republicans proposed capturing nearly the same amount of revenue by closing loopholes and limiting itemized deductions on the wealthiest households, while also launching a broader tax-reform process that would lower all tax rates.

Boehner and his team also proposed $1.4 trillion in savings from spending cuts — including healthcare reforms that could include raising the Medicare retirement age and asking wealthier seniors to pay higher Medicare premiums. They also proposed limiting the cost-of-living adjustments for Social Security recipients and others.

Cuts to the entitlement programs have long been discussed as part of a broad deficit-reduction deal, but they are politically unpleasant. By refusing to consider such changes, Democrats forced Republicans to put them on the table.

The Republican proposal is silent on issues Obama had proposed in his offer last week, including a continuation of the payroll tax break and long-term unemployment benefits.

Details of the proposal remain to be worked out, but Republicans suggested a two-part framework, with some of the tax-and-spending changes happening this year and the rest being made in 2013.

Follow Politics Now on Twitter and Facebook

lisa.mascaro@latimes.com

Twitter: @LisaMascaroinDC

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Ericsson seeks U.S. import ban on Samsung products

STOCKHOLM (Reuters) – Swedish telecoms gear maker Ericsson has filed a request with the U.S. International Trade Commission to ban U.S. imports of products made by South Korean group Samsung,

The request from Ericsson, which said on Monday the products infringe on its patents, came after it sued Samsung for patent infringement in a U.S. court last week.

“The request for an import ban is a part of the process. An import ban is not our goal. Our goal is that they (Samsung) sign license agreements on reasonable terms,” spokesman Fredrik Hallstan said.

Ericsson said last week it was suing Samsung after talks failed to reach agreement on terms that were fair, reasonable and non-discriminatory (FRAND) over patents.

Samsung said it would defend itself against the lawsuit, adding that Ericsson had asked for “prohibitively higher royalty rates to renew the same patent portfolio”.

(Reporting by Sven Nordenstam; Editing by Dan Lalor)

Tech News Headlines – Yahoo! News

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'Bully,' 'Chasing Ice' are among Oscar contenders

LOS ANGELES (AP) — The anti-bullying film "Bully," the climate-change study "Chasing Ice" and the AIDS chronicle "How to Survive a Plague" are among 15 features on the short list for the Academy Award for best documentary.

Other contenders announced Monday are the Ethel Kennedy documentary "Ethel," the health care exploration "The Waiting Room" and the music portrait "Searching for Sugar Man," tracing the fate of acclaimed but obscure 1970s singer-songwriter Rodriguez.

The other documentaries are "Ai Weiwei: Never Sorry," ''Detropia," ''5 Broken Cameras," ''The Gatekeepers," ''The House I Live In," ''The Imposter," ''The Invisible War," ''Mea Maxima Culpa: Silence in the House of God" and "This Is Not a Film."

Members of the academy's documentary branch will narrow the list to five nominees. Nominations come out Jan. 10, with the Oscar show following on Feb. 24.

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Well: A Royal Spotlight on a Rare Condition

News that the Duchess of Cambridge, the former Kate Middleton, is pregnant spurred headlines and excitement around the world on Monday, but the exuberance was tempered by word that the mother-to-be has been hospitalized with a rare form of severe morning sickness.

Most people have never heard of the condition, called hyperemesis gravidarum or H.G., now getting worldwide attention. To learn more, we spoke with Dr. Marlena Fejzo, an obstetrics researcher at the University of California, Los Angeles. Dr. Fejzo twice experienced H.G. during her own pregnancies and is an adviser and board member for the Hyperemesis Education and Research Foundation. We talked about the risks of H.G., why it happens and whether its occurrence can predict the sex of the baby.

Q.

What is hyperemesis gravidarum?

A.

It’s severe, debilitating nausea and vomiting in pregnancy that generally leads to more than 5 percent weight loss and requires fluid treatment. Sometimes, in more extreme cases, it requires nutritional supplements.

Q.

Are there treatments?

A.

Doctors try to give IV and anti-nausea medication at first. About 20 percent of the women who contact the Hyperemesis Education and Research Foundation require tube feeding. It’s very serious. They have to have a tube inserted above their heart. Blood tests have to be done every day, or every other day, and the bag of nutrients has to be monitored to make sure it’s personalized for the woman’s needs. But I don’t think Kate Middleton (based on news reports) has it that bad. She’s just gone in for the IV fluids.

Q.

How common is H.G.?

A.

It probably depends on how you define it. It’s generally defined in populations as 0.2 percent. A study from Shanghai, China, said that 10 percent of women get it or are hospitalized for it. Obviously anyone can get it, even a duchess.

Q.

What are the main symptoms and how is it different from regular morning sickness?

A.

The main signs are rapid weight loss and rapid dehydration, the inability to tolerate fluids, feeling lightheaded and weak, and persistent nausea and vomiting. It just doesn’t go away.

Q.

Are there risks or complications associated with H.G.?

A.

It used to be a major cause of death in women until the 1950s when they introduced IV fluids. There is a serious complication called Wernicke encephalopathy. It’s a serious neurological disorder that happens when you are not able to get enough thiamine (vitamin B-1), a vitamin that is needed for proper brain functioning. When it’s depleted you can get this serious neurological problem.

Wernicke encephalopathy is rare, but it would be preventable with a thiamine shot. If women come in with H.G., they shouldn’t just be treated with fluids, they need to have that thiamine shot. This complication typically leads to fetal death, and it’s serious for the mother too.

Q.

Are there long-term risks to the baby or the mother from H.G.?

A.

There is very little research on H.G. One paper that looked at extreme nausea and vomiting found that children had more attention problems and difficulty in task persistence at ages 5 and 12. We found an increased risk of preterm labor and preterm birth due to H.G.

We need to do more studies, and we are following up on these women. We’re running a huge study to identify the genes and risk factors involved. About 30 percent of women had a mother who had it, and 20 percent had a sister who had it. We’re looking for the genes, and hopefully from that we can find the cause. Now it’s treated with medications that are developed to treat the symptoms but not to treat the cause.

Two major studies just came out the past couple years that showed an increased risk of preterm birth in H.G. But the majority of babies are fine.

Q.

Does the onset of H.G. predict whether a woman is carrying a boy or girl?

A.

It occurs for both male and female fetuses, but is more common in women carrying female fetuses.

Q.

Is a woman at risk for it in a second pregnancy if she gets it in the first?

A.

Yes, the recurrence risk is upwards of 80 percent. There is a study that says it’s more common in first pregnancies, but I think a lot of women don’t have a second pregnancy after having it. It’s bad enough that women decide not to have another baby, or to adopt or find another way.

Q.

Why is raising awareness so important given that this is a temporary condition?

A.

It’s not necessarily a temporary condition. There are long-term effects to the fetus possibly, and there are long-term effects to the women. We also have an article on post-traumatic stress following pregnancies. When you’re suffering day after day at a time when you know nutrition is so important for your baby, its very traumatic for women. Even the medicines that help, they don’t cure it.

Also, there are a lot of misconceptions about it. A lot of women are treated really badly. They’re treated like they’re faking it or that they just don’t want their child. We have a lot of women who have lost pregnancy after pregnancy, or who had abortions because they just couldn’t tolerate it. There needs to be more awareness. There needs to be funding for research so women won’t be treated like this is all in their head, and the fact that the duchess has it is going to help.

Q.

What was your own experience with H.G.?

A.

That’s why I’m so motivated. I had H.G. in two pregnancies. In my first pregnancy, I had a healthy baby boy. In the second case I lost the baby at 15 weeks. I don’t have it in my family, but I wanted to see if it was genetic since I’m a geneticist. We started on a genetic and epigenetic study we’re doing now. We’re going to find the cause, we’re getting there, but it’s really good to have awareness like this, although I feel terrible for the duchess.

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