Netflix Ready to Tame Wall Street Skeptics

In the wake of Netflix's early December deal with Disney, chief content officer Ted Sarandos said at the UBS Global Media Conference that Neflix would focus its efforts on exclusive content deals, and that it would show discretion in only paying up for top programming such as Disney movies or AMC television shows.

At the conference, Harvey Weinstein, the co-founder of Miramax Films and current co-chair of The Weinstein Company poked fun at flighty Wall Street investors for selling shares when Neftlix didn't renew with Starz, only to see them surge in the wake of a far more groundbreaking Disney deal.

"That Starz deal, when you didn't renew [it], you paid a price," said Weinstein to Netflix CCO Sarandos, in a discussion the famed producer led. "With Disney, does Wall Street realize you became Starz plus Netflix?" added Weinstein of the early December deal.

Sarandos spent the better part of an hourlong presentation emphasizing a focus on exclusive content and even shows like Arrested Development and House of Cards, which will only be seen on the streaming service. Sarandos even indicated that Netflix could eventually make self-produced original content, when asked by Weinstein.

So what does it all mean?

Increasingly, Netflix may be falling into its position as a power broker in the media and entertainment industry, given its existing portfolio of exclusive content.

For investors, it should be no surprise then that like cable and satellite systems such as Dish Network (DISH) and Time Warner Cable (TWC), Netflix expects it can grow subscriber offerings without damaging the bottom line for shareholders.

If Harvey Weinstein saw reason to be credulous of trader instincts when it came to Netflix shares in 2012, maybe 2013 is the year the company proves itself to skeptics.

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-- Written by Antoine Gara in New York

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