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Winners and Losers in Disney and Netflix Deal

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Here's who stands to gain -- and who's facing potential losses -- in the major Disney-Netflix deal.

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LOSERS

Liberty Media Corp
The company's Starz network is currently Disney's first outlet for cable release of its films and will lose that exclusivity. Moreover, if this move establishes a precedent, it and its fellow premium cable channels could lose exclusivity with several studios. For Starz, next to leave would be Sony. The move from cable to Internet is finally becoming mainstream (it was beginning years ago with the advent of illegally downloading films and television shows) and cable providers that specialize in home release of new films could suffer. It would be smart for Starz to continue focusing more on their original programming which has increased in quality (though it still lags behind hit maker HBO) with shows like Spartacus and Boss.

Carl Icahn
The billionaire who controls 10% of Netflix through stocks and options may have lost his opportunity to buy out Netflix. The so called Netflix "poison pill" will no longer be necessary to stave off Icahn if this deal benefits the company as they hope it will.

Sirius XM Radio Inc
With its strong ties to Liberty Media Corp, which holds 49.8% of Sirius XM (NASDAQ:SIRI), the satellite radio provider could see some negative effects from the deal, but its main concern should be the precedent set by this deal and how it may affect XM's share of the radio content market. If Pandora and Slacker follow suit and attract big time companies or names (remember when Sirius stole Howard Stern away from terrestrial radio with a $500 million deal?), they could become much more competitive with Sirius XM. From terrestrial radio to satellite radio to Internet radio. Earth to space to the cloud. What could be next?

THE JURY IS STILL OUT...

Verizon Communications Inc. (NYSE:VZ) and Coinstar Inc. (NASDAQ:CSTR)
Their deal to team up and bring Coinstar's Redbox online may come too late and has already been delayed at least until the second quarter of 2013, perhaps because of this year's revenue slump after a surprisingly strong fourth quarter in 2011. (Editor's note: This story was edited to include a correction; it previously stated that revenue had risen.) They'll have to see if their revenues can rebound in the fourth quarter, and if DVD rental sales will be able to translate next year into a competitive online streaming business. Redbox could either be one of Netflix's major competitors, or it could be entering the market too late and be trounced.
No positions in stocks mentioned.
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