Digest: Blockbuster, Netflix dismiss claims
EmptyBlockbuster Inc. said Wednesday that it settled all litigation with Netflix Inc. Terms of the agreement were not disclosed. Blockbuster said that the settlement will not have a material effect on future financial results. Under the agreement, both companies are dismissing all claims. In April 2006, Netflix filed a patent infringement complaint against Blockbuster, alleging the infringement of two Netflix patents. Blockbuster responded with a counterclaim alleging that Netflix violated antitrust laws. Netflix shares gained 6.5% to $20.78 on Wednesday to make it the biggest gainer on the Hollywood Reporter Showbiz 50 index, while Blockbuster shares fell fractionally to $4.20.
Post profits take dip in Canada
Despite higher revenue from Los Angeles producers, the Canadian film and TV postproduction industry saw profits fall to CAN$47.4 million in 2005 against a year-earlier CAN$58.3 million, Statistics Canada reported Wednesday. The government's statistics agency, releasing a performance report on Canadian post houses, said that revenue grew 7.9% to CAN$844 million in 2005, the latest year surveyed, compared with 2004. However, expenses rising 10% to CAN$769.3 million bit into the bottom line. The agency said that about two-thirds of revenue in 2005 was generated by posting services for international, mostly American, producers.
Grupo Pegaso eyes Mexico kickoff
After years of reaping huge profits as Mexico's sole satcaster, Televisa-owned Sky Mexico apparently will face a new competitor next year. The new player is Grupo Pegaso, a Mexican consortium with interests in telecommunications and media content. Grupo Pegaso vp Alejandro Orvananos said that he expects the new satellite TV business to be up and running by the first quarter of next year.