Court Gives Trustees Control of David Bergstein's Pangea Media Group

Everyone knows Netflix has been an aggressive buyer of Hollywood movies and television shows -- in March, it acquired rights to distribute David Fincher's dramatic series House of Cards, and on Nov. 18, it announced a deal to revive Arrested Development. As of last quarter, it had $3.5 billion in off-balance-sheet obligations for content. However, a closer look at the company's financial statements reveals two things that should be troubling for investors and entertainment companies.our editor recommendsHow Netflix Came UndoneReed Hastings Loses $300 Million in Netflix Collapse'Arrested Development' to Be Resurrected by NetflixNetflix Will Distribute David Finchers House of Cards - It's Official PHOTOS: Netflix's 10 Most Rented Movies of All Time As I first noted in June, Netflix has been spending more on content but has been slower to recognize these payments as a cost in its financials, which results in a weaker cash position for the company than its income statement would otherwise imply. Second, the company has been funding the majority of its content acquisition with trade credit. Essentially, Netflix only pays about 40 percent of its content bills up front and agrees to pay the remainder in the future. PHOTOS: Hollywood's Biggest Blunders Netflix's dependence on trade credit is much clearer when one considers its accounts payable has grown 340 percent year-over-year while its global subscriber base grew 49 percent during the same period. Year to date, the use of trade credit has kept it from paying $816 million for the $1.3 billion worth of content it received. STORY: How Netflix Came Undone In fact, Netflix's reported nine-month free cash flow of $151 million would drop to a loss of $665 million if one netted out the use of trade credit. I believe this disparity, the roughly $1 billion in total trade credit due and the $3.5 billion in off-balance-sheet obligations are the root causes for Netflix's price increase and its recent issuance of debt and equity. Simply put, Netflix no longer can sustain losses as its bills come due. STORY: 'Arrested Development' to Be Resurrected by Netflix We believe Netflix built a steep barrier to entry with its aggressive pricing model. It paid aggressive rates for content while pricing the service at a level that produced cash losses, which would inhibit others from entering the market. Hollywood studios and consumers were happy with the model. Content producers saw Netflix as a new large buyer, and consumers loved the pricing structure. Ironically, the damage Net-flix triggered in the DVD business increased studio dependence on the Netflix checks -- creating a virtuous cycle for Netflix and a vicious cycle for the producers. STORY: Reed Hastings Loses $300 Million in Netflix Collapse However, the momentum has shifted as consumers have shown a reluctance to pay more for content, which might leave some studios needing to contemplate their Netflix counterparty risk, as Netflix might need to ration its spend in the face of consumer backlash. Worse, we suspect many studios are ignoring the risk or are unaware of the changing dynamics in Netflix's model. Netflix will continue on, but the business model likely will change. The company might need to raise prices again and/or might be relegated to showing more nonexclusive syndication content. The challenges at Netflix should be a wake-up call for studios, which would be wise to spread their content deals across multiple platforms. Tony Wible is a media industry analyst who covers Netflix for Janney Montgomery Scott. PHOTO GALLERY: View Gallery Netflix's 10 Most Rented Movies of All Time Related Topics Kevin Spacey David Fincher Netflix Arrested Development

Yahoo Fields Bids For 25Percent Stake In Company From Potential Partners

Yahoo has fielded offers now from no less than three bidders seeking a stake around 20% from the organization, the Wall Street Journal and Bloomberg reported, and also the organization’s company company directors will most likely discuss people offers inside a regularly scheduled board meeting Wednesday in Sunnyvale, Calif. Bidders includeprivate-equity firm TPG Capital together with an organization made up of Silver Lake Partners, Microsoft Corp. while others. Individually china online companyAlibaba Group Holding Ltd. and Softbank Corp. want to buy back Yahoo’s 40% stake in Alibaba and 35% stake in Yahoo Japan, sources mentioned. Yahoo may also be prone to recieve an update around the ongoing proper summary of the business at Wednesday’s board meeting. Yahoo wish to strike a deal round the minority stake purchase with the finish of year, but failing that options will probably be considered. The bids received now place a per-share value on Yahoo which can be between $16 and $18, the sources mentioned. Yahoo seeks an extremely greater cost. These lenders have signed discretion contracts to limit their potential purchase with a minority stake. Bain, Blackstone together with other firms including Providence Equity Partners and Hellman & Friedman haven't signed discretion contracts with Yahoo because it would prevent them from going after the whole company. In addition, Thomas H. Lee Partners is considering an offer for Yahoo’s U.S. methods for instance Yahoo Finance and Yahoo News plus an Advertising on the internet business, others familiar with the issue mentioned.

Back Stage presents an Evening With'Tinker Tailor Soldier Spy'

Duncan Stewart, director of casting at National Artists Management Company, talks about opening every submission and what he wants to see in a headshot.; casting; Duncan Stewart; headshot; NY city; open submissions; Duncan Steward, director of casting, talks about what he wants from an actor in a general meeting, mainly truth, likability, and lack of ego.; advice; casting; Duncan Stewart; NY city; tips; Duncan Stewart, director of casting, talks about what he expects from an audition and common mistakes actors make.; advice; auditions; casting; Duncan Stewart; NY city; Alaine Alldaffer breaks down the real role of a casting direcor.; Alaine Alldaffer; casting; casting director; Grey Gardens; play; stage; theater; Casting director Alaine Alldaffer talks about casting "Saved" and all the misconceptions about being an actor in NY City.; Alaine Alldaffer; casting director; NYC theatre; play; saved; NY casting director Bernie Telsey describes what actors need to know before walking into an audition. (Part 1 of 2) ; Bernie Telsey; casting director; We spoke with casting director Mark Teschner about working on soap operas. (Part 1 of 3) ; General Hospital; Mark Teschner; soap opera; NY casting director Bernie Telsey describes how to give your best audition. (Part 2 of 2) ; Bernie Telsey; casting director; We spoke with casting director Mark Teschner about working on soap operas. Need only beautiful people apply? (Part 2 of 3) ; General Hospital; Mark Teshner; soap opera; We spoke with casting director Mark Teschner about auditioning for soap operas. (Part 3 of 3) ; General Hospital; Mark Teschner; soap opera; Videos for the Back Stage News & Features section.

Whistler to concentrate on Shannon

Michael Shannon is going to be honored in the eleventh annual Whistler Film Festival's Spotlight Tribute and Gala on 12 ,. 3. Tribute and gala will occur in the Whistler Conference Center and also the Squamish Lil'wat Cultural Center, correspondingly. This program includes a casual conversation about Shannon's work along with a screening of clips in the actor's work. Past readers from the tribute include Monte Hellman, Bruce McDonald, Ivan Reitman and Jesse Sutherland. Looking for November. 30 to 12 ,. 4, the Whistler fest is predicted to attract as much as 10,000 participants and most 500 industry veterinarians. The Whistler Presents program is handled through the Resort Town of Whistler and funded by British Columbia's initiative to improve tourism within the province. Contact the range newsroom at news@variety.com

'The Muppets': Where's Elmo?

This story initially came out inside the November. 25 problem in the Hollywood Reporter magazine.our editor recommends'The Muppets' Premiere Red-colored-colored Carpet Arrivals'The Muppets' at D23: Jason Segel Talks about Their Comedy Influence (Video) Fans of Elmo might be disappointed to know the smoothness does not are available in Disney's November. 23 reboot The Muppets. PHOTOS: 'The Muppets' Premiere Red-colored-colored Carpet Arrivals Among the disappointed is star and co-author Jason Segel, who was simply rebuffed in ironic fashion. "I written a scene where i had been searching to obtain Elmo being the celebrity host in the Muppet Show, anda team of lawyers notifies us no," Segel mentioned November. 9 on Ryan Seacrest's radio show. "[Then] that's what really happened -- a team of lawyers told us Elmo wasn't available." VIDEO: The Muppets' Jason Segel On Way ahead for the Film Franchise Disney bought the Muppets within the Jim Henson estate in 2004, but Sesame Street figures remain while using Children's Television Workshop. Crossovers have happened, but studio lawyers apparently made a decision against Elmo. Joked Seacrest, "Is it possible to imagine prone to law school, which's everything you're safeguarding?" Disney declined comment. Related Subjects Jason Segel The Muppets

Bravo for the HFPA for Coming back Ough Gervais as Golden Globes Host (Opinion)

Paul Drinkwater/NBC via Getty Images Kudos for the Hollywood Foreign Press Association for asking Ough Gervais to host the Golden Globe Honours for just about any third consecutive year, despite he blisteringly insulted them and some of the site visitors at a year ago's ceremony. Being perfectly honest, I didn't think they'd it included.our editor recommendsRicky Gervais Returning as Host of Golden GlobesRicky Gervais Proposes to Host Oscars Following Eddie Murphy, Brett Ratner ExitsJohnny Depp Confronts Ough Gervais About Golden Globes Joke (Video)Ough Gervais Rejoins Twitter PHOTOS: Golden Globes 2011 Red-colored-colored Carpet Arrivals The HFPA can be a strange group comprised of a number of mainly little-known journalists who periodically result in guides based around the globe. It's somewhat vague how the very first is requested to join the HFPA -- an connect once asked for me, once we stood a very enjoyable conversation, essentially had any foreign ties that could justify a spot for myself -- but it is perfectly apparent the art galleries anxiously covet the favor of people which do. Consequently, HFPA people wield immense energy and influence in Hollywood -- and not forever in most likely probably the most becoming of how. Broadly recognized to as "star-f*ckers," its people essentially demand that art galleries host special tests from the films and arrange special press conferences utilizing their films' stars particularly on the account (publish-press conference photo-procedures are strongly advised), and possess a extended good status for rewarding the celebs who butter them within the most over lesser-known "stars' stars." (For instance, these received Blu-Ray players inside a party for Tobey Maguire, whose extended-shot best actor candidacy for Brothers and sisters was subsequently paid out getting a nomination, and so they were flown to some Las vegas concert performance of Cher, who then acquired a best song jerk.) PHOTOS: 2011 Golden Globes Party Photos What made Gervais an incredible host -- couple of years ago, especially a year ago -- is always that he didn't pretend these information was irrelevant or trivial, but rather joked relating to this inside the same bemused way as everyone else inside the film industry. Sure, it needs to result in the somewhat self-important HFPA feel somewhat self-conscious and embarassed being mocked and knocked lower a notch before millions by someone whom they'd hired to behave their ambassador all over the world, however that stuff that he referred to as them on -- getting disproportionate influence for a number of nobodies, supporting bad movies to have the ability to spend some time utilizing their stars, being vulnerable to outdoors influence, etc. -- were (a) true, (b) funny, and (c) really built them into more relatable to everybody, inside an odd way. Ultimately, wouldn't lots of people perform same? Despite the fact that his injections within the alleged sexual preferences of numerous well-known Scientologist celebs may have joined the street of political-correctness, they basically elicited laughs his or her underlying premise is a factor that everyone has heard before. What made Gervais so funny just like a host and aided him to supply great ratings for NBC within the last couple of years is just that: his readiness to convey what everyone was already thinking but nobody will dare say. Too for implementing might recognizing that particular should be capable of laugh at yourself, I believe that bravo for the HFPA. For your problems, you've that certain right, and, like the numerous individuals that seen your latter shows, I'm able to now't wait for next one. Golden Globes Ough Gervais HFPA Golden Globes 2012

Tillman directs 'Miles Davis'

Producers have tapped George Tillman Jr. to develop and helm "Miles Davis," an upcoming biopic about the influential jazz musician. Helmer and producer Tillman ("Soul Food," "Faster," "Notorious," "Barbershop") will base the film on the 2006 book "Dark Magus: The Jekyll and Hyde Life of Miles Davis," penned by Davis' son, Gregory Davis. Film will follow Davis' life, including his battles with drug dependency, as well as the development of his legendary body of work. Supporting characters expected to appear in the pic include Jimi Hendrix, Billie Holiday, Charlie Parker, Thelonious Monk, Gil Evans, Michael Jackson and John Coltrane. Nick Davis Raynes and Ged Dickinson partner to produce the film with Davis Raynes Prods. in association with State Street Pictures. A timeline for "Miles Davis" has not yet been set. Contact Gordon Cox at gordon.cox@variety.com

Zsa Zsa Gabor Rushed To Hospital Again

First Launched: November 9, 2011 5:32 PM EST Credit: WireImage La, Calif. -- Caption Despite slowing down lower lower her career, Zsa Zsa Gabor ongoing to become a red-colored-colored carpet mainstay with the 80s and early 90s. Here, she attends the initial Annual St. Patricks Day Parade Brunch in Beverly Slopes, Calif., on March 17, 1985Zsa Zsa Gabor remains rushed with a La hospital to a different health scare. Publicist John Blanchette states the 94-year-old actress was taken by ambulance to Taxation UCLA Clinic on Wednesday after her feeding tube increased being loose. Blanchette states Gabors husband Frederic von Anhalt observed bleeding in their stomach where the tube came unattached. Gabor remains make the hospital frequently since diminishing of bed mattress and breaking her stylish within this summer time 2010. She'd a leg amputated within the month of the month of january. Copyright 2011 with the Connected Press. All rights reserved. These elements is probably not launched, broadcast, rewritten or redistributed.

Pitbull Tests Lindsay Lohan's Questionable New You'll be able to Residency Claim in their Suit

Mario Anzuoni/Getty ImagesLindsay Lohan IsLindsay Lohan really proclaiming being dwelling in NY when for an additional handful of several days, she'll operate in a morgue in California to complete community service and stay away of the jail cell? Yes, as well as the lawyer for rapper Pitbull is mentioning precisely how absurd that's.our editor recommendsLindsay Lohan to Pose Nude for Playboy for $millions of (Report)Pitbull Responds to Lindsay Lohan Suit Invites Actress to MTV Video Music Honours (Video)Lindsay Lohan Suing Pitbull Over Song Lyric Lohan is presently suing Putbull for rapping about her. The lyric that trigger a suit went similar to this: "Hustlers move aside, therefore i'm tiptoein', to keep flowin' / When i first first got it guaranteed like Lindsay Lohan." Lots of people have noted the absurdity that Lohan would test the initial Amendment by proclaiming Pitbull's words triggered her "tremendous emotional distress" and were "going to do permanent harm" to her image as "a specialist actor of fine repute." The silver prize in silliness must be that Lohan filed the suit in Nassau County, NY, proclaiming to become resident there in their mother's home. To be able to have the situation moved from county court with a federal one, Pitbull's lawyers have filed a notice of removal that talks about how Lohan developed a sworn declaration that "wrongly attested" to her residence. As proof, it's mentioned that Lohan features a California driver's license, rents a home in Venice Beach, which "given her frequent legal troubles, Ms. Lohan offers irrevocable ties to California which will most likely keep her there for your expected future." Nevertheless it doesn't hang on a minute. Pitbull's lawyers also direct attention that Lohan provided a sworn affidavit of her California residency in the suit including accusations from the stolen spray tan formula, and a year ago, a judge ruled in Lohan's suit againsteTrade over its "milkaholic" baby commercialthat she'd not proven residence in Nassau County and bought changing your venue. Maybe on further reflection, saying you've "first first got it guaranteed like Lindsay Lohan" means the power to become slippery, or possibly a persistent refusal being pinned lower towards the location. E-mail: eriqgardner@yahoo.com Twitter: @eriqgardner Lindsay Lohan

Keira Knightley Will Probably Be Effie Gray

For period drama UntouchedEmma Thompson will not be pleased. Why? Well, you might bear in mind that in August, we reported on her behalf account finally turning up to acquire all the elements sorted for Effie, the film about Euphemia "Effie" Gray and her unhappy marriage. With Dakota Fanning aboard to star, it finally started shooting lately. However comes word from the competing drama in regards to the lady, with Keira Knightley in talks for your lead.This completely new one is called Untouched, and contains House Of Sand director Andrucha Waddington set to call the shots. It'll tell the identical fundamental story of Effie, the teenage girl who'll get got married to arty type John Ruskin, only for him being disgusted by some part of her body and will not consummate the marriage. The happy couple were living a joyless, loveless existence, along with his parents constantly attacking poor Effie. But her story features a more comfortable ending, as she divorced Ruskin and married his protégé, John Everett Millais.Aleksandra Crapanzano written the script, there's however unsure on when the film will begin shooting. Which is even supposing anybody may decide to invest given the probability of a clash with Effie. Still, no matter the seeming disparity of her playing a teenager, Knightley's title should draw some attention.

Comcast CEO: Telemundo Soccer World Cup Rights Deal 'Should Be Profitable'

The long-gestating drama My Wild Life, centering on animal conservationist Dame Daphne Sheldrick, is finally taking strides towards the big screen.our editor recommendsPhilip Noyce Directing 'The Arrangement' for Mandate Nicole Kidman is attached to star as the elephant advocate while Philip Noyce is on board as director.Jeff Stockwell(The Dangerous Lives of Altar Boys) wrote the script. Mandalay's Peter Guber and Cathy Schulman will produce along with Geyer Kosinski and Chris Miller. Foresight Unlimited has picked up foreign sales rights to the Mandalay Pictures project and will begin selling it at AFM. PHOTOS: Academy Awards Nominees Luncheon The project had been set up at New Line and always attracted talent: Nick Cassavetes and Walter Salles were attached at certain points while actresses such as Julia Roberts and Kate Winslet circled. Mandalay is in the process of extricating it from New Line and is in negotiations with Universal to have the film distributed domestically with a date sometime around the 2012 holidays. Telepool has already picked up the rights for Germany. VIDEOS: Awards Watch Roundtable: The Actresses Production is scheduled for first quarter 2012 on location in Africa. National Geographic nature photographers Dereck and Beverly Joubert will be involved in photographing the elaborate nature sequences, according to the producers. Sheldrick and her husband David devoted their lives to protecting the animals of Kenya's Tsavo National Park. Sheldrick is credited with uncovering how to formulate the milk needed to feed orphaned elephants. Her autobiography is scheduled to be published in March. Remington Chase, Stepan Martirosyan, Mark Damon and Tamara Stuparich De La Barra will executive produce. Related Topics AFM Nicole Kidman International Asia AFM 2011