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Netflix to get Disney films in TV distribution deal

(Reuters) – Walt Disney gave a much needed boost to Netflix, becoming the first major Hollywood studio to use the video service to bypass premium channels like HBO that traditionally controlled the delivery of movies to TV subscribers.

News of the deal, which enables Netflix to stream Disney‘s first-run movies to its subscribers, boosted Netflix shares by 14 percent.

Liberty Media Corp, whose Starz group now distributes Disney movies on TV, fell almost 5 percent.

Investors saw the Netflix-Disney deal as an important endorsement of the DVD rental and streaming service, which has been struggling with slowing subscriber growth and higher costs for content distribution.

Disney movies will be available for streaming on Netflix starting in 2016, after its current deal with Liberty Media‘s pay-TV channel Starz expires. The deal is for both new Disney movies and library content such as “Dumbo” and “Alice in Wonderland.”

“An exclusive deal with Disney differentiates the Netflix content from Hulu Plus and Amazon Instant Video,” said Anthony DiClemente, an analyst with Barclays Capital.

But some analysts worried that Netflix paid too much to get Disney‘s movies. Tony Wible, an analyst with Janney Montgomery Scott, estimated in a report that Netflix paid more than $ 350 million a year for Disney‘s movies and said “we would not be surprised if (Netflix) would need to raise capital”.

By comparison, HBO agreed to pay an estimated $ 200 million annually in its so-called “output,” or movie licensing deal, with 20th Century Fox earlier this year, according to the Los Angeles Times.

The deal gives Netflix streaming rights to movies from Disney‘s live-action and animation studios, including those from Pixar, Marvel, and the recently acquired Lucasfilm. On October 30, Disney announced a $ 4 billion deal to purchase the famed studio founded by George Lucas, which will now make new episodes in the blockbuster “Star Wars” series.

“This deal brings to our subscribers some of the highest quality, most imaginative family films being made today,” Ted Sarandos, Netflix‘s chief content officer, said in a statement. “It’s a leap forward for Internet television.”

DREAMWORKS EXCLUDED

Movies from Steven Spielberg’s DreamWorks Studios are not included in the deal, as that studio distributes its movies through CBS’s Showtime on TV. Disney recently signed a deal to distribute DreamWorks’ films theatrically after the studio’s deal with Viacom’s Paramount Pictures expired.

The deal allows Netflix to stream Disney movies beginning seven to nine months after they appear in theaters, as Starz does now under Disney‘s prior agreement. The deal does not cover DVD rentals of Disney movies.

Disney said in November that it would shut down its own video streaming service, Disney Movies Online, which had failed to catch on with users. A message on the ‘Disney Movies Online’ website said it would shut down on December 31.

Netflix, which started its streaming business with mostly older films, has been moving to add more original programming and produces TV shows such as “Lilyhammer,” which stars “Sopranos” actor Steven Van Zandt as an American gangster who starts a new life in Norway. The company also struck a high-profile deal with actor Kevin Spacey for “House of Cards.”

The Disney pact follows similar deals Netflix has inked for new films with smaller studios, including Relativity Media, The Weinstein company and DreamWorks Animation.

The agreements have saddled Netflix with nearly $ 5 billion in contractual commitments over the next three years for deals its made for streaming content, the company said in a recent quarterly earnings report.

Netflix‘s struggles over the last year, which have included missed subscriber guidance, an ill-fated attempt to split the DVD and streaming operations, and a swooning stock price, recently attracted the attention of billionaire activist investor Carl Icahn.

Icahn disclosed in regulatory filings on October 31 that he had amassed a nearly 10 percent stake in the video company and suggested it should pursue a sale. Netflix responded by adopting a poison pill defense.

Losing Disney’s movies means Starz is left with only Sony Pictures for film content. The pay-TV channel cast the ending of its agreement with Disney as its decision, saying it preferred to use the money for original programming creation.

Liberty Media‘s shares will “rebound,” said Vijay Jayant, an analyst with International Strategy and Investment Group.

“We believe it was Starz‘ decision to remain prudent and walk away from the bidding for Disney content,” ISI said in a report, estimating that it might have cost Starz $ 400 million to keep the movies.

Without that expense, Starz can step up its production of original series such as “Spartacus” and “Magic City,” which ISI said have become more valuable to cable operators anyway.

Netflix shares jumped $ 10.6491, or 14 percent, to $ 86.6491. Liberty Media shares fell $ 5.49, or almost 5 percent, to $ 105.56.

(Reporting By Ronald Grover; Editing by David Gregorio; Editing by Peter Lauria, Tim Dobbyn, David Gregorio and Jeremy Laurence)

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Women can tell a cheating man just by looking at them: study

HONG KONG (Reuters) – Women can tell with some accuracy whether an unfamiliar male is faithful simply by looking at his face, but men seem to lack the same ability when checking out women, according to an Australian study published on Wednesday.

In a paper that appeared in the journal Biology Letters, the researchers found that women tended to make that judgment based on how masculine-looking the man was.

“Women’s ratings of unfaithfulness showed small-moderate, significant correlations with measures of actual infidelity,” wrote the team, led by Gillian Rhodes at the ARC Centre of Excellence in Cognition and its Disorders at the University of Western Australia in Perth.

“More masculine-looking men (were) rated as more probable to be unfaithful and having a sexual history of being more unfaithful.”

Attractiveness was not a factor in the women making the link.

In the study, 34 men and 34 women were shown colour photographs of 189 Caucasian adult faces and asked to rate them for faithfulness.

The researchers compared their answers to the self-reported sexual histories of the 189 individuals and found that the women participants were better able to tell who was faithful and who was not.

“We provide the first evidence that faithfulness judgments, based solely on facial appearance, have a kernel of truth,” they wrote in the paper.

Men, on the other hand, seemed to have no clue. They tended to perceive attractive, feminine women to be unfaithful, when there was no evidence that they were, the scientists noted.

Faithfulness is seen as important in the context of sexual relationships and mate choice, the scientists wrote in the paper. Men with unfaithful partners risk raising another man’s child, while women with unfaithful partners risk losing some, or even all, parental and other resources to competitors.

(Reporting by Tan Ee Lyn, editing by Elaine Lies)

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Pentagon opens rocket launches to competition

WASHINGTON (Reuters) – The Pentagon has approved a plan that will allow the U.S. Air Force to buy up to 36 rocket launches for government satellites from a joint venture of Lockheed Martin Corp and Boeing Co , while opening up to 14 launches to competition from other companies, the Air Force said on Tuesday.

The Pentagon has been moving aggressively to introduce more competition to defense procurement to help lower costs. Air Force officials have been particularly keen to introduce competition to the area of rocket launches — and adopt other reforms — given sharp increases in the cost of launches.

Under the new plan, the Air Force can buy as many as 14 launches over the next five years from possible bidders such as Space Exploration Technologies Corp, or SpaceX, and Orbital Sciences Corp .

The service may also buy as many as 36 launches from United Launch Alliance, the Lockheed-Boeing venture, with an option to purchase the other 14 launches if the competitors haven’t been certified to launch military and spy satellites that can cost up to $ 1 billion each.

Frank Kendall, the Pentagon’s chief weapons buyer, signed a memorandum approving the revamped acquisition approach on November 27, an Air Force spokesman said.

United Launch Alliance has been the sole supplier of medium- and heavy-lift rockets for military and spy satellites under the Evolved Expendable Launch Vehicle (EELV) program since Boeing and Lockheed merged their rocket launch operations in 2005.

The program is estimated to cost $ 70 billion through 2030.

United Launch Alliance officials said the new approach would expand block-buying and help stabilize the industrial base and save money by allowing it to sign larger and longer-term contracts with its suppliers.

Without such action, Air Force officials say, the cost of one Atlas V rocket was expected to spike by 40 percent to over $ 250 million from around $ 180 million now.

The U.S. Air Force said on Monday it had selected SpaceX, Orbital Sciences and Lockheed to launch smaller military satellites on multiple missions through 2017 under a contract valued at up to $ 900 million.

(Reporting By Andrea Shalal-Esa; Editing by Richard Pullin)

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WestJet embraces tech to woo business travelers

TORONTO (Reuters) – WestJet Airlines Ltd will use technological innovation, including a new Internet ticket booking system, to help it transform from a no-frills carrier to a lower-cost full-service airline courting lucrative corporate travelers, its chief executive said on Monday.

Canada’s second-biggest airline plans to launch a series of technology systems, most notably the new online booking engine, which will sell three tiers of tickets, in the next two months.

“Companies evolve or they die,” Chief Executive Gregg Saretsky told Reuters in a phone interview from the company’s Calgary head office.

“We’re 16 and going on 17 years old and we can’t stay just as we were 17 years ago. The world has changed. And we are changing to be more relevant for a broader segment of guests.”

The new Internet booking system, which WestJet hopes to launch in late January, will sell economy, mid-tier and premium tickets. That is a major shift from its current system, which sells only the lowest-priced ticket available.

Economy tickets under the new system will continue to sell the lowest available fare, but the cancellation fee for them will jump to C$ 75 ($ 75.48) from C$ 50. Mid-tier tickets will have a C$ 50 cancellation fee.

Premium tickets, unavailable until late March when WestJet finishes reconfiguring its 100 Boeing 737 planes to allow more leg room, will include priority screening and boarding, free cancellations and flexibility on ticket changes.

Pricing for those tickets, which may include free meals and drinks and an extra baggage allowance, has not yet been determined. Fares will be well below half the price for business class at WestJet’s bigger competitor, Air Canada, Saretsky said.

“It’s time for us to be more serious with respect to going after business travelers because frankly, they’re the ones who are booking last-minute and are happy to pay for the conveniences,” Saretsky said.

WestJet will launch its premium economy service with 24 seats per plane, but will consider expansion if it proves “wildly successful,” he added.

POISED FOR CHANGE

WestJet, which has spent about C$ 40 million over the past two years on technology projects, is poised for major changes in 2013 as it readies to launch a new regional airline, Encore.

Saretsky hopes that WestJet’s switch in coming weeks to a new Internet phone system will allow ticket reservation agents to work from home and help make room for Encore staff.

Some 750 reservation agents work at WestJet’s Calgary offices, which house about 2,400 staff. Space will be needed for Encore employees over the next 18 months while their office, hangars and maintenance stores are constructed at the WestJet campus.

Encore will be launch in the second half of 2013, “probably closer to July than December,” Saretsky said, with seven Bombardier Q400 planes.

While WestJet won’t announce Encore’s schedule until Jan 21, the carrier will initially serve only “a handful” of new cities, with ticket prices up to 50 percent below Air Canada’s, he added.

Over the next two months, WestJet will also roll out a guest notification system that alerts travelers via email about their flights, allowing them to check in remotely.

Such self-service technology will be critical as WestJet faces increasing labor costs, Saretsky said.

Wage and benefit costs, which represent about a third of operating costs, have climbed 50 percent since WestJet was founded in 1996.

“You can see that creates a little bit of drag on earnings,” Saretsky said. “We’ve got to find ways of reducing our component costs.”

If WestJet can increase self service options for travelers, that could limit the need for new employees, Saretsky said. Management also wants to improve attendance management, so that fewer employees book off sick around long weekends, and more quickly clean and process planes between flights, he said.

(Reporting By Susan Taylor; Editing by Peter Galloway)

(This story was corrected to show that WestJet is replacing its Internet booking engine, not entire reservation system, in the first and second paragraphs)

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$120 tablet that runs both Android and Linux to launch in early 2013

For anyone who has ever used his or her Android tablet and wished that it could double as a desktop-style device, PengPod has a product just for you. Ars Technica reports that the new PengPod tablet, which runs both Android and Linux, has met its crowd-sourced fundraising goals and will so on sale in January for $ 120 a 7-inch model and $ 185 for a 10-inch model. According to Ars, the tablet will be able to “dual-boot Android 4.0 and a version of Linux with the touch-friendly KDE Plasma Active interface.” Overall, the tablet received funding of nearly $ 73,000, or around 49% more than the $ 49,000 that the company had been seeking.

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FDA, medical device industry form research partnership

(Reuters) – The Food and Drug Administration said it has formed a partnership with the medical device industry aimed at speeding the development and review of new device products.

The nonprofit organization, called the Medical Device Innovation Consortium, will collaborate with patient support groups, academia, foundations and the Centers for Medicare and Medicaid Services to improve the process for bringing medical devices into the marketplace.

The move comes as device makers push the FDA to speed up the review of devices, while advocacy groups contend the agency is doing too little to protect consumers.

The partnership will boost investment in regulatory science research by pooling people, funding and ideas to develop new methods to better evaluate devices, FDA said.

“It really is going to represent a model that will be watched carefully, will be replicated. I know there will be real advances and new approaches that will emerge from it,” FDA Commissioner Margaret Hamburg told reporters on a teleconference.

Medical device makers involved in the consortium include Medtronic Inc, Boston Scientific Corp, Becton Dickinson and Co, Abiomed Inc and Cyberonics Inc.

(Reporting by Susan Kelly in Chicago)

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The March of Robots Into Chinese Factories

Step into the factory of Chinese SUV and truck maker Great Wall Motors, and it’s easy to forget you’re in the world’s most populous country. Swiss-made robots pivot and plunge, stamping metal door frames and soldering them to the skeletal vehicle bodies of a mini-SUV called the Haval M4. The blue-smocked workers in yellow hard hats are few and far between here in Great Wall’s largest factory complex, located in Baoding, some 90 miles southwest of Beijing.

“With automation, we can reduce our head count and save money,” says Hao Jianjun, Great Wall’s general manager, who has invested $ 161 million into mechanizing four plants with 1,200 robots. The average price of a factory-floor robot is around $ 50,000 before installation. “Within three years, this cost will be completely paid for in savings from reduced worker wages,” says Hao. After the robots were added, the number of welders at Great Wall dropped from 1,300 to around 400.

Illustration by Dorothy Gambrell; Data: GavekalThe Automation Nations

Last year sales of industrial robots in China reached 22,577 units, up 51 percent over 2011. That puts China just behind Japan and South Korea, but ahead of Germany and the U.S., in the purchase of new robots. With robot sales quadrupling from 2006 to 2011, China is on track to become the world’s largest industrial cyborg market by 2014, predicts the Frankfurt-based International Federation of Robotics.

China’s car industry has led the automation wave, particularly at its joint ventures with General Motors (GM), Honda Motor (HMC), and Volkswagen (VOW). Consumer electronics, food and beverage processing, and the plastics and textile industries are following suit. “What we are seeing is robots increasing in a lot of industries where they are already common in the rest of the world,” says Yuchan Li, an analyst with economic consultancy GaveKal Research. “For China, there is still a lot of low-hanging fruit when it comes to automation.”

China is now an important market for robot makers such as Japan’s Fanuc, Germany’s Kuka and Siemens (SI), and Rockwell Automation (ROK) of the U.S. Swiss-based ABB (ABB) has chosen Shanghai to base its global robotics business and produce robotic systems for auto and electronics clients.

One factor driving the switch to robots is demographics. Next year China’s labor force will peak at 1 billion before starting to shrink, in part because of the nation’s one-child policy. Labor shortages are already common and are driving wage inflation, up around 20 percent annually in recent years. Beijing is encouraging automation by forcing up minimum wages. A rise in labor costs “ups the ante for manufacturing companies so they change their production processes and move up the value chain,” says Louis Kuijs, chief China economist at Royal Bank of Scotland (RBS) in Hong Kong.

ImaginechinaWelding robots piece together a car at Great Wall’s Tianjin plant

For the textile industry, facing ever-narrower margins, automation may be the only alternative to shutting down or moving. While some factories relocated to lower-wage Cambodia and Vietnam, Hong Kong sweater maker Milo’s Knitwear International upgraded. After spending $ 1.9 million for 29 Japanese stitching machines, its Dongguan factory has reduced staff from 140 workers to six. Average wages of $ 450 a month had been rising 20 percent a year, says managing director Willy Lin. “Machines can run 24 hours a day, with very little downtime,” says Lin. “Without this improvement in efficiency, I wouldn’t be able to survive at all.”

Worker protests have sped up the automation trend, says Milo’s Lin. Labor unrest at Foxconn Technology Group, the iPad and iPhone contractor employing more than 1.4 million Chinese, has forced shutdowns at its facilities in the cities of Taiyuan and Zhengzhou. Those demonstrations followed a spate of suicides at its Shenzhen factory in 2010. Last year the company announced the ambitious goal of adding a million robots to its Chinese factories within three years. GaveKal’s Li estimates Foxconn will have at least 30,000 robots in China by yearend.

Finally, the level of precision required to make many high-end consumer electronics and other products now lies beyond the abilities of most humans. Mistakes can be very costly, points out Raymond Tsang, a partner at consultant Bain & Co. in Shanghai.

Workers have one consolation. With manufacturing wages still less than a 10th of those in the U.S., Chinese factories are unlikely to soon be as robot-dependent as those in developed countries. As product cycles shorten and customers put in smaller orders more often, people can still be shifted more quickly to new production roles, says Bain’s Tsang. In China, “a fully automated, human-less factory will still be hard to justify anytime in the near future.”

The bottom line: With robot sales in China up 51 percent last year to 22,577 units, the switch from low-wage shops to high-end producers is under way.

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Official: Syria moving chemical weapons components

WASHINGTON (AP) — U.S. and allied intelligence have detected Syrian movement of chemical weapons components in recent days, a senior U.S. defense official said Monday, as the Obama administration strongly warned the Assad regime against using them.

A senior defense official said intelligence officials have detected activity around more than one of Syria‘s chemical weapons sites in the last week. The defense official spoke on condition of anonymity because he was not authorized to speak publicly about intelligence matters.

Secretary of State Hillary Rodham Clinton, in Prague for meetings with Czech officials, reiterated President Barack Obama‘s declaration that Syrian action on chemical weapons was a “red line” for the United States that would prompt action.

“We have made our views very clear: This is a red line for the United States,” Clinton told reporters. “I’m not going to telegraph in any specifics what we would do in the event of credible evidence that the Assad regime has resorted to using chemical weapons against their own people. But suffice it to say, we are certainly planning to take action if that eventuality were to occur.”

Syria said Monday it would not use chemical weapons against its own people. The Ministry of Foreign Affairs said Syria “would not use chemical weapons — if there are any — against its own people under any circumstances.”

Syria has been careful never to confirm that it has any chemical weapons.

The use of chemical weapons would be a major escalation in Assad’s crackdown on his foes and would draw international condemnation. In addition to causing mass deaths and horrific injuries to survivors, the regime’s willingness to use them would alarm much of the region, particularly neighboring states, including Israel.

At the White House, press secretary Jay Carney said, “We are concerned that in an increasingly beleaguered regime, having found its escalation of violence through conventional means inadequate, might be considering the use of chemical weapons against the Syrian people. And as the president has said, any use or proliferation of chemical weapons by the Syrian regime would cross a red line for the United States. “

Administration officials would not detail what that response might be.

Although Syria is one of only seven nations that have not signed the Chemical Weapons Treaty, it is a party to the 1925 Geneva Protocol that bans the use of chemical weapons in war. That treaty was signed in the aftermath of World War I, when the effects of the use of mustard gas and other chemical agents outraged much of the world.

Clinton didn’t address the issue of the fresh activity at Syrian chemical weapons depots, but insisted that Washington would address any threat that arises.

An administration official said the trigger for U.S. action of some kind is the use of chemical weapons or movement with the intent to use or provide them to a terrorist group like Hezbollah. The U.S. is trying to determine whether the recent movement detected in Syria falls into any of those categories, the official said. The administration official was speaking on condition of anonymity this person was not authorized to speak publicly about the issue.

The senior defense official said the U.S. does not believe that any Syrian action beyond the movement of components is imminent.

An Israeli official said if there is real movement on chemical weapons, it would require a response. He didn’t say what that might be and spoke on condition of anonymity pending a formal government response to the reports of the latest activities.

Israeli officials have repeatedly expressed concerns that Syrian chemical weapons could slip into the hands of Hezbollah or other anti-Israel groups, or even be fired toward Israel in an act of desperation by Syria.

Syria is believed to have several hundred ballistic surface-to-surface missiles capable of carrying chemical warheads.

Its arsenal is a particular threat to the American allies, Turkey and Israel, and Obama singled out the threat posed by the unconventional weapons earlier this year as a potential cause for deeper U.S. involvement in Syria’s civil war. Up to now, the United States has opposed military intervention or providing arms support to Syria’s rebels for fear of further militarizing a conflict that activists say has killed more than 40,000 people since March 2011.

Clinton said that while the actions of President Bashar Assad‘s government have been deplorable, chemical weapons would bring them to a new level.

“We once again issue a very strong warning to the Assad regime that their behavior is reprehensible, their actions against their own people have been tragic,” she said. “But there is no doubt that there’s a line between even the horrors that they’ve already inflicted on the Syrian people and moving to what would be an internationally condemned step of utilizing their chemical weapons.”

Activity has been detected before at Syrian weapons sites, believed to number several dozen.

Defense Secretary Leon Panetta said in late September the intelligence suggested the Syrian government had moved some of its chemical weapons in order to protect them. He said the U.S. believed that the main sites remained secure.

Asked Monday if they were still considered secure, Pentagon press secretary George Little declined to comment about any intelligence related to the weapons.

Senior lawmakers were notified last week that U.S. intelligence agencies had detected activity related to Syria’s chemical and biological weapons, said a U.S. intelligence official, speaking on condition of anonymity to discuss the closed-door meetings. All congressional committees with an interest in Syria, from the intelligence to the armed services committees, are now being kept informed.

“I can’t comment on these reports but I have been very concerned for some time now about Syria’s stockpiles of chemical weapons and its stocks of advanced conventional weapons like shoulder-launched anti-aircraft missiles,” said House intelligence committee Chairman Mike Rogers, R-Mich. “We are not doing enough to prepare for the collapse of the Assad regime, and the dangerous vacuum it will create. Use of chemical weapons by the Assad regime would be an extremely serious escalation that would demand decisive action from the rest of the world,” he added.

Syria is believed to have one of the world’s largest chemical weapons programs, and the Assad regime has said it might use the weapons against external threats, though not against Syrians. The U.S. and Jordan share the same concern about Syria’s chemical and biological weapons — that they could fall into the wrong hands should the regime in Syria collapse and lose control of them.

___

Klapper reported from Prague. Associated Press writers Josef Federman in Jerusalem, Albert Aji in Damascus and Matthew Lee, Kimberly Dozier, and Julie Pace in Washington contributed to this report.

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Chris Brown Returns To Twitter, Instragrams Photo Of Scantily Clad Rihanna

Breezy’s back with a bang.

Chris Brown has returned to Twitter, after deleting his account last Sunday following an expletive-laced online fight with comedian Jenny Johnson.

PLAY IT NOW: Rihanna Discusses Her Fashion Sense & Tattoos

While the “Don’t Wake Me Up” singer still boasts 7.7 million followers, he has yet to grace the Twittersphere with a post since reactivating his account on Saturday.

However, the 23-year-old has been active on his Instragram account (with a handle we can’t repeat – you’ve been warned!), posting a photo of himself smoking, while a scantily clad Rihanna lays next to him with the caption, “What would music today sound like if these kids didn’t exist?”

VIEW THE PHOTOS: Rihanna: Burning Up The Stage!

Rihanna hasn’t been shy about sharing photos of Chris either.

In the last week she’s posted multiple photos of her seemingly-on-again beau – one with Chris lying shirtless on a bed, as well as a shot of her hugging the singer with the caption, “I don’t wanna leave! Killed it tonight baby!!!”

Copyright 2012 by NBC Universal, Inc. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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