Alicia Keys raises $2.9M at gala, honors Winfrey

NEW YORK (AP) — During the auction portion of Alicia Keys' Black Ball Redux, one man was ready to jump his bid from $100,000 to $250,000 for a trip to South Africa — if Keys would join him and his friends.

"I'll go for a little more," Keys said Thursday night at the Apollo Theater, where her charity's annual gala was held.

The man — pharmaceutical billionaire Stewart Rahr — didn't raise his bid, but he later pledged $1 million to Keep a Child Alive, helping the R&B singer raise more than $2.9 million.

Keys' charity assists those affected by HIV/AIDS in Africa and India. Thursday's event was originally planned for Nov. 1, but was canceled due to Superstorm Sandy.

"There are places in the world where Keep a Child Alive serves where they have a Hurricane Sandy every day," Keys said in an interview on the red carpet. "They don't have electricity, they don't have heat ... and that made me more invigorated to make sure this Black Ball happened."

Keys honored Oprah Winfrey at the event for the entrepreneur's philanthropic efforts, including her school, The Oprah Winfrey Leadership Academy for Girls in South Africa, which launched in 2007.

"It's a universal truth, Oprah makes change happen," Keys said.

Winfrey said she was honored to receive an award from Keys, and that it confirms she's "moving in the right direction."

"You try to keep a child alive and I try to educate them as best as I can," Winfrey said onstage.

Before that, a video played onscreen detailing the launch of Winfrey's school and how the mogul struggled in her early years, riding on a bus with maids from the inner city to the suburbs to attend a better high school.

"When I look at Africans girls I see myself," 58-year-old Winfrey said. "I continue to work for them to have the same opportunities that I have. "

Beninese singer Angélique Kidjo was also honored and she joined Keys onstage for some upbeat, drum-filled numbers.

Bonnie Raitt also performed, as she and Keys sang a duet version of her slow groove "I Just Can't Make You Love Me." Keys said it was "one of my dreams to sing" with Raitt.

Jennifer Hudson and Brittany Howard of Alabama Shakes also hit the stage, where Whoopi Goldberg worked as the night's emcee.

"I read '50 Shades of Grey' so I stay away from paddles," Goldberg said when the auction began.

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Online:

http://keepachildalive.org/

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Follow Mesfin Fekadu on Twitter at twitter.com/MusicMesfin

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Consumer confidence falls sharply amid 'fiscal cliff' worries

By Don Lee

December 7, 2012, 8:29 a.m.

WASHINGTON -- After displaying resilient confidence over the last few months, consumers are finally starting to show the pangs of the looming "fiscal cliff."

A leading measure of consumer confidence fell sharply to a four-month low this month, suggesting that worries about future tax hikes and government spending cuts are taking a toll on sentiment.

The drop reported Friday in the Thomson Reuters/University of Michigan's consumer mood index -- to 74.5% from 82.7% last month -- tempered the better-than-expected report Friday from the Labor Department. The moderate pace of job gains held up in November despite Hurricane Sandy, and the jobless rate dipped to 7.7% last month from 7.9% in October.

Consumer confidence surveys are more forward-looking. And the latest report showed measures of both current conditions and future expectations falling. Retailers added a big batch of jobs in October and November, and they're banking on solid, though not spectacular, holiday sales. But with the economy driven largely by personal spending, job growth could be hurt if anxious consumers pull back.

"As the deadline to resolve the fiscal cliff draws closer with no resolution in sight as of yet, households are concerned about a potentially sharp drop in their after-tax incomes," said Capital Economics in a note after the release of the consumer confidence survey. 

The December reading of consumer confidence brings the index back down to where it was during the summer, and puts it more in line with business sentiments, which have deteriorated noticeably.

"Fortunately, consumer fundamentals are holding up relatively well: Job growth is steady, gas prices are falling, the housing market is finally turning the corner, and equity prices have rebounded," said Timothy Daigle, an analyst at Moody's Analytics, in a note to clients Friday. "If policymakers are able to come to an agreement in a reasonable amount of time, as we expect, confidence should bounce back quickly as the recovery accelerates in six months' time."

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Tea Party Sen. Jim DeMint to retire, lead conservative think tank

WASHINGTON -- Republican Sen. Jim DeMint of South Carolina, one of the most influential leaders of the tea party wing of the party, will retire in January to head a conservative think tank in Washington.

DeMint has been a renegade on and off Capitol Hill, and earned a reputation for often rousing – and clashing – with his colleagues over his hard-line positions. The two-term senator carried those views to the campaign trail, where his political action committee endorsed right-flank candidates – often against the party’s wishes.

“This is a crucial moment for America and for the conservative movement—and we are seizing it,” said Thomas A. Saunders, chairman of the Heritage Foundation, which announced the move.

“Jim DeMint has shown that principled conservatism remains a winning political philosophy,” Saunders said.  “His passion for rigorous research, his dedication to the principles of our nation’s founding, and his ability to translate policy ideas into action make him an ideal choice to lead Heritage to even greater success.”

The think tank’s founder, Edwin J. Feulner, will step down as president in April.

DeMint, 62, had always hewed to self-imposed term limits. First elected to the Senate in 2004, he easily won re-election in 2010. That pivotal tea party year, he endorsed several candidates, including Christine O’Donnell in Delaware, who lost the general election. Those losses helped prevent the Republicans from gaining enough seats to win the majority in the Senate.

According to the National Conference of State Legislatures, vacancies in South Carolina would be filled by GOP Gov. Nikki Haley, and serve until the next election.

On Thursday, DeMint was at Heritage headquarters, which are a short walk from the Senate side of the Capitol, joining a staff meeting.

He is expected to retire in January to make the transition, and take over the president’s position in April.

Melanie Mason contributed to this report.

Lisa.Mascaro@latimes.com

Twitter: @LisaMascaroinDC

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Individuality takes center stage at Grammys

Fun. helped break up the sound of dance and electronic music on Top 40 radio with its edgy pop-rock grooves. Frank Ocean made a bold statement in R&B — with an announcement about his sexuality and with his critically revered, multi-genre album, "channel ORANGE." And Mumford & Sons continued to bring its folk-rock swag and style to the Billboard charts with its sophomore album.

They all were rewarded Wednesday when The Recording Academy announced the nominees for the 2013 Grammy Awards.

Those acts, who scored the most nominations with six each, were joined by typical Grammy contenders like Jay-Z and Kanye West, who also got six nominations. The Black Keys' drummer, Dan Auerbach, is also up for six awards, thanks to his nomination for producer of the year. His band earned five nods, along with R&B singer Miguel and jazz pianist Chick Corea.

"It feels like alternative music is back," said fun. guitarist Jack Antonoff. His band's gold-selling "Some Nights" is up for album of the year, competing with Black Keys' "El Camino," Mumford & Sons' "Babel," Jack White's "Blunderbuss" and "channel ORANGE," the major label debut from Ocean.

Fun. is nominated in all of the major categories, including best new artist, and record and song of the year for its breakthrough anthem "We Are Young."

Ocean, whose mother attended the nominations special, scored nods in three of the top four categories. His song "Thinkin Bout You" — which he originally wrote for another singer — will compete for record of the year with Black Keys' "Lonely Boy" and four No. 1 hits: Taylor Swift's "We Are Never Ever Getting Back Together," ''Somebody I Used to Know" by Gotye and Kimbra, Kelly Clarkson's "Stronger (What Doesn't Kill You)" and "We Are Young" by fun.

Song of the year, too, features some No. 1 hits, including fun. and Clarkson's jams, as well as Carly Rae Jepsen's viral smash "Call Me Maybe." But then there's Ed Sheeran's "The A Team," a slow groove about a homeless prostitute, and Miguel's "Adorn," the R&B singer-songwriter's crossover hit.

"It's like one of those songs that wrote itself and I was the vessel," the 26-year-old said in an phone interview from New York City late Wednesday, where he performed with Trey Songz and Elle Varner.

While Miguel's excited to compete for song of the year, he's more thrilled about his sophomore album's nomination for best urban contemporary album, a new category that recognizes R&B albums with edge and multiple sounds.

"That's a huge complement to say that your entire body of work was the best of the year," he said of "Kaleidoscope Dream." ''That's the one that means the most to me. I'm really hoping maybe, just maybe."

Miguel, along with Gotye, Alabama Shakes and the Lumineers, is part of the pack of nominees who have showcased individuality and have marched to the beat of their own drum in today's music industry.

Though nominated albums by The Black Keys and Mumford & Sons are platinum-sellers, their songs are not regularly heard on Top 40 radio. Electronic and dance music, which has dominated radio airplay for a few years, were left out of the top awards this year. Also, One Direction — the boy band that released two top-selling albums this years and sold-out many arenas — was snubbed for best new artist.

Lionel Richie has one of the year's top-selling albums with his country collaboration collection, "Tuskegee," but he didn't earn any nominations. And Nicki Minaj, who released a gold-selling album this year and had a hit with "Starships," wasn't nominated for a single award.

Jay-Z and West dominated the rap categories, a familiar refrain at the Grammys. Nas scored four nominations, including best rap album for "Life Is Good." Jeff Bhasker, the producer behind fun.'s breakthrough album, also scored four nods.

Swift, who released her latest album, "Red," after the Grammy eligibility date, still scored three nominations, including two for "Safe & Sound" with The Civil Wars. Country acts were mainly left out of the major categories this year, though the genre usually has success at the Grammys. Aside from Swift's pop song competing for record of the year, there is 21-year-old Hunter Hayes, who is up for best new artist against fun., Ocean, Alabama Shakes and the Lumineers.

"I'm so proud to be, as you say, representing country music in the new artist category," said Hayes, who is also nominated for best country album and country solo performance. "I don't even feel worthy of saying that, but it's so cool for me to be able to say that."

Swift hosted the CBS special with LL Cool J and it featured performances by The Who and Maroon 5, who received multiple nominations.

The five-year-old nominations show spent its first year outside Los Angeles, making its debut in Nashville, Tenn., at the Bridgestone Arena. It marked the largest venue the show has been held in.

The 55th annual Grammy Awards take place Feb. 10 in Los Angeles.

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Online:

http://www.grammys.com

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AP Music Writer Chris Talbott and AP Writer Caitlin R. King in Nashville contributed to this report.

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Antismoking Outlays Drop Despite Tobacco Revenue

Faced with tight budgets, states have spent less on tobacco prevention over the past two years than in any period since the national tobacco settlement in 1998, despite record high revenues from the settlement and tobacco taxes, according to a report to be released on Thursday.

Paul J. Richards/Agence France-Presse — Getty Images

State antismoking spending is the lowest since the 1998 national tobacco settlement.

States are on track to collect a record $25.7 billion in tobacco taxes and settlement money in the current fiscal year, but they are set to spend less than 2 percent of that on prevention, according to the report, by the Campaign for Tobacco-Free Kids, which compiles the revenue data annually. The figures come from state appropriations for the fiscal year ending in June.

The settlement awarded states an estimated $246 billion over its first 25 years. It gave states complete discretion over the money, and many use it for programs unrelated to tobacco or to plug budget holes. Public health experts say it lacks a mechanism for ensuring that some portion of the money is set aside for tobacco prevention and cessation programs.

“There weren’t even gums, let alone teeth,” Timothy McAfee, the director of the Office on Smoking and Health at the Centers for Disease Control and Prevention, said, referring to the allocation of funds for tobacco prevention and cessation in the terms of the settlement.

Spending on tobacco prevention peaked in 2002 at $749 million, 63 percent above the level this year. After six years of declines, spending ticked up again in 2008, only to fall by 36 percent during the recession, the report said.

Tobacco use is the No. 1 cause of preventable death in the United States, killing more than 400,000 Americans every year, according to the C.D.C.

The report did not count federal money for smoking prevention, which Vince Willmore, the vice president for communications at the Campaign for Tobacco-Free Kids, estimated to be about $522 million for the past four fiscal years. The sum — about $130 million a year — was not enough to bring spending back to earlier levels.

The $500 million a year that states spend on tobacco prevention is a tiny fraction of the $8 billion a year that tobacco companies spend to market their products, according to a Federal Trade Commission report in September.

Nationally, 19 percent of adults smoke, down from over 40 percent in 1965. But rates remain high for less-educated Americans. Twenty-seven percent of Americans with only a high school diploma smoke, compared with just 8 percent of those with a college degree or higher, according to C.D.C. data from 2010. The highest rate — 34 percent — was among black men who did not graduate from high school.

“Smoking used to be the rich man’s habit,” said Danny McGoldrick, the vice president for research at the Campaign for Tobacco-Free Kids, “and now it’s decidedly a poor person’s behavior.”

Aggressive antismoking programs are the main tools that cities and states have to reach the demographic groups in which smoking rates are the highest, making money to finance them even more critical, Mr. McGoldrick said.

The decline in spending comes amid growing certainty among public health officials that antismoking programs, like help lines and counseling, actually work. California went from having a smoking rate above the national average 20 years ago to having the second-lowest rate in the country after modest but consistent spending on programs that help people quit and prevent children from starting, Dr. McAfee said.

An analysis by Washington State, cited in the report, found that it saved $5 in tobacco-related hospitalization costs for every $1 spent during the first 10 years of its program.

Budget cuts have eviscerated some of the most effective tobacco prevention programs, the report said. This year, state financing for North Carolina’s program has been eliminated. Washington State’s program has been cut by about 90 percent in recent years, and for the third year in a row, Ohio has not allocated any state money for what was once a successful program, the report said.

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Stocks, including Apple, are headed upward

Stocks are inching higher in midday trading on Wall Street.

Apple rose 2 percent a day after taking its worst fall in four years. In separate interviews, CEO Tim Cook said Apple will produce one of its existing lines of Mac computers in the United States next year and will spend $100 million to shift production of the line from China.

The Dow Jones industrial average was up 16 points at 13,050 shortly before noon Thursday.

The Standard & Poor's 500 index rose three points to 1,412 and the Nasdaq composite rose 20 points to 2,994.

H&R Block jumped 4 percent after posting revenue and earnings that beat analysts' estimates.

Men's Wearhouse dropped 5 percent after the men's clothing company's third-quarter results missed Wall Street's estimates.

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Citigroup to cut 11,000 jobs and take $1-billion charge

A Citibank branch office in San Rafael, Calif., in July. The company said Wednesday it would close dozens of branches in the U.S. and several foreign countries. (Justin Sullivan / Getty Images / December 5, 2012)

By Jim Puzzanghera

December 5, 2012, 7:25 a.m.

WASHINGTON -- Citigroup Inc. will cut 11,000 jobs and take a $1-billion pre-tax charge to its fourth-quarter earnings as it tries to reduce costs and reposition itself under new corporate leadership.

The job cuts -- including closing 44 U.S. consumer banking branches -- will save $900 million in 2013 and produce $1.1 billion in annual savings in 2014 and beyond, the company said in announcing the steps Wednesday.

"These actions are logical next steps in Citi's transformation," said Chief Executive Michael Corbat, who took over in October after the surprising departure of Vikram Pandit.

"While we are committed to — and our strategy continues to leverage — our unparalleled global network and footprint, we have identified areas and products where our scale does not provide for meaningful returns," Corbat said.

Citigroup stock was up about 4% in early trading Wednesday.

About 6,200 of the layoffs will come from Citi's consumer banking operations in the U.S. and around the world as the company focuses on the 150 cities with the "highest growth potential," it said. 

In addition to cutting 44 U.S. branches, Citigroup will close 14 in Brazil, seven in Hong Kong, 15 in South Korea and four in Hungary. The company also said it expected to "sell or significantly scale back" its consumer banking operations in Pakistan, Paraguay, Romania, Turkey and Uruguay.

Other cuts include 1,900 jobs in its group serving institutional clients.

C data by YCharts

ALSO:

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Follow Jim Puzzanghera on Twitter and Google+

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Let the debate end: Grammy noms anybody's guess

NASHVILLE, Tenn. (AP) — It's a brutal year to be in the Grammy nominations handicapping game.

Sure, there are a few safe bets. Mumford & Sons and Frank Ocean are expected to take a share of nominations when they're announced Wednesday night on national television during "The Grammy Nominations Concert Live!" in Nashville.

And popular songs by Gotye, fun., Taylor Swift and Carly Rae Jepsen may land those artists on the list as well, though Jepsen harbors some doubt her omnipresent song "Call Me Maybe" will net a nod.

"I would be so shocked," the 27-year-old singer said last week. "But this year has taught me to look forward to surprises and just be ready for anything. So, cross your fingers for me."

Viral songs like Jepsen's seemed to be the theme of the year, and with no watershed albums during the nominating period for the 2013 Grammys like Adele's "21" or Kanye West's "My Beautiful Dark Twisted Fantasy," it's not clear who will turn out as this year's top nominee.

Thus the guessing game.

The Grammy nominations period ended Sept. 30 and three of the year's top four debuting albums — from Swift, One Direction and Jason Aldean — came after that date. Rihanna also released a new album after the period ended. All could have songs nominated, but a popular album is the quickest way to accumulate multiple nods.

Mumford & Sons slipped in just under the deadline. Introduced to much of their burgeoning fan base through a 2011 appearance on the Grammys, the British folk-rock band could return with a flourish after selling 600,000 copies of "Babel" in the first week of release and setting streaming records on Spotify.

And Ocean showed the kind of bravery that might be rewarded by The Recording Academy's voters when he announced in liner notes for his album "channel ORANGE" that he'd had a same-sex encounter, causing an industry-wide discussion of the issue.

Questions surround many of the other artists who might be considered sure bets, however. Gotye should be a lock in multiple categories, but his viral song "Somebody That I Used to Know," featuring Kimbra, wasn't submitted in the song of the year category because of a sample, eliminating one of its most viable prospects.

Others who might be considered possible top nominees like Drake and The Black Keys released their platinum-selling, hit-spawning albums late last year and they'll have to overcome short-term memory issues among voters.

Sean Garrett, a producer for artists like Usher and Beyonce with multiple Grammy nominations, said a lack of clear trends during the nominating period made it difficult to guess going into the show.

"It was sort of an iffy kind of year in my opinion," Garrett said in a phone interview. "I'm going to be honest: I think the politics kind of slowed the music down."

He expects pop stars like Jepsen, Bieber, Swift and Korean sensation PSY to take home nominations, but doesn't see an artist accumulating a high number of nominations. That could leave room for newer acts, including fun., one of his favorites.

"They have a very clever sound," Garrett said. "The lead singer (Nate Reuss) has an amazing, amazing voice. I feel like they just came with something that was a bit different. It was mainstream pop music and it had some edge to it. And there was great songwriting there."

Fun., with their anthemic hit "We Are Young," are among the night's performers, joining Maroon 5, Ne-Yo, Luke Bryan, The Who, Hunter Hayes and others.

"It just feels like we spent the last 12 years pulling back the arrow and this year we just let it go," fun. guitarist Jack Antonoff said. "This last year has been incredible and amazing and hard and I don't even know what it would have been like if we didn't have 10 or 12 years of experience because it still feels like we're learning everything for the first time."

The nominations show is being held outside Los Angeles for the first time in its five-year history. LL Cool J returns, co-hosting the show live on CBS at 10 p.m. EST from Bridgestone Arena with Swift.

It's the first official Grammy activity in Music City since 1973, when the late Johnny Cash kicked off the live broadcast. He'll figure into Wednesday night's as well when Dierks Bentley and The Band Perry pay tribute to the man in black.

"So we're going to do that as a tribute to Johnny, a tribute to Nashville, a tribute to country music, a tribute to being back here," longtime Grammy producer Ken Ehrlich said. "And I think it will be magical."

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AP Music Writer Mesfin Fekadu contributed to this report from New York City.

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Online:

http://grammy.com

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Follow AP Music Writer Chris Talbott: http://twitter.com/Chris_Talbott.

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Well: For Athletes, Risks From Ibuprofen Use

Phys Ed

Gretchen Reynolds on the science of fitness.

Many active people use the painkiller ibuprofen on an almost daily basis. In surveys, up to 70 percent of distance runners and other endurance athletes report that they down the pills before every workout or competition, viewing the drug as a preemptive strike against muscle soreness.

But a valuable new study joins growing evidence that ibuprofen and similar anti-inflammatory painkillers taken before a workout don’t offer any benefit and may be causing disagreeable physical damage instead, particularly to the intestines.

Studies have already shown that strenuous exercise alone commonly results in a small amount of intestinal trauma. A representative experiment published last year found that cyclists who rode hard for an hour immediately developed elevated blood levels of a marker that indicates slight gastrointestinal leakage.

Physiologically, it makes sense that exercise would affect the intestines as it does, since, during prolonged exertion, digestion becomes a luxury, said Dr. Kim van Wijck, currently a surgical resident at Orbis Medical Center in the Netherlands, who led the small study. So the blood that normally would flow to the small intestine is instead diverted to laboring muscles. Starved of blood, some of the cells lining the intestines are traumatized and start to leak.

Thankfully, the damage seems to be short-lived, Dr. van Wijck said. Her research has shown that within an hour after a cyclist finished riding, the stressed intestines returned to normal.

But the most common side-effect of ibuprofen is gastrointestinal damage. And since many athletes take the drug for pain before and after a workout, Dr. van Wijck set out to determine the combined effect of exercise and ibuprofen.

For the new study, published in the December issue of Medicine & Science in Sports & Exercise, researchers at Maastricht University in the Netherlands recruited nine healthy, active men and had them visit the university’s human performance lab four times.

During two of the visits, the men rested languorously for an hour, although before one of the visits, they swallowed 400 milligrams of ibuprofen the night before and also the morning of their trip to the lab. (Four hundred milligrams is the recommended non-prescription dosage for adults using the drug to treat headaches or other minor pain.)

During the remaining visits, the men briskly rode stationary bicycles for that same hour. Before one of those rides, though, they again took 400 milligrams of ibuprofen the night before and the morning of their workout.

At the end of each rest or ride, researchers drew blood to check whether the men’s small intestines were leaking. Dr. van Wijck found that blood levels of a protein indicating intestinal leakage were, in fact, much higher when the men combined bike riding with ibuprofen than during the other experimental conditions when they rode or took ibuprofen alone. Notably, the protein levels remained elevated several hours after exercise and ibuprofen.

The health implications of this finding are not yet clear, although they are worrying, Dr. van Wijck said. It may be that if someone uses ibuprofen before every exercise session for a year or more, she said, “intestinal integrity might be compromised.” In that case, small amounts of bacteria and digestive enzymes could leak regularly into the bloodstream.

More immediately, if less graphically, the absorption of nutrients could be compromised, especially after exercise, Dr. van Wijck said, which could affect the ability of tired muscles to resupply themselves with fuel and regenerate.

The research looks specifically at prophylactic use of ibuprofen and does not address the risks and benefits of ibuprofen after an injury occurs. Short-term use of Ibuprofen for injury is generally considered appropriate.

Meanwhile, the Dutch study is not the first to find damage from combining exercise and ibuprofen. Earlier work has shown that frequent use of the drug before and during workouts also can lead to colonic seepage. In a famous study from a few years ago, researchers found that runners at the Western States 100-Mile Endurance Run who were regular ibuprofen users had small amounts of colonic bacteria in their bloodstream.

Ironically, this bacterial incursion resulted in “higher levels of systemic inflammation,” said David C. Nieman, a professor of health and exercise science at Appalachian State University who conducted the study and is himself an ultramarathoner. In other words, the ultramarathon racers who frequently used ibuprofen, an anti-inflammatory, wound up with higher overall levels of bodily inflammation. They also reported being just as sore after the race as runners who had not taken ibuprofen.

Animal studies have also shown that ibuprofen hampers the ability of muscles to rebuild themselves after exercise. So why do so many athletes continue enthusiastically to swallow large and frequent doses of ibuprofen and related anti-inflammatory painkillers, including aspirin, before and during exercise?

“The idea is just entrenched in the athletic community that ibuprofen will help you to train better and harder,” Dr. Nieman said. “But that belief is simply not true. There is no scientifically valid reason to use ibuprofen before exercise and many reasons to avoid it.”

Dr. van Wijck agrees. “We do not yet know what the long-term consequences are” of regularly mixing exercise and ibuprofen, she said. But it is clear that “ibuprofen consumption by athletes is not harmless and should be strongly discouraged.”

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Netflix buys exclusive rights to Disney movies

Netflix Inc. has acquired exclusive U.S. rights to movies from Walt Disney Studios in a deal that catapults the Internet video-on-demand service into direct competition with pay TV giants such as HBO and Showtime.

The three-year agreement takes effect in 2016 and is a blow to the pay channel Starz, which currently has the rights to broadcast Disney movies, including its Pixar animated films and Marvel superhero pictures, about eight months after they are released in theaters.

Starz's sole remaining movie provider is now Sony Pictures. That partnership ends in 2016.

VIDEO: Disney buys Lucasfilm - Mickey meet Darth Maul

Disney has also agreed to give Netflix nonexclusive streaming rights to more of its older titles — including "Dumbo," "Pocahontas" and "Alice in Wonderland" — starting immediately.

Netflix's chief content officer, Ted Sarandos, called the deal "a bold leap forward for Internet television."

"We are incredibly pleased and proud this iconic family brand is teaming with Netflix to make it happen," he said.

Netflix stock soared on the news, rising $10.65, or 14%, to $85.65.

Shares in Starz's parent company, Liberty Media Corp., fell $5.49, or 5%, to $105.56.

Currently, Netflix has nonexclusive rights to movies from Paramount Pictures, Lionsgate and Metro-Goldwyn-Mayer via a deal with pay channel Epix, as well as an array of library titles from other studios. Its only exclusive movie rights come from independent studios such as Relativity Media and DreamWorks Animation. It also has a wide variety of television reruns.

Sarandos and Netflix Chief Executive Reed Hastings have long said the company wanted to get exclusive pay TV rights to films from one of Hollywood's six major studios to boost its online entertainment service.

PHOTOS: Disney without Pixar

However, Hastings has also at times downplayed the importance of new movies. Netflix previously had streaming rights to Disney and Sony movies via a deal with Starz. In January, investors expressed their concerns that the pending disappearance of those movies would hurt the service. Hastings said in a letter to investors that Disney films accounted for only 2% of domestic streaming and the loss would not be felt.

Since then, though, the Disney movie slate has become more attractive. At that time, Netflix did not have access to movies from Disney's Marvel superhero unit or the "Star Wars" titles from its pending acquisition of Lucasfilm Ltd.

The end of the Starz agreement accelerated a trend that has seen Netflix evolve into a television company, with reruns of shows such as "Mad Men" accounting for about two-thirds of the content streamed by users.

With several original programs launching next year, including the Kevin Spacey political drama "House of Cards," and a direct connection to a growing number of Internet-enabled televisions, Netflix is on the verge of standing on par with many TV networks.

Netflix charges $8 a month for its streaming service, while premium cable networks such as HBO cost $13 to $18 a month, and that's on top of a monthly bill for other channels that typically exceeds $50. It remains to be seen whether the addition of Disney products and more original programming could lead Netflix to increase its price.

PHOTOS: Hollywood back lot moments

The Netflix spending spree could continue, with Sarandos telling Bloomberg News on Monday that his company would bid for rights to Sony movies when its Starz deal expires.

Netflix might have a tougher time wresting away the rights to Warner Bros., 20th Century Fox or Universal Pictures releases from their current deals with HBO, which like Warner is part of Time Warner Inc. Paramount, Lionsgate and MGM are almost certain to stick with Epix, of which the trio are co-owners.

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