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Netflix, Epix Sign Content Deal

Netflix continues to beef up its streaming prowess, with its latest multi-year deal taking place with Epix, a premium cable channel run by equity partners Paramount, Lionsgate and MGM. The agreement with Epix could add as many as 3,000 titles from the aforementioned studios to Netflix’s streaming library, beginning on September 1.

Netflix’s newly acquired broadband content will be available for streaming 90 days after the pay-TV window Epix must abide by with its other distribution partners.

Ted Sarandos, Netflix’s chief content officer, offered the following on the new agreement:

“Adding EPIX to our growing library of streaming content, as the exclusive Internet-only distributor of this great content, marks the continued emergence of Netflix as a leader in entertainment delivered over the Web . . . The EPIX deal is an example of the innovative ways in which we’re partnering with major content providers to broaden the scope and freshness of choices available to our members to watch instantly over the Internet.”

Besides becoming a bigger threat to cable companies and pay-TV channels, Netflix may also be becoming a more formidable adversary for Redbox and its yet-to-be-launched digital delivery plan. Hit the comments and tell us what you think about Netflix’s latest move into the streaming realm.

(via NewTeeVee and EON)

18 Responses to “Netflix, Epix Sign Content Deal”

  1. Visitor [Join Now]
    Consumer [visitor]

    Netflix truly seems to be setting themselves up as the online streaming movie site of the future.

    My only concern is that the cost of this deal equals out to around $1 per subscriber. Unless Netflix raises their price, look for them to start cutting their DVD orders.

    This actually may be a good thing for Redbox or B&M stores in regards to New Releases.

  2. Visitor [Join Now]
    Jamie [visitor]

    Netflix is staying ahead of the curve on content which is good. They now see Hulu Plus as a legit competitor so it’s a race to who can get more streaming content available.

    • Visitor [Join Now]
      Joe Schmuck [visitor]

      But they’ll never get the same deal with Universal, Fox, or Warner. It won’t be successful unless they have all studios on board.

      • Visitor [Join Now]
        Vernon Dent [visitor]


      • Visitor [Join Now]
        firstlawofnature [visitor]

        Disagree. No need for a full library of new releases at this point – it would be wasteful. They need lots of good content for stream but not all there is. I think this gives them pretty good coverage for a year or two. By the mail covers the rest of things pretty well until then.

        • Visitor [Join Now]
          Joe Schmuck [visitor]

          Okay, lets see what Netflix gets for their 1 Billion dollars over the next 5 years from Paramount , Lionsgate, & MGM ( small player):

          * 1 billion for 5 years = $200,000,000 per year

          * $200,000,000 per year divided by the current subscriber base of 15,000,000 = a cost of $13.33 per current subscriber, per year.

          * $13.33 per subsciber, per year divided by 12 months per year = a cost of $1.11 per current subscriber per month.

          With this plan, it would not include content from Fox, Warner, Universal, Disney, Sony, or Summit.

          I think it would be fair to say that all these studios, maybe with the exception of Summit, could demand individual agreements that would exceed what these 3 studios got as a group

        • Visitor [Join Now]
          firstlawofnature [visitor]

          Pretty static way of looking at it. All you’ve done is overlay the number over current subs. This deal is about making the current subs happier (they all came in before this deal was announced) and what kind of incremental sub growth Netflix might get with the add’l content. So can the new deal lower churn, lower customer acq cost, increase sub growth? Most likely. Netflix needs some combination of these metrics to ‘break even’ on the deal. Maybe 1.6mm incremental subs + a little better on the other metrics and the deal is ‘free’.

          Netflix doesn’t need content from everyone. It just needs enough to feed the streamers. So other studios can demand more but I would guess Netflix isn’t a buyer of lots of incremental on-line content for the time being.

          • Visitor [Join Now]
            Consumer [visitor]

            I don’t think the deal is quite “free” no matter how you get more subscribers, lower churn or lower customer acq costs. This deal is more about getting away from the physical discs and into streaming. Just think of the cost savings for catalog titles.

            For example, Iron Man 2 could start showing up less than 18 months after it’s theatrical release. Amazing.

            I still think this deal will shift some customers who like the physical disc into Redbox or B&M stores as Netflix gets further away from the cost of the discs.

          • Visitor [Join Now]
            firstlawofnature [visitor]

            Well they are a for profit business so the costs of streaming has to measured against certain metrics otherwise what would stop them from spending another billion on streaming?

            A lot of the cost savings will find their way back to studios so net net I don’t think they’ll come out ahead in margins. The real question is how many subs will they have in 5 years.

          • Visitor [Join Now]
            John Small [visitor]

            Additional subscribers and claiming market share are the key.

            If this deal drive subscriptions to double up over the next 5 years then it looks like a pretty good deal.

            Netflix is making the rules for online streaming right now. Everyone else will have to play by the deals they sign.

          • Visitor [Join Now]
            Joe Schmuck [visitor]

            Okay, let’s see what Netflix will get in the near term from Paramount, Lionsgate, & MGM: (Theatrical Titles Only)


            1. Iron Man 2 – DVD streets on 09/28/10 – Available for streaming 3 months after pay per view , according to agreement

            2. How to Train Your Dragon – DVD streets on 10/15/10 (Yes, that’s a Friday) – Available for streaming 3 moths after pay per view, according to agreement. (this is a Dreamworks film, but Paramount distributes the Dreamworks animated films)

            3. Shrek Forever After – DVD is rumored to street on 12/07/10 – If so, availibilty for streaming would be 3 months after pay per view, per agreement.

            4. The Last Airbender – No DVD release date given. (Probably in December) (Title disappointed at box office)

            5.Dinner For Schmucks -[ No DVD release date given (again, probably in December)

            No other Paramount Theatrical Titles have been released in theaters as of today.


            1. Why Did I Get Married, Too? – DVD streets on 08/31/10 – Available for streaming 3 months after pay per view, per agreement.

            2. Killers – DVD streets on 09/07/10 – Available for streaming 3 months after pay per view, per agreement.

            No other Lionsgate theatrical titles have been released at theaters as of today.


            No theatrical Titles in the pipeline at this time.

            1. The Last Song – DVD streets on 08/17/10
            2. Furry Vengeance – DVD streets on 08/17/10
            3. The Back-up Plan – DVD streets on 08/24/10
            4. Marmaduke – DVD streets on 08/31/10
            5. Harry Brown – DVD streets on 08/31/10
            6. Macgruber – DVD streets on 09/07/10
            7. Prince of Persia: The Sands of Time – DVD streets on 09/14/10
            8. Just Wright – DVD streets on 09/14/10
            9. Letters to Juliet – DVD streets on 09/14/10
            10. Robin Hood – DVD streets on 09/21/10
            11. Get Him To The Greek – DVD streets on 09/28/10
            12. The Karate Kid (2010) – DVD streets on 10/05/10
            13. A Nightmare On Elm Street (2010) DVD streets on 10/05/10
            14. Splice – DVD streets on 10/05/10
            15. Jonah Hex – DVD streets on 10/12/10
            16. Sex & the City 2 – DVD streets on 10/26/10
            17. Toy Story 3 – DVD streets on 11/02/10
            18. A Christmas Carol – DVD streets on 11/16/10

            The following theatrical titles have not been given street dates, and are not Paramount, Lionsgate, or MGM titles:

            1. The A-Team
            2. Grown Ups
            3. Knight & Day
            4. The Twilight Sage: Eclipse
            5. Dispicable Me
            6. Predators
            7. The Sorcerer’s Apprentice
            8. Cyrus
            9. Inception
            10. Salt
            11. Ramona & Beezus
            12. Cats & Dogs: the Revenge of nKitty Galore
            13. Charlie St. Cloud
            14. The Other Guys
            15. Step Up 3D

            My point is, how many people will sign up for Netflix for the option of streaming newer movies, only to find that a very small percentage of titles would be available.

            Joe Schmuck

          • Visitor [Join Now]
            firstlawofnature [visitor]

            Smart management teams don’t do deals for near term gains.

            JS – I agree.

  3. Visitor [Join Now]
    Joe Schmuck [visitor]

    “Netflix is making the rules for online streaming right now. Everyone else will have to play by the deals they sign.”

    Maybe, so, but that theory didn’t work for the kiosk business and Coinstar. Lionsgate , Paramount, & Sony signed distribution deals with Coinstar, but it didn’t force Warner, Fox, & Universal to accept the same deal.

    • Visitor [Join Now]
      Vernon Dent [visitor]

      It might be interesting to speculate if some day the content providers not only bypass current streaming options, but also the traditional studios as well.

      High Q-factor talent could set-up their own streaming client/server system, cutting out the two other middlemen. In other words–content rules in streaming.

      • Member [Join Now]
        Hassen Ben Sobar [hassen-ben-sobar-2]

        Disney and Pixar’s brands are strong enough to stream-direct, but it’s doubtful if any other production company, major or otherwise, could bypass existing distribution channels.

  4. Member [Join Now]

    This will be a good add for Netflix. It certently makes me happy!