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It turns out there were more boardroom machinations taking place behind the recent Amazon/Epix content deal than previously thought. According to a new report from Reuters, Amazon agreed to pay Epix additional money if the former’s subscriber base passed specific benchmarks.

If accurate, the report bodes ill for Netflix, which is already having to significantly increase the amount it pays for content as its deals with providers come up for renewal.

Goldman Sachs media analyst Drew Borst summarized the situation thusly:

“This could be considered online video deals 2.0 . . . After doing 1.0 deals, mostly with Netflix and a few with Amazon, it dawned on the media companies that they may want to get a piece of any future growth too.”

Wedbush Securities analyst Michael Pachter, who already has stated that Netflix may need to lower its subscriber growth forecast due to intense competition, said the following about what the Amazon/Epix deal could mean for Netflix:

“Hollywood loves it because they can say Amazon is paying us X and we want more from you . . . It’s a club they can use to beat Netflix over the head.”

6 Responses to “Report: Amazon to Pay Epix More at Set Subscriber Benchmarks”

  1. Member [Join Now]
    ChadCronin [chadcronin]

    I’ll beat them over the head with, If you go to source B to stick it to source A, to make both A & B cost more, than you can C me cancel and not have either.

  2. Visitor [Join Now]
    DanoFive0 [visitor]

    This will be fun t watch. I have NetFlix online. And they have over 2500 TV Shows and Movies that have CC. Closed Caption on then online. For me and people that are Hard Of Hearing this great!.
    The price of NetFlix online is great. And I know it will go up a bit. I see maybe
    $10-$15 bucks a month. As NetFlix pays more to the Greed Movie people to get the Movies and TV shows.
    But Source A & B. Will try to stick it to each other, and John & Marry Q public. And then the shit will hit the fan. As John and Marry Q public will get sick of it and Cancel. This will be fun to watch as I said. I am waiting for the next melt down. But until then. I will just keep on a watching….Be well all.

  3. Member [Join Now]

    Sorry, but if Netflix goes up, I will be cancelling, too.
    They already screwed us with the split the w/DVD service… and the streaming service isn’t as solid as it used to be. Studdering, stopping and not available tiles make me rarely use the service as it is, so unless they merge the DVD rentals back in, they can forget about getting any more from me.

  4. Visitor [Join Now]
    Jeff [visitor]

    Netflix service is vastly superior to Amazon or Hulu. Hulu and Amazon simply don’t have the interface for streaming via computer, the same way as Netflix. Hulu freezes and Amazon can’t deliver true HD when streaming and also locks up. If Netflix has to raise it prices a little, I don’t think its the end of the world if the content improves. What I see with content is a tremendous amount of duplication across the various streaming companies but nobody does streaming as well as Netflix.

  5. Visitor [Join Now]
    pootroot [visitor]

    I wish people would stop saying they would not mind paying $10 or $15 more for Netflix. If you keep saying this then Netflix is going to think these customers don’t mind paying more so lets increase the fee!!!! for everyone.

  6. Visitor [Join Now]
    Codes For Amazon : The only 100% FREE Amazon Gift Card Code Generator [visitor]

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