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Showtime Trims its Deal with Netflix

Yesterday was a rough day for Netflix on several fronts. The streaming video giant had its website and Watch Instantly service crash for several hours last night, and also got some bad news from content licenser Showtime.

It looks like Netflix’s first foray into the original content business couldn’t have come at a better time, as Showtime has signed a new licensing deal with Netflix that will not renew streaming access to past seasons of popular series Dexter and Californication. The new terms of the network’s Netflix deal cover now-defunct shows such as The Tudors and Sleeper Cell.

Is a larger trend emerging here where content owners grow increasingly reluctant to “cheapen” their product by providing it to Netflix? Will we see more of this in the near future?

(via Engadget)

4 Responses to “Showtime Trims its Deal with Netflix”

  1. Member [Join Now]
    ChadCronin [chadcronin]

    I understand the greed in their decision, but doesn’t anyone will like it. I like one show on Sho like probably most people. The movies are mostly a joke. The only decent ones on there are ones I already own. I have family that will never buy a premium channel or buy DVD/Blu-rays of shows on their own. They rely on my opinnions as well as catch a show on Netflix to get that motivation to buy. I see Netflix as a motivator to buy as well as exposure to gain subscribers. It’s networks constant drive to get more money out of me that is making me want to not subscribe. I will be like most people and just continue to spend my time on content offered by Netflix and Redbox and forget the rest.

  2. Member [Join Now]

    Why should Showtime work with a company that, with the signing of “House of Cards” is setting themselves up as a competitor?

    • Member [Join Now]

      Because revenue is revenue. Netflix is guaranteed income. We want to give Showtime our money but they like HBO refuse to accept it.

      the problem with the system is that the producer of the content and distributor are locked together. When the producers free themselves of the locks then they will open up their revenue. With Showtime and HBO however it’s a little more complicated since they are under same parent. Basically they are scuttling their production revenue in the vain attempt to increase distribution revenue. I doubt that it will work however.

  3. Visitor [Join Now]
    Drax [visitor]

    Obviously the strategy here is to starve the “buffet viewer” who wants to pick and choose which content they view and force them to get back on board with the cable contract “You’ll watch what we want you to see” model. I don’t think that Netflix becoming a content provider had anything to do with it. Showtime, HBO, Starz, etc., are just protecting their cash cow. They finally realized that a lot of people prefer the Netflix model and have decided to not cut their own throats. The strategy won’t work with me but I bet a lot of folks will follow the path of least resistance.