It's been a bad couple of days for Netflix (Nasdaq: NFLX), if you look at things from the content perspective.
First, pay TV channel Starz on Monday said it renewed an agreement to carry Sony Pictures movies released in theaters through 2021, and on Tuesday Amazon.com (Nasdaq: AMZN) and CBS said they were expanding their licensing agreement.
The Starz deal was significant because it offset, to a degree, a loss the pay TV purveyor suffered at the hands of Netflix when the streaming video player snatched away Disney (NYSE: DIS) a couple months ago. The deal extends Sony's relationship with Starz for five more years--at a cost to Starz of anywhere from $250 million to $400 million. It helps Starz significantly, since Walt Disney Co. movies, starting in 2016, will be going to Netflix instead.
Amazon, meanwhile, continues to make a name for its Amazon Prime Instant Video Service and cut into the space dominated by Netflix and Hulu. The CBS agreement expands the relationship between the newcomer and the broadcaster to include classic series and hit TV shows from CBS Television Distribution and Showtime Networks and extends the catalog of content available for Amazon Prime members.
"CBS was one of our earliest content partners for Prime Instant Video and our Prime customers have consistently told us how much they love having access to great CBS and SHOWTIME shows," Brad Beale, Amazon's director of digital video content acquisition, said in a press release. "Adding a wider selection of great TV series, while extending our already popular selection of CBS programming, continues to make Prime an even better deal for our customers."
Netflix, on the other hand, continues to roll out original programming such as "House of Cards" and the continually hyped "Arrested Development." The streaming services player, though, needs more movies, as Chairman Reed Hastings said during an earnings conference recently.
For more:
- Amazon issued this press release
- the San Jose Mercury News carried this story
Special Report: Top three Netflix competitors: Who's challenging the industry giant?
Related articles:
Amazon challenges Nickelodeon, Disney by shooting original kids' programming
After Disney, Netflix exec hints at additional deals
Starz scores pay TV rights to Sony movies; SCTE to offer 50 virtual classes