Netflix Makes EPIX Deal

10:30 AM -- Netflix Inc. (Nasdaq: NFLX) and EPIX have announced a deal that will allow Netflix to show the premium cable channel's movies via its "Watch Instantly" video-streaming service starting this September.

The deal will bring movies, like Iron Man 2 from EPIX's owners -- Paramount Pictures Corp. , Lions Gate Entertainment Corp. (NYSE/Toronto: LGF), and Metro-Goldwyn-Mayer Inc. (MGM) -- to Netflix, broadening its content offerings and better positioning it to compete with cable.

But of course there are some catches:

  • The movies won't make it to Netflix until 90 days after they debut on EPIX.

  • Netflix doesn't necessarily get all of EPIX's movies. The companies' press release says only that Netflix will offer "an array of" EPIX's titles.

  • And finally, Netflix is coughing up $1 billion for the five-year deal, according to a report from the LA Times.

Netflix already has a similar deal with another premium cable channel, Starz Entertainment LLC , which brought it movies from Walt Disney Studios and Sony Pictures.

— Erin Barker, Digital Content Reporter, Light Reading Cable

Larry, Monkey 12/5/2012 | 4:27:22 PM
re: Netflix Makes EPIX Deal

EPIX's parent, Lionsgate, tanked in its fiscal Q1, posting a loss of $64 million.

They blamed Ashton Kutcher's "underperformance." Really.

I'd say that's a bit harsh. Ashton's clearly performing to the limits of his talent.

Jeff Baumgartner 12/5/2012 | 4:27:21 PM
re: Netflix Makes EPIX Deal

The deal certainly shows that Netflix is wielding some power as a dealmaker for premium content, but the concessions in the deal show that Netflix isn't quite yet on par with the power of the MSOs, telcos and satellite guys, and that Epix is sensitive to those relationships. JB.

DCITDave 12/5/2012 | 4:27:14 PM
re: Netflix Makes EPIX Deal

Any A. Kutcher event must be the entertainment equivalent of the greater fool theory.

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