Netflix isn’t making a killing and they are willing to pony up the cash for content. Learn what the hell you are talking about because you look foolish. Their content costs have gone up about 700% in two years and the studios sign exclusive contracts with Pay TV channels for their content. Netflix is included in the category of Pay tv channel. This is a practice that the studios have been using for decades. These contracts last about 5 or 6 years and are signed several years in advance. Being that Netflix is relatively new, they started streaming about 5 years ago they are limited in the contracts that they could acquire. Most of their new movies come from their deal with Epix, another new Pay TV channel that had had difficulty gaining access because many cable providers refuse to carry the channel. They were also able to sign Pay TV deals with Film District, Open Road Films, and LD Entertainment. These studios are relatively new and that is why Netflix was able to bid on them and win. They also signed a pay tv contract with Dreamworks Animation for any new release that hits theatre starting in 2013. They announce back in December that they signed a pay tv contract with Disney. This was huge for Netflix because it marked the first time that they were able to get a pay tv contract with what is considered to be a major studio. This contract doesn’t start until 2016 though because like I said earlier they are signed years in advance. They also put a bid in with Sony but Sony chose to resign with Starz. And just this week The Weinstein Company announced a Pay TV deal with Netflix for their films starting in 2016. This will likely put Netflix just below HBO when it comes to first run movie quality.
Posted on: Fri, 23 Aug 2013 03:11:57 +0000
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