Netflix signs $1B deal with Epix for VOD movies http://bit.ly/cL4vof
Netflix is on something of a roll; growing strongly and proving that streaming on demand is a viable distribution method, that people are willing to pay for, but it’s hard to get too excited about the Epix deal. First the good news:
Netflix has signed a five-year-deal with pay-TV channel Epix that will give Netflix exclusive online streaming rights to new releases from Paramount Pictures, Lionsgate and Metro-Goldwyn-Mayer 90 days after their premium-pay TV and on-demand debuts.
The deal, estimated to be worth about $1 billion to Epix over five years in licensing fees, kicks off next month.
But then SteramingMedia.com’s Dan Rayburn in his personal blog points out:
Neither company is giving out any details on when the content will be available on Netflix but you can take a look at the current list of 306 movies that EPIX has available by going to www.epixhd.com/all-movies. While rumors of the licensing deal are saying that Netflix will pay EPIX $1B over five years, I find that number hard to believe. Even if Netflix got access to all of EPIX’s current inventory, they would be paying an average of $200M a year for less than 300 movies. That’s an average of $650,000 per movie. That can’t be right.
That sure is expensive programming, but then we already knew that programming costs where the most expensive part of Netflix’s streaming service.