Netflix is committed to a future where streaming video takes precedence over everything else. Which is why it’s investing so heavily in making its ‘Watch Instantly’ service as attractive and compelling as possible.
Netflix Investing In Streaming
Netflix is slowly but surely changing the focus of its business away from DVD rentals-by-mail and towards a streaming video service.
Netflix’ ‘Watch Instantly’ is helping to bring in new customers, with the promise of a streaming service full of recent and classic movies and TV shows persuading many in the U.S. to hand over a monthly subscription fee.
We recently detailed exactly how much money buying content for ‘Watch Instantly’ was costing Netflix. Suffice to say, it isn’t cheap. And Netflix has been at it again this week, tying up a deal with Epix.
Netflix/Epix Deal
A deal between the two ‘ix’ companies was rumored a few days ago but only confirmed today.
Full details have not been disclosed, with a “multi-year” contract the only hint at longevity, and no price mentioned whatsoever. The L.A. Times, however, reports that it’s a five-year deal worth around $1 billion to Epix.
The deal sees Epix movies coming to Netflix ‘Watch Instantly’. Epix is owned by Paramount, MGM, and Lionsgate, meaning content from all three of these major Hollywood studios will be making its way to Netflix’ streaming service.
Movies will typically show up on ‘Watch Instantly’ a few months after they enter Epix’ window, which starts a few months after the DVD release.
Which isn’t bad, and is certainly a compelling reason to sign up for a Netflix subscription.
Conclusions
This is another great deal wrapped up for Netflix. It’s an expensive one, but I believe it will eventually prove its worth as more and more people sign up to Netflix in order to gain unlimited access to streaming.
