Netflix’s Epix Distribution Deal Comes At A Cost

August 11th, 2010 - 7:30 pm ICT by GD  

By Ranjan Bhaduri
ph20100810032781Aug 11, (THAINDIAN NEWS) Epix the Start-up pay channel has tied up with Netflix for a digital distribution deal. While this deal may earn it profits initially, the channel may not be a gainer in the long run. The deal is valid for a 5 year span and it is worth $1 billion. The web streaming service of Netflix will have access to the movies from banners like Metro-Goldwyn-Mayer, Lionsgate and Paramount Pictures, the studio owners of Epix. This is a boon for the users as the movies that were released few months back will be made available on the Netflix-on-demand service.

As of Now Netflix offers some movies from Sony Pictures and the Walt Disney Studios since it has a similar tie up with Starz. Epix now has more than 4 million users which it has got through carriers including Cox Cable, Dish Network and Verizon’s Fios. It has not yet tied up with big TV producers like DirecTV and ComCast though. HBO which is a leader in Pay TV service does not allow Netflix access to the movies it has from 20th Century Fox, Universal Pictures or Warner Bros till the movies become 7 or 8 year older. Netflix has become a threat to distributors and hence a cable operator may feel less inclined to opt for Epix.

Netflix is dishing out a good amount for the deal but in return it is getting access to a plethora of movies and it definitely gives it a major edge over the cable channels. With mobile broadband penetrating more areas, web streaming service is becoming popular than ever before.

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