BBC: Netflix U.S. removes thousands of videos from EPIX deal (1 Viewer)

Thousands of movies will be removed from Netflix in the US after the streaming service decided not to renew a deal with distributor Epix.

Removed titles will include the Hunger Games and Transformers movies.

Netflix, which has more than 60 million subscribers worldwide, said it wanted to focus on exclusive content.

Rival US service Hulu will take on the Epix catalogue. "Our subscribers have been asking us for more, and more recent, big movies," Hulu said.

"We listened. Through this new deal with Epix, we are proud to now be able to offer a huge selection of the biggest blockbusters and premium films."

Netflix's deal with Epix - which was worth a reported $1bn (£650m) - runs up until the end of September 2015, at which point the films will disappear from the service.

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Towergrove said:

http://www.bbc.com/news/technology-34110968

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That’s not the only reason Netflix probably isn’t as worried about losing Epix as it might have been in the past: Another big reason (as it pointed out in its release) is that it signed another deal some time ago that is going to start bearing fruit very soon—namely, a deal with Disney.

Most importantly, the Disney deal isn’t just for the company’s back catalogue of past hits, but alsoincludes the right to show first-run movies eight months after they hit the theaters. That part of the arrangement goes into action next year. Netflix outbid Starz for those rights, and when it was announced in 2012 the company’s share price jumped by more than 14%.

The Disney arrangement gives Netflix access to movies from Pixar, Marvel (i.e., the Avengers franchise) and Lucasfilm — including the hotly awaited Star Wars films, which are likely to be box-office gold. So between having exclusive rights to stream those movies and Netflix’s focus on its own in-house content, the company’s strategy is well under way. It is more expensive to execute, but in the long term it should provide more value, and differentiate Netflix from a growing group of competitors such as Amazon and Hulu.

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Keith Plucker said:

I am a little surprised that so many of the stories about Netflix loosing the Epix content don't mention the Disney deal which will result in much better content for Netflix. Granted, it will take a little time to ramp up but still, it seems relevant.


-Keith

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