Saturday, December 8, 2012

Netflix's Game Changing Deal

Ted Sarandos calls it a "Game Changer".  The recent deal between Netflix and Disney will allow the subscription on demand player access to Disney's 2016 feature slate on their streaming service in what has been traditionally known as the Pay TV window.  Netflix has apparently outbid Starz, who was Disney's previous Pay TV partner, for this valuable window.  This marks the first US slate deal between Netflix and a major for the Pay TV window.  It is worth noting however that Epix, owned jointly by Paramount, Lionsgate, and MGM has sub-licensed titles within its slate deals to Netflix with a three month delay in the Pay window.  The Disney deal is the first with Netflix to completely remove the traditional Pay partner all together. 

Many now speculate if this is the beginning of the end for the traditional Pay partners.  It appears that Starz and others are now and will increasingly become more reliant on their originals to draw in subscribers.  There are also potential ramifications to Disney's channel business as this some believe this will trickle down throughout the entire cable ecosystem and result in increased total cord cutting, not just cord trimming. 


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