Netflix Partners with Relativity Media for Exclusive Streaming Window

Posted by ad on Jul 7, 2010 in Connected TV | 0 comments

This post originally appeared on ScenePR!

Just as TV Everywhere hits the one-year mark, premium cable networks including HBO and Showtime saw their theatrical strategies take a small but powerful hit following yesterday’s announcement from Netflix.

In a deal similar to those cut between film studios and premium cable providers, Netflix has partnered with Relativity Media for a 5-plus year agreement giving them a streaming video window that was once exclusive premium cable networks – “major theatrically released films owned by Relativity will be licensed directly and exclusively to Netflix for streaming to its subscribers during the pay TV window. In doing so, Netflix became a theatrical provider able to compete with premium cable networks for studio deals as they open up.

In the past year, Netflix has expanded its streaming video offering to internet-connected devices including TIVO, XBox, Wii, PS3, Blu-Ray players, Apple iPad and HDTVs. With the number of homes having one or more of these devices (@AshmiNYC has 3) on the rise, no additional charge beyond a basic $8.99 DVD subscription, Netflix is poised to become a viable option over the hefty price of premium cable. While Starz Play is offered for free along with Showtime original series, following a Netflix survey of its customer base, HBO declined to partner with the distributor’s streaming video service seemingly because doing so would hurt DVD sales and cable distributor partnerships.

In concept, TV Everywhere set out to provide viewers programming on any platform that offers video expanding the consumer experience with TV and added revenue streams via distribution deals and placed media. This was not exclusive to broadcast and basic cable as HBO launched on Fancast to the premium cable net’s subscribers and later a dedicated online service, HBO GO came to Verizon FiOS customers with HBO and high-speed internet services. Starz Play joined Netflix along with Showtime’s Original series.

Earlier this year, Netflix made a loud debut the day the Apple iPad was launched, adding the fastest selling Apple product to it’s list of platforms.

With Hulu, YouTube’s recent deal with Gravitas, Fancast, and Netflix (among many others) making content easier and easier to access online, a seismic shift is happening in the programming landscape that could see premium cable providers experiencing the drastic changes long ago felt by the music business during a similar digital explosion.

How many ways do you watch Netflix? Post a comment and let us know!

Sources: Los Angeles Times and Relativity Media