Netflix Renews Deal With NBCUniversal for Streaming TV Shows, Movies
While terms were not disclosed, one analyst speculated the deal could be worth $300 million a year to NBCU, up from $25 million annually.
Netflix said Wednesday it struck a multiyear renewal of a deal with NBCUniversal to stream movies and TV shows that stretch back six decades, from Leave it to Beaver to Keeping Up With the Kardashians.
The announcement comes as Netflix users took to the Internet to gripe about a 60-percent fee hike for the most affordable subscription plan that includes both DVDs and unlimited streaming. Netflix said Tuesday the price of that plan would be raised from $9.99 a month to $15.98.
Analysts have been predicting for several months that Netflix would have to raise prices do keep up with the rising costs of streaming rights. In fact, while financial considerations and other terms of the NBCU deal weren't disclosed, some were speculating Wednesday that it cost Netflix more than 10 times what it had been paying for similar content.
Michael Pachter of Wedbush Securities told The Hollywood Reporter on Wednesday that he figures Netflix was paying NBCU $25 million a year for streaming rights and that the new deal calls for $300 million annually for the renewal of those rights, which includes some TV shows and movies not previously available to Netflix subscribers.
In regards to television, the deal calls for NBCU to provide past and, where applicable, future season of shows on a one-season delay system. Examples of shows include Adam 12, The Event, Fact or Faked, Kell on Earth, Queer Eye For the Straight Guy, Law and Order: SVU, 30 Rock and The Office.
One siginificant change is that Saturday Night Live will no longer be available for streaming at Netflix a day after it airs. Instead, the entire season will be available a season later. SNL, though, remains available at Hulu and iTunes a day after it airs.
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