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Netflix Loses Another Round, This Time to Amazon

By Steven Lloyd Wilson | Trade News | September 5, 2012 | Comments ()


netflix-envelope.jpg

Ever heard of a company called Epix? No, no you haven't, you just googled it after I asked and then you claimed that you had in the comments because it makes you feel just ever so slightly better about your life if there's the chance that an anonymous reader on the Internet might be impressed with your level of knowledge.*

Ahem.

So this company called Epix is significant because it holds distribution rights to 3000 movies, including ones like The Hunger Games and The Avengers. Until now, Netflix had an exclusive deal such that only they were allowed to stream Epix movies through their service. That ended yesterday, as Amazon inked a deal with Epix to bring that pile of movies for free to Amazon Prime subscribers.

Apparently, contractual exclusivity was on the table when Netflix originally cut their deal with Epix, but they either couldn't afford it, or decided the price was too steep. The price for non-exclusivity was $200 million, and by the terms of that agreement, Netflix now gets a $50 million discount since Epix brought someone else on board. For their sake, I hope that's not store credit, since that never gets used and ends up forgotten at the bottom of a drawer in one's desk, along with emergency alcohol and unlabelled CDRs.

Netflix's stock dropped 6%, and I'm sure there are some acronyms that a knowledgeable person could attach to other numbers to emphasize financial badness.

On the other hand, Netflix insists this is no biggie, and claims that only 5% of their streaming is of Epix content anyway. But numbers are quite easy to play with. Stuff like The Avengers might only be 5% of their streaming titles for example, but that single stream probably adds more value to the subscription than a hundred episodes of "Jersey Shore." It's like saying it's no big deal if someone else nails your wife, since you only are actively having sex with her 5% of the time.

*I'm not judging, I've been writing here for over three years for exactly this reason.

(source: THR)



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Comments Are Welcome, Douches Are Not


  • Jimmy Mackey

    Hmmm, your logic is sound, but somehow may overstate the
    issue just a tad. LOL! Netflix wants investor confidence so they
    have to pay their spin doctor for something.
    Frankly, their service was worthless to me when they separated and
    increased it by over 60%. Now, I’m just thankful that my employer, Dish,
    bought Blockbuster because now Blockbuster @Home gives me both streaming and
    discs by-mail for less than both services from Netflix. The best selection and quality of movies with
    instant gratification are what I get from both streaming and mail, so I get to
    have my cake and eat it too.

  • Trshstr

    Netflix still has the Epix content, it's just not exclusive anymore. This is nothing but good news for consumers (unless your an investor).

  • annie

    I think Epix is that thing I kept making free trial accounts for so I could watch Izzard and Craig Ferguson specials. Maybe.

  • Steve

    I was going to say "isn't Epix that *other* streaming app my TV offers?", but other posters confirmed that already. I guess if they got $200M to let NetFlix stream their stuff, and whatever they got from Amazon, then the don't miss my $9 or whatever that I don't pay to use their service. It's always going to strike me as odd now to see all three of them on my "premium apps" bar's expanded view and realize that one sold out it's content to the other two, but not because it went out of business...

  • no one

    About every three or four months I subscribe to Netflix, watch a bunch a bunch of movies and TV shows for a month or two and cancel again. I'd keep the subscription active if not for the PC interfact. I freaking HATE the new PC interface. (new being like a year and a half now)

  • Bandit

    Amazon have their sticky little fingers in a number of pies. We have LoveFilm here in the UK (rival to Netflix) which is an Amazon subsidiary.

  • habshockeygrl

    yes! I dropped netflix and kept amazon prime since I didn't want to deal with 1 season being streaming and the next disc only anymore! I didn't know exactly what it was but I know it was mentioned in one of the recent DirecTV vs some channel line-up battle.

  • JIM

    SAY GOODBYE TO AMAZON, NETFLIX, AND EPIX. THERE SELLING STOLEN WORK!!!

  • Green Lantern

    Damn. I was just getting used to my Netflix, too.

    Thing is, they're so damn pervasive...my phone, even one of my TVs, has a Netflix app. It'll be a shame if they can't leverage content enough to keep themselves afloat.

    Damn...

  • stardust

    Every Roku user should know about Epix. We've used it a few times to watch new releases when Netflix doesn't have them and Amazon Prime wants us to buy them.

  • Dragonchild

    This article reads very, very differently if the last asterisk is omitted.

  • SLW

    I just squirted my emergency alcohol all over the keyboard.

  • Blake

    Netflix in Canada is terrible... If there wasn't a way around that then I'd definitely dump it. I'll keep it for the new AD but after that who knows... Plus side is that all 3 seasons of Community are now available... But of course no Doctor Who, etc, etc, etc...

  • MonkeyHateClean

    I'm an Amazon Prime member. Since they released their streaming iPad app last month I've not even looked at Netflix. I'd love to completely ditch Netflix but the husband has nixed it because, of the two services, Netflix streaming is the only one we can watch on our TV.

  • Even Stevens

    Some devices support Amazon Prime Video, like a Roku, which is fairly cheap. I'm thinking about getting Hulu Plus and just ditching the cable outright.

  • stardust

    We're doing that as soon as my husband hangs up the antenna for the local stations.

  • Anna von Beav

    Yes. Playstation 3 also supports it, as well as Netflix streaming.

    I have both, so I'm good.

  • Groundloop

    I never forget about my emergency alcohol.

    DON'T JUDGE ME!

  • anon

    Still can't even get Netflix in Australia anyway. Probably one of the reasons we're one of the world's highest piraters of TV and movies.

  • Slutface

    I'm only sticking with them because of the new Arrested Development episodes. I'd quit if it weren't for that. The watch instant has absolutely nothing to watch anymore.

  • Sara_Tonin00

    No, no you haven’t, you just googled it after I asked and then you claimed that you had in the comments because it makes you feel just ever so slightly better about your life if there’s the chance that an anonymous reader on the Internet might be impressed with your level of knowledge.*

    I'm so busted. In pretty much every facet of my life.

  • Funky_Brewster

    I choose to live in a world where I use both Netflix and Amazon Prime. So there.

  • snapnhiss

    And Hulu. I'm all about streaming.

  • Guest

    Epix is it's own movie channel or so that's what my TV has lead me to believe for the last 3 years... I always thought they were the poorer mans Starz... so I suppose losing them on Netflix isn't awful... if Netflix wants to keep some gen y/millennial customers they should be focusing more on 90's Nickelodeon TV.. imagine if Pete&Pete was on Netflix the hours that could be wasted...

  • I really want someone to stream Are You Afraid of the Dark? That would make me a happy girl.

  • ExUSA

    Yes, but do you know what Netflix will have this spring that Epix/Amazon won't? ARRESTED DEVELOPMENT! And that's why Netflix will win at life, permanently.

    Joking aside, I wonder if that is part of their big plan, move away from streaming existing content, into producing their own.

  • Bert_McGurt

    You got me. I had no idea what Epix is. But I AM familiar with Epyx, who made a pretty sweet wrestling game for one of the late 80's Macintoshes.

  • Sara_Tonin00

    Summer Games! Winter Games! World Games! Summer Games II! California Games!

    They were on Commodore 64 too, and provided some of the my best childhood memories.

  • Jen

    So who's the new Netflix?

  • twig

    I am.

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