Amazon Snags Viacom Programs After Netflix Passed in Favor of Disney
6 views - published on June 7th, 2013 in Disney News tagged deals, Disney, disney deals
Amazon.com Inc. (NASDAQ: AMZN) and Viacom Inc. (NASDAQ: VIAB) pronounced this morning that a dual had sealed a multiyear, disdainful understanding that will offer Viacom programming on Amazon’s Prime Instant Video service. Financial details, as good as a generation of a contract, were not disclosed.
Streaming video aspirant Netflix Inc. (NASDAQ: NFLX) had let a agreement with Viacom end in Apr after it became transparent that Viacom would not give Netflix only a shows it wanted. Netflix had sealed an costly understanding with Walt Disney Co. (NYSE: DIS) in Dec that gives a streaming association disdainful rights to Disney studio films commencement in 2016 and other Disney programming.
Netflix substantially would have favourite to keep Viacom’s children’s programming like “Dora a Explorer” and “Spongebob Squarepants,” though Viacom would not apart a dual shows from a package understanding it wanted Netflix to take. Amazon had no such reservations and will benefit “hundreds of TV shows and thousands of TV episodes” in a understanding with Viacom.
There have been reports that Amazon paid Viacom about $200 million for a module rights, though it is misleading either that represents a one-time cost for mixed years or an annual fee. Netflix is suspicion to be profitable as most as $300 million annually to Disney. At that price, it can't means to permit too most third-party calm and continue to enhance a strange programming.
The disdainful deals that both Amazon and Netflix have sealed are also signals that a heading streaming video companies are looking to compute themselves on calm offerings, in most that same demeanour that HBO and Showtime and, for that matter, a promote networks compute themselves from one another. Time will tell if that is a winning model.
Paul Ausick
Read more: Consumer Product, Entertainment, Internet, TV, children’s programming, streaming video, streaming video programming, AMZN, DIS, featured, NFLX, VIA-B