On Sunday, Netflix, Inc. (NASDAQ:NFLX) declared that it would not be renewing its movie licensing contract with Epix when the present contract terminates in September. The streaming service has made offering original content a major priority now.
Netflix opined that it had enjoyed a five-year-association with Epix. However, their strategic paths have diverged now. The streaming service’s priority has changed to delivering great films as well as TV series that are Netflix-exclusive to its subscribers. However, Epix’s goal is to make its movies widely accessible to consumers across a wide range of platforms.
As per sources, the joint alliance of film studios Lions Gate Entertainment Corp. (USA) (NYSE:LGF), Metro-Goldwyn-Mayer and Paramount Pictures, has clinched a licensing contract with Hulu( a streaming service) that is likely to have an October launch.
The move by Netflix demonstrates its endeavor to differentiate itself with contemporary subscription TV and movie services by offering fresh, original content.
Netflix’s chief content officer, Ted Sarandos, observed that due to the concurrent licensing time periods, several of the sought after Epix films accessible to Netflix consumers were also found on rival subscription services. He added, by making proprietary content; the streaming service enables its subscribers not to wait for films to debut at home post their release in theaters.
Shortly after Netflix’s announcement of splitting from Epix, Hulu revealed a deal with Epix. Incidentally, Hulu has far fewer subscribers than Netflix. The latter has 65 million subscribers compared to Hulu’s 10 million. The alliance with Epix gives Hulu a great opportunity to ramp up subscriber base. The site was famed for repeat telecast of network TV programs. However, it’s trying to have its proprietary shows as well as emerge as a respected movie producer.
Epix governs the Internet and TV distribution pipeline for the films produced by certain studios. Whereas Netflix solicited exclusive deals; Hulu has consented to non-exclusive pacts. This means that the studio’s films can also be run on external channels.
Sources: cnet, digitaltrends, money.cnn
