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Amazon (AMZN) paid $200M+ for its Viacom (VIA) streaming deal, Reuters reports. The news service...

Amazon (AMZN) paid $200M+ for its Viacom (VIA) streaming deal, Reuters reports. The news service adds the deal will run for more than two years and features "a deeper library of content" than what Viacom provided Netflix (NFLX). The deal is said to be Amazon's largest ever, though it should be noted the Epix deal's price tag could grow thanks to milestone payments. Regardless, Reuters' figure backs up Reed Hastings' April remarks about Amazon and Hulu "bidding more aggressively" for content. Netflix's Q1 EPS beat had much to do with margin improvements stemming from slowing content cost growth (liabilities up only $100M Q/Q to $5.7B).
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Comments (6)
  • Sakelaris
    , contributor
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    Meanwhile, Netflix is customarily spending over four million per episode on its so-called "original content!" That is going to obviously exceed $200 million for Netflix.

     

    Yes, I know that getting some "hot" new shows is going to be part of the game for Netflix (and others), but four million an episode? Moreover, in the case of House of Cards, Netflix, for all its cost, has only purchased streaming rights for a limited window of time.

     

    I have enjoyed the Netflix streaming and DVD offerings over the last several years and I hope those good times can continue. The overspending on House of Cards could have bought Netflix a lot of other content, possibly from Viacom.
    4 Jun 2013, 05:59 PM Reply Like
  • Tvaddic
    , contributor
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    Amazon is allegedly paying $200M for 2 years with their Viacom deal, while people say NFLXs exclusive content deals are for 4 years. Also the price for Viacom content will rise, while NFLXs deal price could potentially fall (the show isn't exclusive anymore).
    5 Jun 2013, 04:15 PM Reply Like
  • Sakelaris
    , contributor
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    The exclusivity for House of Cards will end this summer, in that it will then be available for DVD purchase--ironically many of those discs will end up being sold by Amazon!
    5 Jun 2013, 05:56 PM Reply Like
  • Tvaddic
    , contributor
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    With knowledge no one should subscribe to NFLX or AMZN considering everything they have is on DVD. And the exclusive deals they make are a waste of money.
    5 Jun 2013, 11:39 PM Reply Like
  • Sakelaris
    , contributor
    Comments (1446) | Send Message
     
    Tvaddic: I have said that Netflix has been spending too much on stuff like House of Cards. Maybe they need to have a few such shows, but $4 million per episode?

     

    And you watched any of that show, it became apparent that the high cost did not come from turning up the lights to a bright level while it was being filmed!
    6 Jun 2013, 12:58 AM Reply Like
  • doctorslernon
    , contributor
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    Does anyone have a clue what the actual value that these streaming deals give the streamer? 200 million is no number to sneeze at when I've yet to see any real idea of the value they provide. Amazon and Netflix seem to be like Indiana Jones when he drops down in the Last Crusade onto the invisible bridge hoping its there based on the sand he threw. They might have an inkling but until a tangible value is attached its all faith.
    4 Jun 2013, 10:06 PM Reply Like
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