Netflix, pay-TV providers compete fiercely over content

As cord-cutting slowly but steadily gains momentum, pay-TV providers are trying to strike more expansive on-demand (VOD) streaming deals to counter Netflix's (NFLX) rise.

Whereas VOD services have typically offered 4 or 5 shows on a rolling basis, providers now want to offer every episode all season.

The WSJ reports Comcast (CMCSA) has reached a broader on-demand deal with Fox (FOX, FOXA) that will include mobile viewing. Fox and (Comcast-owned) NBCUniversal are said to be more open to such deals than Disney and CBS.

VOD services provide access to shows before Netflix does, but also include ads, often disable fast-forwarding, and usually don't cover back seasons.

Netflix is telling media companies it won't pay as much for content licensed in bigger VOD deals. Content chief Ted Sarandos: "The less exploited shows are through on-demand services, the more valuable they are to us."

Rentrak estimates free VOD viewing rose over 40% in 2012. Pay-TV infrastructure vendors such as Arris (ARRS), SeaChange (SEAC - previous), and Harmonic (HLIT) benefit from rising demand.

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Comments (1)
  • Sakelaris
    , contributor
    Comments (2708) | Send Message
    If the competitors of Netflix force us all into a pay-per-view world, just watch the average monthly cost to consumers begin to go up a lot!


    If any of you all are paying for something NOW via a pay-per-view arrangement, even if the price seems reasonable, you are serving to encourage this dangerous trend.
    22 Sep 2013, 09:17 PM Reply Like
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