- 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.
- Previous: Netflix changing Hollywood's investment habits, wants more exclusive deals
Netflix, pay-TV providers compete fiercely over content
Sep 22 2013, 14:26 ET