Netflix fights back, expands online library
With rival Redbox on the offensive, Netflix announces a deal with Epix to offer more streaming content.
By Jeanine Poggi, TheStreet
Netflix (NFLX) announced a deal today that will broaden its library of streaming movies. The news comes as the movie rental retailer struggles to maintain its superior footing.
Netflix will begin streaming their movies to customers on Sept. 1.
Epix has subscription pay TV rights to new releases and movies from the libraries of its partners and will make those movies available to Netflix 90 days after their premium pay TV and subscription on-demand debuts. Historically, the rights to distribute these films have been pre-sold to pay TV for as long as nine years after their release.
The financial terms of the deal were not disclosed.
The deal comes on the heels of what was viewed by investors as a lackluster second-quarter report. While Netflix reported yet another record quarter when it comes to new subscribers and profit, it fell short of revenue forecasts. Investors also fear that its potential base for new subscribers is shrinking. Post continues after video:
On top of this, rival Coinstar (CSTR), which owns Redbox DVD kiosks, is also stepping up its game. The company announced last week that it will expand its reach, rolling out kiosks in CVS Caremark (CVS) stores.
Last month, the company said it will begin offering Blu-ray DVDs for $1.50 a night in the fall. It has also been reported that Coinstar is looking into creating a streaming service.
This, no doubt, will directly hurt Netflix in some capacity, limiting its future growth.
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The solid report comes a month after the retailer closed all of its Canadian operations.
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