Amazon Signs New Streaming Deal with Epix; Could Hurt Netflix
October 9, 2012 4:47 PM
comment(s) - last by
Epix will provide Amazon with about 3,000 more movies to the Prime Instant Video catalogue
Amazon is shelling out a considerable amount of cash to make sure its Prime Instant Video Service continues to stay competitive with Netflix via
a new contract with Epix
Amazon is shaking up the pricing model for licensing agreements with movie/TV studios. It recently agreed to pay Epix -- a partnership between Metro-Goldwyn-Mayer, Lionsgate and Paramount Pictures -- an earn-out provision if the number of Amazon Prime Instant Video subscribers increases above a certain point. This payment will be dished out over time as subscribers grow, and is in addition to the usual fixed upfront fee.
Generally, services like Netflix only agree to a fixed upfront fee with movie/TV studios when it comes to content licensing. However, studios realized that they want to be in on any future growth that may occur with video streaming services.
Epix isn't the only one who will benefit from such a deal model. Amazon has now given studios a reason to want to do business with them instead of bigger services like Netflix. As of now, Netflix has about 25 million subscribers in the United States while Amazon Prime Instant Video has about 3-4 million. Also, Amazon Prime Instant Video only has about 25,000 titles to offer while Netflix has double that. In other words: Amazon could really use the boost.
Epix will provide Amazon with about 3,000 more movies to the Prime Instant Video catalogue. Epix previously had a contract with Netflix for $200 million a year, but once that agreement ended, Amazon snuck in with the new deal.
Amazon really needs deals such as the one with Epix in order to boost its profit margins where
the Kindle Fire
is concerned, too. Amazon is selling the Fire at a discount with hopes that customers will use it to consume books, TV, movies and shopping through the e-tailer's services -- which makes up for the loss on selling the device at $199.
Since 2011, Amazon has announced new streaming deals with companies like NBCUniversal and ABC.
Amazon and Epix
announced their agreement last month
, but the pricing model details were just recently released.
This article is over a month old, voting and posting comments is disabled
RE: still wondering
10/10/2012 9:03:55 AM
Yeah, Newegg is far superior for browsing than Amazon. But Newegg's search function is weak because you have to spell things right. Amazon's search function is better, but it can overwhelm you with too many results.
"Spreading the rumors, it's very easy because the people who write about Apple want that story, and you can claim its credible because you spoke to someone at Apple." -- Investment guru Jim Cramer
Amazon Reveals $299 8.9" Kindle Fire HD, $499 LTE Model with $50 Yearly Data Plan
September 6, 2012, 2:05 PM
Amazon, EPIX Sign Agreement for More Prime Instant Video Content
September 5, 2012, 11:31 AM
Twitter Senior VP: "Diversity is Important, But We Can’t Lower the Bar"
November 9, 2015, 9:59 AM
CNN Resorts to Internet Censorship to Promote Clinton Over Senator Sanders
October 15, 2015, 2:47 PM
Breaking Bad: How to Crash Google's Chrome Browser With Just 8 Characters
September 23, 2015, 11:08 AM
Quick Note: Amazon UK Offers £10 Back on Any Order £50 or Over
August 3, 2015, 12:05 PM
Editorial: Reddit Allows Itself to be Hijacked as a Hate Platform For Racist Bigots
July 21, 2015, 6:32 PM
Mozilla and Facebook to Adobe: It's Time to Kill Flash
July 20, 2015, 6:30 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information